Despite Avery Dennison's recent dividend cut, the dividend aristocrats index appears to be business as usual in 2009. The dividend aristocrats represent S&P 500 members which have consistently raised their dividends for more than 25 consecutive years. At the end of 2008, there were 52 constituents in the index. Dividend growth investors typically use the Dividend Aristocrats and the Dividend Achievers Indexes as a starting point in their additional stock research.
There were 28 dividend increases in the elite dividend index so far in 2009. The companies raising distributions this year include:
There were 8 dividend cuts in the elite dividend index so far in 2009. The other dividend cutters include:
One company, Rohm & Haas was taken over by Dow Chemical (DOW) in the first half of 2009.
The changes in the Dividend Aristocrats index should be expected and they are a natural process that occurs even in normal years. The index is relatively well diversified between different sectors, which helped soften its decline over the past 2 years, relative to the S&P 500.
Full Disclosure: Long ABT, ADM, APD, CB, CLX, ED, FDO, GWW, KMB, KO, MHP, MMM, PEP, PG, SHW and WMT
Relevant Articles:
- Why do I like Dividend Aristocrats?
- Avery Dennison Cuts Dividends
- Why do I like Dividend Achievers
- Reinvest Dividends Selectively
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