Updated on June 2nd, 2020 by Bob Ciura
Spreadsheet data updated daily
The Dividend Aristocrats are a select group of 66 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 66 Dividend Aristocrats. You can download an Excel spreadsheet of all 66 (with metrics that matter such as dividend yields and price-to-earnings ratios) by clicking the link below:
Note 1: On January 24th, 2020, Amcor (AMCR), Atmos Energy (ATO), Realty Income (O), Essex Property Trust (ESS), Ross Stores (ROST), Albemarle (ALB), and Expeditors International (EXPD) were added to the Dividend Aristocrats Index which brings the total number of Dividend Aristocrats up from 57 to 64.
Note 2: On March 31st, 2020, United Technologies merged with Raytheon to form Raytheon Technologies, changed its ticker to RTX, and spun off Carrier Global (CARR) and Otis Worldwide (OTIS) to bring the total Dividend Aristocrat count up to 66.
Note 3: Ross Stores (ROSS), which was added to the Dividend Aristocrats list in January of 2020 announced it is suspending its dividend on May 21st, 2020. We have left it in the Dividend Aristocrats list for now, but it will be removed soon unless the company rapidly decides to change course and pay their next quarterly dividend (which is extremely unlikely).
You can see detailed analysis on all 66 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
- Performance of the Dividend Aristocrats
- Sector Overview
- The 7 Best Dividend Aristocrats Today
#7: General Dynamics (GD)
#6: AbbVie Inc. (ABBV)
#5: Exxon Mobil (XOM)
#4: Franklin Resources (BEN)
#3: Walgreens Boots Alliance (WBA)
#2: People’s United Financial (PBCT)
#1: AT&T Inc. (T)
- Dividend Aristocrats Analysis (The Dividend Aristocrats In Focus Series)
- Historical Dividend Aristocrats List (1989 – 2020)
- Final Thoughts
You can also watch the following video for more information on the Dividend Aristocrats and see a table of the Dividend Aristocrats below.
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 66 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 forward 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 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 ‘P/E Ratio”, and then click on ‘Descending’.
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 May 2020
In May 2020, The Dividend Aristocrats, as measured by the Dividend Aristocrats ETF (NOBL), registered a gain of 5.2%. It out-performed the SPDR S&P 500 ETF (SPY) for the month.
- NOBL generated total returns of 5.2% in May 2020
- SPY generated total returns of 4.8% in May 2020
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 matched the broader market over the last decade, as the Dividend Aristocrats and the S&P 500 Index have both generated total annual returns of 13.2% in the past decade. The Dividend Aristocrats have exhibited slightly lower volatility than the broader market.
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.
Related: The video below shows the Great Recession performance of every Dividend Aristocrat (excluding the new Aristocrats for 2019 and 2020).
The Dividend Aristocrats Index has beaten the market over the last decade (and over the last 28 years)…
I 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:
The top 2 sectors by weight in the Dividend Aristocrats are Consumer Staples and Industrials. The Dividend Aristocrats Index is tilted toward Consumer Staples and Industrials relative to the S&P 500. These 2 sectors make up over 43% 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 1.5% 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 7 Best Dividend Aristocrats Today
The following section ranks our top 7 Dividend Aristocrats to buy today, based on expected annual returns through 2025. These 7 stocks represent attractive long-term buys for dividend growth investors.
- 5-year Expected Annual Returns: 12.2%
General Dynamics (GD) is an aerospace & defense company that operates five business segments: Aerospace (23% of sales), Combat Systems (17%), Marine Systems (23%), Information Technology (23%), and Mission Systems (13%). The company’s Aerospace segment is focused on business jets and services while the remainder of the company is focused on defense. General Dynamics generates annual revenue of nearly $40 billion.
In 2019, company-wide revenue grew 8.7% while diluted adjusted earnings per share grew 7.2% to $11.98. After several quarters of decline, the company-wide backlog grew to $86,945M and the book-to-bill ratio is now a healthy 1.5-to-1.0. Growth was driven by a $22.2 billion contract award for Virginia Block V submarines, aerospace orders, and IT contract wins.
The company took a small step back to begin 2020, as first-quarter revenue declined 5.5% from the same quarter a year ago. Earnings-per-share declined 5.1% for the quarter, as the coronavirus crisis resulted in suppressed demand for business jets.
