Article up to date on February 1st, 2024 by Bob CiuraSpreadsheet information up to date day by day
The Dividend Aristocrats are a choose group of 68 S&P 500 shares with 25+ years of consecutive dividend will increase.
They’re the ‘better of the perfect’ dividend progress shares. The Dividend Aristocrats have an extended historical past of outperforming the market.
The necessities to be a Dividend Aristocrat are:
Be within the S&P 500
Have 25+ consecutive years of dividend will increase
Meet sure minimal measurement & liquidity necessities
There are presently 68 Dividend Aristocrats. You’ll be able to obtain an Excel spreadsheet of all 68 (with metrics that matter equivalent to dividend yields and price-to-earnings ratios) by clicking the hyperlink under:
Disclaimer: Positive Dividend just isn’t affiliated with S&P World in any approach. S&P World owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet relies on Positive Dividend’s personal evaluate, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person buyers higher perceive this ETF and the index upon which it’s based mostly. Not one of the data on this article or spreadsheet is official information from S&P World. Seek the advice of S&P World for official data.
Notice 1: On January twenty fourth, 2024, Fastenal (FAST) was added to the checklist whereas Walgreens Boots Alliance (WBA), leaving 68 Dividend Aristocrats.
Supply: S&P Information Releases.
You’ll be able to see detailed evaluation on all 68 additional under on this article, in our Dividend Aristocrats In Focus Collection. Evaluation consists of valuation, progress, and aggressive benefit(s).
Desk of Contents
Methods to Use The Dividend Aristocrats Record To Discover Dividend Funding Concepts
The downloadable Dividend Aristocrats Excel Spreadsheet Record above comprises the next for every inventory within the index:
Worth-to-earnings ratio
Dividend yield
Market capitalization
All Dividend Aristocrats are high-quality companies based mostly on their lengthy dividend histories. An organization can not pay rising dividends for 25+ years with out having a powerful and sturdy aggressive benefit.
However not all Dividend Aristocrats make equally good investments at this time. That’s the place the spreadsheet on this article comes into play. You should utilize the Dividend Aristocrats spreadsheet to rapidly discover high quality dividend funding concepts.
The checklist of all 68 Dividend Aristocrats is effective as a result of it provides you a concise checklist of all S&P 500 shares with 25+ consecutive years of dividend will increase (that additionally meet sure minimal measurement and liquidity necessities).
These are companies which have each the need and talent to pay shareholders rising dividends year-after-year. It is a uncommon mixture.
Collectively, these two standards are highly effective – however they aren’t sufficient. Worth have to be thought of as effectively.
The spreadsheet above lets you kind by trailing price-to-earnings ratio so you possibly can rapidly discover undervalued, high-quality dividend shares.
Right here’s tips on how to use the Dividend Aristocrats checklist to rapidly discover high-quality dividend progress shares doubtlessly buying and selling at a reduction:
Obtain the checklist
Type by ‘Trailing PE Ratio,’ smallest to largest
Analysis the highest shares additional
Right here’s how to do that rapidly within the spreadsheet:
Step 1: Obtain the checklist, and open it.
Step 2: Apply a filter perform to every column within the spreadsheet.
Step 3: Click on on the small grey down arrow subsequent to ‘Trailing P/E Ratio’, after which kind smallest to largest.
Step 4: Overview the very best ranked Dividend Aristocrats earlier than investing. You’ll be able to see detailed evaluation on each Dividend Aristocrat discovered under on this article.
That’s it; you possibly can comply with the identical process to kind by some other metric within the spreadsheet.
Efficiency Of The Dividend Aristocrats
In January 2024, the Dividend Aristocrats, as measured by the Dividend Aristocrats ETF (NOBL), registered a damaging return of -0.47%. It underperformed the SPDR S&P 500 ETF (SPY) for the month.
NOBL generated damaging returns of 0.47% in January 2024
SPY generated constructive returns of 1.6% in January 2024 2024
Quick-term efficiency is generally noise. Efficiency must be measured over a minimal of three years, and ideally longer intervals of time.
The Dividend Aristocrats Index has barely underperformed the broader market index over the past decade, with a ten.72% complete annual return for the Dividend Aristocrats and a 12.51% complete annual return for the S&P 500 Index. However the Dividend Aristocrats have exhibited decrease threat than the benchmark, as measured by normal deviation.
