2023 Dividend Aristocrats List | Updated Daily

Article up to date on July third, 2023 by Bob CiuraSpreadsheet information up to date day by day

The Dividend Aristocrats are a choose group of 67 S&P 500 shares with 25+ years of consecutive dividend will increase.

They’re the ‘better of the very best’ dividend progress shares. The Dividend Aristocrats have an extended historical past of outperforming the market.

The necessities to be a Dividend Aristocrat are:

Be within the S&P 500
Have 25+ consecutive years of dividend will increase
Meet sure minimal measurement & liquidity necessities

There are presently 67 Dividend Aristocrats. You’ll be able to obtain an Excel spreadsheet of all 67 (with metrics that matter reminiscent of dividend yields and price-to-earnings ratios) by clicking the hyperlink beneath:

Disclaimer: Certain Dividend will not be affiliated with S&P World in any method. S&P World owns and maintains The Dividend Aristocrats Index. The data on this article and downloadable spreadsheet is predicated on Certain Dividend’s personal assessment, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person buyers higher perceive this ETF and the index upon which it’s based mostly. Not one of the data on this article or spreadsheet is official information from S&P World. Seek the advice of S&P World for official data.

Be aware 1: On January twenty fourth, 2023 CH Robinson Worldwide (CHRW), Nordson (NDSN), and J.M. Smucker (SJM) have been formally added to the Dividend Aristocrats with no deletions, so there are actually 67 Dividend Aristocrats.

Be aware 2: On February seventh, V.F. Corp. (VFC) introduced a dividend reduce. VFC is formally out of the Dividend Aristocrats Index, decreasing the index depend to 67 as of March 1st, 2023.

Supply: S&P Information Releases.

You’ll be able to see detailed evaluation on all 67 additional beneath on this article, in our Dividend Aristocrats In Focus Collection. Evaluation contains valuation, progress, and aggressive benefit(s).

Desk of Contents

Find out how to Use The Dividend Aristocrats Listing To Discover Dividend Funding Concepts

The downloadable Dividend Aristocrats Excel Spreadsheet Listing above comprises the next for every inventory within the index:

Value-to-earnings ratio
Dividend yield
Market capitalization

All Dividend Aristocrats are high-quality companies based mostly on their lengthy dividend histories. An organization can’t pay rising dividends for 25+ years with out having a robust and sturdy aggressive benefit.

However not all Dividend Aristocrats make equally good investments right now. That’s the place the spreadsheet on this article comes into play. You should use the Dividend Aristocrats spreadsheet to rapidly discover high quality dividend funding concepts.

The listing of all 67 Dividend Aristocrats is effective as a result of it offers you a concise listing of all S&P 500 shares with 25+ consecutive years of dividend will increase (that additionally meet sure minimal measurement and liquidity necessities).

These are companies which have each the need and talent to pay shareholders rising dividends year-after-year. It is a uncommon mixture.

Collectively, these two standards are highly effective – however they aren’t sufficient. Worth have to be thought of as properly.

The spreadsheet above permits you to type by trailing price-to-earnings ratio so you possibly can rapidly discover undervalued, high-quality dividend shares.

Right here’s easy methods to use the Dividend Aristocrats listing to rapidly discover high-quality dividend progress shares probably buying and selling at a reduction:

Obtain the listing
Type by ‘Trailing PE Ratio,’ smallest to largest
Analysis the highest shares additional

Right here’s how to do that rapidly within the spreadsheet:

Step 1: Obtain the listing, and open it.

Step 2: Apply a filter operate to every column within the spreadsheet.

Step 3: Click on on the small grey down arrow subsequent to ‘Trailing P/E Ratio’, after which type smallest to largest.

Step 4: Evaluate the best ranked Dividend Aristocrats earlier than investing. You’ll be able to see detailed evaluation on each Dividend Aristocrat discovered beneath on this article.

That’s it; you possibly can observe the identical process to type by some other metric within the spreadsheet.

This text examines the traits and efficiency of the Dividend Aristocrats intimately. Click on right here for a desk of contents for straightforward navigation of this text.

Efficiency Of The Dividend Aristocrats

In June 2023, the Dividend Aristocrats, as measured by the Dividend Aristocrats ETF (NOBL), registered a complete return of 8.08%. It outperformed the SPDR S&P 500 ETF (SPY) for the month.

NOBL generated whole returns of 8.08% in June 2023
SPY generated whole returns of 6.48% in June 2023

Quick-term efficiency is usually noise. Efficiency needs to be measured over a minimal of three years, and ideally longer intervals of time.

The Dividend Aristocrats Index has barely underperformed the broader market index over the past decade, with a 11.99% whole annual return for the Dividend Aristocrats and a 12.86% whole annual return for the S&P 500 Index. However the Dividend Aristocrats have exhibited decrease danger than the benchmark, as measured by normal deviation.

