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Dividend Aristocrats List - Dividend Growth Investor

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DIVIDEND GROWTH INVESTOR I A M A L O N G T E R M B U Y A N D H O L D I N V E S TO R W H O F O C U S E S O N D I V I D E N D G R O W T H S TO C K S

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Dividend Aristocrats List The S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years in a row. The index is equally weighted, and rebalanced every quarter. To qualify for membership in the S&P 500 Dividend Aristocrats index, a stock must satisfy the following criteria: 1. Be a member of the S&P 500 2. Have increased dividends every year for at least 25 consecutive years 3. Meet minimum float-adjusted market capitalization and liquidity requirements defined in the index inclusion and index exclusion rules below. The group of companies in the Dividend Aristocrats index tend to generate reliable

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dividend income, and provide the potential for strong total returns. The list is well diversified across sectors. There are 64 companies in the Dividend Aristocrats index for 2020, up from 57 in 2019. The seven new additions include: Albermarle Corp Amcor PLC

(ALB)

Email:

(AMCR)

Atmos Energy Corp

(ATO)

Essex Property Trust

(ESS)

Expeditors International (EXPD) Realty Income Corp Ross Stores

(O) (ROST)

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The odd addition is Amcor, since that's the company that acquired the old Bemis (BMS). Bemis had a 36 year history of annual dividend increases, yet oddly it was not a part of the Dividend Aristocrats Index. Bemis was dropped from the index in

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2014, because it was dropped from S&P 500. However, the company had kept raising dividends before and after 2014. Shareholders who held directly woudl have likely continued owning it. I am not sure why Atmos Energy (ATO) is just now being added to the index, since https://www.dividendgrowthinvestor.com/p/dividend-aristocrats.html

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the company has a 36 year history of annual dividend increases.

How to retire in 10 years with dividend stocks

There were no companies removed from the list in 2019. The number of dividend

How to become a successful dividend investor How to value dividend stocks Warren Buffett Investing

aristocrats is equal to the record number of Dividend Aristocrats from 2001.Since the inception of the index in 1989, the number of holdings has fluctuated from 26 to 64 holdings. It is still not even half the number of Dividend Champions however.

Resource Page Warren Buffett’s Dividend Stock Strategy Dividend Aristocrats List

The 2020 Dividend Aristocrats are listed below:

Symb ol

Name

Sector

Years of Annual Dividend Increase s 47 47 44

13 5 9

45

10

37 25

6 11

Keeping up with the Your Savings Rate

10 Di Gr

ABBV ABT ADM

AbbVie Inc. Abbott Laboratories** Archer-Daniels-Midland Co

ADP

Automatic Data Processing

AFL ALB AMC R AOS

AFLAC Inc Albemarle Corp.

Health Care Health Care Consumer Staples Information Technology Financials Materials

Amcor

Materials

25

3

Industrials

26

21

Materials

38

9

ATO BDX BEN BF.B CAH CAT CB CINF CL CLX CTAS CVX DOV ECL ED EMR ESS EXPD FRT GD

Smith A.O. Corp Air Products & Chemicals Inc Atmos Energy Becton Dickinson & Co Franklin Resources Inc Brown-Forman Corp B Cardinal Health Inc Caterpillar Inc Chubb Ltd Cincinnati Financial Corp Colgate-Palmolive Co Clorox Co Cintas Corp PBCT Dover Corp Ecolab Inc Consolidated Edison Inc Emerson Electric Co Essex Property Trust Expeditors International Federal Realty Invt Trust General Dynamics

36 48 40 36 24 26 26 59 56 42 37 33 64 28 46 63 25 25 52 28

4 8 14 8 17 8 9 3 7 7 18 5 8 12 2 4 6 10 4 10

GPC

Genuine Parts Co

63

6

GWW HRL ITW JNJ KMB

Grainger W.W. Inc Hormel Foods Corp Illinois Tool Works Inc Johnson & Johnson Kimberly-Clark

