S&P Dow Jones Indices, which owns the S&P 500 index, reviews the list of qualifying companies every year and updates the list of companies that carry Dividend Aristocrat status. Their impressive track records of growth make Dividend Aristocrats some of the most attractive dividend stocks to own.
Dividend Aristocrats list
As of Jan. 22, 2021, there are 65 Dividend Aristocrats.
Here's the full list, sorted by how many consecutive years each has increased its dividend:
|Company||Sector||Consecutive Years of Dividend Growth|
|Coca-Cola (NYSE:KO)||Consumer staples||57|
|Colgate-Palmolive (NYSE:CL)||Consumer staples||57|
|Emerson Electric (NYSE:EMR)||Industrials||57|
|Genuine Parts (NYSE:GPC)||Consumer discretionary||57|
|Johnson & Johnson (NYSE:JNJ)||Healthcare||57|
|Procter & Gamble (NYSE:PG)||Consumer staples||57|
|Stanley Black & Decker (NYSE:SWK)||Industrials||52|
|Hormel Foods (NYSE:HRL)||Consumer staples||51|
|Becton, Dickinson & Co. (NYSE:BDX)||Healthcare||48|
|Illinois Tool Works (NYSE:ITW)||Industrials||48|
|Leggett & Platt (NYSE:LEG)||Consumer discretionary||48|
|PPG Industries (NYSE:PPG)||Materials||48|
|Target (NYSE:TGT)||Consumer discretionary||48|
|W.W. Grainger (NYSE:GWW)||Industrials||48|
|Abbott Laboratories (NYSE:ABT)||Healthcare||47|
|Federal Realty Investment Trust (NYSE:FRT)||Real estate||47|
|Kimberly Clark (NYSE:KMB)||Consumer staples||49|
|PepsiCo (NASDAQ:PEP)||Consumer staples||48|
|VF Corp. (NYSE:VFC)||Consumer discretionary||47|
|S&P Global (NYSE:SPGI)||Financials||46|
|Archer Daniels Midland (NYSE:ADM)||Consumer staples||45|
|Automatic Data Processing (NASDAQ:ADP)||Information technology||45|
|Consolidated Edison (NYSE:ED)||Utilities||45|
|Lowe's (NYSE:LOW)||Consumer discretionary||45|
|Walgreens Boots Alliance (NASDAQ:WBA)||Consumer staples||44|
|Clorox (NYSE:CLX)||Consumer staples||43|
|McDonald's (NYSE:MCD)||Consumer discretionary||43|
|Walmart (NYSE:WMT)||Consumer staples||43|
|Sysco (NYSE:SYY)||Consumer staples||39|
|Franklin Resources (NYSE:BEN)||Financials||38|
|Cincinnati Financial (NASDAQ:CINF)||Financials||37|
|Air Products & Chemicals (NYSE:APD)||Materials||37|
|Amcor PLC (NYSE:AMCR)*||Materials||36|
|AT&T (NYSE:T)||Communications services||35|
|Brown-Forman (B Shares) (NYSE: BF-B)||Consumer staples||35|
|McCormick & Co. (NYSE:MKC)||Consumer staples||34|
|T. Rowe Price Group (NASDAQ:TROW)||Financials||33|
|Cardinal Health (NYSE:CAH)||Healthcare||32|
|Atmos Energy Corporation (NYSE:ATO)||Utilities||32|
|General Dynamics (NYSE:GD)||Industrials||28|
|West Pharmaceutical Services Inc (NYSE:WST)*||Healthcare||28|
|A.O. Smith (NYSE:AOS)||Industrials||27|
|Roper Technologies (NYSE:ROP)||Industrials||27|
|People's United Financial (NASDAQ:PBCT)||Financials||26|
|Albemarle Corp (NYSE:ALB)||Materials||25|
|Essex Property Trust Inc (NYSE:ESS)||Real estate||25|
|Expeditors International of Washington, Inc (NASDAQ:EXPD)||Industrials||25|
|Realty Income Corporation (NYSE:O)||Real estate||25|
|International Business Machines (NYSE:IBM)||Information Technology||25|
|NextEra Energy Inc (NYSE:NEE)||Utilities||25|
There's also a Dividend Kings list. To be a Dividend King, a company has to have boosted that dividend every year for an incredible 50 years in a row.
Dividend Aristocrats changes for 2021
Three companies were removed from the Dividend Aristocrats list for 2021:
- Carrier Global Corp (NYSE:CARR)
- Otis Worldwide Corp (NYSE:OTIS)
- Raytheon Technologies Corp (NYSE:RTX)
Three new companies became eligible to join the Dividend Aristocrats list for 2021:
- International Business Machines
- NextEra Energy
- West Pharmaceutical Services
How Dividend Aristocrats are selected
The standards make it difficult for companies to get on the list. But once they are on, they are likely to stay.
Below are the four criteria to become (and remain) a Dividend Aristocrat:
- Be a member of the S&P 500.
- Increase its per-share base dividend (excluding special dividends) every year for at least 25 consecutive years.
- Have a minimum float-adjusted (excluding "closely held" shares owned by insiders or founders) market capitalization of at least $3 billion.
- Average at least $5 million in daily share trading value for the three months prior.
When is the Dividend Aristocrats list updated?
The Dividend Aristocrats list is updated at several frequencies by S&P Dow Jones Indices:
- Once each year in January, companies are added and removed based on the requirements.
- At the beginning of each quarter, the index is reweighted, meaning the size of each constituent is reset so that they all make up an equal percentage of the index.
- On rare occasion, a stock may lose Dividend Aristocrat status.
While the Dividend Aristocrat index, by nature, doesn't change much, more companies tend to lose their status during recessions. In 2009 and 2010, 19 total companies (half of which were banks or financial institutions) fell off the list after cutting dividends due to the global financial crisis.
Are Dividend Aristocrats good investments?
Historically speaking, yes. But it depends on what you're looking for from your investment.
Pros of investing in Dividend Aristocrats:
- Reliability: Fans of dividend investing appreciate a reliable source of income.
- Industry leaders: These companies tend to be leaders in their industries with reliable cash flow and a track record of impressive annual returns.
- Reduced volatility: Dividend Aristocrats are less volatile than the broader market.
That being said, in recent history, Dividend Aristocrats have underperformed the S&P 500 in total returns:
So why would investors still look at the S&P Dividend Aristocrats?
When it comes to dividend growth, Dividend Aristocrats absolutely shine. Since 2014, the Dividend Aristocrats Index has increased the dividend payout five times faster than the S&P 500.
Is there a Dividend Aristocrats index fund?
Those looking for a simple, low-cost way to invest in the entire Dividend Aristocrats universe should give this exchange traded fund (ETF) consideration.
Should you buy individual Dividend Aristocrat stocks?
Your long- and short-term objectives, as well as the kinds of companies you want to own, come into play.
For instance, if you're looking for immediate income, you may want to avoid the constituents with lower dividend payouts. If long-term growth is your focus, you may be better off buying Dividend Aristocrats with higher growth prospects, even if they have lower dividend payouts.
Whether you're looking to pick individual stocks to suit your investing style and goals, or for other reasons such as socially responsible investing goals, Dividend Aristocrats can be an excellent starting point for finding the best-in-class dividend growth stocks.