2023 Dividend Aristocrats Record | Up to date Each day

Article up to date on January third, 2023 by Bob CiuraSpreadsheet knowledge up to date each day

The Dividend Aristocrats are a choose group of 65 S&P 500 shares with 25+ years of consecutive dividend will increase.

They’re the ‘better of the most effective’ dividend development 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 at the moment 65 Dividend Aristocrats. You may obtain an Excel spreadsheet of all 65 (with metrics that matter corresponding to dividend yields and price-to-earnings ratios) by clicking the hyperlink under:

Disclaimer: Certain Dividend is just not affiliated with S&P International in any means. S&P International owns and maintains The Dividend Aristocrats Index. The knowledge 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 info on this article or spreadsheet is official knowledge from S&P International. Seek the advice of S&P International for official info.

Be aware: On January twenty fourth, 2022 Brown & Brown (BRO) and Church & Dwight (CHD) had been added to the Dividend Aristocrats Index, whereas AT&T (T) was eliminated. Additionally, Folks’s United (PBCT) was acquired, leaving 65 Dividend Aristocrats.

Supply: S&P Information Releases.

You may see detailed evaluation on all 65 additional under on this article, in our Dividend Aristocrats In Focus Collection. Evaluation contains valuation, development, and aggressive benefit(s).

Desk of Contents

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

The downloadable Dividend Aristocrats Excel Spreadsheet Record 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 not pay rising dividends for 25+ years with out having a robust and sturdy aggressive benefit.

However not all Dividend Aristocrats make equally good investments at the moment. 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 checklist of all 65 Dividend Aristocrats is effective as a result of it offers you a concise checklist 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. This can be a uncommon mixture.

Collectively, these two standards are highly effective – however they don’t seem to be sufficient. Worth should be thought-about as nicely.

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

Right here’s the best way to use the Dividend Aristocrats checklist to rapidly discover high-quality dividend development shares probably buying and selling at a reduction:

Obtain the checklist
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 checklist, 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 kind smallest to largest.

Step 4: Evaluation the very best ranked Dividend Aristocrats earlier than investing. You may see detailed evaluation on each Dividend Aristocrat discovered under on this article.

That’s it; you may observe the identical process to kind by another 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 simple navigation of this text.

Efficiency Of The Dividend Aristocrats

In December 2022, the Dividend Aristocrats, as measured by the Dividend Aristocrats ETF (NOBL), registered a 4.1% detrimental whole return. It outperformed the SPDR S&P 500 ETF (SPY) for the month.

NOBL generated detrimental whole returns of 4.1% in December 2022
SPY generated detrimental whole returns of 5.8% in December 2022

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

The Dividend Aristocrats Index has outperformed the broader market index during the last decade, with a 12.9% whole annual return for the Dividend Aristocrats versus 12.6% for the S&P 500 Index.

The Dividend Aristocrats have exhibited decrease danger than the benchmark, as measured by commonplace deviation.

Supply: S&P Reality Sheet

Larger 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 nicely.

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 by recessions that a lot simpler. Case-in-point: In 2008 the Dividend Aristocrats Index declined 22%. That very same 12 months, the S&P 500 declined 38%.

Nice companies with sturdy 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 struggle to remain alive.

The Dividend Aristocrats Index has overwhelmed the market during the last 28 years…

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

An organization that pays dividends is prone to be producing earnings or money flows in order that it will possibly 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 should be extra selective with the expansion initiatives it takes on as a result of a portion of its money flows are being paid out as dividends. Scrutinizing over capital allocation choices possible provides to shareholder worth.
Shares that pay dividends are prepared to reward shareholders with money funds. This can be 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 frame, all different issues being equal.

For a enterprise to extend its dividends for 25+ consecutive years, it should have or not less than had within the very current previous a robust aggressive benefit.

Sector Overview

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

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 3% allocation in contrast with over 20% allocation throughout the S&P 500.

The Dividend Aristocrat Index is full of secure ‘previous 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 prone to generate 20%+ earnings-per-share development, however in addition they are most unlikely to see giant earnings drawdowns as nicely.

The Prime 7 Dividend Aristocrats Now

Evaluation on our prime 7 Dividend Aristocrats is under. These rankings are based mostly on 5 12 months ahead anticipated whole return estimates from the Certain Evaluation Analysis Database.

Dividend Aristocrat #7: Walgreens Boots Alliance (WBA)

5-year Anticipated Annual Returns: 12.3%

Walgreens Boots Alliance is the most important retail pharmacy in america and Europe. The corporate has a presence in additional than 9 international locations by its flagship Walgreens enterprise and different enterprise ventures.

Walgreens’ earnings-per-share grew at a CAGR of seven.6% over the previous decade, powered by rising revenues and a declining share rely.  This was pushed by a mixture of things, together with stable top-line development ($72 billion to $133 billion), a gradual web revenue margin, and a discount within the variety of excellent shares.