Supply: S&P Truth Sheet

Greater whole returns with decrease volatility is the ‘holy grail’ of investing. It’s value exploring the traits of the Dividend Aristocrats intimately to find out why they’ve carried out so properly.

Be aware {that a} good portion of the outperformance relative to the S&P 500 comes throughout recessions (2000 – 2002, 2008). Dividend Aristocrats have traditionally seen smaller drawdowns throughout recessions versus the S&P 500. This makes holding via recessions that a lot simpler. Case-in-point: In 2008 the Dividend Aristocrats Index declined 22%. That very same yr, the S&P 500 declined 38%.

Nice companies with robust aggressive benefits have a tendency to have the ability to generate stronger money flows throughout recessions. This enables them to achieve market share whereas weaker companies battle to remain alive.

The Dividend Aristocrats Index has overwhelmed the market over the past 28 years…

We consider dividend paying shares outperform non-dividend paying shares for 3 causes:

An organization that pays dividends is more likely to be producing earnings or money flows in order that it may pay dividends to shareholders. This excludes ‘pre-earnings’ start-ups and failing companies. Briefly, it excludes the riskiest shares.
A enterprise that pays constant dividends have to be extra selective with the expansion tasks it takes on as a result of a portion of its money flows are being paid out as dividends. Scrutinizing over capital allocation selections doubtless provides to shareholder worth.
Shares that pay dividends are prepared to reward shareholders with money funds. It is a signal that administration is shareholder pleasant.

In our view, Dividend Aristocrats have traditionally outperformed the market and different dividend paying shares as a result of they’re, on common, higher-quality companies.

A high-quality enterprise ought to outperform a mediocre enterprise over an extended time period, all different issues being equal.

For a enterprise to extend its dividends for 25+ consecutive years, it should have or no less than had within the very latest previous a robust aggressive benefit.

Sector Overview

A sector breakdown of the Dividend Aristocrats Index is proven beneath:

The highest 2 sectors by weight within the Dividend Aristocrats are Industrials and Client Staples. The Dividend Aristocrats Index is tilted towards Client Staples and Industrials relative to the S&P 500.

These 2 sectors make up ~40% of the Dividend Aristocrats Index, however lower than 20% of the S&P 500.

The Dividend Aristocrats Index can be considerably underweight the Info Expertise sector, with a ~4% allocation in contrast with over 20% allocation throughout the S&P 500.

The Dividend Aristocrat Index is stuffed with steady ‘outdated financial system’ blue chip client merchandise companies and producers; the 3M’s (MMM), Coca-Cola’s (KO), and Johnson & Johnson’s (JNJ) of the investing world.

These ‘boring’ companies aren’t more likely to generate 20%+ earnings-per-share progress, however additionally they are impossible to see massive earnings drawdowns as properly.

The Prime 7 Dividend Aristocrats Now

Evaluation on our high 7 Dividend Aristocrats is beneath. These rankings are based mostly on 5 yr ahead anticipated whole return estimates from the Certain Evaluation Analysis Database.

Dividend Aristocrat #7: Computerized Knowledge Processing (ADP)

5-year Anticipated Annual Returns: 11.5%

ADP has grown into the main payroll and human useful resource outsourcing firm. It has over 1 million purchasers in additional than 140 nations worldwide. ADP supplies providers together with payroll, advantages administration, and human assets administration.

Supply: Investor Presentation

ADP’s excessive dividend progress price make it a great inventory to beat inflation.

Computerized Knowledge Processing has compounded its adjusted earnings-per-share at a price of practically 9% per yr over the past decade, which we consider it may come near matching transferring ahead on condition that its latest earnings progress had been accelerating meaningfully previous to COVID-19.

Past 2023, we consider the corporate is able to delivering 8% annualized progress in earnings-per-share over full financial cycles.

Click on right here to obtain our most up-to-date Certain Evaluation report on ADP (preview of web page 1 of three proven beneath):

Dividend Aristocrat #6: Lowe’s Corporations (LOW)

5-year Anticipated Annual Returns: 11.7%

Lowe’s Corporations is the second-largest house enchancment retailer within the US (after House Depot). The corporate was based in 1946 and is headquartered in Mooresville, NC. Lowe’s operates or providers about 2,200 house enchancment and {hardware} shops within the U.S. and Canada.

Lowe’s reported first quarter 2023 outcomes on Might twenty third, 2023. Complete gross sales for the primary quarter got here in at $22.3 billion in comparison with $23.7 billion in the identical quarter a yr in the past. Comparable gross sales decreased 4.3%. Adjusted internet earnings, which excludes the acquire related to the 2022 sale of the Canadian retail enterprise, rose 5% year-over-year to $3.67 per share.

