Fuchs SE's fiscal 2024 results disappointed investors, causing a temporary stock decline, but the stock quickly recovered and remains a "Buy" due to its strong fundamentals. Despite a slight revenue decline, Fuchs achieved 10.1% EPS growth and maintains a diversified customer base, reducing dependency on any single client. Management expects 5% sales growth and 6% EBIT growth for fiscal 2025, with long-term revenue growth opportunities in e-mobility, wind power, and data centers.
BDCs face challenges due to declining earnings, increased private credit supply, and recession concerns, impacting dividend sustainability. Many BDCs have already cut their dividends to align earnings with the cash distributions. Yet, there is still a long list of BDCs that have maintained their base dividends safe.
Realty Income is now my portfolio's third-largest position. The REIT has a lengthy growth avenue to continue generating mid-single-digit annual AFFO per share growth. Realty Income enjoys an A- credit rating from S&P on a stable outlook.
Qualcomm offers a compelling investment with a 2.17% dividend yield, strong profitability, and undervalued stock, despite recent share price declines. QCOM's robust financials include $14.31 billion in cash, $12.74 billion in free cash flow, and a 25.94% net income margin. Risks include intense competition, regulatory scrutiny, and geopolitical tensions, but QCOM's capital allocation and growth in 5G, AI, and IoT provide significant upside.
Southern Company (NYSE:SO ) is a stalwart Dividend Aristocrat and again paying shareholders a quarterly dividend of $0.72 per share today.
The trade war is causing market volatility, with stocks falling and bonds performing well as investors seek hedges against economic slowdown fears. Dividend aristocrats, particularly low-volatility, defensive ones, offer a stable investment strategy during trade war turmoil. They provide dependable income and lower downside risk. The recommended 10 low volatility dividend aristocrats include Johnson & Johnson, PepsiCo, and Kimberly-Clark, offering a 4% yield and strong long-term return potential.
Genuine Parts Company is a global leader in automotive and industrial replacement parts, operating in 17 countries with over 10,000 locations. The company is a dividend aristocrat, raising dividends for 68 years, with a 3.2% yield and a recent increase to $4.12 per share annually. Restructuring efforts are expected to save $200 million by 2026, supporting long-term growth despite short-term earnings contraction.
Eversource Energy, a Dividend Aristocrat, offers a near-5% yield and has a 25-year track record of steady dividend growth, making it attractive for income investors. The company's focus on electric and natural gas infrastructure and grid reliability positions it well for long-term growth in New England. With a forward P/E of 13.0, well below its historical average, Eversource presents a compelling investment opportunity for building a durable income stream.
National Fuel Gas: Dividend Aristocrat With Strong Growth Catalysts
Walgreens Boots Alliance (NASDAQ:WBA) is a former Dividend Aristocrat that had a 92-year history of paying dividends.
J. M. Smucker is undervalued at a forward PE of 10.7x, offering a solid 4.1% dividend yield with a well-covered 41% payout ratio. Recent performance shows promise with 17% YoY net sales growth and 7% YoY adjusted EPS growth, driven by the Hostess acquisition and key brands like Uncrustables and Jif. Management targets $100 million in annual savings by FY2026, with continued cost synergies and margin improvements expected to bolster earnings.
The market's recent pullback is over. The S&P has hit record highs, driven by strong earnings growth potential through 2027. Despite the S&P 500's historically high PEGY ratio, robust growth forecasts (10%–15% annual EPS through 2026) mean valuations alone won't necessarily trigger a bear market. These 10‐stock dividend aristocrats are 37% undervalued. They offer an average yield of 3.4% and, if they revert to fair value, the potential to deliver up to 78% upside in 2025.