Dividend Aristocrats are popular. Too popular, if you ask me.
I’ll concede that the surest, safest way big stock market gains is dividend growth. Over time, stock prices are literally pulled higher by their payouts. Their dividends act as magnets that pull their shares higher and make their shareholders rich.
The Aristocrats have delivered plenty of wealth. Heck, to be admitted to the club they must have a track record of 25 annual dividend hikes in a row. At minimum.
Which is fantastic past performance. Problem is, the stock market looks ahead.
Many of these stocks are slowing down. Some—such as Johnson & Johnson (JNJ) and Coca-Cola (KO)—have elevated payout ratios of anywhere between 60% to 90%.… Read more