2022 Dividend Aristocrats Record | Up to date Every day

Article up to date on November 1st, 2022 by Bob CiuraSpreadsheet knowledge up to date day by day

The Dividend Aristocrats are a choose group of 65 S&P 500 shares with 25+ years of consecutive dividend will increase.

They’re the ‘better of one of the best’ dividend development shares. The Dividend Aristocrats have a protracted historical past of outperforming the market.

The necessities to be a Dividend Aristocrat are:

Be within the S&P 500
Have 25+ consecutive years of dividend will increase
Meet sure minimal dimension & liquidity necessities

There are presently 65 Dividend Aristocrats. You’ll be able to obtain an Excel spreadsheet of all 65 (with metrics that matter reminiscent of dividend yields and price-to-earnings ratios) by clicking the hyperlink beneath:

 

Observe: On January twenty fourth, 2022 Brown & Brown (BRO) and Church & Dwight (CHD) had been added to the Dividend Aristocrats Index, whereas AT&T (T) was eliminated. Additionally, Folks’s United (PBCT) was acquired, leaving 65 Dividend Aristocrats.

Supply: S&P Information Releases.

You’ll be able to see detailed evaluation on all 65 additional beneath on this article, in our Dividend Aristocrats In Focus Sequence. Evaluation contains valuation, development, and aggressive benefit(s).

Desk of Contents

Learn how to Use The Dividend Aristocrats Record To Discover Dividend Funding Concepts

The downloadable Dividend Aristocrats Excel Spreadsheet Record above incorporates the next for every inventory within the index:

Worth-to-earnings ratio
Dividend yield
Market capitalization

All Dividend Aristocrats are high-quality companies based mostly on their lengthy dividend histories. An organization can not pay rising dividends for 25+ years with out having a robust and sturdy aggressive benefit.

However not all Dividend Aristocrats make equally good investments as we speak. That’s the place the spreadsheet on this article comes into play. You should use the Dividend Aristocrats spreadsheet to shortly discover high quality dividend funding concepts.

The checklist of all 65 Dividend Aristocrats is efficacious as a result of it provides you a concise checklist of all S&P 500 shares with 25+ consecutive years of dividend will increase (that additionally meet sure minimal dimension and liquidity necessities).

These are companies which have each the need and skill to pay shareholders rising dividends year-after-year. This can be a uncommon mixture.

Collectively, these two standards are highly effective – however they aren’t sufficient. Worth should be thought-about as properly.

The spreadsheet above means that you can type by trailing price-to-earnings ratio so you’ll be able to shortly discover undervalued, high-quality dividend shares.

Right here’s tips on how to use the Dividend Aristocrats checklist to shortly discover high-quality dividend development shares doubtlessly buying and selling at a reduction:

Obtain the checklist
Kind by ‘Trailing PE Ratio,’ smallest to largest
Analysis the highest shares additional

Right here’s how to do that shortly within the spreadsheet:

Step 1: Obtain the checklist, and open it.

Step 2: Apply a filter operate to every column within the spreadsheet.

Step 3: Click on on the small grey down arrow subsequent to ‘Trailing P/E Ratio’, after which type smallest to largest.

Step 4: Evaluation the best ranked Dividend Aristocrats earlier than investing. You’ll be able to see detailed evaluation on each Dividend Aristocrat discovered beneath on this article.

That’s it; you’ll be able to comply with the identical process to type by another metric within the spreadsheet.

This text examines the traits and efficiency of the Dividend Aristocrats intimately. Click on right here for a desk of contents for straightforward navigation of this text.

Efficiency Of The Dividend Aristocrats

In October 2022, the Dividend Aristocrats, as measured by the Dividend Aristocrats ETF (NOBL), registered a ten.3% return. It outperformed the SPDR S&P 500 ETF (SPY) for the month.

NOBL generated unfavourable complete returns of 10.3% in October 2022
SPY generated unfavourable complete returns of 8.1% in October 2022

Quick-term efficiency is generally noise. Efficiency ought to be measured over a minimal of three years, and ideally longer durations of time.

The Dividend Aristocrats Index has matched the efficiency of the broader market index during the last decade, with a 12.8% complete annual return for the Dividend Aristocrats and for the S&P 500 Index.

The Dividend Aristocrats have exhibited decrease threat than the benchmark, as measured by normal deviation.

Supply: S&P Reality Sheet

Larger complete returns with decrease volatility is the ‘holy grail’ of investing. It’s price exploring the traits of the Dividend Aristocrats intimately to find out why they’ve carried out so properly.

