Dividend Aristocrats: Three top stocks with long-term potential

Dividend Aristocrats: Three top stocks with long-term potential

According to a report by www.aktienwelt360.de,

Dividend Aristocrats are companies that have increased their dividends every year for at least 25 years. An economist notes that many of these companies are sluggish and barely growing, which has a negative impact on stock price performance. Still, he highlights three companies that have outperformed the broader stock market over the past decade and are well-positioned to continue doing so in the future: Fastenal, McDonald's and S&P Global.

Fastenal, a US company that wholesales industrial and construction supplies, is growing at nice rates in the long term. Over the past decade, it has averaged 8% revenue growth and 10% profit growth each. The dividend was increased for the 25th consecutive year this year, joining Fastenal to the elite circle of dividend aristocrats. The current dividend yield is 2.3% (as of all information: November 28, 2023). Despite the difficult macroeconomic environment, sales and profits each increased by 6% in the first nine months of 2023.

McDonald's, the largest fast food company in the world, has seen its share price rise by +190% over the past decade and has increased dividends by an average of 8% over the past decade. In the first nine months of 2023, the company reported 11% revenue growth and a 52% increase in earnings per share.

S&P Global, provider of the S&P 500 index, has averaged 10% growth in sales and 17% in earnings per share over the past decade. The company has been a dividend aristocrat for 50 years and has a forward dividend yield of 0.9%.

These companies show that there is also growth potential within the group of Dividend Aristocrats. Despite high valuations, they could represent interesting investment opportunities, especially for long-term investors.