It’s Black Friday! And what better way to celebrate the best day for bargains than to look for Dividend Aristocrats and Kings trading at bargain prices? 

But enough talk. Let’s get to it! 

How I Came Up With The Following Stocks

Using Barchart’s Stock Screener feature, I set up the following filters: 

• Current Analyst Ratings: 3.5 (Moderate Buy) to 5 (Strong Buy)
• Dividend Payout Ratio: 50% or less. For reference, the dividend payout ratio tells us how much the company spends after-tax earnings to pay dividends. The generally acceptable range is around 30% to 50%. 
• P/E Ratio TTM (trailing twelve months): 20 or less. The P/E ratio tells us how the company’s trading price compares to its earnings. The lower the P/E, the cheaper the stock. For further context, I’ll compare the stock’s individual P/E to its sector’s P/E. 
• Watchlists: Aristocrats and Kings. This filter allows me to access my saved watchlists and include or exclude any of them in my analysis. Today, I’ll filter through my Dividend Aristocrat and Kings watchlist, ensuring the results are quality companies with a history of dividend growth.
• Annual Dividend Yield: 3% or more. 

After setting these filters up, I ran the analysis and got five results: 

Now, I usually talk about three stocks per article. But since it’s a special occasion, I’ll discuss all five today, starting from the highest yield to the lowest. 

Without further ado, here is our top contender: 

Target Corp (TGT)

P/E Ratio: 13.42

Consumer Staples Sector P/E: 23.76

To say that Target has had a challenging run recently is a bit of an understatement. 

After missing earnings and reducing year-end forecasts, the company’s stock price took a steep dive and is now trading around 8% higher than its 52-week low of $120.21. TGT stock’s average analyst scores hovered above 4 (out of 5) for the past three months. With the recent news, the score slid to 3.88. 

Despite that, I still think the company is a decent buy. It still has a significant market share and offers higher-quality products than its competitors at relatively reasonable prices, which is a big draw to young adults. 

The company still earns enough to maintain its dividend payments—the currently $4.48 per year, translating to a 3.44% yield, while the payout ratio is 46.67%.

And let’s not forget that Target is a Dividend King with 53 years of consecutive increases, making it an attractive prospect, especially while trading near bargain-bin territory. 

Exxon Mobil Corp (XOM)

P/E Ratio: 13.72

Energy Sector P/E Ratio: 13.49

Exxon Mobil Corporation is a multinational oil and gas corporation headquartered in Irving, Texas, USA. It is one of the world's largest publicly traded energy companies and is involved in all aspects of the industry, including exploration, production, refining, marketing, and distribution. 

XOM is a Dividend Aristocrat. However, with 42 years of consecutive increases under its belt, I think we’ll eventually see it on the Dividend Kings list. Its recent quarterly payout is 99 cents per share, totaling $3.96 annually. This reflects a decent 3.36% yield based on current prices while maintaining a healthy 42.83% dividend payout ratio. 

National Fuel Gas Company (NFG)

P/E Ratio: 12.65

Energy Sector P/E Ratio: 13.49

National Fuel Gas Company is an integrated energy company that operates across multiple segments of the natural gas industry, including exploration, production, transportation, storage, and utility services.

As of this year, National Fuel Gas Company has raised dividends for 54 consecutive years, ranking it as a Dividend King. Its current annual dividend is $2.06 per share, reflecting a 3.24% yield. It also has a relatively low dividend payout ratio of 40.11%, so it’s safe to say it won’t likely lose its Dividend King status anytime soon. 

Johnson & Johnson (JNJ)

P/E Ratio: 15.09

Healthcare Sector P/E Ratio: 32.16

Johnson and Johnson is one of the world's largest and most diversified healthcare companies. The company operates and provides services in the pharmaceutical, medical devices, and consumer health sectors. Its pharma segment focuses on oncology, immunology, neuroscience, infectious diseases, and cardiovascular health treatments, with well-known drugs such as Stelara, Darzalex, and Imbruvica. Meanwhile, its consumer health division is home to everyday products like Tylenol, Neutrogena, Band-Aid, and Listerine—all globally recognized household names.

The company has raised dividends for 62 straight years. The current annual dividend is $4.96 per year, translating to a 3.19% yield, representing only 47.06% of the company's earnings.

Genuine Parts Company (GPC)

P/E Ratio: 14.53

Consumer Discretionary Sector P/E Ratio: 26.46

The last stock on my Black Friday Bargain List is Genuine Parts Company, a multinational company that distributes automotive and industrial replacement parts and related products. Its segments are divided into NAPA Auto Parts for automotive parts and Motion Industries and Mi Asia Pac for industrial parts. 

Like Target, GPC missed earnings estimates and gapped down—good news for investors looking to snag this Dividend King at a steep discount. 

By the way, the company increased its dividend for 68 years, now $4.00 a share, which translates to a 3.15% yield based on GPC stock's current trading price. It also has a reasonable 44.70% dividend payout ratio, which means dividend increases will likely continue for the foreseeable future. 

Final Thoughts

It surprises me that some folks line up for hours in the cold outside stores on Black Friday morning, stampede through the gate when it opens, and fight over an 80-inch 4K TV —but I must admit, bargains are inherently attractive. So, why not invest in your future with these bargain-bin dividend powerhouses and earn more while spending less? 

On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.