3 Underrated Dividend Stocks That Are Aristocrats in the Making

These three dividend stocks may not be Dividend Aristocrats yet, but it is highly likely they will be given their track records.

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Dividend stocks remain a key focus right now for investors. Yet, many investors are going back to those stocks that remain old news. In some cases, this can be an oversight. You may think that past top investment choices are going to be current solid choices as well. But this simply isn’t the case.

Today, I’m going to focus on three dividend stocks that remain underrated for precisely this reason. Many don’t see the future potential because they do not have a long past to look at. Yet, these three remain solid choices for those seeking long-term income.


Nutrien (TSX:NTR) has only been on the market a couple of years, but I find it highly unlikely that this company won’t become a Dividend Aristocrat one day. It continues to see growth both organically and through acquisitions. It’s merging a fractured industry and bringing crop nutrient sales into the 21st century.

Because of this, and from recent growth in the sector driven by sanctions against Russia, investors should definitely consider Nutrien stock among their solid long-term investments. Plus, you can lock in a dividend yield while the company remains undervalued.

Yes, despite shares climbing to all-time highs, Nutrien stock has come back down to earth. Shares now trade at just 5.7 times earnings, offering a 2.44% dividend yield. Plus, it’s likely you’ll see shares grow back upwards in the very near future.


The next decade is going to be huge for Cameco (TSX:CCO). While it remains unclear as to whether uranium is going to be a major part of our long-term future, in the next decade at least it will be. The world is using nuclear power to transition to clean energy. Because of this, Cameco stock is likely to see a major boost.

Again, this high-growth business will eventually moderate, but it should definitely help to bring Cameco stock to Dividend Aristocrat status. Cameco cut its dividend in the last few years, so now it offers a 0.37% dividend yield as of writing. But that’s likely to climb higher and higher as the company buys up more companies and the price of uranium rises.

With both capital and dividend growth prospects ahead, it’s a great time to consider Cameco stock while shares are down from its meme stock days.

Brookfield Renewable

Brookfield Renewable Partners LP (TSX:BEP.UN) is another strong choice if you’re seeking out a Dividend Aristocrat for the future. The company has been around for about two decades, and in that time has been growing its dividend. That looks like it’s only going to continue to climb thanks to the company’s growth, both organically and through acquisitions.

And what’s compelling here is investors can look forward to a solid long-term income. It’s one of the dividend stocks that’s bound for greatness thanks to its investment in the clean energy sector. As revenues from this sector grow, it will have cash on hand to continue boosting its dividend, while also expanding its business on a global scale.

Right now, Brookfield stock offers a 4.56% dividend yield, and trades at just 1.8 times book value. That’s a great deal for those seeking long-term income from dividend stocks that could easily hit Aristocrat status in the near future.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable Partners and Nutrien. The Motley Fool has a disclosure policy.

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