S&P 500 Dividend Aristocrats is designed to measure the performance of S&P 500 index constituents that have followed a policy of consistently increasing dividends every year for at least 25 consecutive years. The constituents are equally weighted and rebalanced each quarter. Members are removed during the December update if calendar-year dividends did not increase from the previous year, or they are removed intra-year if the stock is dropped from the underlying S&P 500.
Dividend investors have a lot to be thankful for. The 60 companies making up the Dividend Aristocrats have outperformed the S&P 500 index year-to-date by almost 12 percentage points.
SmartMoney recently published a dividend growth stock screen with the following criteria:
- Past year dividend growth greater than 10%
- Ten-year average dividend growth greater than 10%
- Price/free-cash-flow ratio below 20
- Dividend yield greater than 3%
- Caterpillar (CAT) - 4.64% current yield - Last reviewed: 9-10-2008
- Darden Restaurants (DRI) - 4.84% current yield - Last reviewed: n/a
- Garmin Ltd. (GRMN) - 4.32% current yield - Last reviewed: n/a
- Intel (INTC) - 4.27% current yield - Last reviewed: 10-6-2008
- Pfizer (PFE) - 7.86% current yield - Last reviewed: 3-17-2008
- Black & Decker (BDK) - 4.24% yield - Last reviewed: n/a
- CAT as a 4 Star-Buy with a buy below price of $43.22
- INTC as a 4 Star-Buy with a buy below price of $21.21
- PFE as a 3 Star-Hold with a buy below price of $27.72
As always, you should never act solely on a screen or recommendation. You should perform your own research and reach your own conclusion before buying or selling an investment security.
S&P 500 Dividend Aristocrats
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Full Disclosure: At the time of this writing, I was long in CAT, INTC, PFE
Tags: [BDK] [CAT] [DRI] [GRMN] [INTC] [PFE]