Click on right here to obtain our most up-to-date Certain Evaluation report on Lowe’s (preview of web page 1 of three proven beneath):

Dividend Aristocrat #5: Stanley Black & Decker (SWK)

5-year Anticipated Annual Returns: 12.0%

Stanley Black & Decker is a world chief in energy instruments, hand instruments, and associated objects. The corporate holds the highest world place in instruments and storage gross sales. Stanley Black & Decker is second on the earth within the areas of business digital safety and engineered fastening.

Stanley Works and Black & Decker merged in 2010 to type the present firm, thought the corporate can hint its historical past again to 1843. Black & Decker was based in Baltimore, MD in 1910 and manufactured the world’s first moveable energy instrument.

On Might 4th, 2023 Stanley Black & Decker introduced first quarter outcomes for the interval ending March thirty first, 2023. For the quarter, income declined 11.6% to $3.9 billion, which was $78 million beneath estimates. Adjusted earnings-per-share of -$0.10 in contrast very unfavorably to $2.10 within the prior yr, however was $0.33 above expectations.

Click on right here to obtain our most up-to-date Certain Evaluation report on SWK (preview of web page 1 of three proven beneath):

Dividend Aristocrat #4: Goal Company (TGT)

5-year Anticipated Annual Returns: 13.1%

Goal is a reduction retail operations solely within the U.S. market. Its enterprise consists of about 2,000 massive field shops providing common merchandise and meals and serving as distribution factors for its burgeoning e-commerce enterprise. Goal ought to produce about $110 billion in whole income this yr.

Goal reported fourth-quarter and full-year earnings on February twenty eighth, 2023, and outcomes have been higher than anticipated on each the highest and backside strains and by vast margins.

Supply: Investor Infographic

Goal posted first quarter earnings on Might seventeenth, 2023, and outcomes have been higher than anticipated on each the highest and backside strains. Adjusted earnings-per-share got here to $2.05, which was 29 cents higher than anticipated. Income was up fractionally year-over-year to $25.3 billion, beating estimates by $40 million.

Visitors was up 0.9% year-over-year, down from 3.9% in the identical interval a yr in the past. Comparable gross sales have been up 0.7%, offset by a decline in comparable digital gross sales, so the corporate missed estimates of progress of 1.1%. Adjusted EBITDA got here to $2.02 billion, which was significantly better than the $1.81 billion anticipated.

Click on right here to obtain our most up-to-date Certain Evaluation report on Goal Company (preview of web page 1 of three proven beneath):

Dividend Aristocrat #3: Walgreens Boots Alliance (WBA)

5-year Anticipated Annual Returns: 16.8%

Walgreens Boots Alliance is the most important retail pharmacy in the USA and Europe. The corporate has a presence in additional than 9 nations via its flagship Walgreens enterprise and different enterprise ventures.

Supply: Investor Presentation

On June twenty seventh, 2023, Walgreens reported outcomes for the third quarter of fiscal 2023. Gross sales grew 9% however earnings-per-share rose solely 3% over final yr’s quarter, from $0.97 to $1.00, principally as a result of excessive COVID-19 vaccinations and checks in final yr’s interval. Earnings-per-share missed the analysts’ consensus by $0.07.

It was the primary earnings miss after 11 quarters in a row. Because the pandemic has subsided, Walgreens is going through robust comparisons. It lowered its steering for earnings-per-share from $4.45-$4.65 to $4.00-$4.05.

Click on right here to obtain our most up-to-date Certain Evaluation report on Walgreens Boots Alliance (preview of web page 1 of three proven beneath):

Dividend Aristocrat #2: 3M Firm (MMM)

5-year Anticipated Annual Returns: 17.3%

3M sells greater than 60,000 merchandise which might be used daily in properties, hospitals, workplace buildings and faculties across the world. It has about 95,000 workers and serves prospects in additional than 200 nations.

3M is now composed of 4 separate divisions: Security & Industrial, Healthcare, Transportation & Electronics, and Client. The corporate additionally introduced that it could be spinning off its Well being Care section right into a standalone entity, which had $8.6 billion of income in 2021. The transaction is predicted to shut by the top of 2023.

Supply: Investor Presentation

3M’s innovation is likely one of the firm’s biggest aggressive benefits. The corporate targets R&D spending equal to six% of gross sales (~$2 billion yearly) with a view to create new merchandise to satisfy client demand.

This spending has confirmed to be very helpful to the corporate as 30% of gross sales over the last fiscal yr have been from merchandise that didn’t exist 5 years in the past. 3M’s dedication to growing progressive merchandise has led to a portfolio of greater than 100,000 patents.

