Its diversified operations also don't hurt. It operates through the following Commercial Banking, Retail Banking, Treasury and Others segments. Below are the 87 securities listed in the index as per the rules outlined above. This year’s earnings-per-share should be roughly in line with 2018 levels, at $1.33. Essentially, the loan-to deposit ratio is a measure of leverage, and People’s is very high. To be a Dividend King, you must have fifty years of increasing dividends. Moreover, PBCT has delivered 27 consecutive years of dividend growth. However, for a bank, that is a very strong accomplishment. People’s has acquired its way to a footprint that covers six states in the Northeast US over time. Income investors favor Dividend Aristocrats because the companies are solid long-term holdings with predictable, safe, and growing dividend payments. People’s has an attractive dividend yield above 4%, and growth potential for the years ahead. The S&P Dividend Aristocrats Stocks List is a group of companies that have paid and increased dividends for 25 years or more. Indeed, it was 2011 before People’s earnings-per-share crested its pre-recession high, hitting $0.57 in that year to top 2007’s level of $0.52. The bank is not immune from economic downturns, and a flat yield curve is a risk. Now it is time for dividend increases: MCD increased dividend to $1.29 per share resulting in a $11.42 increase. (See the complete list at the bottom). Growing scale and name recognition in key markets like that can help drive efficiency and scale, which is part of the reason why People’s has been able to boost margins in recent quarters, despite the flattening yield curve. This outstanding asset quality means that it has the ability to lend out all of its deposits without fear of high levels of losses. We use cookies for a number of reasons, such as keeping our website reliable and secure, personalising content and ads, providing social media features and to analyse how our website are used. Energy. New companies are added to the list as they reach the 25-year threshold. We analyzed the business models, dividend safety, dividend growth, key risks, and more of the dividend aristocrats below. People’s is an appealing stock for its decent valuation, strong competitive position in key markets in the Northeast, and its 4%+ yield. var options = {title: 'Historical Yield', curveType: 'function', chartArea: {width: '94%', height: '85%'}, bar: {groupWidth: ' 90%'}, legend: {position: 'bottom'}, series: { 1: { lineDashStyle: [2, 2] }}}; ['10 Years',5.3,'#029baf'],]); var dataP = google.visualization.arrayToDataTable([ view.setColumns([0, 1,{ calc: 'stringify',sourceColumn: 1,type: 'string',role: 'annotation' },2]); Each stock has increased its annual dividend 25 or more consecutive years. In the 177 years since that humble beginning, People’s has grown into a regional bank with more than 5,000 employees and almost 400 retail locations in the Northeast United States. In the current downtrodden market, it was possible for nine (XOM, T, BEN, PBCT, O, AMCR, LEG, NUE, & ADM) of 15 highest-yield S&P 500 dividend Aristocrat stocks, to … Performance 3. var data = google.visualization.arrayToDataTable([ People’s has enjoyed class-leading asset quality over the years, and that continues today. There are now 57 Dividend Aristocrats. People’s has a current price-to-earnings ratio of 12.2 based on our estimate of $1.33 of earnings-per-share for this year. view.setColumns([0, 1,{ calc: 'stringify',sourceColumn: 1,type: 'string',role: 'annotation' },2]); People’s United (PBCT): Mid-Size Stock, King-Size Results To be included in the Dividend Achievers Index, a stock must be a member of the S&P 500 and meet certain size and liquidity requirements. Net interest margin was unchanged at 3.12%, as small moves in loan yields and deposit costs offset. ['Element', 'Dividend', {role: 'style'} ],['2006',0.9700,'#ff0103'],['2007',0.6499,'#ff0103'],['2008',0.5833,'#ff0103'],['2009',0.6075,'#029baf'],['2010',0.6175,'#029baf'],['2011',0.6275,'#029baf'],['2012',0.6375,'#029baf'],['2013',0.6475,'#029baf'],['2014',0.6575,'#029baf'],['2015',0.6675,'#029baf'],['2016',0.6775,'#029baf'],['2017',0.6875,'#029baf'],['2018',0.6975,'#029baf'],['2019',0.7090,'#029baf'],['2020',0.8945,'#029baf'],['2021',0.1800,'#ff0103'],]); CVX does oil and gas exploring, drilling and production, transportation, refining, marketing and distribution. Top Dividend Aristocrat Growth Stocks Walgreens Boots Alliance (WBA) Walgreens is a pharmacy retailer with over 18,000 stores in 11 countries. People's United Financial, Inc. NASDAQ: PBCT $14.52 down var view = new google.visualization.DataView(dataP); Thus, People’s offers decent value at current prices. google.setOnLoadCallback(drawChartP); Currently, there are 66 Dividend Aristocrat stocks. Click here to download your Dividend Aristocrats Excel Spreadsheet List now. At a time when both the S&P 500 and the financial sector both