Dividend Aristocrats List For 2024

Dividend aristocrats are firms which have elevated their dividends consecutively for the final 25 years or extra.

For those who’re inquisitive about dividend investing, you have probably heard concerning the dividend aristocrats. These are a particular breed of dividend paying shares that haven’t solely paid their dividends constantly over time, however have additionally elevated their payouts as properly.

For those who’re inquisitive about dividend growth investing, these are firms that should be in your radar.

However who’re the businesses? How are they chose?

This is all the pieces it’s good to know concerning the dividend aristocrats.

The Dividend Aristocrats are a bunch of S&P 500 firms which have elevated their dividends consecutively for the final 25 years. The Dividend Aristocrats index was created and is maintained by the S&P Dow Jones Indices, which makes use of a specific methodology for figuring out which firms match into the index.

The index is rebalanced every January. New firms could enter the index and others, that now not qualify, are dropped.

To qualify, firms should additionally meet the next 4 standards, which is specified within the above-linked methodology information:

• Be a member of the S&P 500.
• Have elevated whole dividend per share quantity yearly for a minimum of 25 consecutive years.
• Have a minimal float-adjusted market capitalization (FMC) of a minimum of US$ 3 billion as of the rebalancing reference date.
• Have a median each day worth traded (ADVT) of a minimum of US$ 5 million for the three months previous to the rebalancing reference date.

Dividends should even be money funds slightly than issued in inventory or as particular dividends. At present, the minimal variety of shares within the index is 40. In some circumstances, there might not be sufficient shares that meet the annual standards to be included within the index. When that occurs, shares which have paid dividends for 20 consecutive years are thought of.

What Corporations Are Included?

As of January 2024, there are 67 firms included within the index. From Wikipedia, they’re:

How To Make investments In The Dividend Aristocrats?

One of many easiest methods to put money into the Dividend Aristocrats is thru a fund that mimics index, which has the ticker image SPDAUDP.

The index is made up of 11 sectors:

Listed here are a number of funds and ETFs that observe the Dividend Aristocrat index:

• ProShares S&P 500 Dividend Aristocrats ETF (NOBL)
• iShares Chosen Dividend Index (DVY)
• SPDR S&P Dividend (SDY)

An alternate strategy is to easily personal all firms within the index straight. Which will appear difficult, however utilizing a service like M1 Finance (which provides commission-free investing) makes it very easy. A profit to that is you could simply equal-weight the index, versus capitalization weight which most funds use.

You may choose this selection as a result of equal-weighted indexes have a tendency to outperform. 

Remaining Ideas

Elementary and technical evaluation each assist in deciding which shares are a good selection to put money into. For those who’ve narrowed your alternative right down to solely these within the Dividend Aristocrats index, you will have much less work to do when researching potential candidates.

Good firms are usually those who have constructive revenue, rising revenues and earnings, and good administration. However your analysis shouldn’t cease there. If researching a inventory appears intimidating, going with the SPDAUDP index will guarantee diversification throughout the entire Dividend Aristocrats shares.