The S&P 500 Dividend Aristocrats is the most prestigious list of dividend stocks. The Dividend Aristocrats index is designed to measure the performance of S&P 500 constituents that have followed a policy of consistently increasing dividends every year for at least 25 consecutive years. This index is a member of the S&P Dividend Aristocrats index series.
Dividend Aristocrats constituents exhibit the following characteristics:
- Underlying Indices – S&P 500
- Weighting – Equally weighted; Constituents re-weighted quarterly
- Reconstitution – Reviewed annually in December
Among others, Dividend Aristocrats include these highly recognizable names, with years of consecutive dividend increases shown:
- 3M Co. (MMM) - 52 years
- Abbott Laboratories (ABT) - 38 years
- Clorox Co (CLX) - 35 years
- Coca-Cola Co (KO) - 48 years
- Exxon (XOM) - 28 years
- Johnson & Johnson (JNJ) - 48 years
- McDonald’s Corp (MCD) - 34 years
- Procter & Gamble (PG) - 54 years
- Wal-Mart Stores (WMT) - 36 years
Members may be deleted during the December rebalance if calendar-year dividends did not increase from the previous year, or intra-year if the stock is removed from the underlying S&P 500.
On December 2nd, S&P announced changes to the Dividend Aristocrats Index. Standard & Poor’s will perform the annual reconstitution of the S&P 500 Dividend Aristocrats Index after the close of trading on Friday, December 17, 2010.
The following stocks will be added to the Dividend Aristocrats:
- McCormick & Company (MKC)
- Hormel Foods Corp. (HRL)
- Ecolab Inc. (ECL)
The following stocks will be dropped from the Dividend Aristocrats:
- Eli Lilly And Company (LLY)
- SUPERVALU Inc. (SVU)
- Integrys Energy Group, Inc. (TEG)
After last year's significant decline, it is good see the membership number level off. The previous two years were difficult for dividend stocks, but that is not necessarily a bad thing. During good times it is easy for companies to increase dividends, and many companies were added to the index. It is during times of adversity that we learn who the real aristocrats are.
Full Disclosure: Long MMM, ABT, CLX, KO, JNJ, LLY, MCD, PG, TEG, WMT. See a list of all my income holdings here.
- When To Sell A Dividend Stock
- Six Great Dividend Stocks, But...
- 10 Stocks With Sustainable Dividend Growth
- Dividend Investing in a Bear Market
- Are Defense Stocks Good Defensive Stocks?
Tags: [ABT] [CLX] [ECL] [HRL] [JNJ] [KO] [LLY] [MCD] [MKC] [MMM] [PG] [SVU] [TEG] [WMT] [XOM]
Popular Posts - Last 7 days
Presented below are my dividend stock and ETF/CEF holdings. This is not a recommendation to buy these securities. I have classified some of...
Monday, October 31, 2011 will mark my fourth full year of writing as Dividends4Life . It is hard to believe another year has passed. Like th...
Like many that came before me, I am on a journey to construct a portfolio that will provide me... Dividends 4 Life
There are income investors and Dividend Growth investors. While the distinction is rather simple, it slips past many casual observers. Inco...
Dividends are not paid with sales, earnings, EPS, EBIT or EBITDA. Instead dividends are paid with cash. As an investor, you want to pay clos...
D4L-Premium Services is designed to provide the busy dividend growth investor with a wealth of relevant information. Each week the D4L-Prem...
Have you ever noticed those that most vehemently attack a buy-and-hold strategy really don’t understand how the strategy works? They confus...
Linked here is a detailed quantitative analysis of Illinois Tool Works Inc. (ITW). Below are some highlights from the above linked analysis...
There is perceived safety in size . Giant corporations aren't randomly grown. Instead, they are carefully built through superior manag...
After each quarter-end, I review my asset allocation and year-to-date total returns by category. The attached PDF contains my actual asset a...