have yields just under 2%, People’s is sporting a 4.4% yield, making it very attractive to those seeking current income. The dividend aristocrats definition makes these stocks interesting as a dividend aristocrat is a stock with a long history of raising its dividend, more than 10 years. function drawChartP() { Next in the series is People’s United Financial (PBCT). People’s has a strong history of dividend growth, particularly for the highly cyclical financial sector, which saw many of even its largest constituents cut their dividends during the financial crisis. var dataPerf = google.visualization.arrayToDataTable([ Find more details information on this page. People's United Financial Inc. (PBCT) is a dividend aristocrat paying over 25+ years of dividend. In other words, People’s has lent out more than it has collected in deposits, for a loan-to-deposit ratio of just over 100%. For these reasons, we continue to rate People’s a buy. Dividend Aristocrats in 2020 What is a Dividend Aristocrat? We are forecasting low-single-digit growth in the payout in the coming years for this reason. Before you go and agree or not with the index or the rules, indexes are put together to attempt at categorizing certain stocks and investment strategies such as monthly income investing, dividend investing or dividend growth investing. VFC increased dividend to $0.49 per share resulting in a $2.68 increase. This year, People’s is seeing higher integration costs from its near-constant stream of acquisitions that will temporarily raise costs. It has a diversified portfolio of financial services it can offer to customers, but its bread and butter is still core deposit-taking and lending activities. The Other segment includes the residual financial impact from the allocation of revenues and expenses. This is a high expected rate of return, which earns a buy recommendation, particularly for income investors interested in the high current yield. Every year, S&P Dow Jones Indices updates its list of Dividend Aristocrats, a group of stocks in the S&P 500 with 25+ consecutive years of dividend growth. But People's United Financial (PBCT) is a rare financial sector stock that has increased its dividend for 25 consecutive years. People's United Financial pays an annual dividend of $0.72 per share, with a dividend yield of 4.96%. Its diversified operations also don't hurt. For example, Pfizer Inc. and General Electric Company both cut their dividends and were removed from the Dividend Aristocrat list in 2009. The firm was spun off from fellow Dividend Aristocrat Abbott Laboratories in 2013, which grandfathers it in as a member of the Dividend Aristocrats. Sector Overview 4. Dividend Aristocrats Analysis (The Dividend Aristocrats In Focus Series) 5. The list of Dividend Aristocrats in 2019 is a fairly select list since there are only 57 companies. "S&P 500 Dividend Aristocrats measure performance of S&P 500 companies that have increased dividends every year for 25 consecutive years." ... PBCT) is a bank and financial holding company. It currently has a market cap of $131.9 billion. Combined with valuation changes and the current 4.4% yield, total annual returns are expected to reach approximately 10%. The Retail Banking segment comprises consumer lending, and consumer deposit gathering activities, consumer lending, and merchant services. Growth has been robust since that time, however, and the company is expected to generate earnings-per-share of $1.33 this year. Likewise, this dividend aristocrat ETF is not excessively allocated to high-yield sectors as utilities and real estate stocks combine for less 17% of the fund’s weight. Above we can see the myriad acquisitions the bank has made in the past decade, totaling 16 different acquisitions of varying size in that time frame. ['Element', 'Total Return (CAGR) (%)', {role: 'style'} ], function drawChartDividend() { If you thought that becoming a Dividend Aristocrat was difficult, wait until you hear what it takes to be a Dividend King. Reviewing historical data on each dividend aristocrat is one thing, but understanding their future dividend growth potential and business outlooks is even more important. People’s most recent dividend increase was its 27th consecutive annual increase, making it one of the newer Dividend Aristocrats. var view = new google.visualization.DataView(data); One of the easiest and fastest ways to buy all the Dividend Aristocrat stocks is to buy an ETF like ProShares S&P 500 Dividend Aristocrats (NOBL) that has all of the stocks in one bucket. ['1 Year',-1.2,'#ff0103'],['2 Years',-2.3,'#ff0103'], Annualized net charge-offs in the past decade have been just 0.17%, which is well below most of its peers and the class average. It also increases potential risk, as high levels of leverage naturally results in higher loan risks. Dividend.com: The #1 Source For Dividend Investing. } The most recent members are Chubb (CB), People’s United Financial (PBCT), Caterpillar (CAT), … function drawChartPerf() { PBCT's next quarterly dividend payment will be made to shareholders of record on Monday, February 15. The Commercial Banking segment consists commercial real estate lending, commercial and industrial lending, and commercial deposit gathering activities. Here are nine of the best dividend aristocrats to buy. Dividend Yield and Dividend History Highlights. Competitive advantages are difficult to come by for banks given that they largely offer the same products and services as their competitors. People’s reported third quarter earnings on October 17th and results were somewhat mixed. The Treasury segment covers the securities portfolio, short-term investments, brokered deposits, wholesale borrowings, and the funding center. }, Helping You Make The Most Of Your Money – Invest Smarter with Dividend. chart.draw(view, options); Click here to download your Dividend Aristocrats Excel Spreadsheet List now, 2008 earnings-per-share of $0.42 (19% decline), 2009 earnings-per-share of $0.30 (29% decline), 2010 earnings-per-share of $0.24 (20% decline). In addition, since it issues stock for acquisitions, its share count rose over time, introducing a significant headwind for earnings-per-share even if earnings grow. var view = new google.visualization.DataView(dataYield); 1. Database of Dividend Aristocrats stocks comes from ProShares S&P 500® Dividend … That wasn’t the case for People’s. Dividend Aristocrats (Sorted by Dividend Yield) Here are the 65 S&P 500 Dividend Aristocrats sorted by dividend yield from highest to lowest. However, for a bank, that is a very strong accomplishment. var view = new google.visualization.DataView(dataPerf); People’s United Financial, Inc. is a bank and financial holding company. People’s earnings-per-share during the Great Recession are below: While People’s remained profitable throughout, the damage was significant. In early April, Walgreens reported financial results for the second quarter of 2020. Each year, we individually review each of the Dividend Aristocrats, a group of 57 companies in the S&P 500 Index with at least 25 consecutive years of dividend increases. var chart = new google.visualization.LineChart(document.getElementById('chartYield')); Keep in mind that all-stock acquisitions make the dividend costlier even if it isn’t raised on a per-share basis, meaning growth will likely be muted. However, one way to offer an advantage is to grow scale in key markets, and that is exactly what People’s is doing with Boston as an example. PBCT became the 41st stock in my portfolio and I am happy to add another dividend aristocrat to the list! var options = {title: 'Performance (%)', chartArea: {width: '94%', height: '85%'}, bar: {groupWidth: ' 90%'}, legend: {position: 'none'}}; ['2010',4.41,4.62],['2011',4.88,4.62],['2012',5.27,4.62],['2013',4.28,4.62],['2014',4.33,4.62],['2015',4.13,4.62],['2016',3.5,4.62],['2017',3.68,4.62],['2018',4.83,4.62],['2019',4.2,4.62],['2020',6.92,4.62],['Current',3.55,4.62],]); People’s most recent dividend increase was its 27th consecutive annual increase, making it one of the newer Dividend Aristocrats. The bank began operations with just $97 in total deposits and had no paid employees for its first 10 years of operations. var dataYield = google.visualization.arrayToDataTable([ PBCT's dividend yield, history, payout ratio, proprietary DARS™ rating & much more! It has increased its dividend for 44 consecutive years, which easily makes it a Dividend Aristocrat. People’s not only has an impressive streak of dividends, but a very high current yield as well. This was necessary as People’s payout ratio had previously exceeded earnings, but it is in a much better spot now. 5 Highest-Yielding Dividend Aristocrat Stocks to Buy Now for 2021 ... top-quality dividend stocks may be the way to go for 2021. ['5 Years',28.9,'#029baf'],]); The company was founded on November 2, 2006 and is headquartered in Bridgeport, CT. www.moneyinvestexpert.com Copyright 2011-2020, Dividend Aristocrat People’s United Financial…. ['Element', 'Total Performance (%)', {role: 'style'} ],['Ytd',16.2,'#029baf'], }google.setOnLoadCallback(drawChartYield); view.setColumns([0, 1,{ calc: 'stringify',sourceColumn: 1,type: 'string',role: 'annotation' },2]); Today, People’s produces $1.85 billion in annual revenue from its $52 billion in total assets, and the stock has a market capitalization of $7.1 billion. Next in the series is People’s United Financial (PBCT). Please send any feedback, corrections, or questions to support@suredividend.com. However, the bank has delivered consistent growth over the long-term and we believe it will continue to do so in the coming years. Should the stock revert to our estimate of fair value, it would provide a ~1% annual tailwind to total returns for shareholders. For these reasons, we continue to rate P To maintain its status as a dividend aristocrat, a company must raise its dividend payment at