Supply: S&P Truth Sheet
Larger complete returns with decrease volatility is the ‘holy grail’ of investing. It’s value exploring the traits of the Dividend Aristocrats intimately to find out why they’ve carried out so effectively.
Notice {that a} good portion of the outperformance relative to the S&P 500 comes throughout recessions (2000 – 2002, 2008). Dividend Aristocrats have traditionally seen smaller drawdowns throughout recessions versus the S&P 500. This makes holding by way of recessions that a lot simpler. Case-in-point: In 2008 the Dividend Aristocrats Index declined 22%. That very same yr, the S&P 500 declined 38%.
Nice companies with robust aggressive benefits have a tendency to have the ability to generate stronger money flows throughout recessions. This permits them to achieve market share whereas weaker companies combat to remain alive.
The Dividend Aristocrats Index has crushed the market over the past 28 years…
We imagine dividend paying shares outperform non-dividend paying shares for 3 causes:
An organization that pays dividends is prone to be producing earnings or money flows in order that it might pay dividends to shareholders. This excludes ‘pre-earnings’ start-ups and failing companies. In brief, it excludes the riskiest shares.
A enterprise that pays constant dividends have to be extra selective with the expansion tasks it takes on as a result of a portion of its money flows are being paid out as dividends. Scrutinizing over capital allocation choices seemingly provides to shareholder worth.
Shares that pay dividends are keen to reward shareholders with money funds. It is a signal that administration is shareholder pleasant.
In our view, Dividend Aristocrats have traditionally outperformed the market and different dividend paying shares as a result of they’re, on common, higher-quality companies.
A high-quality enterprise ought to outperform a mediocre enterprise over an extended time period, all different issues being equal.
For a enterprise to extend its dividends for 25+ consecutive years, it will need to have or a minimum of had within the very current previous a powerful aggressive benefit.
Sector Overview
A sector breakdown of the Dividend Aristocrats Index is proven under:
The highest 2 sectors by weight within the Dividend Aristocrats are Industrials and Client Staples. The Dividend Aristocrats Index is tilted towards Client Staples and Industrials relative to the S&P 500.
These 2 sectors make up over 40% of the Dividend Aristocrats Index, however lower than 20% of the S&P 500.
The Dividend Aristocrats Index can be considerably underweight the Info Know-how sector, with a ~3% allocation in contrast with over 20% allocation throughout the S&P 500.
The Dividend Aristocrat Index is crammed with secure ‘previous economic system’ blue chip client merchandise companies and producers; the 3M’s (MMM), Coca-Cola’s (KO), and Johnson & Johnson’s (JNJ) of the investing world.
These ‘boring’ companies aren’t prone to generate 20%+ earnings-per-share progress, however in addition they are impossible to see giant earnings drawdowns as effectively.
The ten Greatest Dividend Aristocrats Now
This analysis report examines the ten greatest Dividend Aristocrats from our Positive Evaluation Analysis Database with the very best 5-year ahead anticipated complete returns.
Dividend Aristocrat #10: Goal Company (TGT)
5-year Anticipated Annual Returns: 11.4%
Goal is a reduction retail operations solely within the U.S. market. Its enterprise consists of about 2,000 large field shops providing normal merchandise and meals and serving as distribution factors for its burgeoning e-commerce enterprise.
Supply: Investor Presentation
Goal posted third quarter earnings on November fifteenth, 2023, and outcomes have been a lot better than anticipated on each the highest and backside strains.
Income got here to $25.2 billion, which was down 4.2% year-over-year, however was $160 million higher than anticipated. Comparable gross sales fell 4.9%, which was attributable to a bodily retailer gross sales decline of 4.6%, and a comparable digital gross sales decline of 6.0%. Adjusted earnings-per-share got here to $2.10, which was a staggering 62 cents higher than anticipated.
Click on right here to obtain our most up-to-date Positive Evaluation report on Goal Company (preview of web page 1 of three proven under):
Dividend Aristocrat #9: Automated Information Processing (ADP)
5-year Anticipated Annual Returns: 11.4%
Automated Information Processing is without doubt one of the largest enterprise companies outsourcing corporations on this planet. The corporate offers payroll companies, human sources know-how, and different enterprise operations to greater than 700,000 company clients.
ADP posted first quarter earnings on October twenty fifth, 2023, and outcomes have been blended as the corporate beat on the underside line, however fractionally missed the highest line. Adjusted earnings-per-share got here to $2.08, which was six cents higher than anticipated. Income was up 7% year-over-year to $4.5 billion, however missed estimates by $10 million.
