Article updated on August 1st, 2022 by Bob Ciura
Spreadsheet data updated daily
The Dividend Aristocrats are a select group of 65 S&P 500 stocks with 25+ years of consecutive dividend increases.
They are the ‘best of the best’ dividend growth stocks. The Dividend Aristocrats have a long history of outperforming the market.
The requirements to be a Dividend Aristocrat are:
- Be in the S&P 500
- Have 25+ consecutive years of dividend increases
- Meet certain minimum size & liquidity requirements
There are currently 65 Dividend Aristocrats. You can download an Excel spreadsheet of all 65 (with metrics that matter such as dividend yields and price-to-earnings ratios) by clicking the link below:
Note: On January 24th, 2022 Brown & Brown (BRO) and Church & Dwight (CHD) were added to the Dividend Aristocrats Index, while AT&T (T) was removed. Also, People’s United (PBCT) was acquired, leaving 65 Dividend Aristocrats.
Source: S&P News Releases.
Table of Contents
- How To Use The Dividend Aristocrats List To Find Dividend Investment Ideas
- Performance of the Dividend Aristocrats
- Sector Overview
- The Top 7 Dividend Aristocrats Now
- Dividend Aristocrats Analysis (The Dividend Aristocrats In Focus Series)
- Historical Dividend Aristocrats List (1989 – 2022)
- Frequently Asked Questions
- Final Thoughts
How to Use The Dividend Aristocrats List To Find Dividend Investment Ideas
The downloadable Dividend Aristocrats Excel Spreadsheet List above contains the following for each stock in the index:
- Price-to-earnings ratio
- Dividend yield
- Market capitalization
All Dividend Aristocrats are high-quality businesses based on their long dividend histories. A company cannot pay rising dividends for 25+ years without having a strong and durable competitive advantage.
But not all Dividend Aristocrats make equally good investments today. That’s where the spreadsheet in this article comes into play. You can use the Dividend Aristocrats spreadsheet to quickly find quality dividend investment ideas.
The list of all 65 Dividend Aristocrats is valuable because it gives you a concise list of all S&P 500 stocks with 25+ consecutive years of dividend increases (that also meet certain minimum size and liquidity requirements).
These are businesses that have both the desire and ability to pay shareholders rising dividends year-after-year. This is a rare combination.
Together, these two criteria are powerful – but they are not enough. Value must be considered as well.
The spreadsheet above allows you to sort by trailing price-to-earnings ratio so you can quickly find undervalued, high-quality dividend stocks.
Here’s how to use the Dividend Aristocrats list to quickly find high-quality dividend growth stocks potentially trading at a discount:
- Download the list
- Sort by ‘Trailing PE Ratio,’ smallest to largest
- Research the top stocks further
Here’s how to do this quickly in the spreadsheet:
Step 1: Download the list, and open it.
Step 2: Apply a filter function to each column in the spreadsheet.
Step 3: Click on the small gray down arrow next to ‘Trailing P/E Ratio’, and then sort smallest to largest.
Step 4: Review the highest ranked Dividend Aristocrats before investing. You can see detailed analysis on every Dividend Aristocrat found below in this article.
That’s it; you can follow the same procedure to sort by any other metric in the spreadsheet.
This article examines the characteristics and performance of the Dividend Aristocrats in detail. Click here for a table of contents for easy navigation of this article.
Performance Of The Dividend Aristocrats
In July 2022, the Dividend Aristocrats, as measured by the Dividend Aristocrats ETF (NOBL), registered a positive 6.6% return. It underperformed the SPDR S&P 500 ETF (SPY) for the month.
- NOBL generated total returns of 6.6% in July 2022
- SPY generated total returns of 9.2% in July 2022
Short-term performance is mostly noise. Performance should be measured over a minimum of 3 years, and preferably longer periods of time.
The Dividend Aristocrats Index has nearly matched the performance of the broader market index over the last decade, with a 13.5% total annual return for the Dividend Aristocrats versus 13.8% for the S&P 500 Index.
The Dividend Aristocrats have exhibited lower risk than the benchmark, as measured by standard deviation.
Source: S&P Fact Sheet
Higher total returns with lower volatility is the ‘holy grail’ of investing. It is worth exploring the characteristics of the Dividend Aristocrats in detail to determine why they have performed so well.
