Everyone’s talking about tariffs these days. Donald Trump’s presidency started with a few controversial decisions, one of which was the threat of tariffs being levied on Canada, Mexico, China, and EU constituents, leading to retaliatory tariffs from said countries. Thankfully, there's a bit of a reprieve with only a 10% tariff on Chinese imports - for now. The thing is, tariffs increase the cost of goods consumers pay here in the United States - so it's no wonder investors are concerned about inflation once again, all while getting restless and wary, which could mean a muted equity performance in the coming months.
Now, volatility can be suitable for risk-takers and certain option traders who know how to capitalize on uncertainty. However, not everyone thrives in volatile market conditions, making safer assets like dividend stocks excellent options for risk-averse investors.
And if you’re looking for dividend stocks, why not get the cream of the crop? Members of the S&P 500 Dividend Aristocrats index have paid increasing dividends for 25 years and have met specific trading and volume requirements to be part of the club.
However, these mature companies have stable businesses and a notable presence in their respective sectors, so they don’t usually come cheap. Fortunately, there are times—like now—when market swings offer opportunities to buy Dividend Aristocrats at massive discounts.
So, today, let’s look at the cheapest Dividend Aristocrats in the market today.
How I Came Up With The Following Stocks
To get the results for this article, I used Barchart’s Stock Screener tool with the following filters:
- Annual Dividend Yield: Left blank so I can sort the results using this criterion.
- Number of Analysts: 8 or more. This filter allows me only to get Dividend Aristocrats covered by eight or more Wall St. analysts because there’s no sense in acting on a data point if it’s coming from a singular source. Speaking of data points—
- Current Analyst Rating: 3.5 (Moderate Buy) to 5 (Strong Buy). Filtering the results for buy-rated companies only gives me the confidence that these stocks aren’t cheap because of fundamental company issues.
- 14-Day Relative Strength Index: 35 and below. The relative strength index is a technical analysis metric used to determine if a stock is oversold or overbought. The index has a 100-point scale, with 70 marking the overbought levels and 30 the oversold ones. I opted to use 35 and below for this analysis to capture stocks that were oversold but have recovered some ground recently.
With these filters, I got the following results:
As mentioned, I arranged the list from highest to lowest yields, and now I'll discuss each in turn, starting with the first one on the list:
C.H. Robinson Worldwide (CHRW)
C.H. Robinson Worldwide is the highest-yielding Dividend Aristocrat on my list today. It's a global logistics company that offers logistics and supply chain management solutions like freight transportation, third-party logistics, and international trade management. The company operates in Asia, Europe, the Americas, and Oceania.
The company pays 62 cents quarterly, translating to a $2.48 annual dividend and a 2.52% yield. Its recent Q4 2024 report was mixed, with revenue missing estimates while the bottom line exceeded expectations, leading to what looks to be a knee-jerk sell-off.
This presents an opportunity for investors to capitalize on C.H. Robinsion's low stock price. Currently, CHRW stock’s 14-day RSI is at 32.90, while analysts give it a moderate buy rating.
PPG Industries (PPG)
PPG Industries is a global leader in coatings, paints, and specialty materials, providing solutions across various industries, including automotive, aerospace, and construction. The company’s worldwide operations are covered by over 200 manufacturing facilities in the US, Canada, Latin America, EMEA, and Asia.
PPG’s Q4 results fell short of Wall Street’s expectations, which led to a recent sell-off. Currently, PPG stock’s 14-day RSI is at 32.14, while it closed yesterday at $111.99. And while the company had a rough 2024, Chief Executive Tim Knavish is cautiously optimistic about 2025. “Despite the macroeconomic environment,” he said, “we expect to deliver organic sales growth of a low single-digit percentage for the year, with first quarter organic growth flat to slightly down and stronger results in the second half of the year driven by share gains.”
Analysts rate the stock as a moderate buy with a 4.0 average score, and the company pays $2.72 per share, which reflects a 2.43% yield.
Albemarle Corp (ALB)
Albemarle Corporation is a leading global provider of specialty chemicals, particularly in lithium, bromine, and refining catalysts. The company serves diverse industries such as energy, electronics, automotive, and healthcare, focusing on sustainable solutions and advanced technologies.
The company pays a $1.62 forward annual dividend, translating to a 2.01% yield. Meanwhile, its stock is trading at a 30.73 14-day RSI, and analysts rate it as a moderate buy with a 3.65 average score.
Final Thoughts
Investing in the Dividend Aristocrats can be a great way to bolster your income during turbulent market periods. Buying them cheap, meanwhile, practically guarantees you enjoy dividends and capital appreciation once the stock’s price recovers. However, remember that the market is fluid, and changes can and will affect companies in ways we can’t fully anticipate. So, always keep an eye on the news and stay updated on your holdings.