Source: Investor Presentation
Still, we expect long-term growth for General Dynamics due to increasing U.S. defense spending and international sales. The business jet market may take a short-term hit due to covid-19 and travel restrictions but should grow over time due to new models. General Dynamics has established naval and ground platforms that support maintenance and modernization contracts as well as future prime contract wins. The Gulfstream brand is growing sales in the high-end business jet market with new models.
In addition, operating margin expansion and a reduction of share count will support earnings per share growth. We forecast on average 6% annual earnings per share growth out to 2025.
General Dynamics has increased its dividend for 28 consecutive years, due to its entrenched industry position as a top military contractor. The stock has a current dividend yield of 2.9%. The stock trades for a 2020 P/E ratio of ~11.9, compared with our fair value estimate of 14. Therefore, total returns could reach 12.2% per year over the next five years.
- 5-year Expected Annual Returns: 12.9%
AbbVie is a pharmaceutical company focused on Immunology, Oncology, and Virology. AbbVie was spun off by Abbott Laboratories in 2013 and now trades with a market capitalization of $117 billion. Its most important product is Humira, which by itself represents ~60% of annual revenue. Humira is a multi-purpose pharmaceutical product, and is the top-selling drug in the world. Humira is now facing biosimilar competition in Europe, which has had a noticeable impact on the company. It will lose patent protection in the U.S. in 2023.
AbbVie reported first-quarter earnings results on May 1st. Revenue of $8.6 billion increased 10% year-over-year, while adjusted earnings-per-share increased 13% to $2.42 for the quarter. Global Humira net revenues of $4.7 billion increased 6.4% operationally, and remains AbbVie’s most important product.
AbbVie’s efforts in shielding Humira from competition through 2023, and its substantial R&D investments for next-generation drugs, should allow the company to keep revenues growing over the coming years.
Source: Investor Presentation
Humira’s patent expiry in the US is still a couple of years away, which gives AbbVie enough time to bring new drugs to the market. AbbVie’s new, improved drugs that target the same indications as Humira have a good chance at capturing much of Humira’s current revenue stream.
AbbVie’s major risk is loss of exclusivity for Humira. Fortunately, the company’s massive research and development platform is a competitive advantage. Adjusted research and development expense totaled $5 billion in 2019, and the investment is already paying off. AbbVie has received 14 major approvals since 2013, with 10 of those coming in the core categories of Immunology and Oncology. AbbVie has multiple growth opportunities to replace Humira.
Another growth catalyst is the $63 billion acquisition of Allergan (AGN). The combined company will have annual revenues of nearly $50 billion. AbbVie expects the transaction to be 10% accretive to adjusted earnings-per-share over the first year, with peak accretion of greater than 20%.
AbbVie was not a standalone company during the last financial crisis, so there is no recession track record, but since sick people require treatment whether the economy is strong or not, it is highly likely that AbbVie would continue to perform well during a recession. AbbVie’s earnings are likely to decline somewhat in a recession, but the dividend should remain secure. AbbVie has a projected dividend payout ratio of 49% for 2020.
Based on expected 2020 earnings-per-share of $9.66, AbbVie stock trades for a price-to-earnings ratio of 9.4. Our fair value estimate for AbbVie is a price-to-earnings ratio (P/E) of 10.5. We view AbbVie as undervalued. An expanding P/E multiple could boost shareholder returns by approximately 2.2% per year over the next 5 years. In addition, we expect annual earnings growth of 5.5%, while the stock has a 5.2% dividend yield. We expect total annual returns of 12.9% per year over the next five years.
- 5-year Expected Annual Returns: 14.2%
Like Chevron, Exxon Mobil is an integrated super-major, with operations across the oil and gas industry. In 2019, the oil major generated over 80% of its earnings from its upstream segment, with the remainder from its downstream (mostly refining) segment and its chemicals segment.
On May 1st, Exxon Mobil reported first-quarter financial results. Revenue of $56.2 billion declined 12% year-over-year, while adjusted earnings-per-share of $0.53 declined 4% from the same quarter last year. Production edged up 2% over last year’s quarter, as a 7% increase in liquids offset a -5% decrease in gas. Exxon’s full-year results will be greatly affected by the coronavirus crisis, which has caused a collapse in oil demand as well as prices.