Utilities Health Care Financials Consumer Staples Health Care Industrials Financials Financials Consumer Staples Consumer Staples Industrials Energy Industrials Materials Utilities Industrials Real Estate Industrials Real Estate Industrials Consumer Discretionary Industrials Consumer Staples Industrials Health Care Consumer Staples

48 54 45 57 48

12 16 12 6 6

APD

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▼ 2021 (5) ▼ January (5) The best investors in the world are dead

Joneses Matters Value and Growth Are Attached at the Hip Health Savings Account (HSA) for Dividend Investors ► 2020 (133) ► 2019 (110) ► 2018 (126) ► 2017 (126) ► 2016 (135) ► 2015 (160) ► 2014 (183) ► 2013 (209) ► 2012 (150) ► 2011 (165) ► 2010 (156) ► 2009 (199) ► 2008 (218)

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KO

Coca-Cola Co

LEG

Leggett & Platt

LIN

Linde plc

LOW

Lowe's Cos Inc

MCD

McDonald's Corp

MDT MKC MMM NUE O PBCT PEP PG PNR PPG ROP

Medtronic plc McCormick & Co 3M Co Nucor Corp Realty Income Corp. People's United Financial PepsiCo Inc Procter & Gamble Pentair PLC PPG Industries Inc Roper Technologies, Inc

ROST

Ross Stores Inc.

SHW SPGI SWK SYY

Sherwin-Williams Co S&P Global Stanley Black & Decker Sysco Corp

T

AT&T Inc

TGT

Target Corp

TRO W UTX VFC WBA WMT XOM

Consumer Staples Consumer Discretionary Materials Consumer Discretionary Consumer Discretionary Health Care Consumer Staples Industrials Materials Real Estate Financials Consumer Staples Consumer Staples Industrials Materials Industrials Consumer Discretionary Materials Financials Industrials Consumer Staples Communication Services Consumer Discretionary

57

6

48

4

26

8

57

19

44

8

42 34 61 47 25 27 47 63 44 48 27

10 9 10 1 4 1 7 5 0 6 18

25

24

41 46 52 50

12 9 7 4

36

2

52

14

T Rowe Price Group Inc

Financials

33

11

United Technologies

Industrials Consumer Discretionary

26

6

47

12

Consumer Staples

44

13

Consumer Staples Energy

46 37

7 7

VF Corp Walgreens Boots Alliance Inc Wal-Mart Exxon Mobil Corp

The index has generated strong total returns over time past decade. I wanted to note that in 2008, the Dividend Aristocrats index declined by 21.88%. The S&P 500 however declined by 37%. The dividend aristocrats index tends to shine during bear markets and low return environments. However, it also pulls its weight when we are in a bull market too. It is the best of both worlds really. These are the returns since the launch of the Dividend Aristocrats Index in 1989:

Year

Dividend Aristocra ts

S&P 500

Relative Performanc e

1990 1991 1992

5.70% 38.50% 10.10%

-3.10% 30.50% 7.60%

8.80% 8.00% 2.50%

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Dividend Growth Stocks Dividend Growth Investor

DISCLAIMER

I am not a licensed investment adviser, and I am not providing you with individual investment advice on this site. Please consult with an investment professional before you invest your money. This site is for entertainment and educational use only - any opinion expressed on the site here and elsewhere on the internet is not a form of investment advice provided to you. I use information in my articles I believe to be correct at the time of writing them on my site, which information may or may not be accurate. We are not liable for any losses suffered by any party because of information published on this blog. Past performance is not a guarantee of future performance. Unless your investments are FDIC insured, they may decline in value. By reading this site, you agree that you are solely responsible for making investment 3/8

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Dividend Aristocrats List - Dividend Growth Investor

