- The Dividend Aristocrats dropped 2.76% in August 2022 and are outperforming the broader S&P 500 year-to-date with 7.16%.
- The Dividend Aristocrats are a select group of currently 65 S&P 500 stocks with 25+ years of consecutive dividend increases.
- By showing the recent performance of the Dividend Aristocrats, some active dividend growth investors may be able to identify relative bargains.
U.S. equities began August continuing in rebound mode, after the strong performance in July, but reversed course to end the month in negative territory after a hawkish Fed and recession fears. The S&P 500 index (SPY) U.S. equities dropped in August and are down -4.08% for the month. year-to-date the Dividend Aristocrats are down -8.98% outperforming the S&P 500 index. The S&P 500 is down -16.14% for the year.
The current 10-years annualized return is 13.02% for the Dividend Aristocrats (NOBL) versus 13.08% for the S&P 500. Below is the historical performance chart of the dividend aristocrats and the benchmark.
Good to keep in mind that over a time period of 30 years and multiple recessions, the dividend aristocrats strategy has outperformed the S&P 500 by nearly 2% per year.
The current dividend yield is 2.25% well above the 1.50% for the S&P 500 index.