Dividend Aristocrats are stocks that have raised their dividend payouts consistently for 25 years. Dividend Aristocrats are S&P 500 companies with larger market caps and a long history of increasing their payouts. Although many investors don’t know much about these stocks, there is a good reason why they are admired by investors. While most dividend-paying stocks are boring, a few stand out as the best bets.
In this article, I will briefly explain how the Dividend Aristocrats can be beneficial for you. These are companies that consistently produce profits and return a portion of those profits to shareholders. These companies are good investments because they produce reliable income that can grow with your portfolio over time. However, they are not for everyone. For instance, let’s look at Johnson & Johnson, which is one of the world’s largest healthcare conglomerates. Johnson & Johnson’s market cap is $455 billion. That makes it an everyday business that can earn investors a steady income.
The Dividend Aristocrats Index consists of companies with a history of increasing their dividend for 25 consecutive years. The majority of these companies are boring blue-chip stocks. The Index is underweighted by the Information Technology sector, which makes up 20% of the S&P 500. The rest of the Dividend Aristocrats are ‘old economy’ blue-chip consumer product manufacturers. The Dividend Aristocrats are a safe bet because they tend to provide consistent dividend increases.
Dividend Aristocrats are S&P 500 stocks that have historically raised their dividend payout
The dividend growth of these companies is another reason to own them. Some of the most notable among these companies are Florida Power & Light, a regulated utility, NextEra Energy Resources, one of the leading players in solar and wind energy, and Caterpillar. Each of these companies has raised its dividend annually for at least 25 years. While it did not raise its dividend in 2020, the company is still an Aristocrat because its payout is increasing each year.
Dividend growth is an important aspect of any company’s business model, and dividend Aristocrats are the best stocks to invest in. The companies must generate enough cash flow to cover their dividend payments. Additionally, the companies must choose growth projects and scrutinize capital allocation decisions to ensure that earnings increase. In addition to that, companies that pay dividends are also considered shareholder-friendly. That’s why Dividend Aristocrats have been consistently outperforming other dividend-paying stocks.
They have established companies with a larger market capitalization
If you want to invest in a stock that pays high dividends and has a long history of increasing them, you should consider one of the Dividend Aristocrats. These companies are large, established companies with a market capitalization of at least $3 billion, and they have average daily trading volumes of $5 million or more for the past three months. There are many benefits to investing in these companies.
The company must have raised its dividend for 25 consecutive years to be a Dividend Aristocrat. In addition, it must be a member of the S&P 500 index and have an average daily trading value of $5 million for three months prior to listing. The index rebalances every four months, so new entrants are added and old companies are removed. Dividend Aristocrats are added and removed every January by S&P Dow Jones Indices.
They payout higher dividends
Investing in dividend aristocrats can boost both your income and growth portfolio. According to investment advisor Cassandra Cummings, the Dividend Aristocrats’ stocks tend to pay higher dividends than the S&P 500. However, the higher dividend yield may not be enough to justify the investment. Investing in Dividend Aristocrats will increase your dividend income by as much as 20 percent.
To be included in the list of Dividend Aristocrats, a company must increase its dividends for a minimum of 25 consecutive years. In addition, the company must be a member of the S&P 500 Index, and its float-adjusted market cap must be at least $3 billion. Its average daily volume trade is at least $5 million for the three months prior to rebalancing.
See below at the S&P 500 Dividend Aristocrats Index for a more comprehensive overview. Founded in 1883, this furniture company has paid higher dividends for 25 consecutive years. It also consistently increased its sales while maintaining its profitability, which is particularly important when inflation is running high. These companies have consistently paid out higher dividends over the past 50 years, and this is a testament to their long-term value.
