Dividend Aristocrats are a group of companies within the S&P 500 Index that have consistently increased their dividends for at least 25 consecutive years. The list is updated annually by S&P Dow Jones Indices and includes companies from various sectors such as consumer goods, healthcare, industrials, and utilities. The criteria for inclusion in the list is strict, requiring companies to have a long history of paying dividends and a track record of consistent dividend growth. Dividend Aristocrats are considered to be blue-chip stocks, meaning they are well-established companies with a strong financial performance and a history of paying dividends to shareholders.
Investing in Dividend Aristocrats can be a good strategy for investors who are looking for income and capital appreciation. These companies have a history of generating cash flow and returning it to shareholders, which can provide a steady stream of income. Additionally, companies that consistently increase their dividends tend to be financially stable and have a strong track record of profitability, which can provide potential for capital appreciation over time.
Moreover, Dividend Aristocrats tend to be less volatile than the overall stock market, as they are high-quality companies that are less likely to be affected by short-term market fluctuations. Additionally, Dividend Aristocrats tend to have lower beta, which means that they are less sensitive to market movements. This can make them a good choice for investors who are looking for a more stable investment option.
It’s worth noting that Dividend Aristocrats are not guaranteed to continue to increase their dividends, and past performance is not indicative of future results. It’s also important to conduct thorough research and analysis of each company before investing in them.
The list of Dividend Aristocrats is maintained and updated annually by S&P Dow Jones Indices. The current list of Dividend Aristocrats for 2021 comprises of 57 companies, here are few examples:
- 3M Co. (MMM)
- AbbVie Inc. (ABBV)
- AFLAC Inc. (AFL)
- AT&T Inc. (T)
- Becton, Dickinson and Company (BDX)
- Cardinal Health Inc. (CAH)
- Chubb Limited (CB)
- Cintas Corporation (CTAS)
- Cisco Systems, Inc. (CSCO)
- Colgate-Palmolive Company (CL)
- Consolidated Edison, Inc. (ED)
- Dover Corporation (DOV)
- Emerson Electric Co. (EMR)
- Exelon Corporation (EXC)
- General Dynamics Corporation (GD)
- Genuine Parts Company (GPC)
- HCP, Inc. (HCP)
- Illinois Tool Works Inc. (ITW)
- Johnson & Johnson (JNJ)
- Leggett & Platt, Incorporated (LEG)
- Lowe’s Companies, Inc. (LOW)
- McCormick & Company, Incorporated (MKC)
- McDonald’s Corporation (MCD)
- Medtronic plc (MDT)
- NextEra Energy, Inc. (NEE)
- People’s United Financial, Inc. (PBCT)
- Procter & Gamble Co. (PG)
- S&P Global Inc. (SPGI)
- Target Corporation (TGT)
- The Clorox Company (CLX)
- The Southern Company (SO)
- The Travelers Companies, Inc. (TRV)
- T. Rowe Price Group, Inc. (TROW)
- Walgreens Boots Alliance, Inc. (WBA)
- Wal-Mart Stores, Inc. (WMT)
- W.W. Grainger, Inc. (GWW)
- etc.
It’s worth noting that the list of Dividend Aristocrats may change from year to year, as companies may be added or removed based on their dividend payment history. It is also important to conduct thorough research and analysis of each company before investing in them, as past performance is not indicative of future results.