Supply: Investor Presentation

On October thirteenth, 2022, Walgreens reported This autumn outcomes for the interval ending August thirty first, 2022. Gross sales from persevering with operations dipped -5% and adjusted earnings-per-share slumped -32% over the prior 12 months’s quarter, from $1.17 to $0.80, principally because of excessive COVID-19 vaccinations within the prior 12 months’s interval. Earnings-per-share exceeded analysts’ consensus by $0.03. The corporate has overwhelmed analysts’ estimates for 9 consecutive quarters.

Nonetheless, because the pandemic has subsided, Walgreens is going through powerful comparisons. It supplied steering for earnings-per-share of $4.45-$4.65 in fiscal 2023, implying a -10% lower on the midpoint.

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 under):

Dividend Aristocrat #6: Essex Realty (ESS)

5-year Anticipated Annual Returns: 12.9%

Essex Property Belief was based in 1971. The belief invests in west coast multifamily residential proprieties the place it engages in growth, redevelopment, administration and acquisition of house communities and some different choose properties.

Essex has possession pursuits in a number of hundred house communities consisting of over 60,000 house houses.

Supply: Investor Presentation

On October twenty sixth, 2022 Essex reported third quarter outcomes. Core FFO-per-diluted share elevated 18.3% to $3.69. Complete FFO per-diluted share elevated 1.3% to $3.13 from $3.09 within the year-ago interval. Internet earnings decreased 13.0% to $0.87.

The lower in web earnings was primarily because of an unrealized loss on marketable securities and unrealized losses incurred by ESS’ non-core co-investments. Similar-property gross income elevated by 12.7% and same-property web working earnings elevated by 16.7% year-over-year.

In the meantime, Essex up to date its 2022 core FFO per share steering to $14.42 to $14.52, and web earnings per diluted share steering to $4.80 to $4.90. ESS additionally reaffirmed its expectation of full-year same-property income development of 10.0% to 10.6% and same-property NOI development of 13.0% to 14.0%.

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

Dividend Aristocrat #5: Pentair (PNR)

5-year Anticipated Annual Returns: 12.9%

Pentair operates as a pure–play water options firm with 3 segments: Aquatic Programs, Filtration Options, and Move Applied sciences. Pentair was based in 1966. Pentair has elevated its dividend for greater than 4 many years in a row, when adjusted for spin–offs.

Supply: Investor Presentation

Pentair reported its third quarter earnings outcomes on October 25. The corporate was capable of generate revenues of $1.06 billion throughout the quarter, which was 9% greater than the corporate’s revenues throughout the earlier 12 months’s quarter, a outcome that beat estimates barely.

Core gross sales, which excludes the impression of forex price actions, acquisitions, and dispossessions, had been up 4% 12 months over 12 months, which was weaker than the core income development price throughout the earlier quarter, throughout which Pentair reported a double-digit core gross sales enhance.

Pentair recorded earnings-per-share of $0.99 for the third quarter, which was up by a compelling 11% 12 months over 12 months. Pentair’s earnings-per-share beat the analyst consensus by $0.06. Pentair up to date its steering for the present 12 months throughout the earnings report. For fiscal 2022, Pentair is now forecasting earnings-per-share of round $3.65, which signifies stable earnings-per-share development of round 10% in comparison with the $3.32 the corporate earned in 2021.

Complete returns are anticipated to achieve 12.9% over the subsequent 5 years.

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

Dividend Aristocrat #4: Lowe’s Corporations (LOW)

5-year Anticipated Annual Returns: 14.1%

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 third quarter 2022 outcomes on November sixteenth. Complete gross sales for the third quarter got here in at $23.5 billion in comparison with $22.9 billion in the identical quarter a 12 months in the past. Comparable gross sales elevated 2.2%, whereas the U.S. house enchancment comparable gross sales elevated 3.0%. Of notice, professional buyer gross sales rose 19% year-over-year.

The corporate took a $2.1 billion pre-tax non-cash asset impairment cost associated to its Canadian retail enterprise. The sale of the Canadian retail enterprise is anticipated to shut in early 2023. Adjusted web earnings, which excludes this important impairment cost, rose 19.8% year-over-year to $3.27 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 under):

Dividend Aristocrat #3: 3M Firm (MMM)

5-year Anticipated Annual Returns: 16.2%

3M sells greater than 60,000 merchandise which are used on daily basis in houses, hospitals, workplace buildings and faculties across the world. It has about 95,000 staff and serves prospects in additional than 200 international locations.

3M is now composed of 4 separate divisions. The Security & Industrial division produces tapes, abrasives, adhesives and provide chain administration software program in addition to manufactures private protecting gear and safety merchandise.

The Healthcare section provides medical and surgical merchandise in addition to drug supply techniques. Transportation & Digitals division produces fibers and circuits with a purpose of utilizing renewable power sources whereas decreasing prices. The Client division sells workplace provides, house enchancment merchandise, protecting supplies and stationary provides.

