Article up to date on June third, 2024 by Bob CiuraSpreadsheet knowledge up to date each 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 very best’ dividend development shares. The Dividend Aristocrats have a protracted 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 dimension & liquidity necessities
There are at present 68 Dividend Aristocrats. You’ll be able to obtain an Excel spreadsheet of all 68 (with metrics that matter akin to dividend yields and price-to-earnings ratios) by clicking the hyperlink under:
Disclaimer: Certain Dividend is just not affiliated with S&P International in any manner. S&P International owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet relies on Certain 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 traders 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 knowledge from S&P International. Seek the advice of S&P International for official data.
Notice 1: On January twenty fourth, 2024, Fastenal (FAST) was added to the listing 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, development, and aggressive benefit(s).
Desk of Contents
How one can Use The Dividend Aristocrats Listing To Discover Dividend Funding Concepts
The downloadable Dividend Aristocrats Excel Spreadsheet Listing above comprises the next for every inventory within the index:
Value-to-earnings ratio
Dividend yield
Market capitalization
All Dividend Aristocrats are high-quality companies based mostly on their lengthy dividend histories. An organization can’t pay rising dividends for 25+ years with out having a powerful and sturdy aggressive benefit.
However not all Dividend Aristocrats make equally good investments as we speak. 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 listing of all 68 Dividend Aristocrats is effective as a result of it provides you a concise listing of all S&P 500 shares with 25+ consecutive years of dividend will increase (that additionally meet sure minimal dimension and liquidity necessities).
These are companies which have each the will 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 should be thought-about as properly.
The spreadsheet above permits you to type by trailing price-to-earnings ratio so you possibly can rapidly discover undervalued, high-quality dividend shares.
Right here’s use the Dividend Aristocrats listing to rapidly discover high-quality dividend development shares doubtlessly buying and selling at a reduction:
Obtain the listing
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 listing, 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 type smallest to largest.
Step 4: Evaluate the 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 type by another metric within the spreadsheet.
Efficiency Of The Dividend Aristocrats
In Could 2024, the Dividend Aristocrats, as measured by the Dividend Aristocrats ETF (NOBL), registered a constructive return of 1.5%. It under-performed the SPDR S&P 500 ETF (SPY) for the month.
NOBL generated returns of 1.5% in Could 2024
SPY generated returns of 5.0% in Could 2024
Brief-term efficiency is generally noise. Efficiency needs to be measured over a minimal of three years, and ideally longer durations of time.
The Dividend Aristocrats Index has barely under-performed the broader market index over the past decade, with a ten.65% complete annual return for the Dividend Aristocrats and a 12.69% complete annual return for the S&P 500 Index.
However the Dividend Aristocrats have exhibited decrease threat than the benchmark, as measured by commonplace deviation.
Supply: S&P Truth Sheet
Greater 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 properly.
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 battle to remain alive.
The Dividend Aristocrats Index has crushed the market over the past 28 years…
We consider dividend paying shares outperform non-dividend paying shares for 3 causes:
An organization that pays dividends is more likely to be producing earnings or money flows in order that it may 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 should be extra selective with the expansion initiatives it takes on as a result of a portion of its money flows are being paid out as dividends. Scrutinizing over capital allocation choices doubtless provides to shareholder worth.
Shares that pay dividends are prepared 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 a protracted time frame, all different issues being equal.
For a enterprise to extend its dividends for 25+ consecutive years, it will need to have or not less than 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 Shopper Staples. The Dividend Aristocrats Index is tilted towards Shopper 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 also be considerably underweight the Data Know-how sector, with a ~3% allocation in contrast with over 20% allocation inside the S&P 500.
The Dividend Aristocrat Index is stuffed with steady ‘previous financial 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 more likely to generate 20%+ earnings-per-share development, however in addition they are most unlikely to see massive earnings drawdowns as properly.
The ten Greatest Dividend Aristocrats Now
This analysis report examines the ten greatest Dividend Aristocrats from our Certain Evaluation Analysis Database with the best 5-year ahead anticipated complete returns.
