- The S&P Euro Dividend Aristocrats Index is based on the 40 highest dividend-yielding Eurozone companies within the S&P Europe Broad Market Index (BMI)
- The Euro Dividend Aristocrats achieved a dividend policy of increasing or stable dividends for at least 10 consecutive years.
- At the start of 2021, there are 21 new companies added to this index.
There are three main indexes relates to European Dividend Aristocrats which could be a good starting for dividend growth investors:
- The Euro Dividend Aristocrats list entails European stocks with 10+ consecutive years of dividend increases or stable dividends. The selection is based on high yield dividends.
- The UK Dividend Aristocrats list entails UK-only stocks with 7+ consecutive years of dividend increases or stable dividends.
- The European Dividend Aristocrats list entails European stocks with 10+ consecutive years of dividend increases. The stock should be a member of the S&P Europe 350 Index, which is a kind of S&P 500 version for the European stock market with 350 constituents.
See also the article on the best European dividend ETF’s.
In this article, we focus on the S&P Euro Dividend Aristocrats. This index is based 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.
If we compare this index with the US Dividend Aristocrats, there are three main differences, which 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 height of the yield is not a selection factor, all aristocrats are included.
- Currency EUR versus USD, so a currency risk for US-investors.
Selecting on high-yield dividend and reducing the dividend growth criteria by including stable dividends are reducing the quality/robustness of the companies included. Something to keep in mind in your quest for quality dividend growth stocks. However, we still believe this index could still be a way to quickly screen for businesses that regularly pay rising dividends in the European stock market.
2020 has not been a good year for the Euro Dividend Aristocrats index with a total return of -11.53%, while the benchmark total return ended up 7.42%. If we look at the long-term, e.g. the annualized return over the last 10 years, the total returns are close with 6.12% and 6.56% for the index. Below the historical performance over the last 10 years.
The S&P Euro Dividend Aristocrats Index is based on the 40 highest dividend-yielding. in 2021, there are indeed 40 European companies that meet at all the set by S&P. In some cases, the index accounted for less than 40 members, e.g. 38 or 39.
At the start of 2021, there were several changes including the 21 new members below:
- Aalberts N.V.
- Air Liquide SA
- CRH Plc
- Etablissementen Franz Colruyt N.V.
- EXOR N.V.
- Fortum Oyj
- GRENKE AG
- Groupe Bruxelles Lambert SA
- Henkel AG & Co. KGaA
- Koninklijke DSM N.V.
- Legrand SA
- Merck KGaA
- Pernod Ricard SA
- Recordati Industria Chimica e Farmaceutica S.p.A.
- SAP SE
- Schneider Electric SE
- Siemens Energy AG
- Sofina SA
- Software AG
- UCB S.A.
- Wolters Kluwer NV
The table below lists the top-10 euro Dividend Aristocrats with their price, market-cap, annual dividend, PE-ratio, earnings per share, and annual dividend yield in descending order.
Other Sources of Dividend Investment Ideas
There are several lists to quickly screen for businesses that regularly pay rising dividends.
- The Dividend Aristocrats Index is based on 64 companies part of the S&P 500 and with 25+ years of consecutive dividend increases.
- 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 in 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 years of dividend can be a list of inspiration.
- Blue Chips stocks from the US or the European ones.
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.
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