1993 1994 1995 1996 1997 1998 1999 2000

4.30% 0.90% 34.60% 20.90% 35.50% 16.80% -5.40% 10.10%

2001

10.80%

2002

-9.90%

2003 2004 2005 2006 2007

25.40% 15.50% 3.70% 17.30% -2.10%

2008

-21.90%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

26.60% 19.35% 8.33% 16.94% 32.27% 15.76% 0.93% 11.83% 21.73% -2.73% 27.97%

10.10% 1.40% 37.60% 23.00% 33.40% 28.60% 21.00% -9.10% -11.90 % -22.10 % 28.70% 10.90% 4.90% 15.80% 5.50% -37.00 % 26.50% 15.06% 2.11% 16.00% 32.39% 13.69% 1.38% 11.96% 21.83% -4.38% 31.49%

-5.80% -0.50% -3.00% -2.10% 2.10% -11.80% -26.40% 19.20%

decisions in connection with your funds.

22.70%

S U B S C R I B E TO M Y B L O G

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12.20% -3.30% 4.60% -1.20% 1.50% -7.60%

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15.10% 0.10% 4.29% 6.22% 0.94% -0.12% 2.07% -0.45% -0.13% -0.10% 1.65% -3.52%

You can see the performance of the Dividend Aristocrats Index versus S&P 500 since 1989. The S&P 500 dominated during the 1990's. However, the Dividend Aristocrats index did very well during the next decade. During the past decade, the Dividend Aristocrats Index has done better as well.

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I first stumbled upon the Dividend Aristocrats index in late 2007, and instantly understood why dividend growth investing is such a powerful wealth generating tool. If someone had invested in the Dividend Aristocrats index after reading my review of the list at the beginning of 2008, they would have tripled their money. An investment in the dividend aristocrats a decade ago, would have resulted in a total return of 350%. In other words, investing $100 in the Dividend Aristocrats list in January 2010 would have turned into $394.45. The same amount investing in S&P 500 would have turned into $364.15

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As I gained more experience however, I have gravitated more towards the Dividend Champions list, which was created by Dave Fish. The Dividend Champions list is more complete, as it doesn’t exclude companies due to low liquidity, or due to market capitalization below a certain threshold. In addition, I find that historically, the list of Dividend Champions has followed a more consistent approach than the list of Dividend Aristocrats. Sadly, Dave passed away last year. Luckily, another person has agreed to update it for the time being. You can view the 2020 Dividend Champions List here. When I review the list of historical changes in the Dividend Aristocrats index, I see some inconsistencies in the way portfolio components are added or removed. For example, the Dividend Aristocrats index removed Altria in 2007, after it spunoff Kraft Foods and as a result its dividend decreased. It could be argued that the dividend income for the investor was not decreased, because they kept getting a dividend from Altria as well as dividends from Kraft Foods.

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The S&P committee seems to have rectified this issue, and have kept both Abbott and Abbvie after legacy Abbott Laboratories split in two companies in early 2013. Ironically, Dave Fish had Altria listed as a Dividend Champion. However, he didn’t have Abbott nor Abbvie listed as a dividend champion ( they are listed as Dividend Aristocrats however). Last year, I found out that Cardinal Health (CAH) has only been able to grow dividends for 23 years in a row. This is why it is not on the dividend champions list. The dividend aristocrats list however has a 31 year streak of annual dividend increases listed. This is why you need to perform your own checks as an investor. In addition, I wanted to let you know that I would not purchase all companies from either lists blindly. I run my entry criteria screen to come up with a list of companies for further research. Before investing in any individual stock, I research it enough to gain some understanding of the business and its trends in fundamentals. Relevant Articles: - Dividend Champions, Contenders & Challengers: The most complete list of US dividend growth stocks available - Dividend Aristocrats List for 2017 - Dividend Aristocrats for Dividend Growth and Total Returns - Where are the original Dividend Aristocrats now? - Historical changes of the S&P Dividend Aristocrats - Why do I like the Dividend Aristocrats? - Dividend Aristocrats List for 2016

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