Dividend Aristocrat #10: Atmos Power (ATO)
5-year Anticipated Annual Returns: 11.0%
Atmos Power can hint its beginnings all the best way again to 1906, when it was fashioned in Texas. Since that point, it has grown each organically and thru mergers. Immediately, Atmos Power distributes and shops pure gasoline in eight states, serving over 3 million clients.
As well as, Atmos owns about 5,700 miles of pure gasoline transmission traces. The utility ought to generate about $4.6 billion in income this yr. The corporate serves over 3 million pure gasoline clients unfold throughout eight completely different states.
Supply: Investor Presentation
Atmos posted second quarter earnings on Could eighth, 2024, and outcomes had been largely in keeping with expectations. Whole income rose from $1.54 billion to $1.65 billion year-over-year. The achieve was primarily pushed by the distribution phase, which noticed a achieve of about $90 million. The pipeline and storage phase was up about $40 million.
Fuel prices had been decrease year-over-year, and along side greater income, drove higher revenue margins. Whole gasoline prices for each segments mixed fell from $660 million to $624 million. Working and upkeep prices rose barely, however in complete, working revenue rose from $423 million to $551 million.
Click on right here to obtain our most up-to-date Certain Evaluation report on ATO (preview of web page 1 of three proven under):
Dividend Aristocrat #9: Real Elements Firm (GPC)
5-year Anticipated Annual Returns: 11.6%
Real Elements Firm was based in 1928 and since that point, it has grown right into a conglomerate that sells automotive and industrial components, electrical supplies, and normal enterprise merchandise. Its international span reaches all through North America, Australia, New Zealand, and Europe and is comprised of greater than 3,000 areas. It has about 60,000 workers and trades with a market capitalization of $20 billion, with about $24 billion in annual income.
Real Elements can also be a Dividend King, having raised its dividend for an unimaginable 68 consecutive years. Real Elements posted first quarter earnings on April 18th, 2024, and outcomes had been blended. Adjusted earnings-per-share got here to $2.22, which was six cents higher than anticipated. Internet revenue was off from $304 million to $249 million year-over-year. Income, nevertheless, was flat year-over-year at $5.8 billion, and missed estimates by $40 million.
Click on right here to obtain our most up-to-date Certain Evaluation report on GPC (preview of web page 1 of three proven under):
Dividend Aristocrat #8: Lowe’s Corporations (LOW)
5-year Anticipated Annual Returns: 11.7%
Lowe’s Corporations is the second-largest dwelling enchancment retailer within the US (after Dwelling Depot). The corporate was based in 1946 and is headquartered in Mooresville, NC. Lowe’s operates or companies greater than 1,700 dwelling enchancment and {hardware} shops within the U.S.
Lowe’s reported fourth quarter 2023 outcomes on February twenty seventh, 2024. Whole gross sales got here in at $18.6 billion in comparison with $22.4 billion in the identical quarter a yr in the past. Comparable gross sales decreased by 6.2%, whereas web earnings-per-share of $1.77 in comparison with $1.58 in fourth quarter 2022.
Nonetheless, adjusted EPS within the year-ago interval was $2.28 when excluding the transaction prices associated to the sale of the Canadian retail enterprise within the prior yr. The corporate continues to be negatively impacted from a discount in DIY discretionary spending.
Click on right here to obtain our most up-to-date Certain Evaluation report on LOW (preview of web page 1 of three proven under):
Dividend Aristocrat #7: S&P International (SPGI)
5-year Anticipated Annual Returns: 11.9%
S&P International is a worldwide supplier of economic companies and enterprise data. The corporate has generated robust development over the previous a number of years. It has elevated its dividend for 50 consecutive years. It operates within the extremely concentrated monetary scores trade the place the three well-known ranking companies management over 90% of worldwide monetary debt scores.
S&P International posted first quarter earnings on April twenty fifth, 2024, and outcomes had been a lot better than anticipated, accompanied by a steering increase. Adjusted earnings-per-share got here to $4.01, which was 35 cents forward of estimates. As well as, earnings had been up from $3.15 a yr in the past. Income rose greater than 10% year-over-year to $3.49 billion, which was $80 million forward of expectations.