Observe {that a} good portion of the outperformance relative to the S&P 500 comes throughout recessions (2000 – 2002, 2008). Dividend Aristocrats have traditionally seen smaller drawdowns throughout recessions versus the S&P 500. This makes holding via recessions that a lot simpler. Case-in-point: In 2008 the Dividend Aristocrats Index declined 22%. That very same 12 months, the S&P 500 declined 38%.

Nice companies with robust aggressive benefits have a tendency to have the ability to generate stronger money flows throughout recessions. This enables them to realize market share whereas weaker companies struggle to remain alive.

The Dividend Aristocrats Index has crushed the market during the last 28 years…

We imagine dividend paying shares outperform non-dividend paying shares for 3 causes:

An organization that pays dividends is prone to be producing earnings or money flows in order that it could pay dividends to shareholders. This excludes ‘pre-earnings’ start-ups and failing companies. Briefly, it excludes the riskiest shares.
A enterprise that pays constant dividends should be extra selective with the expansion tasks it takes on as a result of a portion of its money flows are being paid out as dividends. Scrutinizing over capital allocation selections possible provides to shareholder worth.
Shares that pay dividends are prepared to reward shareholders with money funds. This can be a signal that administration is shareholder pleasant.

In our view, Dividend Aristocrats have traditionally outperformed the market and different dividend paying shares as a result of they’re, on common, higher-quality companies.

A high-quality enterprise ought to outperform a mediocre enterprise over a protracted time period, all different issues being equal.

For a enterprise to extend its dividends for 25+ consecutive years, it will need to have or not less than had within the very latest previous a robust aggressive benefit.

Sector Overview

A sector breakdown of the Dividend Aristocrats Index is proven beneath:

The highest 2 sectors by weight within the Dividend Aristocrats are Industrials and Shopper Staples. The Dividend Aristocrats Index is tilted towards Shopper Staples and Industrials relative to the S&P 500.

These 2 sectors make up ~40% of the Dividend Aristocrats Index, however lower than 20% of the S&P 500.

The Dividend Aristocrats Index can be considerably underweight the Info Expertise sector, with a 3% allocation in contrast with over 20% allocation throughout the S&P 500.

The Dividend Aristocrat Index is stuffed with secure ‘outdated financial system’ blue chip shopper merchandise companies and producers; the 3M’s (MMM), Coca-Cola’s (KO), and Johnson & Johnson’s (JNJ) of the investing world.

These ‘boring’ companies aren’t prone to generate 20%+ earnings-per-share development, however in addition they are most unlikely to see giant earnings drawdowns as properly.

The Prime 7 Dividend Aristocrats Now

Evaluation on our high 7 Dividend Aristocrats is beneath. These rankings are based mostly on 5 12 months ahead anticipated complete return estimates from the Certain Evaluation Analysis Database.

 

Dividend Aristocrat #7: Leggett & Platt (LEG)

5-year Anticipated Annual Returns: 13.0%

Leggett & Platt is a diversified manufacturing firm. It was based in 1883 when an inventor named J.P. Leggett created a bedspring that was superior to the present merchandise at the moment. Leggett & Platt consists of three main segments with a diverse product combine and geographic cut up.

The bedding merchandise phase designs and manufactures bedding parts reminiscent of bedding trade equipment, metal wire, adjustable beds, and mattress springs.

The specialised merchandise phase revolves round automotive, aerospace, and hydraulic cylinder parts. Some product examples could be seat help and lumbar programs, motors and cables, tubing, and hydraulic cylinders. This phase represents 20% of 2022 anticipated internet commerce gross sales.

The furnishings, flooring and textile merchandise phase focuses on dwelling furnishings, work furnishings and flood and textiles.

These three segments account for 50%, 20%, and 30% of 2022 anticipated internet commerce gross sales, respectively.

Supply: Investor Presentation

Leggett & Platt reported second quarter 2022 earnings outcomes on August 2nd, 2022. Income for the quarter of $1.33 billion rose 5% year-over-year. Earnings-per-share of $0.70 was down 11% from the identical prior 12 months interval.

Management lowered its fiscal 2022 outlook as soon as once more, in October, and forecasts gross sales of $5.1 billion to $5.2 billion, which resulted in a big share worth decline. Earnings-per-share is predicted to be between $2.30 and $2.45 (in comparison with $2.65 and $2.80 beforehand).

Click on right here to obtain our most up-to-date Certain Evaluation report on Leggett & Platt (preview of web page 1 of three proven beneath):

Dividend Aristocrat #6: Franklin Sources (BEN)

5-year Anticipated Annual Returns: 13.2%

Franklin Sources is a world asset supervisor with a protracted and profitable historical past. The corporate provides funding administration (which makes up the majority of charges the corporate collects) and associated providers to its prospects, together with gross sales, distribution, and shareholder servicing.

