5 Dividend Growth Stocks With Upside To Analyst Targets

According to ETF Channel's analysis of the SPDR S&P Dividend ETF, New Jersey Resources Corp (NJR), Verizon Communications Inc (VZ), Microchip Technology Inc (MCHP), Linde PLC (LIN), and Abbott Laboratories (ABT) are dividend aristocrat stocks with substantial upside to average analyst target prices. Factoring in dividend yields, the implied total return potential ranges from 9.21% for Linde PLC to 20.96% for New Jersey Resources Corp, with trailing twelve-month dividend growth ranging from 1.93% for Verizon to 8.72% for Linde PLC.

Analysis

The analysis identifies five "Dividend Aristocrat" companies, defined as firms with at least 20 consecutive years of dividend increases, that also exhibit substantial upside potential to their average 12-month analyst target prices based on data from Zacks Investment Research. These companies, New Jersey Resources Corp (NJR), Verizon Communications Inc (VZ), Microchip Technology Inc (MCHP), Linde PLC (LIN), and Abbott Laboratories (ABT), are holdings within the SPDR S&P Dividend ETF and present an alternative to the often "fully priced" nature of such quality dividend growers. New Jersey Resources Corp shows the highest potential capital appreciation with a 17.02% upside to its $53.50 target price from a recent $45.72. Verizon Communications has an 8.79% upside to $47.14, Microchip Technology an 8.74% upside to $63.19, Linde PLC a 7.92% upside to $500.82, and Abbott Laboratories a 7.74% upside to $143.14. When factoring in current dividend yields, the implied 12-month total return potential is led by New Jersey Resources Corp at 20.96% (3.94% yield), followed by Verizon at 15.04% (6.25% yield), Microchip Technology at 11.87% (3.13% yield), Abbott Laboratories at 9.52% (1.78% yield), and Linde PLC at 9.21% (1.29% yield). Recent trailing twelve-month (TTM) dividend growth rates also vary, with Linde PLC demonstrating an 8.72% increase, Abbott Laboratories 7.55%, New Jersey Resources Corp 7.27%, Microchip Technology 3.88%, and Verizon Communications 1.93%. This selection highlights opportunities for both capital gains and growing dividend income, supported by a strongly positive sentiment focused on capital returns and analyst insights.