Exxon will cut its capital expenses 30% this year in order to protect its dividend and will slow the development of its promising growth projects in the Permian and Guyana due to the depressed oil price. Due to the pandemic, we now expect Exxon to lose -$0.40 per share this year.
That said, we remain positive regarding Exxon’s long-term growth prospects. Global demand for oil and gas continues to rise, which provides a strong fundamental tailwind for the company’s long-term future. According to a recent company presentation, new supply of 550 billion barrels of oil and 2,100 trillion cubic feet of natural gas are required through 2040 to meet projected global demand. In preparation, the oil major has greatly increased its capital expenses in order to grow its production from 4.0 to 5.0 million barrels per day by 2025.
The Permian Basin will be a major growth driver, as the oil giant has about 10 billion barrels of oil equivalent in the area and expects to reach production of more than 1.0 million barrels per day in the area by 2024. Guyana, one of the most exciting growth projects in the energy sector, will be another major growth driver.
Source: Investor Presentation
In 2019, Exxon Mobil made 6 major deep-water discoveries in Guyana and Cyprus. In Guyana, Exxon Mobil has started Liza Phase I ahead of schedule. Guyana’s total recoverable resources are estimated at over 8 billion oil equivalent barrels.
Like Chevron, Exxon Mobil’s growth potential is challenged by the recent decline in commodity prices, as well as the prospect of a global recession due to the coronavirus. We view the coronavirus as a short-term issue which should abate in a matter of months. The company announced it will reduce capital expenditures by $10 billion to preserve cash in this difficult environment.
Exxon Mobil’s earnings are volatile, due to the cyclical nature of the oil and gas industry. For 2020, we expect the company to report a loss, but we recognize that the actual results could vary drastically from this estimate due to the ongoing coronavirus crisis. In order to calculate future returns, we have used mid-cycle (5-year average) earnings-per-share of $3.26 as a base. Using this estimate, the stock trades for a P/E ratio of 14.5. Our fair value estimate is a P/E of 13, as investor sentiment has eroded while the company turns itself around. Expansion of the P/E multiple could reduce annual returns by 2.2% per year.
Because of Exxon Mobil’s depressed earnings, we expect a snap-back with 9% annual expected earnings-per-share growth over the next five years. Including the 7.4% dividend yield, we expect total annual returns of 14.2% per year over the next five years. Along with Chevron, Exxon Mobil is a riskier Dividend Aristocrat due to its volatile industry. But a recovery in oil and gas prices could mean strong returns for investors willing to buy at these depressed prices.
- 5-year Expected Annual Returns: 14.3%
Franklin Resources was founded in 1947 and named after Benjamin Franklin, the founding father who was viewed as a symbol for frugality and disciplined investing. Today, Franklin Resources manages the Franklin and Templeton families of mutual funds. The company offers investment management (which makes up the bulk of fee generation) and related services to its customers, including sales, distribution, and shareholder servicing.
Franklin Resources has a market capitalization of approximately $8.5 billion, with nearly $600 billion in assets under management as of the end of March.
Franklin Resources reported Q2 fiscal year 2020 results in which total assets under management was $580 billion, down 19% from the same quarter last year, and down 17% quarter-over-quarter. AUM declined due to long-term redemptions and poor market performance. Revenue of $1.4 billion declined 3% year-over-year, although adjusted earnings-per-share increased 1.5% from the same quarter a year ago.
From 2007 – 2018, Franklin Resources grew earnings-per-share by a compound rate of 3.3% per annum. The biggest growth segment in the asset management industry is ETFs, which have much lower expense ratios than actively managed funds. Franklin’s actively managed funds have performed well, which serves as an advantage versus other active asset managers; however, low-cost passive funds are the true competition.
A counterpoint to this notion is that the Franklin Resources has an exceptional balance sheet, allowing the company to repurchase significant blocks of stock and work towards a solution in the changing asset management industry. Future growth will be fueled by organic AUM growth, as well as through acquisitions, such as the recent $4.5 billion acquisition of Legg Mason (LM).