On December 14th, 2021, Franklin Sources introduced a $0.29 quarterly dividend, marking a 3.6% year-over-year improve and the corporate’s 42nd consecutive year of accelerating its fee.

On July twenty eighth, 2022, Franklin Sources reported Q3 fiscal 12 months 2022 outcomes for the interval ending June thirtieth, 2022. (Franklin Sources’ fiscal 12 months ends September thirtieth.) Complete property beneath administration equaled $1.380 trillion, down $97.7 billion in comparison with final quarter, because of $135.5 billion of internet market change, distributions and different, and $19.8 billion of long-term internet outflows.

For the quarter, working income totaled $2.031 billion, down 7% year-over-year. On an adjusted foundation, internet earnings equaled $416 million or $0.82 per share in comparison with $494 million or $0.96 per share in Q3 2021. Throughout Q3, Franklin repurchased 2.0 million shares of inventory for $51 million.

Click on right here to obtain our most up-to-date Certain Evaluation report on Franklin Sources (preview of web page 1 of three proven beneath):

Dividend Aristocrat #5: Pentair (PNR)

5-year Anticipated Annual Returns: 13.9%

Pentair operates as a pure–play water options firm with 3 segments: Aquatic Programs, Filtration Options, and Stream Applied sciences. Pentair was based in 1966. Pentair has elevated its dividend for greater than 4 a long time in a row, when adjusted for spin–offs.

Supply: Investor Presentation

Pentair reported its third quarter earnings outcomes on October 25. The corporate was in a position to generate revenues of $1.06 billion throughout the quarter, which was 9% greater than the corporate’s revenues throughout the earlier 12 months’s quarter, a end result that beat estimates barely.

Core gross sales, which excludes the impression of foreign money price actions, acquisitions, and dispossessions, had been up 4% 12 months over 12 months, which was weaker than the core income development price throughout the earlier quarter, throughout which Pentair reported a double-digit core gross sales improve.

Pentair recorded earnings-per-share of $0.99 for the third quarter, which was up by a compelling 11% 12 months over 12 months. Pentair’s earnings-per-share beat the analyst consensus by $0.06. Pentair up to date its steerage for the present 12 months throughout the earnings report. For fiscal 2022, Pentair is now forecasting earnings-per-share of round $3.65, which signifies stable earnings-per-share development of round 10% in comparison with the $3.32 the corporate earned in 2021.

Complete returns are anticipated to achieve 13.9% over the following 5 years.

Click on right here to obtain our most up-to-date Certain Evaluation report on Pentair (preview of web page 1 of three proven beneath):

Dividend Aristocrat #4: Lowe’s Firms (LOW)

5-year Anticipated Annual Returns: 14.0%

Lowe’s Firms is the second-largest dwelling enchancment retailer within the US (after House Depot). The corporate was based in 1946 and is headquartered in Mooresville, NC. Lowe’s operates or providers about 2,200 dwelling enchancment and {hardware} shops within the U.S. and Canada.

Lowe’s reported second quarter 2022 outcomes on August seventeenth. Complete gross sales for the second quarter got here in at $27.5 billion in comparison with $27.6 billion in the identical quarter a 12 months in the past. Comparable gross sales decreased 0.3%, whereas U.S. dwelling enchancment comparable gross sales elevated 0.2%. Of notice, professional buyer gross sales rose 13% year-over-year.

Internet earnings of $3.0 billion was in-line with outcomes from Q2 2021. Diluted earnings per share of $4.67 was a 9.9% improve from $4.25 a 12 months earlier. The corporate repurchased 21.6 million shares within the second quarter for $4.0 billion.

The corporate stays in a robust liquidity place with $1.5 billion of money and money equivalents. The corporate reaffirmed their fiscal 2022 outlook and believes they’ll obtain diluted EPS within the vary of $13.10 to $13.60 on complete gross sales of roughly $98 billion. Lowe’s expects to repurchase $12 billion price of frequent shares in 2022.

Click on right here to obtain our most up-to-date Certain Evaluation report on Lowe’s (preview of web page 1 of three proven beneath):

Dividend Aristocrat #3: Albemarle Company (ALB)

5-year Anticipated Annual Returns: 14.3%

Albemarle is the biggest producer of lithium and second largest producer of bromine on this planet. The 2 merchandise account for practically two-thirds of annual gross sales. Albemarle produces lithium from its salt brine deposits within the U.S. and Chile. The corporate has two joint ventures in Australia that additionally produce lithium. Albemarle’s Chile property supply a really low-cost supply of lithium.

