Dividend Aristocrats Best Value Rankings

Learn what a Dividend Aristocrat is. Then use this free Dividend Aristocrats ranking system to begin your investing research. Buy the best dividend stocks at undervalued prices. The S&P Dividend Aristocrats List is a group of companies that have paid and increased dividends for 25 years or more. Income investors favor Dividend Aristocrats because the companies are solid long-term holdings with predictable, safe, and growing dividend payments.

Dividend growth is a key metric for income investors to ensure income growth outpaces inflation. Stability and reliability are also important factors so that income streams remain consistent in a retirement portfolio.

The table that follows below is a quick value ranking system to help investors start their investment research process. After the ranking table, be sure to look at my methodology.

In a similar exercise, I compared the stocks available on the Loyal3 platform in a value ranking system. Feedback on that list has been very positive, so I’ve decided to do the same for the Dividend Aristocrats list.

I call this a quick value rankings list because it’s a first-glance look at the current best value opportunities. Keep in mind, this is in no way a complete way to evaluate a stock. Further research is necessary before buying one of these stocks.

Don’t consider this ranking system a recommendation to buy or sell individual stocks. However, use it as a starting point for further due diligence and research.

I also make no guarantee of the accuracy of this data. Data is sourced from Yahoo Finance, so it’s as good as they provide it.

You’ll see the Score column update too, which is how the final value ranking is determined. The data is updated every few days.

The dynamic ranking system below is designed to point out the Dividend Aristocrats that may be undervalued at a given point in time and are worthy of additional research. I’m currently using a 35-point system to rank the stocks based on my own investment philosophies and objectives.

How to Buy the Most Undervalued Aristocrats

You can attempt to buy the Dividend Aristocrats one at a time or use an ETF like the NOBL. However, I prefer a better method.

For buying the Dividend Aristocrats, I’m a big fan of the online broker Motif Investing. With Motif, you can create your own “motif“, kind of a customized mini-ETF. Then you can buy all the stocks in the motif at once for just $9.95. Up to 30 stocks. So you can choose the best of the best, and leave out the dogs. Really cool.

With Motif Investing you can also buy any of the individual Dividend Aristocrat stocks for just $4.95 per trade. Great price.

Motif Investing is also planning to offer individuals access to IPOs whenever that market recovers. That’s why I first signed up, but I’ve found I’m a big fan of the overall user interface.

Join Motif Investing for free today!

There’s a great deal right now on new accounts. Click the banner below to learn more.

dividend aristocrats

Another option is to invest in the Direct Stock Purchase Plans (DSPPs), aka, the dividend reinvestment plans (DRIPs). However, I consider DRIPs to be a little outdated now with so many better options out there. To find the DRIP you’ll need to visit the Investor Relations center on each individual company’s website. Be sure to pay attention to the fees. Read this article that explains DRIPs in more detail.




For tracking your portfolio, I recommend another great tool (and 100% FREE!) that I use every day. It’s called Personal Capital. It’s not a brokerage, so you can’t buy stocks through it directly.

Personal Capital consolidates all of your data from separate bank and brokerage accounts into one view, calculating net worth and analyzing your investments. So cool. If you’re looking to get serious about investing and personal finance, definitely check it out. Click here to learn more.

Dividend Aristocrats List Eligibility

To be eligible for membership in the S&P 500 Dividend Aristocrats list, a company must meet the following criteria (source):

  • Be a member of the S&P 500
  • Have increased dividends every year for at least 25 consecutive years
  • Meet minimum float-adjusted market capitalization and liquidity requirements

S&P maintains the complete eligibility standards of the Dividend Aristocrats list. This list is different than the U.S. Dividend Champions List maintained by David Fish at Dripinvesting.org.

The Dividend Champions List is not bound by membership in the S&P 500 index so smaller companies qualify. In addition, the Champions follow fiscal year instead of calendar year. So the S&P 500 rules may not include certain companies with great dividend histories (such as Parker Hannifin) whose streaks are fiscal year based.

Many dividend growth investors prefer the Dividend Champions, Challengers, and Contenders (CCC) for its more comprehensive range of companies.

But the Dividend Aristocrats are the most famous, so many investors choose to stick with the most well-known list. I’ve chosen to do the same for this exercise to keep the size of the table manageable.

Methodology

Up to five points is awarded to each stock based on the following criteria:

  • Current P/E Ratio
  • Forward P/E Ratio
  • Current Yield
  • PEG Ratio (Price to earnings growth)
  • Price to Book Ratio
  • Payout Ratio

The maximum score is 30. These are six valuation measures I use in my own investing. I’m sourcing the data from Yahoo Finance and using Google Sheets to assemble the data and calculate the points. Below you can see the vital data, but I’m calculating the scoring behind the scenes because it doesn’t fit. Basic logical commands calculate the scoring based on the metrics listed after the table.

If you have any suggestions for additional metrics, please write them in the comments section. Data that is N/A or unavailable is scored as zero.

After the table, you can look into the specific scoring criteria I’m using. If you want to see the specific formulas, head on over the Loyal3 Stocks Best Value Page where I spell each formula out at the bottom. The table itself is not shared, but you can copy the formulas to make your own.

Scoring Metrics

Current P/E Ratio (Yahoo Finance)

  • 0-105 points
  • 10.01-15, 4 points
  • 15.01-20, 3 points
  • 20.01-30, 2 points
  • 30.01-40, 1 point
  • >40, 0 points

Forward P/E Ratio (Yahoo Finance)

  • 0-105 points
  • 10.01-15, 4 points
  • 15.01-20, 3 points
  • 20.01-30, 2 points
  • 30.01-40, 1 point
  • >400, 0 points

Dividend Yield (Yahoo Finance)

  • >4%, 5 points
  • 3.01%- 4.0%, 4 points
  • 2.01%-3.0%, 3 points
  • 1.01%-2.0%, 2 points
  • 0.01%-1.0%, 1 point
  • No dividend, 0 points

PEG Ratio (Yahoo Finance)

  • 0.0-1.0, 5 points
  • 1.01-2, 4 points
  • 2.01-3, 3 points
  • 3.01-4, 2 points
  • 4.01, 5, 1 point
  • >5.0, 0 points

Price to Book (Yahoo Finance)

  • 0-2, 5 points
  • 2.01-4, 4 points
  • 4.01-6, 3 points
  • 6.01-8, 2 points
  • 8-10, 1 point
  • >10, 0 points

Payout Ratio (Yahoo Finance)

  • <35%, 5 points
  • 35.01%- 45.0%, 4 points
  • 45.01%-60.0%, 3 points
  • 60.01%-75.0%, 2 points
  • 75.01%-90.0%, 1 point
  • >90.00% =, 0 points

Please provide any feedback you may have in the comments section or by contacting me. I’m happy to consider other metrics or adjusting the methodology as long as the data is available and it fits into the screen.

To learn more about the Dividend Aristocrats, visit the Standard & Poors Indices Website.

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