5 Dividend Aristocrats Where Analysts See Capital Gains

According to ETF Channel's analysis of the SPDR S&P Dividend ETF, Walmart (WMT), Robert Half (RHI), Bank OZK (OZK), Best Buy (BBY), and Waste Management (WM) are dividend aristocrat stocks with substantial upside to their average analyst target prices. Factoring in dividend yields, the implied total return potential ranges from 9.96% for Waste Management to 16.41% for Robert Half, with dividend growth ranging from 1.89% for Best Buy to 11.31% for Walmart.

Analysis

A recent analysis by ETF Channel, leveraging data from Zacks Investment Research, has identified five constituents of the SPDR S&P Dividend ETF (tracking the S&P High Yield Dividend Aristocrats Index) that exhibit substantial upside potential relative to average analyst 12-month price targets, alongside their established credentials as consistent dividend growers. These companies—Walmart Inc. (WMT), Robert Half Inc. (RHI), Bank OZK (OZK), Best Buy Inc. (BBY), and Waste Management, Inc. (WM)—are noted for potentially offering capital gains in addition to their dividend payments. Specifically, Walmart shows a 12.09% upside to its target price with an 11.31% trailing twelve-month (TTM) dividend growth. Robert Half presents an 11.11% upside, a significant 5.30% current dividend yield, and a 10.89% TTM dividend growth, leading to an implied total return potential of 16.41%. Bank OZK offers a 10.87% upside, a 3.74% yield, and 10.67% TTM dividend growth. Best Buy has an 8.73% upside and a 5.22% yield, though its TTM dividend growth is a more modest 1.89%. Waste Management indicates an 8.55% upside, a 1.41% yield, and an 8.62% TTM dividend growth. The core finding is that these dividend aristocrats, typically sought after and potentially fully valued, still possess room for share price appreciation according to consensus analyst estimates, with implied total returns (share price upside plus dividend yield) ranging from 9.96% for WM to 16.41% for RHI.

Key Decisions for Investors

• Investors seeking a combination of dividend income and capital appreciation may consider evaluating these five dividend aristocrat stocks (WMT, RHI, OZK, BBY, WM) which, according to analyst targets, are not yet fully priced.