European Dividend Aristocrats 2020

The famous Dividend Aristocrats are a select group of S&P 500 stocks with 25+ years of consecutive dividend increases.These are all large US companies since they are part of the S&P 500 Index. Although quarterly dividend pay-outs and  yearly consecutive dividend increases are not common in Europe, there is a list of European Dividend aristocrats.

Difference European and US Dividend Aristocrats

The S&P 500 applies the following criteria to construct the US Dividend Aristocrats list:

• must be members of the S&P 500
• must have increased dividends every year for at least 25 consecutive years
• Market Cap at least USD 3 billion
• Liquidity at least USD 5 million (average daily value traded)
• Diversification, at least 40 constituents and not sector allocation above 30%

The European Dividend Aristocrats are based (by S&P) on the 40 highest dividend-yielding Eurozone companies within the S&P Europe Broad Market Index (BMI) and a managed dividends policy of increasing or stable dividends for at least 10 consecutive years.

Next to the currencies (EUR vs USD), the two major difference are:

• Increasing or stable dividends for at least 10 consecutive years vs 25 consecutive years (US)
• 40 highest dividend-yielding (EU), in the US the hight of the yield is not a selection factor.

The Dividend European Aristocrats Excel spreadsheet contains the following fundamental and stock price performance metric for each stock in the index .

Fundamental metrics:

• Dividend & earnings per share
• Dividend Yield
• Pay-out ratio

Stock price performance metric (Members only):

• 1 yr price target
• 10 year weighted compound annual growth rate (WCAGR / GEOPAK10)
• Win factor
• Loss ratio
• Total return

As explained the European Dividend Aristocrats Index currently contains 40 stocks . As you can see below, the Industrials sector accounts for 20.8% of the index.  Information Technology is on the other end of the spectrum at less than 1% of European Dividend Aristocrats Index. To compare, the largest US dividend aristocrats sector is Consumer staples.

Communication Services

Axel Springer SE
Lagardere SCA
Publicis Groupe SA

Consumer Discretionary
Fielmann AG
Sodexo SA

Consumer Staples
Danone SA

Energy
Enagas SA
Royal Vopak NV
Total SA

Financials
Munich Reinsurance Company
Scor SE
Groupe Bruxelles Lambert SA
CNP Assurances SA

Health Care
Recordati S.p.A.
Sanofi
Royal Philips NV
Bayer AG
Korian SA

Industrials
Fraport AG
Siemens AG
Konecranes Oyj
Wolters Kluwer NV
Societe BIC SA
I.M.A. Industria Macchine Automatiche S.p.A.
Bouygues SA
VINCI SA
Bureau Veritas SA
Eiffage SA

Information Technology
Ingenico Group SA

Materials
Royal DSM NV
Solvay SA
Fuchs Petrolub SE Pref
Air Liquide SA

Real Estate
Deutsche EuroShop AG
Klepierre SA

Utilities
EDP-Energias de Portugal SA
Red Electrica Corp. SA
ERG S.p.A.
Hera S.p.A.
Rubis SCA