Tag: Dividend Aristocrat

Top Yielding Dividend Aristocrats

by Fred Fuld III

Dividend Aristocrats are a group of 65 S&P 500 stocks that have increased their dividends annually for at least 25 consecutive years. They are considered to be some of the most reliable dividend-paying stocks on the market.

The Dividend Aristocrats index is maintained by S&P Dow Jones Indices. To qualify for the index, a stock must meet the following criteria:

  • It must be a member of the S&P 500 index.
  • It must have increased its dividend for at least 25 consecutive years.
  • It must have a market capitalization of at least $3 billion.

The Dividend Aristocrats index is a popular investment among investors who are looking for income and growth. The stocks in the index have a long track record of dividend growth, and they are typically well-established companies with strong financials.

Here are some of the top Dividend Aristocrats in 2023, ranked by their forward dividend yield:

  • Realty Income (O): 5.0%
  • IBM (IBM): 5.0%
  • AbbVie (ABBV): 4.4%
  • Coca-Cola (KO): 3.0%
  • Johnson & Johnson (JNJ): 3.0%
  • Procter & Gamble (PG): 2.5%
  • Pepsico (PEP): 2.7%

These stocks are all paying a high dividend yield, and they have a long track record of dividend growth. They are a good option for investors who are looking for income and growth.

Here are some of the benefits of investing in Dividend Aristocrats:

  • Income: Dividend Aristocrats are a good source of income for investors. They typically pay a high dividend yield, and they have a long track record of dividend growth.
  • Growth: Dividend Aristocrats can also provide growth potential for investors. Many of the companies in the index are well-established and have strong financials. This means that they are likely to continue to grow their businesses and their dividends over time.
  • Safety: Dividend Aristocrats are considered to be relatively safe investments. They are typically large, well-established companies with a long track record of profitability. This means that they are less likely to go bankrupt or cut their dividends than smaller, more volatile companies.

If you are looking for an investment that can provide you with income and growth, then Dividend Aristocrats may be a good option for you. They are a relatively safe investment that has the potential to provide you with a steady stream of income over the long term.

Disclosure: Author owns PEP.

Like Dividend Stocks? Check Out the Aristocrats

by Fred Fuld III

Many investors prefer dividends. Yet, just because a stock pays a dividend does not make it a good stock. But if a company has been raising dividends, and raising them on a consistent basis, it probably means that the company has been doing something right.

A Dividend Aristocrat takes this concept to the extreme. It is a stock that has increased its dividend every year for at least the last 25 years.

One of the Aristocrat leaders is Proctor & Gamble (PG) which has increased its dividend over 61 years.

At 3.76%, the yield is fairly high, compared to a bank savings account, a certificate of deposit, or a money market fund.

Other well-known companies that fall into this elite category are the following:
Coca-Cola (KO) 55 years
Johnson & Johnson (JNJ) 55 years
Lowe’s (LOW) 55 years
Colgate Palmolive (CL) 54 years
Target (TGT) 50 years
PepsiCo (PEP) 45 years

If you had bought any of these stocks ten or twenty or 30 years ago, and reinvested the dividends, your yield based on your original investment would be enormous.

Disclosure: Author didn’t own any of the above at the time the article was written.