Dividend Aristocrats

ABOUT DIVIDEND ARISTOCRATS

• Dividend Aristocrats tend to be large, more mature companies that consider paying dividends to shareholders as a top priority. 

• According to S&P Global, the Dividend Aristocrats have produced a better long-term return than the S&P 500 and done so with less risk.

• These companies have remained relevant for decades while continuing to generate reliable cash flow and maintain solid financial health.

• Dividend aristocrats are concentrated in more stable sectors, with industrials, consumer staples, healthcare, and utilities.

• The Dividend Aristocrat list is refreshed each year, with new companies meeting the criteria being added while those failing it being removed.

DIVIDEND ARISTOCRATS CRITERIA

• Be part of the Standard & Poor’s 500 Index

• Pay and raise its dividend for at least 25 straight years

• Have a market capitalization of at least $3 billion

• Have an average daily trading volume of at least $5 million

DIVIDEND ARISTOCRATS VS. DIVIDEND KINGS

• Dividend Kings and Dividend Aristocrats are both coveted groups of companies known for their long history of consistently increasing dividends.

• Dividend Aristocrats must have increased their dividends for at least 25 years and be a member of the S&P 500 index. Dividend Kings have a requirement of 50 years of uninterrupted dividend increases, with no stipulations regarding S&P 500 membership or market capitalization.

• Not all Dividend Kings are Dividend Aristocrats. This unexpected result is because the "only" requirement to be a Dividend King is 50+ years of rising dividends.

• Both categories offer investors a level of reliability and potential for steady income, though Dividend Kings, due to their longer track record, may offer an even greater perception of stability to investors.