2023 Dividend Aristocrats List | Updated Daily

Article up to date on November 1st, 2023 by Bob CiuraSpreadsheet information up to date day by day

The Dividend Aristocrats are a choose group of 67 S&P 500 shares with 25+ years of consecutive dividend will increase.

They’re the ‘better of one of the best’ dividend progress 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 measurement & liquidity necessities

There are at the moment 67 Dividend Aristocrats. You may obtain an Excel spreadsheet of all 67 (with metrics that matter corresponding to dividend yields and price-to-earnings ratios) by clicking the hyperlink beneath:

Disclaimer: Certain Dividend is just not affiliated with S&P World in any manner. S&P World owns and maintains The Dividend Aristocrats Index. The data on this article and downloadable spreadsheet is predicated 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 info on this article or spreadsheet is official information from S&P World. Seek the advice of S&P World for official info.

Observe 1: On January twenty fourth, 2023 CH Robinson Worldwide (CHRW), Nordson (NDSN), and J.M. Smucker (SJM) have been formally added to the Dividend Aristocrats with no deletions, so there are actually 67 Dividend Aristocrats.

Observe 2: On February seventh, V.F. Corp. (VFC) introduced a dividend reduce. VFC is formally out of the Dividend Aristocrats Index, decreasing the index rely to 67 as of March 1st, 2023.

Supply: S&P Information Releases.

You may see detailed evaluation on all 67 additional beneath on this article, in our Dividend Aristocrats In Focus Sequence. Evaluation contains valuation, progress, and aggressive benefit(s).

Desk of Contents

Tips on how to Use The Dividend Aristocrats Listing To Discover Dividend Funding Concepts

The downloadable Dividend Aristocrats Excel Spreadsheet Listing above accommodates 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 at this time. That’s the place the spreadsheet on this article comes into play. You need to use the Dividend Aristocrats spreadsheet to shortly discover high quality dividend funding concepts.

The listing of all 67 Dividend Aristocrats is efficacious 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 measurement 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 effectively.

The spreadsheet above lets you kind by trailing price-to-earnings ratio so you possibly can shortly discover undervalued, high-quality dividend shares.

Right here’s learn how to use the Dividend Aristocrats listing to shortly discover high-quality dividend progress shares doubtlessly buying and selling at a reduction:

Obtain the listing
Kind by ‘Trailing PE Ratio,’ smallest to largest
Analysis the highest shares additional

Right here’s how to do that shortly within the spreadsheet:

Step 1: Obtain the listing, and open it.

Step 2: Apply a filter operate 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: Evaluate the very best ranked Dividend Aristocrats earlier than investing. You may see detailed evaluation on each Dividend Aristocrat discovered beneath on this article.

That’s it; you possibly can comply with the identical process to kind by another metric within the spreadsheet.

Efficiency Of The Dividend Aristocrats

In October 2023, the Dividend Aristocrats, as measured by the Dividend Aristocrats ETF (NOBL), registered a detrimental return of three.6%. It underperformed the SPDR S&P 500 ETF (SPY) for the month.

NOBL generated detrimental returns of three.6% in October 2023
SPY generated detrimental returns of two.2% in October 2023

Quick-term efficiency is usually noise. Efficiency needs to 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 9.84% whole annual return for the Dividend Aristocrats and a 11.18% whole 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

Greater whole returns with decrease volatility is the ‘holy grail’ of investing. It’s price exploring the traits of the Dividend Aristocrats intimately to find out why they’ve carried out so effectively.

Observe {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 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 enables 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 imagine 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 might probably pay dividends to shareholders. This excludes ‘pre-earnings’ start-ups and failing companies. Briefly, it excludes the riskiest shares.
A enterprise that pays constant dividends should 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 selections seemingly 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 period, all different issues being equal.

For a enterprise to extend its dividends for 25+ consecutive years, it will need to have or at the very least had within the very current previous a powerful aggressive benefit.

Sector Overview

A sector breakdown of the Dividend Aristocrats Index is proven beneath:

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 be considerably underweight the Info Expertise sector, with a ~3% allocation in contrast with over 20% allocation throughout the S&P 500.

The Dividend Aristocrat Index is stuffed with steady ‘outdated financial system’ blue chip shopper 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 progress, however additionally they are impossible to see giant earnings drawdowns as effectively.

The ten Finest Dividend Aristocrats Now

This analysis report examines the ten greatest Dividend Aristocrats from our Certain Evaluation Analysis Database with the very best 5-year ahead anticipated whole returns.

Click on right here to learn the total analysis report now. Or, use the desk beneath to shortly soar to evaluation on any of the highest 10 greatest month-to-month dividend shares as ranked by anticipated whole returns.

The Dividend Aristocrats In Focus Evaluation Sequence

You may see evaluation on each single Dividend Aristocrat beneath. Every is sorted by GICS sectors and listed in alphabetical order by title. The most recent Certain Evaluation Analysis Database report for every safety is included as effectively.

Shopper Staples

Industrials

Well being Care

Shopper Discretionary

Financials

Supplies

Vitality

Info Expertise

Actual Property

Utilities

Historic Dividend Aristocrats Listing(1989 – 2023)

The picture beneath reveals the historical past of the Dividend Aristocrats Index from 1989 by 2023:

Observe: CL, GPC, and NUE have been all eliminated and re-added to the Dividend Aristocrats Index by the historic interval analyzed above. We’re uncertain as to why. Corporations created by way of a spin-off (like AbbVie) will be Dividend Aristocrats with lower than 25 years of rising dividends if the mother or father firm was a Dividend Aristocrat.

This info was compiled from the next sources:

Regularly Requested Questions

This part will tackle a few of commonest questions traders have concerning the Dividend Aristocrats.

1. What’s the highest-paying Dividend Aristocrat?

Reply: WBA at the moment yields 9.1%.

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 at the very least 25 consecutive years, and fulfill plenty of liquidity necessities. The Dividend Kings solely have to have raised their dividends for at the very least 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 at the very least 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 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 common dividend yield of the 67 Dividend Aristocrats is 2.6%.

7. Are the Dividend Aristocrats secure investments?

Whereas there are by no means any ensures in relation to the inventory market, we imagine the Dividend Aristocrats are among the many most secure dividend shares in relation to the sustainability of their dividend payouts.

The Dividend Aristocrats have sturdy aggressive benefits that permit them to boost their dividends annually, even throughout a recession.

Different Dividend Lists & Ultimate Ideas

The Dividend Aristocrats listing is just not the one solution to shortly display for shares that usually pay rising dividends.

The Dividend Kings Listing is much more unique than the Dividend Aristocrats. It’s comprised of fifty 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 attraction 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 group of high-quality shareholder pleasant shares which have robust aggressive benefits.

Buying a majority of these shares at honest or higher costs and holding for the long-run will seemingly end in favorable long-term efficiency.