2022 Dividend Aristocrats List | Updated Daily | All 65 Analyzed

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2022 Dividend Aristocrats List | Updated Daily | All 65 Analyzed


Article updated on January 3rd, 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:

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:

 

Click here to download your Dividend Aristocrats Excel Spreadsheet List now.

Note: On January 22nd, 2021, International Business Machines (IBM), NextEra Energy (NEE), and West Pharmaceutical Services (WST) were added to the Dividend Aristocrats Index. Carrier Global (CARR), Otis Worldwide (OTIS), and Raytheon Technologies (RTX) were all removed, leaving the total count at 65.

Source: S&P News Releases.

You can see detailed analysis on all 65 further below in this article, in our Dividend Aristocrats In Focus series. Analysis includes valuation, growth, and competitive advantage(s).

Table of Contents

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:

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:

  1. Download the list
  2. Sort by ‘Trailing PE Ratio’, smallest to largest
  3. 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 further 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. A table of contents for easy navigation is below.

Performance Through December 2021

In December 2021, the Dividend Aristocrats, as measured by the Dividend Aristocrats ETF (NOBL), registered a positive 7.2% return. It out-performed the SPDR S&P 500 ETF (SPY) for the month.

For the year, NOBL returned 21.7% while SPY returned 28.7% in 2021.

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 slightly under-performed the broader market index over the last decade, with a 15.4% total annual return for the Dividend Aristocrats versus 16.5% for the S&P 500 Index.

However, the Dividend Aristocrats have exhibited lower risk than the benchmark, as measured by standard deviation. This has led to much closer risk-adjusted returns for the Dividend Aristocrats relative to the broader market in the past 10 years.

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 out-performance relative to the S&P 500 comes during recessions (2000 – 2002, 2008). Dividend Aristocrats have historically seen smaller draw-downs 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…

I believe dividend paying stocks outperform non-dividend paying stocks for three reasons:

  1. 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.
  2. 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.
  3. 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.

For a business to increase its dividends for 25+ consecutive years, it must have or at least had in the very recent past a strong competitive advantage.

Sector Overview

A sector breakdown of the Dividend Aristocrats index is shown below:

The top 2 sectors by weight in the Dividend Aristocrats are Industrials and Consumer Staples. The Dividend Aristocrats Index is tilted toward Consumer Staples and Industrials relative to the S&P 500.

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 draw-downs as well.

The Top 7 Dividend Aristocrats Now

Analysis on our top 7 Dividend Aristocrats is below. These rankings are based on 5 year forward expected total return estimates from The Sure Analysis Research Database.

 

Looking to go beyond the Dividend Aristocrats?

There are ~140 securities with 25+ years of rising dividends, more than double the number of Dividend Aristocrats. That’s because the Dividend Aristocrats list excludes securities that aren’t in the S&P 500 and/or that don’t meet certain size and liquidity requirements.

Each month we rank stocks with 25+ years of rising dividends based on a mix of expected total returns and Dividend Risk Scores in our Top 10 Dividend Elite service.

A special report of our top 10 is published on the 1st day of each month.

Click here to start your free trial of this service and get your special report on our top 10 dividend stock picks with 25+ years of rising dividends.

Dividend Aristocrat #7: Cardinal Health (CAH)

Cardinal Health is one of the “Big 3” drug distribution companies along with McKesson (MKC) and AmerisourceBergen (ABC). Cardinal Health serves over 24,000 United States pharmacies and more than 85% of the country’s hospitals.

The company recently concluded its fiscal year. For the year Cardinal Health generated revenue of $162.5 billion, a 6% increase compared to fiscal 2020. Adjusted net income equaled $1.6 billion or $5.57 per share compared to $1.6 billion or $5.45 per share in the prior year.

Source: Investor Presentation

Based on expected EPS of $5.75 for the current fiscal year, Cardinal Health trades for a P/E ratio of 9. Our fair value estimate is a P/E of 10.

The combination of multiple expansion, 3% expected EPS growth and the 3.8% dividend yield lead to total expected returns of 8.7% per year.

Click here to download our most recent Sure Analysis report on CAH (preview of page 1 of 3 shown below):

Dividend Aristocrat #6: Stanley Black & Decker (SWK)

Stanley Black & Decker is a world leader in power tools, hand tools, and related items. The company holds the top global position in tools and storage sales. Stanley Black & Decker is second in the world in the areas of commercial electronic security and engineered fastening.

You can see an overview of the company’s third-quarter performance in the image below:

Source: Investor Presentation

Revenue grew 9.2% to $4.3 billion, matching estimates. Adjusted earnings-per-share of $2.77 compared unfavorably to adjusted earnings-per-share of $2.89 in the prior year, but came in $0.30 above expectations.

