A dividend aristocrat is a dividend stock that has increased its dividend over 25 years in a row. These stocks are great for dividend investors that hold dividend stocks forever or for a very long time. The reason the stocks are great is because when the dividend is increased your yield on cost goes up most of the time, because the stock is most likely going to be higher in share price.
The best dividend aristocrat in my opinion is PBCT or Peoples financial. The stock has fallen from a 52 week high of 17.66 to a low of 10.40 and is currently at around 11.50 dollars a share today. The drop in stock price has boosted the dividend to 6.13% with a safe payout ratio of 55%. This payout ratio will allow them to increase the divided even through the crash most likely. The stock also has been growing their EPS (earnings per share) and revenue, this means they should be able to keep growing their dividend for a long time.
This stock already has a high yield and a good sign for growth of the dividend and a great dividend increasing track record. I believe with the price dropping and the yield going up now is a perfect time to buy.
