Dividend Aristocrats List

The S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years in a row. The index is equally weighted, and rebalanced every quarter.

To qualify for membership in the S&P 500 Dividend Aristocrats index, a stock must satisfy the following criteria:

1. Be a member of the S&P 500
2. Have increased dividends every year for at least 25 consecutive years
3. Meet minimum float-adjusted market capitalization and liquidity requirements defined in the index inclusion and index exclusion rules below.

The group of companies in the Dividend Aristocrats index tend to generate reliable dividend income, and provide the potential for strong total returns. The list is well diversified across sectors.

There are 53 companies in the Dividend Aristocrats index, after the committee dropped C.R. Bard (BCR) from the list. The company is being acquired by Becton Dickinson (BDX).

The three new additions include Praxair (PX), A.O. Smith (AOS) and Roper Technologies (ROP)

The 2018 Dividend Aristocrats are listed below:


Symbol
Name
Years of Annual Dividend Increases
Trailing P/E
Dividend Yield
10 Year Dividend Growth
ABBV
AbbVie Inc.
45
26.31
2.70%
12.40%
ABT
Abbott Laboratories
45
51.03
1.89%
10.53%
ADM
Archer Daniels Midland
42
20.08
3.00%
10.78%
ADP
Automatic Data Proc.
43
30.59
2.06%
10.99%
AFL
AFLAC Inc.
35
12.99
2.04%
8.08%
AOS
A.O. Smith Corp.
25
33.04
1.08%
16.98%
APD
Air Products & Chem.
35
12.75
2.24%
9.63%
BDX
Becton Dickinson & Co.
46
52.68
1.28%
11.61%
BEN
Franklin Resources
38
15
2.02%
14.87%
BF-B
Brown-Forman Class B
34
35.76
1.17%
8.51%
CAH
Cardinal Health Inc.
30
21.56
2.53%
19.71%
CINF
Cincinnati Financial
57
25.57
2.60%
3.53%
CL
Colgate-Palmolive Co.
54
29.85
2.08%
8.55%
CLX
Clorox Company
40
26.89
2.34%
7.99%
CTAS
Cintas Corp.
35
33.02
0.98%
15.30%
CVX
Chevron Corp.
30
38.03
3.30%
6.69%
DOV
Dover Corp.
62
24.29
1.78%
10.96%
ECL
Ecolab Inc.
26
31.21
1.19%
12.40%
ED
Consolidated Edison
43
20.21
3.59%
1.75%
EMR
Emerson Electric
61
30.99
2.65%
5.88%
FRT
Federal Realty Inv. Trust
50
30.02
3.21%
5.37%
GD
General Dynamics
26
21.46
1.62%
11.54%
GPC
Genuine Parts Co.
61
23.79
2.58%
6.47%
GWW
W.W. Grainger Inc.
46
34.19
2.23%
14.21%
HRL
Hormel Foods Corp.
52
22.03
2.15%
16.32%
ITW
Illinois Tool Works
43
26.81
1.80%
11.61%
JNJ
Johnson & Johnson
55
307.23
2.37%
7.44%
KMB
Kimberly-Clark Corp.
45
19.29
3.29%
6.75%
KO
Coca-Cola Company
55
46.09
3.12%
7.94%
LEG
Leggett & Platt Inc.
46
19.48
3.04%
7.18%
LOW
Lowe's Companies
55
25.64
1.53%
19.31%
MCD
McDonald's Corp.
42
25.42
2.28%
9.83%
MDT
Medtronic plc
40
23.88
2.16%
14.24%
MKC
McCormick & Co.
32
29.18
2.10%
8.92%
MMM
3M Company
59
28.17
1.91%
9.37%
NUE
Nucor Corp.
45
20.08
2.20%
9.13%
PEP
PepsiCo Inc.
45
24.98
2.65%
8.90%
PG
Procter & Gamble Co.
61
23.56
3.10%
7.25%
PNR
Pentair Ltd.
42
22.19
1.91%
8.69%
PPG
PPG Industries Inc.
46
19.04
1.54%
5.24%
PX
Praxair Inc.
25
29.07
1.98%
10.13%
ROP
Roper Technologies Inc.
25
40.51
0.60%
18.34%
SHW
Sherwin-Williams Co.
39
37.33
0.79%
10.44%
SPGI
S&P Global Inc.
44
26.73
0.90%
7.18%
SWK
Stanley Black & Decker
50
21.37
1.45%
7.09%
SYY
Sysco Corp.
48
29.29
2.27%
5.68%
T
AT&T Inc.
34
18
5.38%
3.28%
TGT
Target Corp.
50
15.99
3.17%
16.72%
TROW
T. Rowe Price Group
31
19.22
1.93%
12.86%
VFC
VF Corp.
45
34.04
2.28%
11.93%
WBA
Walgreens Boots Alliance Inc.
42
21.59
2.08%
16.21%
WMT
Wal-Mart Stores Inc.
44
28.3
1.93%
9.39%
XOM
ExxonMobil Corp.
35
28.75
3.49%
8.37%

The index has generated strong total returns over time past decade. I wanted to note that in 2008, the Dividend Aristocrats index declined by 21.88%. The S&P 500 however declined by 37%. The dividend aristocrats index tends to shine during bear markets and low return environments. However, it also pulls its weight when we are in a bull market too. It is the best of both worlds really.


I first stumbled upon the Dividend Aristocrats index in late 2007, and instantly understood why dividend growth investing is such a powerful wealth generating tool. If someone had invested in the Dividend Aristocrats index after reading my review of the list at the beginning of 2008, they would have tripled their money.

As I gained more experience however, I have gravitated more towards the Dividend Champions list, which is maintained by Dave Fish. The Dividend Champions list is more complete, as it doesn’t exclude companies due to low liquidity, or due to market capitalization below a certain threshold. In addition, I find that historically, the list of Dividend Champions has followed a more consistent approach than the list of Dividend Aristocrats.

When I review the list of historical changes in the Dividend Aristocrats index, I see some inconsistencies in the way portfolio components are added or removed.

For example, the Dividend Aristocrats index removed Altria in 2007, after it spun-off Kraft Foods and as a result its dividend decreased. It could be argued that the dividend income for the investor was not decreased, because they kept getting a dividend from Altria as well as dividends from Kraft Foods.

The S&P committee seems to have rectified this issue, and have kept both Abbott and Abbvie after legacy Abbott Laboratories split in two companies in early 2013.

Ironically, Dave Fish has Altria listed as a Dividend Champion. However, he doesn’t have Abbott nor Abbvie listed as a dividend champion ( they are listed as Dividend Aristocrats however).

This is why you need to perform your own checks as an investor.

In addition, I wanted to let you know that I would not purchase all companies from either lists blindly. I run my entry criteria screen to come up with a list of companies for further research. Before investing in any individual stock, I research it enough to gain some understanding of the business and its trends in fundamentals.

Relevant Articles:

Dividend Champions, Contenders & Challengers: The most complete list of US dividend growth stocks available
Dividend Aristocrats List for 2017
Dividend Aristocrats for Dividend Growth and Total Returns
Where are the original Dividend Aristocrats now?
Historical changes of the S&P Dividend Aristocrats
Why do I like the Dividend Aristocrats?
Dividend Aristocrats List for 2016

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