If you like dividend-paying stocks, you have to know about the Dividend Aristocrats. The Dividend Aristocrats are a select group of companies that have increased their dividends every year for at least 25 straight years. There are currently 53 stocks on the Dividend Aristocrats list, which is compiled annually from the stocks in the S&P 500. S&P also offers a Dividend Aristocrats ETF, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL).
The Dividend Aristocrats ETF currently yields about 2%, and provides broad exposure to an exclusive group of high-quality, blue-chip stocks. Most are from established industries, like consumer staples and industrials, and 87% are large-cap stocks.
Buying the Dividend Aristocrats ETF is an easy way to secure an income stream that rises every year, and get broad exposure to American large-cap stocks, with a bit of an old-economy bias.
Here’s a list of all 53 Dividend Aristocrats, sorted by industry.
However, you may want to be more selective, and buy individual Dividend Aristocrats rather than buying the whole ETF. For example, you may want to focus on stocks from the strongest stock market sectors, or keep your portfolio balanced by selecting one or two Aristocrats from each sector.
If you have shorter-term gains in mind, you may only want buy the Dividend Aristocrats with the best earnings growth, or strongest charts.
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The Best Dividend Aristocrats for Growth
The following Dividend Aristocrats have both strong charts with good momentum, and positive revenue and earnings growth expectations. (The highest values in each column are highlighted.)
Highest-Paying Dividend Aristocrats
Finally, if you invest primarily for current income, you may be interested to know which of the Dividend Aristocrats offer the highest yields. Today, Dividend Aristocrats offering the five highest yields are:
You’ll notice that the list is quite different from the one above—none of the highest-yielding aristocrats have particularly strong charts or growth prospects.
When selecting individual stocks for your portfolio, even from the exclusive list of Dividend Aristocrats, it’s important to balance desire for yield against other qualifications.
My Individualized Retirement Investment System, or IRIS, ranks each of these stocks on Dividend Safety and Dividend Growth Potential, so you can invest only in the stocks offering the best combination of risk and reward. Just click here to learn more.
Chloe Lutts Jensen developed Cabot's proprietary Individualized Retirement Income System (IRIS) and Cabot Dividend Investor to provide both high income and peace of mind. If you’re retired or thinking about retirement, her advisory is designed for you.