Legg Mason, and its investment affiliates, collectively managed over $800 billion in assets as of January 31st, 2020. The combined company will be among the world’s largest asset managers. The deal also presents significant cost synergies, as Franklin Resources expects to generate approximately $200 million in annual cost savings
Franklin Resources stock trades for a 2020 P/E ratio of 7.9 based on our estimate of $2.50 in earnings power, below our fair value estimate of 10x earnings. Expansion of the P/E ratio could boost annual returns by 4.8% per year over the next five years. Combined with the 4.0% expected annual earnings growth and the 5.5% dividend yield, we expect total returns of 14.3% per year for Franklin Resources stock over the next five years.
- 5-year Expected Annual Returns: 14.6%
Walgreens Boots Alliance is a pharmacy retailer with over 18,000 stores in 11 countries. The stock currently has a $38 billion market capitalization. Walgreens has increased its dividend for 44 consecutive years.
On April 2nd, 2020 Walgreens reported Q2 fiscal year 2020 results for the period ending February 29th, 2020. (Walgreens’ fiscal year ends August 31st.) For the quarter sales increased 3.7% to $35.8 billion, up 4.1% on a constant currency basis, led by a 3.8% increase in the Retail Pharmacy USA segment and a 5.7% increase in the Pharmaceutical Wholesale segment.
Adjusted net earnings decreased -11.8% to $1.3 billion, while earnings-per-share equaled $1.52, down -7.3% compared to the same quarter a year ago, on a significantly lower share count.
Once again, Walgreens’ pharmacy business led the way last quarter.
Source: Investor Presentation
Walgreens also provided some commentary on its 2020 outlook. Prior to the COVID-19 pandemic, Walgreens was on track to maintain its previous guidance of roughly flat adjusted EPS growth, plus or minus 3%. Since the outbreak, the company has withdrawn its guidance due to uncertainty and will update investors in the quarters to come.
Walgreens made progress on a number of strategic initiatives in recent quarters. It created a German wholesale joint venture with McKesson (MCK) and formed a group purchasing organization with Kroger (KR) as it believes these strategic partnerships will help it grow its market share and improve its long-term growth outlook.
The most recent quarter showed that the company continues to struggle with earnings-per-share growth, but also is taking steps to secure its long term growth prospects through strategic investment. It is aiming to accomplish this by accelerating its digitization, restructuring its retail business and transforming its stores into neighborhood health centers, and significantly improving cost efficiencies.
While the company continues to be plagued by sluggishness and growing competition in the space, there should be plenty of room for growth next year and beyond, thanks to sales growth, strategic initiatives, and the continued integration of the Rite Aid acquisition.
Walgreens’ competitive advantage is its leading market share. Its robust retail presence and convenient locations encourage consumers to use Walgreens instead of its competitors. This brand strength means customers keep coming back to Walgreens, providing the company with stable sales and growth.
Consumers are unlikely to cut spending on prescriptions and other healthcare products even during difficult economic times which makes Walgreens very resistant to recessions. Walgreens’ adjusted earnings-per-share declined by just 7% during 2009 and the company actually grew its adjusted earnings-per-share from 2007 through 2010.
Despite its weak fiscal year, Walgreens has a positive long-term growth outlook. Retail Pharmacy has proven to be resistant to e-commerce and will benefit from the aging U.S. population and rising demand for healthcare. The company also raised its cost-cutting target from $1.5 billion, to over $1.8 billion by fiscal 2022. Store closures are part of this plan. Walgreens already announced it will close 200 Boots stores in the U.K., and more recently announced the closure of 200 stores in the U.S.
Walgreens has a current share price of ~$43 and a midpoint for adjusted earnings-per-share of $5.50 for fiscal 2020. As a result, the stock trades for a price-to-earnings ratio of 7.9. This is a low valuation for a highly-profitable company, especially one with a strong brand and leadership position in its industry. Over the past 10 years, Walgreens held an average price-to-earnings ratio of 16.2.
As a result, Walgreens stock appears to be undervalued, relative to both the broader market as well as its own historical averages. But due to Walgreens’ slower growth and current headwinds, we have a 2025 price-to-earnings ratio target of 10 for the stock. Shares currently trade for a 2020 P/E ratio of 7.7, leading to positive returns of 5.4% per year from valuation expansion.
