In brief:
- The Dividend Kings are the best in class with respect to dividend endurance.
- A Dividend King is a stock with 50 or more consecutive years of dividend increases.
- The Dividend Kings list can be a good source for selecting dividend stocks.
While the S&P Dividend Aristocrats Index consists of over 60 stocks, which includes companies in the S&P 500 Index that have raised their dividend for at least 25 consecutive years, there are only 30 dividend kings in 2020. This is including recent additions such as Sysco (SYY), Universal Corporation (UVV), and National Fuel Gas (NFG).
The table below lists the dividend king’s performance for October 2020. The average monthly price performance for all dividend kings is -1.74% which is almost on par with the Dividend Aristocrats.
The key takeaways for October:
- Amongst the laggards are SYSCO Corp, Cincinnati Financial Corporation & Johnson & Johnson.
- Top-performing Dividend Kings last month are Commerce Bancshares, Stepan Company and Parker-Hannifin Corp.
- Materials is the best performing sector , while Healthcare had a difficult month with -8% on average.
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.
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