I also do a quick review of each of the stocks' chart and the stocks' technicals to determine if any of the stocks on the Dividend Aristocrat list are on sale relative to their own past performance. The way I do that is to look at the stocks' technical indicators including the Bollinger Bands, it's 5, 10 and 20 day moving averages, it's MACD, it's RSI and it's ADX. Once I've completed this quick review I generally have a few stocks worthy of further review.
Company ABT AFL ED | Yield 2.29% 2.36% 4.73% | Current Price $38.31 $62.66 $53.17 | Target Price $41.75 $71.00 $57.04 | % Increase 8.97% 13.30% 7.27% |

Year 2015 Est. 2014 Est. 2013 2012 2011 2010 2009 2008 2003 | Revenues $23.84 Bil $22.58 Bil $21.84 Bil $21.49 Bil $28.47 Bil $35.16 Bil $30.76 Bil $29.52 Bil $19.68 Bil | Earnings $2.47 $2.20 $1.62 $3.72 $1.98 $2.96 $3.69 $3.12 $1.75 | Dividend --- --- $.64 $.84 $.72 $.88 $.80 $.72 $.46 | Payout Ratio --- -- 39.50% 22.58% 36.36% 29.72% 21.68% 23.07% 26.28% |
P/E Ratio = 25.20
1 Year Target = $41.75
ROE = 13.30%
While I believe Abbott Laboratories is an excellent company, I would rather see a longer track record of revenues, earnings and dividends since the divestiture before I commit money to acquire this security. For many other people this would not discourage them, but for me this is something I'm willing to wait for. I understand that revenue is estimated to increase by 3.38% in 2014 and 5.58% in 2015, and earnings are expected to increase by 35.80% in 2014 and 12.27% in 2015, but I would really rather see these as actuals rather than estimates. Therefore I don't see any urgency to own this stock at this time.
In addition, I have only have a limited amount of money to invest and I want to ensure that my money works as hard as I do. Therefore I want to invest in only in the best possible companies at the best possible time. And that means that I should wait. Finally, a P/E ratio of 25.20 is just higher than I like for my investments. I would really like to buy stocks with P/E ratios of 20 or less. For these reasons I will wait to accumulate any shares of this company.

Year 2015 Est. 2014 Est. 2013 2012 2011 2010 2009 2008 2003 | Revenues $23.81 Bil $23.35 Bil $23.94 Bil $25.36 Bil $22.17 Bil $20.73 Bil $18.25 Bil $16.55 Bil $11.44 Bil | Earnings $6.55 $6.18 $6.76 $6.11 $4.12 $4.92 $3.19 $2.62 $1.52 | Dividends $1.60 $1.52 $1.44 $1.36 $1.26 $1.16 $1.12 $1.00 $.32 | Payout Ratio 24.42% 24.59% 21.30% 22.25% 30.58% 23.57% 35.10% 38.16% 21.05% |
Earnings Growth Rate: 10 yr = 16.09% 5 yr = 20.87%
Dividend Growth Rate: 10 yr = 16.23% 5 yr = 7.56%
Beta = 1.73
P/E Ratio = 9.27
1 Year Target = $71.00
ROE = 21.60%
With revenue and dividends increasing in the 8% range the last five years and with earnings increasing significantly faster than that, I believe success will continue for this company for years to come. Combine this with a P/E ratio less than 10, a ROE of over 21%, and a payout ratio in the 20s, I believe the dividends are secure and will continue to grow for years to come at a very nice pace.
I will be looking for an entry point to accumulate this stock this week. Shares have fallen from the high 60s not too long ago to the low 60s recently, and any move closer to 60 would be a great place for me to begin accumulating this security. I think this company would be a great addition for my portfolio as funds become available.

Year 2013 2012 2011 2010 2009 2008 2003 | Revenues $12.35 Bil $12.18 Bil $12.88 Bil $13.32 Bil $13.03 Bil $13.58 Bil $9.82 Bil | Earnings $3.61 $3.86 $3.57 $3.47 $3.14 $4.37 $2.38 | Dividend $2.48 $2.43 $2.41 $2.39 $2.37 $2.35 $2.25 | Payout Ratio 68.69% 62.95% 67.50% 68.87% 75.47% 53.77% 94.53% |
Earnings Growth Rate: 10 yr = 4.25% 5 yr = -3.74%
Dividend Growth Rate: 10 yr = 0.97% 5 yr = 1.08%
Beta = -0.02
P/E Ratio = 14.73
1 Year Target = $57.04
ROE = 8.80%
Even looking at the chart and seeing that the price is starting to move higher, it soon becomes obvious that with a one year price target of only $57.04, this stock isn't going anywhere soon. With that said, I'll pass on investing in this company.
Of the three companies that I have reviewed above I am only interested in one of them - Aflac Incorporated. The stock price seems to be forming a short term bottom near $62.50 and near the lower Bollinger Band. With the MACD, the RSI and the ADX starting to turn up, this just may be the time for me to accumulate a few shares.
Good Luck and Good Trading.