Plus, Walgreens has 5% expected annual earnings-per-share growth and a 4.2% dividend yield. In this forecast, total annualized returns could reach 14.6% over the next five years.
- 5-year Expected Annual Returns: 15.1%
People’s United Financial is a diversified financial services company that provides commercial and retail banking and wealth management services via its network of over 400 branches in the Northeast. It has total assets of $59 billion and trades with a market capitalization of approximately $5.0 billion.
The company has more than doubled its total assets during the last decade thanks to organic growth, geographic expansion, and a series of acquisitions. In the last six years, it has grown its loans and its deposits at a 9% average annual rate.
Source: Investor Presentation
On November 1st, 2019, People’s United Financial completed the acquisition of United Financial, which will enhance the presence of the company in central Connecticut and western Massachusetts.
Just like all the other banks, People’s United Financial is now facing a strong headwind, namely the outbreak of the coronavirus. As a result, all the banks will increase their provisions for loan losses.
In late April, People’s United Financial reported (4/23/20) financial results for the first quarter of fiscal 2020. Due to flat interest rates, the net interest margin of the company remained essentially flat sequentially. Nevertheless, the company grew its net interest income 3% thanks to 3% growth in loans. Earnings-per-share decreased from $0.37 to $0.33 sequentially due to higher non-interest expense but the result still exceeded analysts’ consensus by $0.03.
While the results of the first quarter were hardly affected by the pandemic, management expects the pandemic to have a meaningful effect on the results of this year. Despite the difficult near-term environment, we still expect 5% earnings-per-share growth over the next five years. Growth will be fueled primarily by the recent acquisitions and our expectations for somewhat higher interest rates in the long run, which will enhance People’s net interest margin.
People’s United stock trades for a price-to-earnings ratio of 10.7, below our fair value estimate of 13. An expanding P/E ratio could boost annual returns by 4.0% per year through 2025. Combined with the 6.1% dividend yield and expected EPS growth, total annual returns could reach 15.1% per year over the next five years.
- 5-year Expected Annual Returns: 15.5%
AT&T is the largest communications company in the world, operating in four distinct business units: AT&T Communications (providing mobile, broadband and video to 100 million U.S. consumers and 3 million businesses), WarnerMedia (including Turner, HBO and Warner Bros.), AT&T Latin America (offering pay-TV and wireless service to 11 countries) and Xandr (providing advertising). The company generates $180+ billion in annual revenue.
On April 22nd, 2020 AT&T reported Q1 2020 results for the period ending March 31st, 2020. For the quarter the company generated $42.8 billion in revenue, down from $44.8 billion in Q1 2019, as growth in domestic wireless services and business services partially offset declines in domestic video, legacy wireline services and WarnerMedia.
Net income equaled $4.6 billion or $0.63 per share compared to $4.1 billion or $0.56 per share in the year ago quarter. On an adjusted basis earnings-per-share equaled $0.84 compared to $0.86 previously, which does not include a -$0.05 impact from the COVID-19 crisis. AT&T’s net debt-to-EBITDA ratio was ~2.6x at the end of the quarter.
Source: Investor Presentation
AT&T is a colossal business, easily generating profits of $20+ billion annually, but it is not a fast grower. From 2007 through 2019 AT&T grew earnings-per-share by 2.2% per annum. While the company is picking up growth opportunities, notably in its recent acquisitions of DirecTV and Time Warner, we are cognizant of both the premiums paid and the fact that the company’s legacy businesses are steady or declining. AT&T is optimistic about generating reasonable growth and the payout ratio had been falling, resulting in excess funds to divert toward paying down debt.
Two individual growth catalysts for AT&T are 5G rollout and its recently-launched HBO Max service. AT&T continues to expand 5G to more cities around the country. AT&T’s 5G service now covers more than 120 million people.
On May 27th, AT&T launched streaming platform HBO Max and generated 90,000 mobile downloads on its first day. HBO Max is priced at $15 per month and offers subscribers approximately 10,000 hours of programming. The new platform is a critical step for AT&T to keep up in the streaming wars.
Shares of AT&T trade for a 2020 price-to-earnings ratio of 9.5, below our fair value P/E of 12. Expansion of the P/E multiple could boost annual returns by 4.8% per year. The stock also has an attractive dividend yield of 6.7%. Combined with 4% expected annual earnings-per-share growth, we expect total annual returns of 15.5% per year over the next five years.