least once during the year. Considering the prospects for better business, a potentially more friendly regulatory environment and tax cuts, PBCT should be able to keep its foot on the dividend pedal. The Dividend Aristocrats are S&P 500 index constituents. Shareholders like a dividend aristocrat of Chevron's size (more than $170 billion) for exactly that reason: It can survive anything. These companies have survived periods of inflation, stock market crashes, global crises and deep recessions. It could perhaps even become a Dividend Aristocrat, given enough time and consistent earnings performance. google.setOnLoadCallback(drawChartDividend); chart.draw(view, options); Final ThoughtsYou can also watch the following video for more information on the Dividend Aristocrats and see a table of the Dividend Aristocrats below. This was the case in Q3 again, as earnings grew slightly but were basically offset by a similar rise in the share count. var chart = new google.visualization.ColumnChart(document.getElementById('chartPerf')); How To Use The Dividend Aristocrats List To Find Dividend Investment Ideas 2. ['3 Year',-3.1,'#ff0103'],['5 Years',5.7,'#029baf'], The Dividend Aristocrats Index is a list of 50 stocks that have consecutively increased their dividend payments for at least 25 years. Historical Dividend Aristocrats List (1989 – 2015) 6. It engages in the provision of commercial banking, retail and business banking, and wealth management services to individual, corporate and municipal customers. Net income came to $0.33 per share as net interest income was essentially flat against this year’s Q2. The S&P 500 Dividend Aristocrat index was launched by Standard and Poors in May 2005. This has helped People’s bolster its organic branch growth, and as mentioned, earnings have grown steadily over time. This key strategic pillar is a differentiator and we think it will serve People’s well in the coming years. Canadian Dividend Aristocrats List. view.setColumns([0, 1,{ calc: 'stringify',sourceColumn: 1,type: 'string',role: 'annotation' },2]); ... PBCT. var chart = new google.visualization.ColumnChart(document.getElementById('chartP')); Unfortunately, during the last recession, many investors found out their dividend was cut on their once-stable stock. ['Element', 'Dividend Yield (%)', '5-years average yield' ], chart.draw(view, options); Qualifications for a stock to be a Dividend Aristocrat are: A stock must be a member of the S&P 500; A stock must have increased their dividend payment for at least the past 25 consecutive years. The index is equally weighted, and rebalanced every quarter. A "dividend aristocrat" is an elite class of dividend stock that has increased its payout at least once a year for the last 25 years or more. Updated on November 25th, 2019 by Josh Arnold. People’s United also is a serial dividend raiser that has boosted its payout for 24 consecutive years. In addition, we see earnings-per-share growth at 5% annually. The bank has boosted its total assets to $52 billion, of which $38.8 billion is comprised of loans. Most $4.5 billion market cap banks tend to fly under the radar. However, People’s has proven to be adept at finding and acquiring growth in its key markets, and we have no reason to believe that won’t continue. Last year saw a sizable benefit from tax reform. google.setOnLoadCallback(drawChartPerf); This is slightly lower than our fair value estimate of 13 times earnings, so we see People’s as somewhat undervalued after recent weakness in the stock. Still, we see the bank as a strong operator and one that focuses heavily on cost savings, so we think it has some meaningful growth in front of it, particularly once its 2019 slate of acquisitions is fully integrated. Thanks for reading this article. However, that certainly does not insulate People’s from economic downturns. To help you reduce price risk in your dividend portfolio, here are the dividend stocks that are least correlated with PBCT's price: ETR, SWCH, SVT, NOK and PG. 10 Dividend Kings and their estimated future total return. The S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years in a row. In fact, the company continued to increase its dividend each year during the Great Recession. Asset quality, however, is outstanding and affords People’s the ability to have all of its deposits lent out. function drawChartYield() { People’s loan balance at the end of Q3 was $38.8 billion against deposits of $38.5 billion. While People’s produces a small amount of organic growth – as just about any other bank would – its strategy instead focuses on acquiring its growth. People's United Financial (PBCT) is one of the country's most popular regional banks with investors. PBCT shares are priced at a 9.5 forward P/E, which is an 18% discount to banking industry peers and … In terms of history, this is the 21st quarter in a row dividends for PBCT have increased. 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