Traders in the defensive investment space are well-acquainted with Dividend Aristocrats—companies that have offered consistently increasing dividend payouts for 25 years or more (& listed on the S&P 500). That in and of itself might be enough reason for investors to buy such stocks. However, more discerning investors might want more before deciding what to buy. Reviewing price action and technical indicators for chart-based assessments is a popular complement to Dividend Aristocrat investment—and Barchart continues to make that easy for us investors with Barchart Opinions.
What Is The “Barchart Opinions?”
"Barchart Opinions" is a proprietary feature in Barchart.com that consolidates 13 technical indicators (including Barchart Trend Seeker®) to suggest a stock or commodity’s future direction or trend in the short-, medium-, and long-term, based on its current position relative to the indicators used. After each round of calculations, the program assigns a buy, hold, or sell value and rates them on a 0-100% scale.
The results provide a percentage ranking for the trend’s current strength and direction. It’s a useful tool to provide guidance on where the stock is in its current trend and if there is still momentum behind the movement.
Disclaimer: Barchart Opinions are not a recommendation to buy or sell a security. Your decision whether or not to make a purchase should be based on your own due diligence and not on any representation we make to you.
So, let’s look at three Dividend Aristocrats which are at the top 1% of Barchart Opinion’s Buy Rating.
Abbvie Inc (ABBV)
Biotech and pharma stocks can be very hit or miss. Players in the industry can potentially offer life-saving cures for illnesses that have haunted mankind for centuries or at least make the disease tolerable during everyday living. However, some companies can also fall big-time, failing to produce promised results. And even if the company wins big on one of its patent products, it often becomes entirely dependent on it, leading to unsustainable growth.
Thankfully, Abbvie Inc.—a Dividend Aristocrat and one of the most recognizable biopharmaceutical companies in the world—is at no risk of falling flat on its face.
For context, Abbvie Inc.’s blockbuster drug is Humira, a medication for rheumatoid arthritis in adults. Humira drove sales through the roof, topping $21 billion in 2023. However, its patent protection expired in May 2023, leading to increased competition from biosimilars.
Despite these challenges, ABBV is prepared to launch its next blockbuster drug from over 90 patents in its current pipeline. Skyrizi and Rinvoq, its two other high-performing medications, saw a 51.9% and 62.9% sales growth in Q4’23.
ABBV pays a $5.99 annual dividend or a 3.35% annual yield.
What Do Barchart's Opinions Say?
Consolidated technical analysis rates ABBV a 100% Buy in the short-term, medium-term, and long-term.
Chubb Ltd (CB)
Chubb Ltd is a holding company that offers a broad range of insurance products worldwide. Its products include commercial, personal, casualty, accident, supplemental health, and specialized insurance for energy and aviation companies and operations. The company also insures asset management funds, lending institutions, banks, and other insurance companies.
CB’s latest quarterly report had quite a story—the kind investors love to hear. Net income reached record highs of $3.30 billion, a 151.7% increase YoY. EPS also ended at $8.30, exceeding estimates by 63.71%.
Chubb Ltd pays a $3.41 annual dividend, translating to a 1.34% yield.
What Do Barchart's Opinions Say?
Barchart Opinions rates CB as 100% Buy in the short-term, medium-term, and long-term.
Fastenal Company (FAST)
Fastenal Company provides wholesale distribution for various industrial supplies like abrasives, adhesives, metalworking tools, HVAC, refrigeration, and hydraulics—and, as the company name suggests, is the largest fastener distributor in North America. Aside from manufacturing construction supplies, FAST also provides digital supply chain solutions like construction supply vending machines and RFID-assisted stocks that simplify monitoring and tracking of inventory.
Fastenal's latest quarterly earnings report saw growth across the board. Net sales grew by 3.7%, gross profit increased by 4.0%, operating income saw a 6.3% hike, and net earrings ended 8.5% higher YoY.
FAST cited its growing number of onsite locations (58 in Q4’23) and digital solutions like FASTStock, FASTBin, and FASTVend—all under its FMI Technology segment—as the primary growth drivers for the quarter. Indeed, FASTBin and FASTVend signings were up 15.5% YoY, with daily average signings going up from 76 to 88.
Fastenal pays $1.82 annual dividend yield, translating to a yield of 2.49%.
What Do Barchart's Opinions Say?
FAST has a 100% Buy rating for the short-term, medium-term, and long-term.
Final Thoughts
"Barchart Opinions" is a useful tool that investors can leverage to improve their portfolio performance—but it’s not the be-all, end-all of due diligence. Always align your investment strategies with your goals, and always be watchful of any new developments in the space in which you’re investing.
On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