Note that a good portion of the outperformance relative to the S&P 500 comes during recessions (2000 – 2002, 2008). Dividend Aristocrats have historically seen smaller drawdowns during recessions versus the S&P 500. This makes holding through recessions that much easier. Case-in-point: In 2008 the Dividend Aristocrats Index declined 22%. That same year, the S&P 500 declined 38%.
Great businesses with strong competitive advantages tend to be able to generate stronger cash flows during recessions. This allows them to gain market share while weaker businesses fight to stay alive.
The Dividend Aristocrats Index has beaten the market over the last 28 years…
We believe dividend paying stocks outperform non-dividend paying stocks for three reasons:
- A company that pays dividends is likely to be generating earnings or cash flows so that it can pay dividends to shareholders. This excludes ‘pre-earnings’ start-ups and failing businesses. In short, it excludes the riskiest stocks.
- A business that pays consistent dividends must be more selective with the growth projects it takes on because a portion of its cash flows are being paid out as dividends. Scrutinizing over capital allocation decisions likely adds to shareholder value.
- Stocks that pay dividends are willing to reward shareholders with cash payments. This is a sign that management is shareholder friendly.
In our view, Dividend Aristocrats have historically outperformed the market and other dividend paying stocks because they are, on average, higher-quality businesses.
A high-quality business should outperform a mediocre business over a long period of time, all other things being equal.
A sector breakdown of the Dividend Aristocrats Index is shown below:
These 2 sectors make up over 40% of the Dividend Aristocrats Index, but less than 20% of the S&P 500.
The Dividend Aristocrats Index is also significantly underweight the Information Technology sector, with a 3% allocation compared with over 20% allocation within the S&P 500.
The Dividend Aristocrat Index is filled with stable ‘old economy’ blue chip consumer products businesses and manufacturers; the 3M’s (MMM), Coca-Cola’s (KO), and Johnson & Johnson’s (JNJ) of the investing world.
These ‘boring’ businesses aren’t likely to generate 20%+ earnings-per-share growth, but they also are very unlikely to see large earnings drawdowns as well.
The Top 7 Dividend Aristocrats Now
Dividend Aristocrat #7: Cincinnati Financial (CINF)
- 5-year Expected Annual Returns: 11.4%
Cincinnati Financial is an insurance stock. It offers business, home, auto insurance, and financial products, including life insurance, annuities, property, and casualty insurance.
As an insurance company, Cincinnati Financial makes money in two ways. It earns income from premiums on policies written and by investing its float, or the large sum of money consisting of the time value between the premium income and insurance claims.
On April 28, 2022, Cincinnati Financial reported the first quarter results for Fiscal Year (FY)2022. Total revenues were $1,215 million for the quarter compared to $2,227million in 1Q2021. Thus, revenues were down (45)% year over year. Earned premiums were up 9% year over year.
On a non-GAAP operating income basis, the company made $253 million for the quarter, up $31 million or 14% compared to the first quarter of 2021. For the quarter, non-GAAP operating income is up 15%, from $1.37 per share in 1Q2021 to $1.58 per share. The company book value increased 9% year over year to $75.43 but is down $6.29 since year-end.
The first quarter was the company’s highest-ever single quarter of new business written premiums, reaching $244 million. The company plans to continue to look for opportunities to appoint new agents. So far this year, the company appointed 51 agencies to offer its property-casualty products.
Also, on January 28, 2022, the company increased its dividend by 9.5% to $0.69 per share per quarter. This makes it 62 years of dividend increases.
We expect 6% annual EPS growth through 2027. In addition, the stock has a current dividend yield of 2.7%. Lastly, the stock appears to be undervalued. Total returns are estimated at 11.4% per year over the next five years.
Click here to download our most recent Sure Analysis report on CINF (preview of page 1 of 3 shown below):
Dividend Aristocrat #6: Target Corporation (TGT)
- 5-year Expected Annual Returns: 11.9%
Target was founded in 1902 and after a failed bid to expand into Canada, has operations solely in the U.S. market. Its business consists of about 1,850 big box stores, which offer general merchandise and food, as well as serving as distribution points for the company’s burgeoning e-commerce business.
