Wednesday, December 30, 2009

Dividend Aristocrats List for 2010

The dividend aristocrats list includes companies which have increased dividends for over 25 years in a row. It is equally weighted and re-balanced once an year. Over the past 3,5 and 7 years the index of elite dividend stocks has managed to outperform the S&P 500 by 5%, 3.7% and 4.40% respectively.




The companies which were added to the index for 2010 include:

Brown-Forman Corporation (BF.B ) engages in the manufacture, bottling, import, export, and marketing of alcoholic beverage brands.

Cintas Corporation (CTAS) provides corporate identity uniforms and related business services in the United States and Canada. The company operates through four segments: Rental Uniforms and Ancillary Products; Uniform Direct Sales; First Aid, Safety, and Fire Protection Services; and Document Management Services.

I expected that these two companies could be good additions to the index in The New Dividend Aristocrats.

The companies which were removed from the index include:

Avery Dennison Corp (AVY) (analysis)

BB&T Corp (BBT) (analysis)

Gannett Co (GCI) (analysis)

General Electric (GE) (analysis)

Johnson Controls (JCI) (analysis)

Legg Mason (LM) (analysis)

M & T Bank (MTB) (analysis)

Pfizer (PFE) (analysis)

State Street (STT) (analysis)

US Bancorp (USB) (analysis)

In 2008 the dividend aristocrats’ index outperformed the S&P 500 by 15.50 percent. The dividend aristocrats lost 21.55% in 2008 versus the 37.00% loss for the S&P 500. So far in 2009 ( as of December 24) the S&P Dividend Aristocrats index is up 27.82%,, which is better than the 27.70% performance of S&P 500. Over the past 5 years the index has returned 3.81%, versus 0.71% for S&P 500.

Just because a company is on the list does not automatically make it a buy. Investors should make sure not to overpay for stocks, and should not overconcentrate in certain sectors. The complete list for 2010 could be found below:



To view the full list of Dividend Aristocrats in 2009, check out Standard and Poors website.

This article was included in the Carnival of Personal Finance #239 – Hot Money Trends of 2010 Edition

Full Disclosure: Long MTB

Relevant Articles:

- Dividend Stocks to Avoid
- More Dividend Stocks to Avoid
- High-Yield Dividends at Risk
- Why do I like Dividend Aristocrats?
- Payday loan

7 comments:

  1. I have been around Cintas for a long time and just by talking to the employees can see that it would be a good addition to the list.

    ReplyDelete
  2. Looking forward to seeing how 2010 works out for you. Happy New Year!

    ReplyDelete
  3. I am surprised at CTL being on the list. I know the dividend is much higher than in previous, but it is a large % of FCF. Further, without intangible assets, CTL has significantly more debt than equity.

    ReplyDelete
  4. You have some great posts. When I looked at SDY in 2008 to 2009, the one negative was the yearly ads and drops. Updating quarterly may increase the ETF performance. For instance, some of the financial stocks would have gotten dropped a lot quicker. I am glad that you mentioned a stock in the list does not necessarily make it a buy. And as the market has stabilized during 2009, it looks like a good investment for a busy professional.

    ReplyDelete
  5. If the list provides a company must have increased dividend for the past 25 years then how can 3M be on? They did not increase dividends in the years 1986 & 1999 according to their history

    ReplyDelete
  6. The issue with 3M is that the company's site rounds the dividend payment to 2 digits, which makes a huge difference. In 1998 the quarterly payment was 27.5 cents, and in 1999 it was 28 cents.

    http://finance.yahoo.com/q/hp?s=MMM&a=00&b=2&c=1970&d=06&e=20&f=2010&g=v

    ReplyDelete
  7. DGI:

    I enjoyed your article on the 1991 Achievers list. I'd be interested in knowing what the overall return would be if an investor stayed in those positions for the entire 20 years.

    ReplyDelete

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