Complete List of Dividend Aristocrats 5-11-2022
| Ticker | Company | Dividend Yield | YTD Return | Beta 3 Year | 5-Year Return |
| ABBV | AbbVie | 3.70% | 14.50% | 0.66 | 189.70% |
| CVX | Chevron | 3.50% | 38.40% | 1.14 | 88.80% |
| XOM | Exxon Mobil | 4.10% | 40.50% | 0.97 | 33.80% |
| TGT | Target | 1.60% | -4.90% | 0.72 | 329.10% |
| MDT | Medtronic | 2.50% | -2.50% | 0.89 | 35.10% |
| ADM | Archer-Daniels Midland | 1.90% | 26.40% | 0.87 | 133.40% |
| IBM | IBM | 5.10% | -1.00% | 0.88 | 14.20% |
| WBA | Walgreens Boots Alliance | 4.40% | -16.10% | 0.78 | -40.60% |
| ABT | Abbott Laboratories | 1.80% | -23.60% | 0.83 | 160.80% |
| AOS | A.O. Smith | 1.90% | -30.80% | 0.76 | 17.90% |
| ATO | Atmos Energy | 2.40% | 8.70% | 0.69 | 56.80% |
| JNJ | Johnson & Johnson | 2.60% | 4.20% | 0.58 | 64.50% |
| CHD | Church & Dwight Co | 1.10% | -4.10% | 0.43 | 106.00% |
| KO | Coca-Cola | 2.80% | 8.90% | 0.7 | 72.70% |
| BDX | Becton, Dickinson | 1.40% | 2.40% | 0.52 | 52.80% |
| EXPD | Expeditors International | 1.20% | -18.80% | 0.76 | 118.30% |
| NUE | Nucor | 1.50% | 13.90% | 1.14 | 154.50% |
| WST | West Pharmaceutical Servs | 0.20% | -36.80% | 0.75 | 218.40% |
| EMR | Emerson Electric | 2.50% | -9.60% | 1.13 | 61.70% |
| PG | Procter & Gamble | 2.40% | -4.30% | 0.62 | 105.40% |
| CINF | Cincinnati Financial | 2.20% | 10.30% | 1.13 | 107.20% |
| PEP | PepsiCo | 2.70% | -0.60% | 0.77 | 76.00% |
| ADP | Automatic Data Processing | 2.00% | -13.50% | 1.05 | 144.20% |
| AMCR | Amcor | 3.80% | 5.60% | 0.92 | – |
| LEG | Leggett & Platt | 4.70% | -11.10% | 1.31 | -18.80% |
| APD | Air Products & Chemicals | 2.80% | -23.70% | 0.97 | 78.50% |
| TROW | T. Rowe Price Gr | 3.90% | -36.90% | 1.22 | 98.20% |
| GD | General Dynamics | 2.20% | 11.20% | 0.84 | 32.30% |
| CAT | Caterpillar | 2.20% | -0.90% | 0.94 | 128.80% |
| GPC | Genuine Parts | 2.70% | -5.90% | 1.05 | 64.10% |
| CB | Chubb | 1.60% | 6.40% | 0.95 | 64.70% |
| HRL | Hormel Foods | 2.00% | 7.90% | 0.36 | 67.80% |
| MMM | 3M | 4.00% | -15.20% | 0.77 | -11.60% |
| AFL | Aflac | 2.80% | -1.20% | 1.09 | 73.40% |
| PNR | Pentair | 1.70% | -32.20% | 1.1 | 22.00% |
| DOV | Dover | 1.50% | -28.20% | 1.11 | 124.50% |
| ITW | Illinois Tool Works | 2.40% | -17.10% | 0.98 | 65.70% |
| SPGI | S&P Global | 1.00% | -30.40% | 1.07 | 149.20% |
| MKC | McCormick & Co | 1.50% | 1.80% | 0.6 | 112.40% |
| LIN | Linde | 1.60% | -13.20% | 0.97 | 154.10% |
| BRO | Brown & Brown | 0.70% | -17.80% | 0.93 | 181.70% |
| BF.B | Brown-Forman | 1.20% | -10.40% | 0.77 | 80.80% |
| O | Realty Income | 4.70% | -10.00% | 1 | 47.60% |
| BEN | Franklin Resources | 4.70% | -26.00% | 1.16 | -27.20% |
| KMB | Kimberly-Clark | 3.30% | -1.90% | 0.47 | 26.70% |
| LOW | Lowe’s Companies | 1.70% | -25.10% | 1.1 | 143.70% |
| GWW | W.W. Grainger | 1.50% | -8.80% | 0.96 | 173.70% |
| CLX | Clorox | 3.00% | -9.10% | 0.23 | 33.30% |
| SYY | Sysco | 2.30% | 10.80% | 1.18 | 78.60% |
| CTAS | Cintas | 1.00% | -14.40% | 1.16 | 228.70% |
| WMT | Walmart | 1.50% | 3.90% | 0.48 | 113.90% |
| CL | Colgate-Palmolive | 2.50% | -9.10% | 0.58 | 20.10% |
| VFC | VF | 4.30% | -35.90% | 1.19 | 1.80% |
| MCD | McDonald’s | 2.30% | -7.80% | 0.83 | 91.60% |
| ED | Consolidated Edison | 3.40% | 9.60% | 0.55 | 41.10% |
| SHW | Sherwin-Williams | 0.90% | -24.20% | 0.89 | 147.30% |
| ESS | Essex Property Trust | 3.10% | -18.20% | 0.93 | 32.30% |
| ROP | Roper Technologies | 0.60% | -12.20% | 0.91 | 98.90% |
| SWK | Stanley Black & Decker | 2.60% | -35.30% | 1.36 | -4.50% |
| FRT | Federal Realty Investment | 3.90% | -18.90% | 1.08 | -0.60% |
| ALB | Albemarle | 0.70% | -5.10% | 1.29 | 114.60% |
| PPG | PPG Indus | 1.90% | -26.90% | 0.94 | 26.00% |
| ECL | Ecolab | 1.30% | -31.40% | 1.08 | 33.30% |
| CAH | Cardinal Health | 3.50% | 9.80% | 0.86 | -6.80% |
| NEE | NextEra Energy | 2.30% | -24.60% | 0.82 | 134.30% |
| Summary | 2.40% | -8.00% | 0.89 | 83.10% |