Employer Providers grew 9%, which was pushed by robust new enterprise bookings and retention, in addition to larger shopper funds curiosity income. PEO Providers income rose 3% with new enterprise bookings progress, however margins fell 90 foundation factors.
Click on right here to obtain our most up-to-date Positive Evaluation report on ADP (preview of web page 1 of three proven under):
Dividend Aristocrat #8: Lowe’s Firms (LOW)
5-year Anticipated Annual Returns: 11.5%
Lowe’s Firms is the second-largest house enchancment retailer within the US (after Residence Depot). Lowe’s operates or companies greater than 1,700 house enchancment and {hardware} shops within the U.S.
Lowe’s reported third quarter 2023 outcomes on November twenty first, 2023. Whole gross sales got here in at $20.5 billion in comparison with $27.5 billion in the identical quarter a yr in the past. Comparable gross sales decreased by 7.4%, whereas internet earnings-per-share of $3.06 in comparison with $0.25 in third quarter 2022. Adjusted EPS within the year-ago interval was $3.27. Lowe’s opened one retailer and three Lowe’s Outlet shops throughout the quarter.
The corporate repurchased 7.3 million shares within the third quarter for $1.6 billion. Moreover, it paid out $642 million in dividends.
Click on right here to obtain our most up-to-date Positive Evaluation report on LOW (preview of web page 1 of three proven under):
Dividend Aristocrat #7: Becton, Dickinson & Co. (BDX)
5-year Anticipated Annual Returns: 11.7%
Becton, Dickinson & Co. is a worldwide chief within the medical provide business. The corporate was based in 1897 and has 75,000 workers throughout 190 nations. The corporate generates about $19 billion in annual income, with roughly 43% of revenues coming from exterior of the U.S.
On November ninth, 2023, BD launched earnings outcomes for the fourth quarter and financial yr 2023, which ended onSeptember thirtieth, 2023. For the quarter, income grew 6.8% to $5.1 billion, which beat estimates by $67 million. On a forex impartial foundation, income grew 5.9%. Excluding forex alternate and COVID-19 associated gross sales, base income elevated 6.3%.
Adjusted earnings-per-share of $3.42 in contrast favorably to $2.75 within the prior yr, however was $0.01 under estimates. For the fiscal yr, income grew 5.1% to $19.4 billion whereas adjusted earnings-per-share of $12.21 in comparison with $11.35 within the prior interval.
Click on right here to obtain our most up-to-date Positive Evaluation report on BDX (preview of web page 1 of three proven under):
Dividend Aristocrat #6: Stanley Black & Decker (SWK)
5-year Anticipated Annual Returns: 12.2%
Stanley Black & Decker is a world chief in energy instruments, hand instruments, and associated gadgets. The corporate holds the highest world place in instruments and storage gross sales. Stanley Black & Decker is second on this planet within the areas of business digital safety and engineered fastening.
Supply: Investor Presentation
Stanley Works and Black & Decker merged in 2010 to type the present firm, thought the corporate can hint its historical past again to 1843. Black & Decker was based in Baltimore, MD in 1910 and manufactured the world’s first moveable energy instrument.
On October twenty seventh, 2023, Stanley Black & Decker reported third quarter outcomes for the interval ending September thirtieth, 2023. For the quarter, income decreased 4.1% to $3.95 billion, which was $20 million lower than anticipated. Adjusted earnings-per-share of $1.05 in contrast favorably to $0.76 within the prior yr and was $0.22 above estimates.
Click on right here to obtain our most up-to-date Positive Evaluation report on SWK (preview of web page 1 of three proven under):
Dividend Aristocrat #5: NextEra Power (NEE)
5-year Anticipated Annual Returns: 12.2%
NextEra Power is an electrical utility with two working segments, Florida Energy & Gentle (“FPL”) and NextEra Power Assets (“NEER”). FPL is the most important U.S. electrical utility by retail megawatt hour gross sales and buyer numbers.
The speed-regulated electrical utility serves about 5.8 million buyer accounts in Florida. NEER is the most important generator of wind and photo voltaic vitality on this planet. NEE generates roughly 80% of its revenues from FPL.
NextEra Power reported its Q3 2023 monetary outcomes on 10/24/23. The utility continues to ship secure outcomes, however the inventory valuation has come down. For the quarter, the corporate reported revenues of $7,172 million (up 6.7% yr over yr), translating to adjusted earnings of $1,920 million (up 14% yr over yr). On a per-share foundation, adjusted earnings climbed 10.6% to $0.94.
