- The Dividend Aristocrats are companies of the S&P 500 that have paid steadily increasing dividends for at least 25 years have outperformed the broader market over time, like in 2018.
- This article lists the current Dividend Aristocrat constituents and their recent returns
- By showing the recent performance of the Dividend Aristocrats, some active dividend growth investors may be able to identify relative bargains.
- The top-10 dividend Aristocrats by current dividend yield are also listed.
- The Dividend Aristocrats posted a +10.6% return in April 2020.
After the global sell-off related to the corona-virus in March, the S&P 500 recovered 13% in April. This is the best monthly performance since January 1987. The Dividend Aristocrats showed similar performance and posted a gain of 10.59% in April 2020, which is the best monthly performance since the Financial Crisis (April 2009). However, the Dividend Aristocrats are down -15.57% year-to-date, which is an underperformance compared to its benchmark.
The 10 years annualized total returns of the Dividend Aristocrats and the S&P 500 (SPX) are almost alike with 11.87% for the aristocrats and 11.69% for the SPX.
Dividend Aristocrats performance in April 2020
The table below lists all 64 constituents, excluding the recently added spin-offs Carrier Global (CARR) and Otis Worldwide (OTIS), sorted by indicated dividend yield and lists returns over trailing last month, 3-, 6-, and 12-month periods.
Key takeaways from April’s performance:
- Top performance in April with more than 20% were Leggett & Platt Incorporated (LEG), Chevron Corporation (CVX), Cintas Corporation (CTAS), Ecolab Inc. (ECL), and Lowe’s Companies (LOW).
- Laggards: in April, only five Dividend Aristocrats posted negative total returns, Cincinnati Financial (CINF), Walgreens Boots Alliance (WBA), Chubb (CB), Becton Dickinson (BDX), and General Dynamics (GD).
- Year-to-date the five best performing dividend aristocrats are Clorox Company (CLX) +26.28% , Hormel Foods Corporation (HRL), Abbott Laboratories (ABT), Walmart (WMT), and S&P Global Inc (SPGI).
- In total 17 Dividend Aristocrats went ex-dividend in April, including AT&T (T), Caterpillar Inc. (CAT), Procter & Gamble(PG), AbbVie Inc. (ABBV), and Sysco Corporation (SYY).
- The best performing sector in the Dividend Aristocrats index was Energy with almost +20%, while Utilities didn’t move in April.
Dividends and Dividend Yield
Next to dividend growth investing, a high yield dividend could also be an approach. The table below lists the top-10 Dividend Aristocrats sorted descending by the current dividend yield (end of April 2020).
The above-presented performance data of the Dividend Aristocrats could assist active dividend growth investors to find some bargains for the long run. Interested in the latest data and also dividend growth rates, check our dividend aristocrats dashboard.
Other Sources of Dividend Investment Ideas
The Dividend Aristocrats list is not the only way to quickly screen for businesses that regularly pay rising dividends.
- The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of less than 20 businesses with 50+ years of consecutive dividend increases.
- The MoneyInvestExpert Defensive Aristocrats is a performance-based top-10 selection of the Dividend Aristocrats to outperform the market on the long-term.
- Portfolio lists like the Berkshire Hathaway Portfolio or Bill Gates’stock portfolio can be a source.
- For the European focused investors there is also the list of European Dividend Aristocrats.
- Dividend Champions are not necessarily members of the S&P 500 index, have increased their dividend for 25 or more consecutive years.
- 100+ years of dividend, the list of stocks that pay over 100 year of dividend can be an list of inspiration.
Next to selecting the right dividend stocks, important principles for successful long-term investing are Disciple, Diversification, Defensive & indeed Dividend. Read more about this in our free e-book.
Also, our monthly newsletter and premium member data will help you to invest smarter.
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