recognized 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) - 53 years
- Abbott Laboratories (ABT) - 39 years
- Clorox Co (CLX) - 36 years
- Coca-Cola Co (KO) - 49 years
- Exxon (XOM) - 29 years
- Johnson & Johnson (JNJ) - 49 years
- McDonald’s Corp (MCD) - 35 years
- Procter & Gamble (PG) - 55 years
- Wal-Mart Stores (WMT) - 37 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. For the first time this year, only regular dividend payments will be considered when determining the calendar year total dividend payments of a company. Special cash dividends are ignored for eligibility purposes on a historical and ongoing basis.
On December 1st, 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 16, 2011.
The following stocks will be added to the Dividend Aristocrats:
- AT&T Inc. (T) | Yield: 6.0%
- HCP Inc. (HCP) | Yield: 4.9%
- Sysco Corp. (SYY) | Yield: 3.8%
- Nucor Corp. (NUE) | Yield: 3.7%
- Illinois Tool Works Inc. (ITW) | Yield: 3.1%
- Genuine Parts Co. (GPC) | Yield: 3.1%
- Medtronic Inc. (MDT) | Yield: 2.7%
- Colgate-Palmolive Co. (CL) | Yield: 2.6%
- T Rowe Price Group Inc. (TROW) | Yield: 2.3%
- Franklin Resources Inc. (BEN) | Yield: 1.1%
After failing to increase its dividend, the following stock will be dropped from the Dividend Aristocrats:
- CenturyLink Inc. (CTL) | Yield: 8.2%
It is good to see that only one stock fell off the list this year after losing 3 in 2010. This year's list, with a net increase of 9 companies, is in stark contrast to the 2009 list with a net decrease of 8 companies. During good times it is easy for companies to increase dividends, and many companies are 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, MCD, PG, WMT, T, HCP, SYY, NUE, ITW, GPC, MDT, CL, CTL. See a list of all my dividend growth holdings here.
- Will ETFs Be The End Of Traditional Mutual Funds?
- Low-Debt Dividend Stocks
- Who is Raul Alvarez and Why Should We Listen to Him?
- Early Warning Signs of a Dividend Cut
- Will Housing Lead Us Out Of The Recession?
Tags: [MMM] [ABT] [CLX] [KO] [XOM] [JNJ] [MCD] [PG] [WMT] [T] [HCP] [SYY] [NUE] [ITW] [GPC] [MDT] [CL] [TROW] [BEN] [CTL]
Popular Posts - Last 7 days
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
A stock dividend , also known as a "scrip dividend", is a dividend payment made with stock instead of cash. Sometimes when compani...
The S&P 500 Index is owned and maintained by Standard & Poor's, a division of McGraw-Hill. The index was first published in 195...
Linked here is a detailed quantitative analysis of Colgate-Palmolive (CL). Below are some highlights from the above linked analysis: Comp...
Each Sunday I highlight any notable articles that I came across over the past week. Though I may not always agree with each of the articles ...
Linked here is a detailed quantitative analysis of Pepsico, Inc. (PEP). Below are some highlights from the above linked analysis: Company...
Presented below are my dividend stock and ETF/CEF holdings. This is not a recommendation to buy these securities. I have classified some of...
When looking for value-priced stocks , the Price-To-Book (P/B) ratio is one that I like to consider. P/B is calculated as share price divide...
Performance and sustainability - that's what investors in Dividend Growth Stocks are looking for. It's very easy to find stocks wi...