Dividend Aristocrats have long been a favorite among income-focused investors because stocks earn this title by increasing dividend payouts to shareholders for over 25 consecutive years. These companies have weathered multiple economic cycles, maintained profitability, and rewarded shareholders with consistent dividend growth, making them some of the most trusted names in the market.
While many of these stocks trade at a premium due to their stability and reputation, there is a select group that stands out for having notably low price-to-earnings ratios. This combination of reliable dividend growth and attractive valuation can be rare, offering a potential sweet spot for investors seeking both income and value.
The following names represent some of the most attractively valued Dividend Aristocrats in today’s market, each with the potential to deliver not only dependable dividends but also capital appreciation as valuations normalize.
| Company Name (Ticker) | P/E Ratio | Analyst Upside |
| Cardinal Health (CAH) | 16 | 20% |
| Federal Realty Investment Trust (FRT) | 29 | 17% |
| A. O. Smith (AOS) | 18 | 10% |
| W. W. Grainger (GWW) | 24 | 7% |
| Kimberly-Clark (KMB) | 18 | 7% |
| Caterpillar (CAT) | 21 | 6% |
| Cincinnati Financial (CINF) | 19 | 5% |
| Walgreens Boots Alliance (WBA) | 8 | -1% |
| Franklin Resources (BEN) | 11 | -3% |
| T. Rowe Price (TROW) | 12 | -5% |
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Cardinal Health (CAH)
Cardinal Health is a leading global distributor of pharmaceutical and medical products, serving hospitals, pharmacies, and healthcare systems across the United States and international markets. The company operates through two main segments: Pharmaceutical Distribution and Medical Products.
It has benefited from consistent demand in the healthcare sector, though recent revenue has been flat. Cardinal Health’s return on equity has been negative in recent periods, reflecting profitability challenges in a mature, low-margin industry.
While its dividend yield is currently low at around 1.4%, the company has an impressive track record of 29 consecutive years of dividend increases, supported by a conservative payout ratio of about 31.7% and a defensive business model that provides reliable income during economic cycles.
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Federal Realty Investment Trust (FRT)
Federal Realty Investment Trust is a real estate investment trust focused on high-quality retail and mixed-use properties located in major metropolitan areas in the United States. Its portfolio includes shopping centers, office space, and residential units concentrated in affluent, high-traffic communities.
The stock has a track record of 58 consecutive annual dividend increases, making it the only REIT to achieve “Dividend King” status and one of the most reliable dividend payers in the sector. Federal Realty’s trailing return on equity is approximately 10.1%, reflecting steady asset performance in a relatively defensive niche. It offers a dividend with a forward yield of about 4.9%.
However, the dividend payout ratio is high, at around 126%, suggesting the payout is not fully covered by earnings. The trust benefits from strong tenant occupancy and premium property locations that continue to support consistent distributions to shareholders, despite the high payout ratio.
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A. O. Smith (AOS)
A. O. Smith is a leading manufacturer of water heaters, boilers, and water treatment solutions for both residential and commercial customers. The company operates primarily in North America and has a growing presence in markets like India, while it is currently assessing strategic opportunities for its China business.
Its revenue growth has been stable, driven by replacement demand for water heating systems and increasing adoption of energy-efficient products. A. O. Smith maintains a strong trailing return on equity of approximately 27.67%, highlighting its profitability and operational efficiency.
The company offers a forward dividend yield of about 1.92% and has an impressive history of 31 consecutive years of dividend increases, supported by strong free cash flow generation. Its focus on essential products, reliable brand reputation, and ongoing innovation in the water technology space provide a solid footing for continued growth.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
