- Almost 60% of the companies in the S&P 500 have reported results for Q2 2021 to date.
- 88% of these companies have reported EPS that are above estimates.
- , 10% of the Dividend Aristocrats reported EPS that are below estimates.
- 8 Dividend Aristocrats still have to report earnings in August.
It was a good July for investors, despite concerns about the COVID “delta variant”, and rising inflation. The S&P 500 ended up 2.38% and was up 17.02% YTD. The Dividend Aristocrats gained 2.17%, close to the performance of the major US index.
Mid-July, the second-quarter earnings season started, and several Dividend Aristocrats reported strong Q2-2021 earnings and improved their outlook for 2021.
Almost 60% of the companies in the S&P 500 have reported results for Q2 2021 to date. 88% of these companies have reported EPS that are above estimates, which is well above the five-year average of 75%. Only the sector Materials is below this five-year average with 71%. The IT-sector has the highest “surprise”-percentage with 98%.
, 90% of the Dividend Aristocrats reported EPS that are beating estimates. The Financial Services sector is the sector with the highest “surprise”-percentage. Not always has the good news resulted in higher share prices. West Pharmaceutical Services Inc. (WST) was one of the few stocks that trade significantly higher on the results. Below is are the top-10 dividend aristocrats that reported their Q2-2021 results.
Only six Dividend Aristocrats missed EPS estimates and as a result share prices dropped to lower levels. Especially, Clorox (CLX) reporting on August 3, 2021, and Cardinal Health (CAH) reporting on August 5, 2021, had a difficult time.
Till the end of August, the following Dividend Aristocrats still have to report their Q2-2021 results.
- Air Products & Chemicals, Inc.
- Hormel Foods Corp
- Lowe`s Companies Inc
- Medtronic PLC
- SYSCO Corporation
- Target Corporation
- Walmart Inc
- Amcor PLC
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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