There are currently 53 Dividend Aristocrats. A stock must have increased its dividend payments for 25 or more consecutive years to be a Dividend Aristocrat. A stock must also be in the S&P 500 and meet certain size and liquidity requirements to be a Dividend Aristocrat.
The Dividend Aristocrats Index is filled with high quality businesses. Each business also has a long history of rewarding shareholders through rising dividends. Many regularly repurchase shares as well.
The Dividend Aristocrats Index has outperformed the S&P 500 Index by 2.47 percentage points a year over the last decade according to S&P. The image below shows this outperformance:
Complete List of All 53 Dividend Aristocrats
Download the full list of May 2015 Dividend Aristocrats by clicking the link below.
The spreadsheet above lists several important metrics for each Dividend Aristocrat. You can see and sort by the following metrics:0
- Stock price
- Dividend yield
- 10 year growth rate
- Price-to-earnings ratio
- 10 year standard deviation
If you are interested in historical Dividend Aristocrat information, take a look at the following Sure Dividend articles/information sources:
- April 2015 Dividend Aristocrats List
- March 2015 Dividend Aristocrats List
- May 2014 Dividend Aristocrats List
- April 2014 Dividend Aristocrats List (sort by yield)
- April 2014 Dividend Aristocrats List (sort by P/E ratio)
- List of Dividend Aristocrats from 1989 to 2014
Explanation of Financial Metrics
The financial metrics used in the Dividend Aristocrats spreadsheet above all play a key role in both The 8 Rules of Dividend Investing and the Sure Dividend Premium Newsletter. A brief explanation of each metric is below.
Dividend yield is calculated as 4 x most recent dividend / current price. This is the standard calculation for dividend yield. Dividend yield shows the income return you can expect on your invested capital.
Standard deviation is a commonly used proxy of risk for stocks. Here, standard deviation refers to movement in a stock’s price. The higher the standard deviation, the more the stock price moves. The lower the stock price standard deviation, the more stable the stock’s price. The spreadsheet above uses 10 years of price data (when available) to calculate price standard deviation. Low standard deviation stocks have historically outperformed the market by 0.83 percentage points a year over the last decade according to S&P.
Growth rate is calculated as the lower of 10 year revenue-per-share growth or 10 year dividend-per-share growth for non-financial stocks. Book-value-per-share growth rate is used in place of revenue-per-share growth for some financial stocks. In cases where spin-offs or divestitures obscure 10 year growth rate calculations, either fewer years are used to calculate the growth rate, or an estimate of growth is used.
The price-to-earnings ratio is the price of a stock divided by its trailing-twelve-month earnings-per-share. Adjusted earnings are used in place of GAAP earnings when applicable. The price-to-earnings ratio is a good proxy for value. The lower the price-to-earnings ratio is, the better. The less you pay for the earnings of a business, the more value you are getting for your investment.
How To Use the Dividend Aristocrats Excel Spreadsheet
The Dividend Aristocrat spreadsheet can be sorted on a variety of different metrics. Sorting over various metrics will help investors generate specific ideas.
Risk averse investors can quickly sort by standard deviation and find the lowest standard deviation Dividend Aristocrats. Stocks with low standard deviation and a long history of dividend payments are among the safest stocks available.
Investors in search of current income can sort by dividend yield. Finding high yield stocks with a long history of raising dividends provides current income and growth potential for the future.
Dividend growth investors with less need for current income can focus on the fastest growing Dividend Aristocrats. Sort by growth rate to find the Dividend Aristocrats with the best historical growth rates.
Value oriented investors can sort the constituents of the Dividend Aristocrats index by the price-to-earnings ratio. Low price-to-earnings ratio stocks are a good place to start looking for bargains.
Reasons to Invest In May 2015 Dividend Aristocrats
The Dividend Aristocrats Index is filled with high quality businesses. These are businesses that have been able to sustain profitable growth and reward shareholders with rising dividends. Investing in high quality businesses trading at fair or better prices is likely to result in superior long-term performance. With that said, many of the stocks in the Dividend Aristocrats index are currently overvalued. This does not mean all of the stocks in the Dividend Aristocrats index are overvalued, however.
Highest Ranked Dividend Aristocrats
The Sure Dividend database includes over 160 stocks with 25 or more years of dividend payments without a reduction. Every Dividend Aristocrat is included in the Sure Dividend database.
There are currently 9 Dividend Aristocrats that rank in the Top 20 Sure Dividend stocks using The 8 Rules of Dividend Investing. These 9 are listed below, in no particular order:
- Chubb Corp (NYSE:CB)
- Abbott Laboratories (NYSE:ABT)
- AFLAC incorporated (NYSE:AFL)
- PepsiCo, Inc. (NYSE:PEP)
- The Coca-Cola Co (NYSE:KO)
- Wal-Mart Stores, Inc. (NYSE:WMT)
- Medtronic PLC (NYSE:MDT)
- Exxon Mobil Corporation (NYSE:XOM)
- Kimberly Clark Corp (NYSE:KMB)
Articles for Further Reading
Investors looking for an even stricter standard of safety should consider the Dividend Kings index. A stock must have 50 or more consecutive years of dividend increases to qualify as a Dividend King. This article includes a free spreadsheet of all 16 Dividend Kings.
An alternative to looking for rising dividend income through long dividend histories is to look at the dividend stocks of great investors. You can download a free spreadsheet of Warren Buffett’s highest yielding stocks here.