5 Dividend Growth Stocks With Upside To Analyst Targets

Five 'Dividend Aristocrat' stocks, identified within the SPDR S&P Dividend ETF holdings, are highlighted for offering substantial upside potential according to average analyst 12-month targets, despite their typically 'fully priced' status. These include Becton, Dickinson & Co (BDX) and SJW Group (SJW), which show implied total return potentials of 22.44% and 20.87% respectively, factoring in both capital appreciation and current dividend yields. The analysis suggests these companies could provide attractive capital gains alongside their consistent dividend growth.

Analysis

An analysis of the SPDR S&P Dividend ETF's holdings has identified five 'Dividend Aristocrat' stocks that exhibit significant potential for capital appreciation, challenging the notion that such stocks are typically 'fully priced'. According to average analyst 12-month price targets, the potential upside for these equities ranges from 10.08% for Sysco Corp (SYY) to a substantial 20.64% for Becton, Dickinson & Co (BDX). When factoring in current dividend yields, the implied total return potential becomes even more compelling, with BDX and SJW Group (SJW) showing potential returns of 22.44% and 20.87%, respectively. Furthermore, these companies continue to demonstrate their commitment to shareholder returns through consistent dividend growth, with trailing-twelve-month (TTM) dividend increases ranging from 2.02% for SYY to 6.67% for Royal Gold Inc (RGLD). The data, sourced from Zacks Investment Research, suggests a specific subset of high-quality, dividend-paying companies may be undervalued relative to their growth prospects and income generation.

Key Decisions for Investors

• Investors seeking total return should evaluate these five Dividend Aristocrats, as they present a compelling combination of potential double-digit capital appreciation and stable, growing dividend income.