Target reported first-quarter results on May 18th. Quarterly revenue of $25.17 billion beat analyst estimates by $688 million, but earnings-per-share of $2.19 missed estimates by $0.87. Cost inflation led to the disappointing EPS figure.
We see continued comparable sales growth as driving results, along with a small measure of margin expansion, and a tailwind from the buyback. Target’s digital efforts are also working extremely nicely, and the company’s small-format stores are performing very well, opening a new avenue of growth for the company in the coming years. The remaining buyback authorization should be good for a significant tailwind to earnings-per-share in the coming years.
We expect 8% annual EPS growth through 2027. In addition, the stock has a current dividend yield of 2.6%. Lastly, the stock has a 2022 P/E of 15.6, below our fair value P/E of 17. Total returns are estimated at 11.9% per year over the next five years.
Click here to download our most recent Sure Analysis report on Target (preview of page 1 of 3 shown below):
Dividend Aristocrat #5: Pentair (PNR)
- 5-year Expected Annual Returns: 12.8%
Pentair operates as a pure–play water solutions company with 3 segments: Aquatic Systems, Filtration Solutions, and Flow Technologies. Pentair was founded in 1966. Pentair has increased its dividend for more than four decades in a row, when adjusted for spin–offs.
Pentair reported its second quarter earnings results on July 26. The company was able to generate revenues of $1.02 billion during the quarter, which was 8% more than the company’s revenues during the previous year’s quarter, a result that missed estimates slightly.
Source: Investor Presentation
Core sales, which excludes the impact of currency rate movements, acquisitions, and dispossessions, were up 12% year over year, which was on par with the revenue growth rate during the previous quarter, and which reflects healthy business growth momentum.
Pentair recorded earnings-per-share of $1.02 for the second quarter, which was up by a compelling 21% year over year. Pentair’s earnings-per-share beat the analyst consensus by $0.02. Pentair reiterated its guidance for the current year during the earnings report.
For fiscal 2022, Pentair is forecasting earnings-per-share in a range of $3.70 to $3.75, which indicates solid earnings-per-share growth of around 12% compared to the $3.32 the company earned in 2021. 2022 will also be a new record year for the company, adjusted for the nVent spinoff, according to management.
Total returns are expected to reach 12.8% over the next five years.
Click here to download our most recent Sure Analysis report on Pentair (preview of page 1 of 3 shown below):
Dividend Aristocrat #4: Walgreens Boots Alliance (WBA)
- 5-year Expected Annual Returns: 13.2%
Walgreens Boots Alliance is the largest retail pharmacy in both the United States and Europe. Through its flagship Walgreens business and other business ventures, the company employs more than 325,000 people and has more than 13,000 stores.
On June 30th, 2022, Walgreens reported Q3 results for the period ending May 31st, 2022. Sales from continuing operations dipped -4% and adjusted earnings-per-share decreased -30% over the prior year’s quarter, from $1.37 to $0.96, mostly due to peak COVID-19 vaccinations in the prior year’s period.
Source: Investor Presentation
Earnings-per-share exceeded analysts’ consensus by $0.03. The company has beaten analysts’ estimates for 8 consecutive quarters.
Walgreens reiterated its guidance for low-single digit growth of its annual earnings-per-share.
We expect 3% annual EPS growth over the next five years. In addition, the stock has a 4.8% dividend yield. We also view the stock as undervalued, leading to total expected returns of 13.2% per year.
Click here to download our most recent Sure Analysis report on Walgreens (preview of page 1 of 3 shown below):
Dividend Aristocrat #3: Lowe’s Companies (LOW)
- 5-year Expected Annual Returns: 14.1%
Lowe’s Companies is the second-largest home improvement retailer in the US (after Home Depot). Lowe’s operates or services more than 2,200 home improvement and hardware stores in the U.S. and Canada.
Lowe’s reported first quarter 2022 results on May 18th. Total sales for the first quarter came in at $23.7 billion compared to $24.4 billion in the same quarter a year ago. Comparable sales decreased 4%, while U.S. home improvement comparable sales decreased 3.8%.