Supply: Investor Presentation

The corporate additionally introduced that it will be spinning off its Well being Care section right into a standalone entity, which might have had $8.6 billion of income in 2021. The transaction is anticipated to shut by the top of 2023.

We anticipate 16.2% annual returns for 3M inventory, pushed by 5% anticipated EPS development, the 4.9% dividend yield, and a ~6.3% enhance from an increasing P/E a number of.

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

Dividend Aristocrat #2: Albemarle Company (ALB)

5-year Anticipated Annual Returns: 20.3%

Albemarle is the most important producer of lithium and second largest producer of bromine on the earth. The 2 merchandise account for almost 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. Albemarle’s Chile property supply a really low-cost supply of lithium.

The corporate operates in almost 100 international locations and consists of 4 segments: Lithium & Superior Supplies (49% of gross sales), Bromine Specialties (21% of gross sales), Catalysts (21% of gross sales) and Different (9% of gross sales). Albemarle produces annual gross sales of greater than $7.5 billion.

Supply: Investor Presentation

Albemarle produces annual gross sales of $7.3 billion. It is likely one of the prime lithium shares.

On November 2nd, 2022, Albemarle introduced third quarter outcomes. Income grew 151.6% to $2.09 billion, however was $120 million lower than anticipated. Adjusted earnings-per-share of $7.50 in contrast very favorably to $1.05 within the prior 12 months and was $0.51 above estimates.

Income for Lithium was increased by 318% to $1.5 billion, because of a 298% enchancment in pricing and a 20% enhance in quantity as a result of completion of an growth within the firm’s operations in Chile and better buyer demand. The corporate expects quantity development to be in a variety of 20% to 30% for the 12 months.

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

Dividend Aristocrat #1: V.F. Company (VFC)

5-year Anticipated Annual Returns: 21.0%

V.F. Company is likely one of the world’s largest attire, footwear and equipment firms. The corporate’s manufacturers embody The North Face, Vans, Timberland and Dickies. The corporate, which has been in existence since 1899, generated over $11 billion in gross sales within the final 12 months.

On October twenty sixth, 2022, V.F. Corp introduced a $0.51 quarterly dividend, a 2.0% year-over-year enhance, which marks the corporate’s fiftieth consecutive 12 months of accelerating its payout.

In late October, V.F. Corp reported (10/26/22) monetary outcomes for the second quarter of fiscal 2023. Income declined by 4% and adjusted earnings-per-share plunged 24%, from $1.11 to $0.73. The decline in EPS was because of excessive value inflation, product discounting, and excessive inventories and lockdowns in China.

V.F. Corp expects income development of 5%-6% however lowered its steering for adjusted earnings-per-share as soon as once more, from $3.05-$3.15 to $2.40-$2.50.

We anticipate annual returns of 21.0% over the subsequent 5 years for VFC, pushed by 7% anticipated EPS development, the 7.4% dividend yield, and a 6.6% annual enhance from an increasing P/E a number of.

Click on right here to obtain our most up-to-date Certain Evaluation report on V.F. Corp. (preview of web page 1 of three proven under):

The Dividend Aristocrats In Focus Evaluation Collection

You may see evaluation on each single Dividend Aristocrat under. Every is sorted by GICS sectors and listed in alphabetical order by identify. The latest Certain Evaluation Analysis Database report for every safety is included as nicely.

Client Staples

Industrials

Well being Care

Client Discretionary

Financials

Supplies

Vitality

Info Expertise

Actual Property

Utilities

In search of 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 Record(1989 – 2022)

The picture under reveals the historical past of the Dividend Aristocrats Index from 1989 by 2022:

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

This info was compiled from the next sources:

Continuously Requested Questions

This part will tackle a few of commonest questions buyers have concerning the Dividend Aristocrats.

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

Reply: VFC at the moment yields 7.4%.

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

Reply: The Dividend Aristocrats should be constituents of the S&P 500 Index, have raised their dividends for not less than 25 consecutive years, and fulfill plenty of liquidity necessities. The Dividend Kings solely have to have raised their dividends for not 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 not 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 energetic streak of annual dividend will increase?

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

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

Proper now, the typical dividend yield of the 65 Dividend Aristocrats is 2.4%.

7. Are the Dividend Aristocrats secure 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 permit them to boost their dividends every year, even throughout a recession.

Different Dividend Lists & Closing Ideas

The Dividend Aristocrats checklist is just not the one strategy to rapidly display screen for shares that usually pay rising dividends.

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

Buying most of these shares at honest or higher costs and holding for the long-run will possible lead to favorable long-term efficiency.

You have got a alternative in what sort of enterprise you purchase into. You should purchase into the mediocre, or the wonderful.

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

“Once we personal parts of excellent companies with excellent managements, our favourite holding interval is without end.”

– Warren Buffett