The Defensive Dividend Aristocrats’ objective is to outperform the Dividend Aristocrats over any five-year rolling time horizon, especially in bear markets. The maximum draw-down (mdd) should be lower for the defensive stocks. More background information can be found on the dedicated defensive aristocrats page.
The idea behind the Defensive Dividend Aristocrats is to invest in 10 Dividend Aristocrats that are selected based on price-return and risk-ratios at year-end. Combined with the dividend growth characteristics of all Aristocrats, this should result in a comfortable set of companies for a long-term dividend portfolio.
Performance defensive aristocrats 2019
Figure 1: YTD Performance defensive aristocrats Oct-2019
The two tables below show the monthly performance of the defensive aristocrats, the S&P 500 index and the Dividend Aristocrats (NOBL). In a negative year, like 2018, the defensive aristocrats showed their value by outperforming the S&P 500 by 7.79%.
Members can use the screener to find the current best dividend aristocrats based on loss-ratio.