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.
- Archer-Daniels-Midland (ADM) | [5/3/20]
- Amcor (AMCR) | [5/24/20]
- Brown-Forman (BF-B) | [3/17/20]
- Colgate-Palmolive (CL) | [5/6/20]
- Clorox (CLX) | [5/6/20]
- Coca-Cola (KO) | [5/6/20]
- Hormel Foods (HRL) | [3/1/20]
- Kimberly-Clark (KMB) | [4/25/20]
- McCormick & Company (MKC) | [3/31/20]
- PepsiCo (PEP) | [4/28/20]
- Procter & Gamble (PG) [4/29/20]
- Sysco Corporation (SYY) [3/20/20]
- Wal-Mart (WMT) | [5/25/20]
- Walgreens Boots Alliance (WBA) | [4/2/20]
- A.O. Smith (AOS) | [5/22/20]
- Cintas (CTAS) | [3/30/20]
- Dover (DOV) | [4/24/20]
- Emerson Electric (EMR) | [5/14/20]
- Expeditors International (EXPD) | [5/25/20]
- Illinois Tool Works (ITW) | [5/6/20]
- 3M (MMM) | [4/28/20]
- Pentair (PNR) | [5/18/20]
- Roper Technologies (ROP) | [5/8/20]
- Stanley Black & Decker (SWK) | [4/30/20]
- W.W. Grainger (GWW) | [5/12/20]
- General Dynamics (GD) | [3/17/20]
- Caterpillar (CAT) | [4/28/20]
- Raytheon Technologies (RTX) | [4/9/20]
- Otis Worldwide (OTIS) | [4/10/20]
- Carrier Global (CARR) | [4/9/20]
- Abbott Laboratories (ABT) | [4/16/20]
- AbbVie (ABBV) | [5/10/20]
- Becton, Dickinson & Company (BDX) | [5/12/20]
- Cardinal Health (CAH) | [5/12/20]
- Johnson & Johnson (JNJ) | [4/15/20]
- Medtronic (MDT) | [5/21/20]
- Genuine Parts Company (GPC) | [5/9/20]
- Leggett & Platt (LEG) | [5/12/20]
- Lowe’s Companies (LOW) | [3/25/20]
- McDonald’s (MCD) | [5/2/20]
- Ross Stores (ROST) | [5/25/20]
- Target (TGT) | [3/8/20]
- V.F. Corporation (VFC) | [5/15/20]
- Aflac (AFL) | [5/4/20]
- Cincinnati Financial (CINF) | [5/4/20]
- Franklin Resources (BEN) | [5/3/20]
- S&P Global (SPGI) | [5/3/20]
- T. Rowe Price Group (TROW) | [4/29/20]
- Chubb (CB) | [4/25/20]
- People’s United Financial (PBCT) | [4/28/20]
- Air Products and Chemicals (APD) | [4/25/20]
- Albemarle (ALB) | [5/10/20]
- Ecolab (ECL) | [4/29/20]
- PPG Industries (PPG) | [4/28/20]
- Sherwin-Williams (SHW) | [4/30/20]
- Nucor (NUE) | [5/12/20]
- Linde (LIN) | [5/8/20]
- Essex Property Trust (ESS) | [4/3/20]
- Federal Realty Investment Trust (FRT) | [5/27/20]
- Realty Income (O) | [5/20/20]
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 – 2020)
The image below shows the history of the Dividend Aristocrats Index from 1989 through 2020:
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 – 2020: Data from S&P press releases
Other Dividend Lists & Final Thoughts
The Dividend Aristocrats list is not the only way to quickly screen for businesses that regularly pay rising dividends.
- The Dividend Achievers List is comprised of more than 250 businesses with 10+ years of consecutive dividend increases.
- The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of less than 30 businesses with 50+ years of consecutive dividend increases.
- The Sure Dividend Blue Chip Stocks List
- The High Dividend Stocks List
- The Monthly Dividend Stocks List
There is nothing magical about the Dividend Aristocrats. They are ‘just’ a collection of high quality shareholder friendly businesses that have strong competitive advantages.
Purchasing this type of business 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.”