Click on right here to obtain our most up-to-date Certain Evaluation report on SPGI (preview of web page 1 of three proven under):
Dividend Aristocrat #6: Computerized Information Processing (ADP)
5-year Anticipated Annual Returns: 12.2%
Computerized Information Processing is likely one of the largest enterprise companies outsourcing firms on this planet. The corporate offers payroll companies, human sources expertise, and different enterprise operations to greater than 700,000 company clients.
ADP posted third quarter earnings on Could 1st, 2024, and outcomes had been fairly robust as soon as once more. The corporate posted adjusted earnings-per-share of $2.88, which was a dime higher than anticipated. Income was up 7% year-over-year to $5.3 billion, which was $70 million forward of estimates.
Employer Providers income was $3.59 billion, which was up 8% year-on-year, whereas the phase’s earnings rose 4% to $1.42 billion. Margin improved from 37.3% of income to 39.6%. PEO Providers income was up 5% to $1.67 billion, whereas earnings fell 10% to $236 million. Margin declined from 16.4% of income to 14.2%.
Click on right here to obtain our most up-to-date Certain Evaluation report on ADP (preview of web page 1 of three proven under):
Dividend Aristocrat #5: Goal Company (TGT)
5-year Anticipated Annual Returns: 12.5%
Goal was based in 1902 and now operates about 1,850 massive field shops, which provide normal merchandise and meals, in addition to serving as distribution factors for the corporate’s e-commerce enterprise.
Goal posted first quarter earnings on Could twenty second, 2024, and outcomes had been weaker than anticipated, together with a discount in steering for the yr, each of which noticed the inventory punished after the report.
Adjusted earnings-per-share got here to $2.03 in Q1, which was three cents gentle of estimates. Income was additionally down 3.1% to $24.53 billion, which met estimates. Comparable gross sales fell 3.7%, which met expectations, and was the reason for the consolidated prime line decline.
Click on right here to obtain our most up-to-date Certain Evaluation report on TGT (preview of web page 1 of three proven under):
Dividend Aristocrat #4: Medtronic plc (MDT)
5-year Anticipated Annual Returns: 12.7%
Medtronic is the biggest producer of biomedical gadgets and implantable applied sciences on this planet. It serves physicians, hospitals, and sufferers in additional than 150 international locations and has over 90,000 workers.
Medtronic has 4 working segments: Cardiovascular, Medical Surgical, Neuroscience and Diabetes. Medtronic has raised its dividend for 46 consecutive years.
In late Could, Medtronic reported (5/23/24) monetary outcomes for the fourth quarter of fiscal yr 2024. Natural income grew 5% over the prior yr’s quarter because of broad-based, mid-single digit development or greater in all of the 4 segments.
Earnings-per-share decreased -7%, from $1.57 to $1.46, because of a -4% foreign money headwind and better R&D prices and promoting & administrative prices, however exceeded the analysts’ consensus by $0.01.
Click on right here to obtain our most up-to-date Certain Evaluation report on MDT (preview of web page 1 of three proven under):
Dividend Aristocrat #3: Sysco Company (SYY)
5-year Anticipated Annual Returns: 12.7%
Sysco Company is the biggest wholesale meals distributor in the US. The corporate serves 600,000 areas with meals supply, together with eating places, hospitals, colleges, inns, and different services.
Supply: Investor Presentation
On April thirtieth, 2024, Sysco reported Third-quarter outcomes for Fiscal Yr (FY) 2024. The corporate demonstrated vital development throughout key metrics in comparison with the identical interval in fiscal yr 2023.
With gross sales rising by 2.7% to $19.4 billion and gross revenue surging by 5.2% to $3.6 billion, Sysco showcased its resilience and flexibility amidst a difficult financial surroundings.
Click on right here to obtain our most up-to-date Certain Evaluation report on SYY (preview of web page 1 of three proven under):
Dividend Aristocrat #2: Johnson & Johnson (JNJ)
5-year Anticipated Annual Returns: 13.2%
Johnson & Johnson is a diversified well being care firm and a frontrunner within the space of prescription drugs (~49% of gross sales), medical gadgets (~34% of gross sales) and client merchandise (~17% of gross sales). The corporate has annual gross sales in extra of $93 billion.
On April sixteenth, 2024, Johnson & Johnson reported first quarter outcomes for the interval ending March thirty first, 2024.
