5 Dividend Growth Stocks With Upside To Analyst Targets

ETF Channel identified five dividend aristocrat stocks within the SPDR S&P Dividend ETF (SDY) that exhibit substantial upside based on analyst target prices: Old Republic International (ORI), Ryder System (R), MSA Safety (MSA), Sherwin-Williams (SHW), and J.B. Hunt Transport Services (JBHT). Factoring in dividend yields, the implied total return potential ranges from 9.37% to 14.15%, with Old Republic International showing the highest dividend growth at 208.50%.

Analysis

The analysis focuses on identifying "Dividend Aristocrat" companies, defined as those with at least 20 consecutive years of dividend increases, which may present attractive investment opportunities despite potential for being fully priced due to high investor demand and inclusion in tracking funds like the SPDR S&P Dividend ETF (SDY). ETF Channel has identified five such stocks from the SDY's underlying holdings that still exhibit substantial upside to average analyst 12-month target prices: Old Republic International Corp. (ORI) with 11.08% upside, Ryder System, Inc. (R) with 10.26%, MSA Safety Inc (MSA) with 9.14%, Sherwin-Williams Co (SHW) with 8.55%, and J.B. Hunt Transport Services, Inc. (JBHT) with 8.11%. When current dividend yields are factored in, the implied 12-month total return potential for these stocks ranges from 9.37% for JBHT to 14.15% for ORI. Furthermore, the analysis highlights significant trailing twelve-month (TTM) dividend growth for these companies, most notably Old Republic International Corp. at 208.50%, followed by Ryder System, Inc. at 14.08% and Sherwin-Williams Co at 14.02%, indicating a strong upward trajectory in shareholder returns.