Click on right here to obtain our most up-to-date Certain Evaluation report on 3M (preview of web page 1 of three proven beneath):

Dividend Aristocrat #1: Albemarle Company (ALB)

5-year Anticipated Annual Returns: 19.5%

Albemarle is the most important producer of lithium and second largest producer of bromine on the earth. The 2 merchandise account for practically two-thirds of annual gross sales. Albemarle produces lithium from its salt brine deposits within the U.S. and Chile. The corporate has two joint ventures in Australia that additionally produce lithium.

Associated: 2023 Lithium Shares Listing

Supply: Investor Presentation

On Might third, 2023, Albemarle introduced first quarter outcomes. For the quarter, income grew 128.3% to $2.58 billion, however this was $160 million lower than anticipated. Adjusted earnings-per-share of $10.32 in contrast very favorably to $2.38 within the prior yr and was $3.26 above estimates.

Click on right here to obtain our most up-to-date Certain Evaluation report on Albemarle (preview of web page 1 of three proven beneath):

The Dividend Aristocrats In Focus Evaluation Collection

You’ll be able to see evaluation on each single Dividend Aristocrat beneath. Every is sorted by GICS sectors and listed in alphabetical order by title. The most recent Certain Evaluation Analysis Database report for every safety is included as properly.

Client Staples

Industrials

Well being Care

Client Discretionary

Financials

Supplies

Power

Info Expertise

Actual Property

Utilities

Searching for no-fee DRIP Dividend Aristocrats? Click on right here to learn an article analyzing all 15 no-fee DRIP Dividend Aristocrats intimately.

Historic Dividend Aristocrats Listing(1989 – 2023)

The picture beneath exhibits the historical past of the Dividend Aristocrats Index from 1989 via 2023:

Be aware: CL, GPC, and NUE have been all eliminated and re-added to the Dividend Aristocrats Index via the historic interval analyzed above. We’re not sure as to why. Corporations created by way of a spin-off (like AbbVie) will be Dividend Aristocrats with lower than 25 years of rising dividends if the mum or dad firm was a Dividend Aristocrat.

This data was compiled from the next sources:

Incessantly Requested Questions

This part will handle a few of commonest questions buyers have relating to the Dividend Aristocrats.

1. What’s the highest-paying Dividend Aristocrat?

Reply: WBA presently yields 6.7%.

2. What’s the distinction between the Dividend Aristocrats and the Dividend Kings?

Reply: The Dividend Aristocrats have to be constituents of the S&P 500 Index, have raised their dividends for no less than 25 consecutive years, and fulfill a lot of liquidity necessities. The Dividend Kings solely must have raised their dividends for no less than 50 consecutive years.

3. Is there an ETF that tracks the Dividend Aristocrats?

Reply: Sure, the Dividend Aristocrats ETF (NOBL) is an exchange-traded fund that particularly holds the Dividend Aristocrats. For a extra detailed evaluation of dividend ETFs, click on right here.

4. What’s the distinction between the Dividend Aristocrats and the Dividend Champions?

Reply: The Dividend Aristocrats and Dividend Champions share one requirement, which is that an organization should have raised its dividend for no less than 25 consecutive years.

However just like the Dividend Kings, the Dividend Champions don’t should be within the S&P 500 Index, nor fulfill the assorted liquidity necessities.

5. Which Dividend Aristocrat has the longest lively streak of annual dividend will increase?

Presently, there are 4 Dividend Aristocrats tied at 66 years: Procter & Gamble, Real Components, 3M Firm, and Dover Company.

6. What’s the common dividend yield of the Dividend Aristocrats?

Proper now, the common dividend yield of the 67 Dividend Aristocrats is 2.6% (as of 6/6/23).

7. Are the Dividend Aristocrats protected investments?

Whereas there are by no means any ensures in relation to the inventory market, we consider the Dividend Aristocrats are among the many most secure dividend shares in relation to the sustainability of their dividend payouts.

The Dividend Aristocrats have sturdy aggressive benefits that enable them to lift their dividends annually, even throughout a recession.

Different Dividend Lists & Closing Ideas

The Dividend Aristocrats listing will not be the one technique to rapidly display for shares that usually pay rising dividends.

There’s nothing magical in regards to the Dividend Aristocrats. They’re ‘simply’ a group of high-quality shareholder pleasant shares which have robust aggressive benefits.

Buying a majority of these shares at truthful or higher costs and holding for the long-run will doubtless lead to favorable long-term efficiency.

You could have a selection in what kind of enterprise you purchase into. You should purchase into the mediocre, or the superb.

Usually, wonderful companies should not costlier (based mostly on their price-to-earnings ratio) than mediocre companies.

“After we personal parts of excellent companies with excellent managements, our favourite holding interval is perpetually.”

– Warren Buffett