The stock has a 1.7% dividend yield, and we expect 8% annual EPS growth. With a small decline from a contracting P/E multiple, total returns are expected to reach 8.8% per year.

Click here to download our most recent Sure Analysis report on SWK (preview of page 1 of 3 shown below):

Dividend Aristocrat #5: Walgreens Boots Alliance (WBA)

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 has a presence in more than 25 countries, employs more than 450,000 people and has more than 21,000 stores.

An overview of Walgreens’ most recent quarterly performance can be seen in the image below:

Source: Investor Presentation

WBA shares trade for a 2021 price-to-earnings ratio just below 10, which is about on par with our fair value estimate. In addition, we expect 5% annual EPS growth, while the stock has a 3.6% dividend yield.

Total returns are expected to reach 8.8% over the next five years.

Click here to download our most recent Sure Analysis report on WBA (preview of page 1 of 3 shown below):

Dividend Aristocrat #4: Cincinnati Financial (CINF)

Cincinnati Financial is an insurance company founded in 1950. 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.

We expect 9.5% annual returns, driven by 8% EPS growth and the 2.2% dividend, partly offset by a declining P/E multiple.

Click here to download our most recent Sure Analysis report on CINF (preview of page 1 of 3 shown below):

Dividend Aristocrat #3: Becton, Dickinson and Company (BDX)

Becton, Dickinson & Company is a global leader in the medical supply industry. The company was founded in 1897 and today operates in 190 countries, generating annual sales above $19 billion. Nearly half the company’s revenue comes from outside the U.S.

The company operates three segments:

  1. The Medical division, which includes needles for drug delivery systems, and surgical blades.
  2. The Life Sciences division, which provides products for the collection and transportation of diagnostic specimens.
  3. The Interventional division, which provides products for vascular disease, kidney disease, hernia repair, infection prevention, urological issues, and more.

Source: Investor Presentation

Shares trade for a P/E of 20, just above our fair value estimate. Therefore, the stock appears slightly overvalued.

Still, BDX stock could generate total returns of 9.5% per year, based on expected annual EPS growth of 10% and the 1.4% dividend yield, which will offset negative returns from a declining P/E multiple.

Click here to download our most recent Sure Analysis report on BDX (preview of page 1 of 3 shown below):

Dividend Aristocrat #2: Archer Daniels Midland (ADM)

Archer–Daniels–Midland is the largest publicly traded farmland product company in the United States. The company‘s businesses include the processing of cereal grains and oilseeds and agricultural storage and transportation.

The company reported strong third-quarter earnings results. Adjusted earnings per share of $0.97 increased 9% year-over-year. Revenue increased 34% for the quarter.

ADM stock trades for a P/E ratio of 12.5, below our fair value estimate of 15. In addition, we expect 6% annual EPS growth while the stock has a 2.2% dividend yield.

Total returns are expected to reach 9.7% per year over the next five years.

Click here to download our most recent Sure Analysis report on ADM (preview of page 1 of 3 shown below):

Dividend Aristocrat #1: Leggett & Platt (LEG)

Leggett & Platt is an engineered products manufacturer. The company’s products include furniture, bedding components, store fixtures, die castings, and industrial products. Leggett & Platt has 14 business units and more than 20,000 employees. The company qualifies for the Dividend Aristocrats Index as it has 48 years of consecutive dividend increases.

Leggett & Platt reported its third quarter earnings results on November 1. The company reported revenues of $1.3 billion for the quarter, which represents a 9% increase compared to the prior year’s quarter. Revenues were in line with the consensus estimate. The company’s revenue increase was weaker than the one recorded during the previous quarter, but that can be explained by the very easy comparison in Q2, whereas Q3 2020 had been better again.

Leggett & Platt generated earnings–per–share of $0.71 during the third quarter, which was slightly weaker than the company’s earnings–per–share during the previous year’s third quarter.

With a P/E of 15, Leggett & Platt stock is undervalued against our fair value estimate of 16. The combination of 5% expected EPS growth and the 4.1% dividend yield lead to total expected returns of 9.8% per year over the next five years.

Click here to download our most recent Sure Analysis report on Leggett & Platt (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, with its date in brackets.

Consumer Staples

Industrials

Health Care

Consumer Discretionary

Financials

Materials

Energy

Information Technology

Real Estate

Telecommunication Services

Utilities

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.

Click here to download the 1989 to 2022 Dividend Aristocrats Excel Spreadsheet.

This information was compiled from the following sources:

Other Dividend Lists & Final Thoughts

The Dividend Aristocrats list is not the only way to quickly screen for stocks that regularly pay rising dividends.

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.”

– Warren Buffett

Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.

Thanks for reading this article. Please send any feedback, corrections, or questions to support@suredividend.com.


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