Dividend Growth Stocks with Strong Upside Potential Identified

A recent report highlights five dividend growth stocks that are part of the S&P Dividend ETF and still offer substantial upside to analyst target prices over the next year, promising both capital gains and increasing dividends for investors.

Date: 25-10-2024

AI Rating: 7

The report identifies five stocks within the SPDR S&P Dividend ETF, emphasizing their potential for capital gains along with dividend growth. These stocks, which meet the criteria of Dividend Aristocrats, are expected to perform well based on average analyst target prices.

The stocks listed include:

Graco Inc (GGG) - Current price: $82.34, Analyst target: $89.50, Upside: 8.70%
L3Harris Technologies Inc (LHX) - Current price: $244.17, Analyst target: $265.18, Upside: 8.61%
Sherwin-Williams Co (SHW) - Current price: $361.59, Analyst target: $390.45, Upside: 7.98%
Waste Management, Inc. (WM) - Current price: $208.91, Analyst target: $225.53, Upside: 7.95%
Republic Services Inc (RSG) - Current price: $201.53, Analyst target: $216.95, Upside: 7.65%

In addition to potential price appreciation, the report notes the dividend yields for these companies:

Graco Inc - 1.24%
L3Harris Technologies Inc - 1.90%
Sherwin-Williams Co - 0.79%
Waste Management, Inc. - 1.44%
Republic Services Inc - 1.15%

This implies a total return potential for each stock, combining both the dividend yield and upside to the analyst target price. For instance, Graco Inc has a total return potential of 9.94%, while L3Harris Technologies has 10.51%.

Furthermore, the growth of dividends over the last twelve months is presented:

Graco Inc - Dividend growth: 8.51%
L3Harris Technologies Inc - Dividend growth: 1.76%
Sherwin-Williams Co - Dividend growth: 13.87%
Waste Management, Inc. - Dividend growth: 7.27%
Republic Services Inc - Dividend growth: 8.17%

This dividend growth is a critical metric as it denotes the continued willingness of these companies to return value to shareholders. Overall, this report showcases favorable conditions for potential investors, particularly as these companies are positioned as Dividend Aristocrats.

Stocks: GGG LHX SHW WM RSG