Supply: Investor Presentation
For the quarter, income grew 2.3% to $21.4 billion, which was in-line with estimates. Adjusted earnings-per-share of $2.71 in comparison with $2.68 within the prior yr and was $0.06 higher than anticipated.
The corporate has elevated its dividend for 60 consecutive years, making it a Dividend King. The inventory is owned by many well-known cash managers. For instance, J&J is a Kevin O’Leary dividend inventory.
Click on right here to obtain our most up-to-date Certain Evaluation report on JNJ (preview of web page 1 of three proven under):
Dividend Aristocrat #1: PPG Industries (PPG)
5-year Anticipated Annual Returns: 14.0%
PPG Industries is the world’s largest paints and coatings firm. Its solely opponents of comparable dimension 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 as we speak has roughly 3,500 technical workers situated in additional than 70 international locations at 100 areas.
On April 18th, 2024, PPG Industries reported first quarter outcomes for the interval ending March thirty first, 2024.
Supply: Investor Presentation
For the quarter, income decreased 1.6% to $4.31 billion, which was $120 million lower than anticipated. Adjusted web revenue of $441 million, or $1.86 per share, in comparison with adjusted web revenue of $432 million, or $1.82 per share, within the prior yr. Adjusted earnings-per-share had been in-line with consensus estimates.
Click on right here to obtain our most up-to-date Certain Evaluation report on PPG (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 latest Certain Evaluation Analysis Database report for every safety is included as properly.
Shopper Staples
Industrials
Well being Care
Shopper Discretionary
Financials
Supplies
Power
Data Know-how
Actual Property
Utilities
Historic Dividend Aristocrats Listing(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 had been all eliminated and re-added to the Dividend Aristocrats Index by way of the historic interval analyzed above. We’re not sure as to why. Corporations created through 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: Certain Dividend is just not affiliated with S&P International in any manner. S&P International owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet and picture under relies on Certain 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 traders 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 knowledge from S&P International. Seek the advice of S&P International for official data.
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This data was compiled from the next sources:
Continuously Requested Questions
This part will deal with a few of commonest questions traders have concerning the Dividend Aristocrats.
1. What’s the highest-paying Dividend Aristocrat?
Reply: Realty Revenue (O) at present yields 5.8%.
2. What’s the distinction between the Dividend Aristocrats and the Dividend Kings?
Reply: The Dividend Aristocrats should be constituents of the S&P 500 Index, have raised their dividends for not less than 25 consecutive years, and fulfill plenty of liquidity necessities. The Dividend Kings solely must have raised their dividends for not less than 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 not less than 25 consecutive years.
However just like the Dividend Kings, the Dividend Champions don’t should be within the S&P 500 Index, nor fulfill the assorted liquidity necessities.
5. Which Dividend Aristocrat has the longest energetic streak of annual dividend will increase?
At present, there are 3 Dividend Aristocrats tied at 67 years: Procter & Gamble, Real Elements, 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 protected investments?
Whereas there are by no means any ensures relating to the inventory market, we consider the Dividend Aristocrats are among the many most secure dividend shares relating to the sustainability of their dividend payouts.
The Dividend Aristocrats have sturdy aggressive benefits that permit them to boost their dividends every year, even throughout a recession.
Different Dividend Lists & Ultimate Ideas
The Dividend Aristocrats listing is just not the one strategy to rapidly display for shares that frequently pay rising dividends.
The Dividend Kings Listing is much more unique than the Dividend Aristocrats. It’s comprised of 53 shares with 50+ years of consecutive dividend will increase.
The Blue Chip Shares Listing: shares that qualify as Dividend Achievers, Dividend Aristocrats, and/or Dividend Kings
The Excessive Dividend Shares Listing: shares that enchantment to traders within the highest yields of 5% or extra.
The Month-to-month Dividend Shares Listing: shares that pay dividends each month, for 12 dividend funds per yr.
There’s nothing magical concerning the Dividend Aristocrats. They’re ‘simply’ a set of high-quality shareholder pleasant shares which have robust aggressive benefits.
Buying some of these shares at truthful or higher costs and holding for the long-run will doubtless lead to favorable long-term efficiency.
Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to help@suredividend.com.
