The dividend aristocrats are well-known companies of the S&P 500 that have paid steadily increasing dividends for at least 25 years have outperformed the broader market over time. Typically dividend growth investors are using the dividend aristocrats list as a source for potential dividend stocks to invest in or build-up their dividend or retirement portfolio.
Relevant criteria to evaluate the dividend aristocrats and spot interesting are:
- Highest dividend yielders
- Undervalued And Overvalued Dividend Aristocrats
- Dividend growth rate
- The recent performance of the Dividend Aristocrats
All this information is captured in one overview, see our Dividend Aristocrats Dashboard.
Dividend Aristocrats with the highest dividend yield
Since the dividend aristocrats are able to steadily increase their dividends over many years, their dividend-policy is often seen as quite stable and a below-average risk of a dividend cut. If you prefer dividend yield above price performance, e.g. in a retirement portfolio. Dividend aristocrats could provide you some examples of quality stocks with a high dividend. (read also the article on high dividend stocks.)
Undervalued And Overvalued Dividend Aristocrats
A stock with a yield higher compared to its 5-years average may be undervalued, and stock with a yield lower could be overvalued. See the example below.
Next to our Dividend Aristocrats Dashboard, this information is also available via screeners (membership required) or on individual stock pages like 3M (MMM).
Performance of the Dividend Aristocrats
By showing the year-to-date performance of the Dividend Aristocrats, some active dividend growth investors may be able to identify relative bargains & oversold stocks.
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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