The year 2016 was marked by geopolitical unrest, volatile commodity prices and strong currency fluctuations, which resulted in many companies underperforming the S&P 500 over the past year. However, a number of Dividend Aristocrats that trailed the market over the past year are still excellent businesses that are only temporarily out of favor.
Dividend Aristocrats are S&P 500 companies that have raised their dividends for at least 25 years. (You can view information on all 51 dividend aristocrats here.)
Today, we’re looking at 10 Dividend Aristocrats that have a favorable long-term outlook despite trailing the S&P 500’s return by at least 10% over the past year. In fact, nine of these 10 stocks have seen their stock prices decline while the S&P 500 has gained more than 15%. But we believe this recent underperformance and declines have made them “buy the dip” opportunities for long-term dividend growth investors.
Some of these companies are in our list of the best high dividend stocks, and all of them still have a lot of fundamental strength to offer. We expect each one of these to flip from underperformance to outperformance over the next year.