Of note, pro customer sales rose 20% year-over-year. Net earnings of $2.3 billion was in-line with results from Q1 2021. Diluted earnings per share of $3.51 was a 9.3% increase from $3.21 a year earlier.
The company repurchased 19 million shares in the first quarter for $4.1 billion. Additionally, they paid out $537 million in dividends. The company remains in a strong liquidity position with $3.4 billion of cash and cash equivalents.
The company provided a fiscal 2022 outlook and believes they can achieve diluted EPS in the range of $13.10 to $13.60 on total sales of roughly $98 billion. Lowe’s expects to repurchase $12 billion worth of common shares in 2022.
The combination of multiple expansion, 6% expected EPS growth and the 1.8% dividend yield lead to total expected returns of 14.1% per year.
Click here to download our most recent Sure Analysis report on Lowe’s (preview of page 1 of 3 shown below):
Dividend Aristocrat #2: 3M Company (MMM)
- 5-year Expected Annual Returns: 14.9%
3M sells more than 60,000 products that are used every day in homes, hospitals, office buildings and schools around the world. It has about 95,000 employees and serves customers in more than 200 countries.
3M is now composed of four separate divisions. The Safety & Industrial division produces tapes, abrasives, adhesives and supply chain management software as well as manufactures personal protective gear and security products.
The Healthcare segment supplies medical and surgical products as well as drug delivery systems. Transportation & Electronics division produces fibers and circuits with a goal of using renewable energy sources while reducing costs. The Consumer division sells office supplies, home improvement products, protective materials and stationary supplies.
Source: Investor Presentation
On July 26th, 2022, 3M reported second quarter earnings results for the period ending June 30th, 2022. Revenue decreased 2.8% to $8.7 billion, but was in-line with expectations. Adjusted earnings-per-share of $2.48 compared to $2.59 in the prior year, but was $0.04 above estimates. Organic growth for the quarter was 1% as a stronger U.S. dollar weighed.
The company also announced that it would be spinning off its Health Care segment into a standalone entity, which would have had $8.6 billion of revenue in 2021. The transaction is expected to close by the end of 2023.
3M provided an updated outlook for 2022, with the company now expecting adjusted earnings-per-share of $10.30 to $10.80 for the year, down from $10.75 to $11.25 previously.
Click here to download our most recent Sure Analysis report on 3M (preview of page 1 of 3 shown below):
Dividend Aristocrat #1: V.F. Corporation (VFC)
- 5-year Expected Annual Returns: 17.7%
V.F. Corporation is one of the world’s largest apparel, footwear and accessories companies. The company’s brands include The North Face, Vans, Timberland and Dickies. The company, which has been in existence since 1899, generated over $11 billion in sales in the last 12 months.
In late July, V.F. Corp reported (7/28/22) financial results for the fiscal 2023 first quarter. Revenue of $2.26 billion rose 3.2% year over year and beat analyst estimates by $20 million. The North Face brand led the way with 37% currency-neutral revenue growth in the quarter.
However, inflation took its toll on margins and profits. Gross margin of 53.9% for the quarter declined 260 basis points, while operating margin of 2.8% declined 640 basis points. As a result, adjusted EPS declined 68% to $0.09 per share.
Adjusted earnings-per-share grew 67%, from $0.27 to $0.45, but missed analysts’ consensus by $0.02. For the new fiscal year, V.F. Corp expects revenue growth of at least 7% and adjusted earnings-per-share of $3.30 to $3.40.
We expect 7% annual EPS growth over the next five years. VFC stock also has a dividend yield of 4.5%. Annual returns from an expanding P/E multiple are estimated at ~6.2%, equaling total expected annual returns of 17.7% through 2027.
Click here to download our most recent Sure Analysis report on V.F. Corp. (preview of page 1 of 3 shown below):
The Dividend Aristocrats In Focus Analysis Series
You can see analysis on every single Dividend Aristocrat below. Each is sorted by GICS sectors and listed in alphabetical order by name. The newest Sure Analysis Research Database report for each security is included as well.
