Rich Returns at a Discount: 3 Dividend Aristocrats Trading at 52-Week Lows

Looking for Dividend aristocrats trading at their 52-week lows? If so, you’ve come to the right place.

Investing shouldn’t always be about chasing high-flying stocks. Sometimes, the best picks can be those hiding in plain sight. A contrarian view might give you a once-in-a-decade opportunity to own a top-tier stock. I can’t blame investors for rushing to the exit when stocks are in free fall. However, prudent investors know that downturns can be great opportunities to snag quality stocks at a bargain. 

Dividend Aristocrats trading around their 52-week lows can be a good starting point. These companies have proven they can weather economic downturns with their steady income, stable business models, and strong foundations. 

So, lower prices, high dividend payouts, and reliable increases equal great growth potential over the long term. Picking the right ones could offer you some of the best long-term returns that last until retirement.

The 52-week low, meanwhile, offers investors a snapshot of the stock’s current support base – where other investors may flock to snap up shares at a discount. 

With that in mind, let’s look at three Dividend Aristocrats trading near their 52-week low and still showing signs of earnings stability or growth that could trigger a comeback shortly.

3 Dividend Aristocrats Trading at 52-Week Lows: Brown-Forman Corporation (BF.B)

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While it might not be a household name like other Dividend Aristocrats, Brown-Forman Corporation (NYSE:BF.B) owns some of the most beloved beverage alcohol brands in the market. 

The company manufactures, exports, imports, and sells trademarked alcohol brands like Jack Daniels, Woodford Reserve, and Old Forester. Its strong portfolio of premium brands, such as Jack Daniels, gives it a strong position in the premium end of the alcohol market. 

Brown-Forman’s Q3’24 report pointed to a 1% decrease in YOY net sales. Despite this, its operating income surged by 116%. Diluted earnings per share also increased by 189%, highlighting the strength of its portfolio despite market challenges. 

President and CEO Lawson Whiting highlighted Brown-Forman’s resilience and agility despite industry uncertainties, emphasizing its gross margin expansion and continued investment in the business. 

The company recently registered another 52-week low, allowing investors to buy this Dividend Aristocrat at a steep discount. Brown-Forman pays an 87-cent annual dividend, reflecting a 1.67% yield. 

While there is no sign of a bottom, its growing net income, strong premium portfolio, and regularly increasing dividends are enough to keep tabs on Brown-Forman.

Johnson & Johnson (JNJ)

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The largest healthcare company, Johnson and Johnson (NYSE:JNJ) is a global brand known for Band-Aid, Listerine, Immodium, and other household products. The company mainly operates in two main segments:

1. MedTech: this includes its broad portfolio of products used in surgery, vision fields, and interventional solutions. 
2. Innovative Medicine: specializes in neuroscience, infectious diseases, oncology, and various diseases.

In terms of growth, the company recently acquired Ambrx Biopharma, which will help it enhance its next-generation antibody-drug conjugates.

JNJ stock is on track to retest its 52-week low after carving out a bottom at around $145.00 area. It’s currently retesting its immediate low around the $155.00 mark. 

Meanwhile, on the financial side, the company’s FY’23 sales increased 6.5% YOY, and adjusted diluted EPS was 11.1% higher. Guidance for 2024 also looks rosy, with the company expecting all relevant metrics to grow by mid- to high-single digits. 

As for dividends, the company announced a $1.19 quarterly payout for 2024, amounting to $4.76 or an attractive 3% yield. As one of the Dividend Aristocrats trading at 52-week lows, Johnson & Johnson is a strong value proposition for long-term investors with its current price action and growth numbers. 

Becton, Dickinson and Company (BDX)

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Commonly referred to as BD, Becton, Dickinson and Company (NYSE:BDX) is a medical technology company that manufactures and sells lab equipment, medical devices, and supplies. Its segments include:

1. BD Medical: includes pharmaceutical systems, medication management, and delivery solutions.
2. BD Life Sciences: offers reagent systems, diagnostic specimen collection, and more. 
3. BD Interventional: covers the company’s surgical, oncology, and urology products.

The company recently announced plans to increase its domestic syringe production to support the growing demand for syringes in United States patient care. It has also partnered with Techcyte to offer an AI-based digital cervical cytology system for Pap Testing.

BDX stock has been trading in a narrow range after hitting a bottom at $229.85. This trading range gives investors time to accumulate BDX for their long-term portfolio. 

The good news doesn’t stop there. If we review its Q1’24 financials, we can see that the company also reported 2.6% YOY revenue growth. 

Due to that positive result, management upped the forecasted full-year organic revenue growth from 5.25% to 6.25% to 5.5% to 6.25%. In addition, EPS growth is expected to hit 5% to 7%, highlighting the company’s resilience and potentially a value pick now that it’s trading at lower levels.

The company also raised dividends for FY2024 to $3.80, translating to a 1.53% yield. This marks its 52nd consecutive year of increased payouts. This makes BD one of the more attractive cheap Dividend Aristocrats right now.

On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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