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5 Dividend Aristocrat Bargains Near 52-Week Lows

Investors and gurus hunt for Black Friday deals

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Nov 26, 2021
Summary
  • Black Friday shopping kicks off as new Covid-19 variants appear.
  • Investors can find bargains among stocks with growing dividends that are trading near 52-week lows.
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As people kick off Black Friday shopping across the U.S., five dividend aristocrat stocks with high guru ownership that are trading near 52-week lows are Cardinal Health Inc. (

CAH, Financial), AT&T Inc. (T, Financial), Medtronic PLC (MDT, Financial), International Business Machines Corp (IBM, Financial) and Leggett & Platt Inc. (LEG, Financial), according to the All-in-one Screener, a Premium feature of GuruFocus.

Also on Friday, a shortened trading day, the Dow Jones Industrial Average sank more than 2.53% from Wednesday’s close of 35,804.38 on reports that the World Health Organization is monitoring a new, “heavily-mutated” variant of Covid-19 from South Africa. The 30-stock index hit an intraday low of 34,749.80, down 1,054.58 points from the previous close.

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The WHO called a special meeting on Friday as scientists track a new variant of Covid-19 containing more than 30 mutations to the spike protein. The organization’s meeting comes just days after European countries began to combat a new surge in Coronavirus cases ahead of the winter holidays.

In the U.S., Black Friday shopping kicked off as people flock to shopping malls in search of discount pricing on electronics, clothing and other popular gifts. The National Retail Federation said in October that it predicted holiday sales to increase between 8.5% and 10.5%, surpassing the record growth of 8.2% from last year. However, new Covid-19 variants pose a threat to overvalued stocks, so those in search of stock market bargains may not be so lucky.

As such, investors may find opportunities in these five dividend aristocrat stocks with high guru ownership that are trading near 52-week lows. A dividend aristocrat is defined as a stock that has increased its dividend for at least 25 consecutive years. GuruFocus’ All-in-one Screener found on Friday that there are just five dividend aristocrat stocks that have high guru ownership and are trading within 5% of their 52-week low.

Cardinal Health

Shares of Cardinal Health (

CAH, Financial) traded around $47.28, approximately 0.42% above their 52-week low. The stock is modestly undervalued based on Friday’s price-to-GF-Value ratio of 0.80.

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GuruFocus ranks the Dublin, Ohio-based medical distribution company’s profitability 7 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7 and a return on equity that outperforms more than 97% of global competitors despite profit margins underperforming over 78% of global medical distribution companies.

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Twelve gurus own shares of Cardinal Health with a combined weight of 3.53%. Gurus with holdings in Cardinal Health include

Charles Brandes (Trades, Portfolio)’ Brandes Investment and the T Rowe Price Equity Income Fund (Trades, Portfolio).

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AT&T

Shares of AT&T (

T, Financial) traded around $24.29, approximately 1.06% above their 52-week low. The stock is modestly undervalued based on Friday’s price-to-GF-Value ratio of 0.84.

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GuruFocus ranks the Dallas-based telecom company’s profitability 6 out of 10 on the back of operating margins outperforming 70% of global competitors despite net margins, returns and three-year revenue growth rates underperforming over 66% of global telecommunication service companies.

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Eighteen gurus own shares of AT&T with a combined weight of 6.19%.

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Medtronic

Shares of Medtronic (

MDT, Financial) traded around $111.59, approximately 1.48% above their 52-week low. The stock is fairly valued based on Friday’s price-to-GF-Value ratio of 0.96.

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GuruFocus ranks the Irish medical device company’s profitability 7 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8 and profit margins outperforming more than 72% of global competitors.

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Twenty-three gurus own shares of Medtronic with a combined weight of 21.78%.

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International Business Machines

Shares of International Business Machines (

IBM, Financial) traded around $115.91, approximately 3.37% above its 52-week low. The stock is fairly valued based on Friday’s price-to-GF-Value ratio of 0.98.

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GuruFocus ranks the Armonk, New York-based software company’s profitability 7 out of 10 on several positive investing signs, which include profit margins and returns outperforming more than 63% of global competitors.

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Eleven gurus own shares of IBM with a combined weight of 1.99%.

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Leggett & Platt

Shares of Leggett & Platt traded around $41.27, approximately 3.38% above their 52-week low. The stock is modestly undervalued based on Friday’s price-to-GF-Value ratio of 0.86.

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GuruFocus ranks the Carthage, Missouri-based furnishing company’s profitability 7 out of 10 on several positive investing signs, which include a three-star business predictability rank and profit margins and returns outperforming more than 66% of global competitors.

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I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
The views of this author are solely their own opinion and are not endorsed or guaranteed by GuruFocus.com
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