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2 Unique Dividend Aristocrats to Diversify the Portfolio

Dividend Aristocrats are appealing for the reliable income with the qualification being that they have increased their dividend for 25 consecutive years.

Among the Dividend Aristocrat list are companies from a variety of sectors. Here are two that are top-rated Zacks stocks at the moment and can offer unique exposure and diversification to investors’ portfolios.

Becton Dickinson & Company (BDX)

First up is Becton Dickinson & Company, a technology company engaged principally in the development, manufacturing, and sale of medical devices, instrument systems, and reagents.  

Becton Dickinson currently sports a Zacks Rank #2 (Buy) and its Medical-Dental Supplies Industry in the top 24% of over 250 Zacks Industries.

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Becton Dickinson has a unique niche in its industry and offers valuable exposure to a broad range of health fields as a provider of needles, syringes, intravenous catheters, refillable drug delivery systems, refillable sharps for disposal containers, closed-system transfer devices, and generic prefilled injectables.

In addition to this Becton Dickinson offers a variety of diagnostics products and surgical specialty products. In correlation with its extensive reach and strong business industry, earnings estimate revisions have trended higher.

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Zacks Investment Research


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Becton Dickinson’s earnings are now forecasted to rise 7% this year and jump another 11% in FY24 at $13.52 per share. Sales are projected to dip -1% in FY23 but rebound and rise 5% in FY24 to $20.23 billion.

Dividend History: BDX has a 1.52% annual dividend yield at $3.64 a share. The annualized dividend growth over the last five years is 3.97%. With a 31% payout ratio, Beckton Dickinson has now raised its dividend for 51 consecutive years classifying the company as a Dividend King as well (50 consecutive years).

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Zacks Investment Research


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Plus, Becton Dickinson’s price-to-earnings valuation is starting to look more attractive. Shares of BDX trade at $238 per share and 19.6X forward earnings. This is on par with the industry average and nicely beneath its decade high of 27.1X while also being in line with the median of 19.8X.

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Zacks Investment Research


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Linde PLC (LIN)

Another stock that can offer unique and valuable diversity to investors’ portfolios is Linde PLC, a leading producer of industrial gases that are used in a variety of industries.

The industrial gases are used for chemicals & refining, food & beverage, electronics, healthcare, and primary metals. Linde stock also sports a Zacks Rank #2 (Buy) as earnings estimates have continued to trend higher over the last 90 days.

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Zacks Investment Research


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Earnings are now expected to jump 8% in FY23 and climb another 10% in FY24 at $14.66 per share. On the top line, sales are forecasted to be up 2% this year and rise another 6% in FY24 to $36.07 billion.  

Dividend History: LIN has a 1.50% annual dividend yield at $5.10 a share. The dividend growth over the last five years is 8.95% with a 38% payout ratio. Linde has now raised its dividend for 29 consecutive years.

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Zacks Investment Research


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Linde’s valuation is starting to look more attractive as well. Shares of LIN trade at $345 per share and 25.3X forward earnings which is above the industry average of 15.4X. However, Linde is a leader in its space and still trades 23% below its decade-long high of 33X and closer to the median of 23.3X with the rising earnings estimates offering further support. 

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Zacks Investment Research


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Bottom Line

The bottom-line growth of these Dividend Aristocrats is intruiging and the rising earnings estimate revisions are a great sign. On top of their reliable dividends, Becton Dickinson and Linde stock appear to have more upside at the moment and are viable options to diversify the portfolio.

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Becton, Dickinson and Company (BDX) : Free Stock Analysis Report

Linde PLC (LIN) : Free Stock Analysis Report

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