Dividends4Life: 2 Beaten-up Dividend Aristocrats: Are They Bargains?

Dividend aristocrats are companies in the S&P 500 that have raised their dividends annually for at least 25 years. Just over 50 stocks meet those conditions, and many of them have rallied over the past few years thanks to low interest rates and a flight to "safer" stocks. Today, however, we'll discuss two unloved dividend aristocrats which didn't rally over the past year, and see if either one has become a bargain for income investors.

VF Corp (NYSE:VFC), one of the biggest apparel companies in the world, has consistently raised its dividend for over four decades. Over the past 12 months, VFC has paid out 51% of its free cash flow as dividends, and currently pays a forward yield of 2.3% -- which is slightly higher than the S&P 500's average yield of 2.1%. VFC shouldn't be considered a bargain at current prices. Wal-Mart (NYSE:WMT) has also hiked its dividend annually for over four decades. The retail giant paid out 44% of its free cash flow as dividends over the past year, and currently pays a forward annual yield of 2.9%. While Wal-Mart stock is fundamentally cheap, it's only cheap because companies with zero-growth earnings aren't expected to rally anytime soon.

Source: Motley Fool

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