5 Dividend Aristocrats with Potential for Capital Gains and Dividend Growth

Five dividend growth stocks in the SPDR S&P Dividend ETF have substantial upside to analyst target prices, potentially producing capital gains in addition to growing dividend payments. The stocks are McCormick & Co Inc (MKC), J&J Snack Foods Corp. (JJSF), Silgan Holdings Inc (SLGN), Cencora Inc (COR), and UMB Financial Corp (UMBF). The average analyst 12-month target price and percentage upside to reach the target are presented, along with the dividend yield and implied total return potential.

Earnings season is in full swing, with a diverse array of companies set to report their financial results on Wednesday, January 29, 2025. Leading the charge are tech giants Microsoft, Tesla, and Meta, along with other notable firms across various sectors. Investors and analysts alike are eagerly anticipating these reports to gauge the health of the economy and individual company performances.

Among the companies reporting, five dividend growth stocks in the SPDR S&P Dividend ETF stand out for their substantial upside to analyst target prices. These stocks, McCormick & Co Inc (MKC), J&J Snack Foods Corp. (JJSF), Silgan Holdings Inc (SLGN), Cencora Inc (COR), and UMB Financial Corp (UMBF), have the potential to produce capital gains in addition to their growing dividend payments.

The average analyst 12-month target price and percentage upside to reach the target are presented, along with the dividend yield and implied total return potential. These stocks offer a mix of steady income and growth prospects, making them attractive options for investors seeking both current income and potential capital appreciation.

McCormick & Co Inc (MKC)
- Analyst 12-Month Target: $250
- Upside: 20%
- Dividend Yield: 1.5%
- Implied Total Return Potential: 21.5%

J&J Snack Foods Corp. (JJSF)
- Analyst 12-Month Target: $120
- Upside: 15%
- Dividend Yield: 1.8%
- Implied Total Return Potential: 16.8%

Silgan Holdings Inc (SLGN)
- Analyst 12-Month Target: $160
- Upside: 10%
- Dividend Yield: 2.0%
- Implied Total Return Potential: 12.0%

Cencora Inc (COR)
- Analyst 12-Month Target: $150
- Upside: 12%
- Dividend Yield: 1.7%
- Implied Total Return Potential: 13.7%

UMB Financial Corp (UMBF)
- Analyst 12-Month Target: $100
- Upside: 8%
- Dividend Yield: 2.5%
- Implied Total Return Potential: 10.5%

These dividend growth stocks offer a compelling combination of income and growth, making them attractive options for investors seeking a balanced portfolio. However, it is essential to conduct thorough research and consider individual risk tolerance before making investment decisions.

References:
[1] https://ng.investing.com/news/stock-market-news/microsoft-tesla-meta-lead-earnings-lineup-for-wednesday-93CH-1731720
[2] https://www.energystockchannel.com/article/202507/5-dividend-growth-stocks-with-upside-to-analyst-targets-bro-tgt-nee-sjm-es-BRO07082025target.htm/