Click on right here to obtain our most up-to-date Positive Evaluation report on NEE (preview of web page 1 of three proven under):
Dividend Aristocrat #3: Archer Daniels Midland (ADM)
5-year Anticipated Annual Returns: 17.1%
Archer-Daniels-Midland is the most important publicly traded farmland product firm in america. The corporate, based in 1902, trades with a market capitalization of $38.6 billion. Archer-Daniels-Midland’s companies embody processing cereal grains, oilseeds, and agricultural storage and transportation.
Archer-Daniels-Midland reported its third-quarter outcomes for Fiscal Yr (FY)2023 on October twenty fourth, 2023. The corporate delivered strong monetary outcomes for Q3 2023 within the face of dynamic market situations. Juan Luciano, Chair and CEO, highlighted strategic initiatives, together with investments in innovation and operational effectivity, to fulfill evolving buyer wants.
The Ag Providers & Oilseeds section excelled, leveraging Brazilian export capabilities and addressing renewable inexperienced diesel demand by way of the Spiritwood manufacturing facility. Carbohydrate Options posted excellent outcomes, notably in ethanol, starches, and sweeteners.
Click on right here to obtain our most up-to-date Positive Evaluation report on ADM (preview of web page 1 of three proven under):
Dividend Aristocrat #4: PPG Industries (PPG)
5-year Anticipated Annual Returns: 12.4%
PPG Industries is the world’s largest paints and coatings firm. Its solely rivals of comparable measurement are Sherwin-Williams and Dutch paint firm Akzo Nobel. PPG Industries was based in 1883 as a producer and distributor of glass (its identify stands for Pittsburgh Plate Glass) and at this time has roughly 3,500 technical workers positioned in additional than 70 nations at 100 areas.
On January 18th, 2024, PPG Industries reported fourth quarter and full yr outcomes for the interval ending December thirty first, 2023. For the quarter, income grew 3.8% to a brand new quarterly document $4.35 billion, which topped estimates by $80 million. Adjusted internet revenue of $363 million, or $1.53 per share, in comparison with adjusted internet revenue of $286 million, or $1.22 per share, within the prior yr. Adjusted earnings-per-share was $0.03 greater than anticipated.
Click on right here to obtain our most up-to-date Positive Evaluation report on PPG (preview of web page 1 of three proven under):
Dividend Aristocrat #2: 3M Firm (MMM)
5-year Anticipated Annual Returns: 20.4%
3M is an industrial producer that sells greater than 60,000 merchandise used day by day in properties, hospitals, workplace buildings, and faculties worldwide. It has about 95,000 workers and serves clients in additional than 200 nations.
On January twenty third, 2024, 3M introduced fourth quarter and full yr earnings outcomes for the interval ending December thirty first, 2023. For the quarter, income decreased 0.3% to $7.69 billion, which missed estimates by $30 million. Adjusted earnings-per-share of $2.42 in comparison with $2.28 within the prior yr and was $0.11 greater than anticipated.
For 2023, income was decrease by 4.5% to $32.7 billion whereas adjusted earnings-per-share of $9.24 in comparison with $10.10 within the prior yr. Nevertheless, comparable adjusted earnings-per-share totaled $9.88 in 2023.
Click on right here to obtain our most up-to-date Positive Evaluation report on 3M Firm (preview of web page 1 of three proven under):
Dividend Aristocrat #1: Albemarle Company (ALB)
5-year Anticipated Annual Returns: 25.3%
Albemarle is the most important producer of lithium and second largest producer of bromine on this planet. The 2 merchandise account for almost two-thirds of annual gross sales. Albemarle produces lithium from its salt brine deposits within the U.S. and Chile. The corporate has two joint ventures in Australia that additionally produce lithium.
Associated: 2023 Lithium Shares Record
Supply: Investor Presentation
On November 1st, 2023, Albemarle reported third quarter outcomes for the interval ending September thirtieth, 2023. For the quarter, income grew 10.5% to $2.31 billion, however missed estimates by $220 million. Adjusted earnings-per-share of $2.74 in contrast very unfavorably to $7.50 within the prior yr and was $1.00 under estimates.
