The fund manager Janus Henderson estimated that more than 25% of the 1,200 companies screened in its Global Dividend Index have cut or deferred at least one dividend payment this year. The corona-virus has also impacted Dividend Aristocrats, especially in Europe.
Time to recap which Dividend Aristocrats announced a dividend cut or were not able to increase their dividend and as a consequence lost their dividend aristocrat status.
We already reported on Ross Stores dividend cut , European Dividend Aristocrat Safran cuts dividend and L’Oreal will lose Dividend Aristocrats status.
Europe highly impacted
In Europe, the threshold to become a dividend aristocrat is 10 consecutive years of dividend increases versus 25 for the US list. This is probably one of the reasons why there are more companies losing their aristocrat status. The following companies “dropped” from the list since the virus spread across the globe.:
- SAFRAN SA
- MICRO FOCUS INTERNATIONAL PLC
- COMPASS GROUP PLC
- MEGGITT PLC
- CARNIVAL PLC
- BURBERRY GROUP PLC
- EURAZEO SE COMMON STOCK EUR 0
- JD SPORTS FASHION PLC
- SAMPO OYJ
- PRUDENTIAL PLC
- COMPAGNIE FINANCIERE RICHEMONT SA
- IMPERIAL TOBACCO GROUP PLC
- LVMH MOET HENNESSY LOUIS VUITTON SE
- BUNZL PLC
- SEB SA
- PADDY POWER BETFAIR PLC
Other companies to watch are Fresenius Medical Care, SEB (Bank), Hexagon AB, and BAE Systems Plc since they postponed their decision on the dividend increase.
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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