- Archer-Daniels-Midland (ADM) | [See newest Sure Analysis report]
- Amcor (AMCR) | [See newest Sure Analysis report]
- Brown-Forman (BF-B) | [See newest Sure Analysis report]
- Colgate-Palmolive (CL) | [See newest Sure Analysis report]
- Church & Dwight (CHD) | [See newest Sure Analysis report]
- Clorox (CLX) | [See newest Sure Analysis report]
- Coca-Cola (KO) | [See newest Sure Analysis report]
- Hormel Foods (HRL) | [See newest Sure Analysis report]
- Kimberly-Clark (KMB) | [See newest Sure Analysis report]
- McCormick & Company (MKC) | [See newest Sure Analysis report]
- PepsiCo (PEP) | [See newest Sure Analysis report]
- Procter & Gamble (PG) [See newest Sure Analysis report]
- Sysco Corporation (SYY) [See newest Sure Analysis report]
- Walmart (WMT) | [See newest Sure Analysis report]
- Walgreens Boots Alliance (WBA) | [See newest Sure Analysis report]
- A.O. Smith (AOS) | [See newest Sure Analysis report]
- Cintas (CTAS) | [See newest Sure Analysis report]
- Dover (DOV) | [See newest Sure Analysis report]
- Emerson Electric (EMR) | [See newest Sure Analysis report]
- Expeditors International (EXPD) | [See newest Sure Analysis report]
- Illinois Tool Works (ITW) | [See newest Sure Analysis report]
- 3M (MMM) | [See newest Sure Analysis report]
- Pentair (PNR) | [See newest Sure Analysis report]
- Roper Technologies (ROP) | [See newest Sure Analysis report]
- Stanley Black & Decker (SWK) | [See newest Sure Analysis report]
- W.W. Grainger (GWW) | [See newest Sure Analysis report]
- General Dynamics (GD) | [See newest Sure Analysis report]
- Caterpillar (CAT) | [See newest Sure Analysis report]
- Abbott Laboratories (ABT) | [See newest Sure Analysis report]
- AbbVie (ABBV) | [See newest Sure Analysis report]
- Becton, Dickinson & Company (BDX) | [See newest Sure Analysis report]
- Cardinal Health (CAH) | [See newest Sure Analysis report]
- Johnson & Johnson (JNJ) | [See newest Sure Analysis report]
- Medtronic (MDT) | [See newest Sure Analysis report]
- West Pharmaceutical Services (WST) | [See newest Sure Analysis report]
- Genuine Parts Company (GPC) | [See newest Sure Analysis report]
- Leggett & Platt (LEG) | [See newest Sure Analysis report]
- Lowe’s Companies (LOW) | [See newest Sure Analysis report]
- McDonald’s (MCD) | [See newest Sure Analysis report]
- Target (TGT) | [See newest Sure Analysis report]
- V.F. Corporation (VFC) | [See newest Sure Analysis report]
- Aflac (AFL) | [See newest Sure Analysis report]
- Brown & Brown (BRO) | [See newest Sure Analysis report]
- Cincinnati Financial (CINF) | [See newest Sure Analysis report]
- Franklin Resources (BEN) | [See newest Sure Analysis report]
- S&P Global (SPGI) | [See newest Sure Analysis report]
- T. Rowe Price Group (TROW) | [See newest Sure Analysis report]
- Chubb (CB) | [See newest Sure Analysis report]
- Air Products and Chemicals (APD) | [See newest Sure Analysis report]
- Albemarle (ALB) | [See newest Sure Analysis report]
- Ecolab (ECL) | [See newest Sure Analysis report]
- PPG Industries (PPG) | [See newest Sure Analysis report]
- Sherwin-Williams (SHW) | [See newest Sure Analysis report]
- Nucor (NUE) | [See newest Sure Analysis report]
- Linde (LIN) | [See newest Sure Analysis report]
- Chevron (CVX) | [See newest Sure Analysis report]
- Exxon Mobil (XOM) | [See newest Sure Analysis report]
- Automatic Data Processing (ADP) | [See newest Sure Analysis report]
- International Business Machines (IBM) | [See newest Sure Analysis report]
- Essex Property Trust (ESS) | [See newest Sure Analysis report]
- Federal Realty Investment Trust (FRT) | [See newest Sure Analysis report]
- Realty Income (O) | [See newest Sure Analysis report]
- Atmos Energy (ATO) | [See newest Sure Analysis report]
- Consolidated Edison (ED) | [See newest Sure Analysis report]
- NextEra Energy (NEE) | [See newest Sure Analysis report]
Looking for no-fee DRIP Dividend Aristocrats? Click here to read an article examining all 15 no-fee DRIP Dividend Aristocrats in detail.