Outcomes have been negatively impacted by decrease costs for lithium. For the quarter, income for Power Storage grew 20% to $1.7 billion. A 40% enhance in quantity was offset by decrease costs. Revenues for Specialties fell 20.2% to $352.7 million as volumes have been down 7% and realized costs declined 13%. Ketjen gross sales of $260.7 million have been a ten.6% enhance from the prior yr, once more as a consequence of larger costs.
Click on right here to obtain our most up-to-date Positive Evaluation report on Albemarle (preview of web page 1 of three proven under):
The Dividend Aristocrats In Focus Evaluation Collection
You’ll be able to see evaluation on each single Dividend Aristocrat under. Every is sorted by GICS sectors and listed in alphabetical order by identify. The most recent Positive Evaluation Analysis Database report for every safety is included as effectively.
Client Staples
Industrials
Well being Care
Client Discretionary
Financials
Supplies
Power
Info Know-how
Actual Property
Utilities
Historic Dividend Aristocrats Record(1989 – 2024)
The picture under exhibits the historical past of the Dividend Aristocrats Index from 1989 by way of 2023:
Notice: CL, GPC, and NUE have been all eliminated and re-added to the Dividend Aristocrats Index by way of the historic interval analyzed above. We’re uncertain as to why. Firms created by way of a spin-off (like AbbVie) will be Dividend Aristocrats with lower than 25 years of rising dividends if the father or mother firm was a Dividend Aristocrat.
Disclaimer: Positive Dividend just isn’t affiliated with S&P World in any approach. S&P World owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet and picture under relies on Positive Dividend’s personal evaluate, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person buyers higher perceive this ETF and the index upon which it’s based mostly. Not one of the data on this article or spreadsheet is official information from S&P World. Seek the advice of S&P World for official data.
This data was compiled from the next sources:
Regularly Requested Questions
This part will handle a few of commonest questions buyers have relating to the Dividend Aristocrats.
1. What’s the highest-paying Dividend Aristocrat?
Reply: Leggett & Platt (LEG) presently yields 7.9%.
2. What’s the distinction between the Dividend Aristocrats and the Dividend Kings?
Reply: The Dividend Aristocrats have to be constituents of the S&P 500 Index, have raised their dividends for a minimum of 25 consecutive years, and fulfill a variety of liquidity necessities. The Dividend Kings solely must have raised their dividends for a minimum of 50 consecutive years.
3. Is there an ETF that tracks the Dividend Aristocrats?
Reply: Sure, the Dividend Aristocrats ETF (NOBL) is an exchange-traded fund that particularly holds the Dividend Aristocrats.
4. What’s the distinction between the Dividend Aristocrats and the Dividend Champions?
Reply: The Dividend Aristocrats and Dividend Champions share one requirement, which is that an organization will need to have raised its dividend for a minimum of 25 consecutive years.
However just like the Dividend Kings, the Dividend Champions don’t must be within the S&P 500 Index, nor fulfill the varied liquidity necessities.
5. Which Dividend Aristocrat has the longest energetic streak of annual dividend will increase?
Presently, there are 4 Dividend Aristocrats tied at 67 years: Procter & Gamble, Real Elements, 3M Firm, and Dover Company.
6. What’s the common dividend yield of the Dividend Aristocrats?
Proper now, the typical dividend yield of the Dividend Aristocrats is 2.6%.
7. Are the Dividend Aristocrats secure investments?
Whereas there are by no means any ensures in terms of the inventory market, we imagine the Dividend Aristocrats are among the many most secure dividend shares in terms of the sustainability of their dividend payouts.
The Dividend Aristocrats have sturdy aggressive benefits that enable them to lift their dividends annually, even throughout a recession.
Different Dividend Lists & Closing Ideas
The Dividend Aristocrats checklist just isn’t the one method to rapidly display screen for shares that frequently pay rising dividends.
The Dividend Kings Record is much more unique than the Dividend Aristocrats. It’s comprised of 54 shares with 50+ years of consecutive dividend will increase.
The Blue Chip Shares Record: shares that qualify as Dividend Achievers, Dividend Aristocrats, and/or Dividend Kings
The Excessive Dividend Shares Record: shares that enchantment to buyers within the highest yields of 5% or extra.
The Month-to-month Dividend Shares Record: shares that pay dividends each month, for 12 dividend funds per yr.
There’s nothing magical in regards to the Dividend Aristocrats. They’re ‘simply’ a group of high-quality shareholder pleasant shares which have robust aggressive benefits.
Buying a lot of these shares at truthful or higher costs and holding for the long-run will seemingly end in favorable long-term efficiency.
Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to [email protected].