Historical Dividend Aristocrats List
(1989 – 2022)
The image below shows the history of the Dividend Aristocrats Index from 1989 through 2022:
Note: CL, GPC, and NUE were all removed and re-added to the Dividend Aristocrats Index through the historical period analyzed above. We are unsure as to why. Companies created via a spin-off (like AbbVie) can be Dividend Aristocrats with less than 25 years of rising dividends if the parent company was a Dividend Aristocrat.
This information was compiled from the following sources:
- 1989 – 1991: Dividend Growth Investor
- 1992 – 2015: NOBL Index Historical Constituents
- 2016: Sure Dividend update
- 2017 – 2022: Data from S&P press releases
Frequently Asked Questions
This section will address some of most common questions investors have regarding the Dividend Aristocrats.
1. What is the highest-paying Dividend Aristocrat?
Answer: IBM currently yields 5.0%.
2. What is the difference between the Dividend Aristocrats and the Dividend Kings?
Answer: The Dividend Aristocrats must be constituents of the S&P 500 Index, have raised their dividends for at least 25 consecutive years, and satisfy a number of liquidity requirements. The Dividend Kings only need to have raised their dividends for at least 50 consecutive years.
3. Is there an ETF that tracks the Dividend Aristocrats?
4. What is the difference between the Dividend Aristocrats and the Dividend Champions?
Answer: The Dividend Aristocrats and Dividend Champions share one requirement, which is that a company must have raised its dividend for at least 25 consecutive years.
But like the Dividend Kings, the Dividend Champions do not need to be in the S&P 500 Index, nor satisfy the various liquidity requirements.
5. Which Dividend Aristocrat has the longest active streak of annual dividend increases?
Currently, there are 4 Dividend Aristocrats tied at 66 years: Procter & Gamble, Genuine Parts, 3M Company, and Dover Corporation.
6. What is the average dividend yield of the Dividend Aristocrats?
Right now, the average dividend yield of the 65 Dividend Aristocrats is 2.4%.
7. Are the Dividend Aristocrats safe investments?
While there are never any guarantees when it comes to the stock market, we believe the Dividend Aristocrats are among the safest dividend stocks when it comes to the sustainability of their dividend payouts.
The Dividend Aristocrats have durable competitive advantages that allow them to raise their dividends each year, even during a recession.
Other Dividend Lists & Final Thoughts
The Dividend Aristocrats list is not the only way to quickly screen for stocks that regularly pay rising dividends.
- The High Yield Dividend Aristocrats List is comprised of the 20 Dividend Aristocrats with the highest current yields.
- The Dividend Achievers List is comprised of ~350 stocks with 10+ years of consecutive dividend increases.
- The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of 44 stocks with 50+ years of consecutive dividend increases.
- The High Yield Dividend Kings List is comprised of the 20 Dividend Kings with the highest current yields.
- The Blue Chip Stocks List: stocks that qualify as Dividend Achievers, Dividend Aristocrats, and/or Dividend Kings
- The High Dividend Stocks List: stocks that appeal to investors interested in the highest yields of 5% or more.
- The Monthly Dividend Stocks List: stocks that pay dividends every month, for 12 dividend payments per year.
- The Dividend Champions List: stocks that have increased their dividends for 25+ consecutive years.
Note: Not all Dividend Champions are Dividend Aristocrats because Dividend Aristocrats have additional requirements like being in The S&P 500.
- The Dividend Contenders List: 10-24 consecutive years of dividend increases.
- The Dividend Challengers List: 5-9 consecutive years of dividend increases.
There is nothing magical about the Dividend Aristocrats. They are ‘just’ a collection of high-quality shareholder friendly stocks that have strong competitive advantages.
Purchasing these types of stocks at fair or better prices and holding for the long-run will likely result in favorable long-term performance.
You have a choice in what type of business you buy into. You can buy into the mediocre, or the excellent.
Often, excellent businesses are not more expensive (based on their price-to-earnings ratio) than mediocre businesses.
“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”