The corporate operates in practically 100 international locations and consists of 4 segments: Lithium & Superior Supplies (49% of gross sales), Bromine Specialties (21% of gross sales), Catalysts (21% of gross sales) and Different (9% of gross sales). Albemarle produces annual gross sales of greater than $7.5 billion.

Supply: Investor Presentation

On August third, 2022, Albemarle launched second quarter outcomes for the interval ending June thirtieth, 2022. Income grew 91.2% to $1.48 billion and had been in-line with estimates. Adjusted earnings-per-share of $3.45 in contrast very favorably to $0.89 within the prior 12 months and was $0.20 above estimates. Income for Lithium surged 178% to $891.5 million, resulting from a 160% enchancment in pricing and a 18% improve in quantity resulting from larger buyer demand. The corporate expects quantity development to be 20% to 30% for the 12 months.

Revenues for Bromine Specialties grew 35% to $377.8 million as pricing added 31% and quantity improved 4%. Catalysts grew 41.8% to $210.3 million, principally resulting from a rise in quantity. The corporate is conducting a strategic evaluation of this phase.

Albemarle supplied an outlook for 2022 as properly, with the corporate anticipating income of income of $7.1 billion to $7.5 billion, up from $5.2 billion to $5.6 billion and $4.2 billion to $4.5 billion beforehand. Adjusted earnings-per-share at the moment are projected to be in a variety of $19.25 to $22.25, up from $12.30 to $15.00 and $5.65 to $6.65 beforehand.

We anticipate 7.5% annual EPS development via 2027. As well as, the inventory has a present dividend yield of 0.6%. Lastly, the inventory is undervalued. Complete returns are estimated at 14.3% per 12 months over the following 5 years.

Click on right here to obtain our most up-to-date Certain Evaluation report on Albemarle (preview of web page 1 of three proven beneath):

Dividend Aristocrat #2: 3M Firm (MMM)

5-year Anticipated Annual Returns: 15.1%

3M sells greater than 60,000 merchandise which are used daily in properties, hospitals, workplace buildings and colleges across the world. It has about 95,000 workers and serves prospects in additional than 200 international locations.

3M is now composed of 4 separate divisions. The Security & Industrial division produces tapes, abrasives, adhesives and provide chain administration software program in addition to manufactures private protecting gear and safety merchandise.

The Healthcare phase provides medical and surgical merchandise in addition to drug supply programs. Transportation & Digitals division produces fibers and circuits with a objective of utilizing renewable power sources whereas lowering prices. The Shopper division sells workplace provides, dwelling enchancment merchandise, protecting supplies and stationary provides.

Supply: Investor Presentation

The corporate additionally introduced that it will be spinning off its Well being Care phase right into a standalone entity, which might have had $8.6 billion of income in 2021. The transaction is predicted to shut by the tip of 2023.

We anticipate 15.1% annual returns for 3M inventory, pushed by 5% anticipated EPS development, the 5% dividend yield, and a ~5.1% increase from an increasing P/E a number of.

Click on right here to obtain our most up-to-date Certain Evaluation report on 3M (preview of web page 1 of three proven beneath):

Dividend Aristocrat #1: V.F. Company (VFC)

5-year Anticipated Annual Returns: 25.7%

V.F. Company is without doubt one of the world’s largest attire, footwear and equipment corporations. The corporate’s manufacturers embrace The North Face, Vans, Timberland and Dickies. The corporate, which has been in existence since 1899, generated over $11 billion in gross sales within the final 12 months.

In late July, V.F. Corp reported (7/28/22) monetary outcomes for the fiscal 2023 first quarter. Income of $2.26 billion rose 3.2% 12 months over 12 months and beat analyst estimates by $20 million. The North Face model led the way in which with 37% currency-neutral income development within the quarter.

Nonetheless, inflation took its toll on margins and income. Gross margin of 53.9% for the quarter declined 260 foundation factors, whereas working margin of two.8% declined 640 foundation factors. In consequence, adjusted EPS declined 68% to $0.09 per share.

Adjusted earnings-per-share grew 67%, from $0.27 to $0.45, however missed analysts’ consensus by $0.02. For the brand new fiscal 12 months, V.F. Corp expects income development of not less than 7% and adjusted earnings-per-share of $3.30 to $3.40.

We anticipate 7% annual EPS development over the following 5 years. VFC inventory additionally has a dividend yield of seven.1%. Annual returns from an increasing P/E a number of are estimated at ~7.4%, equaling complete anticipated annual returns of 21.5% via 2027.

Click on right here to obtain our most up-to-date Certain Evaluation report on V.F. Corp. (preview of web page 1 of three proven beneath):

The Dividend Aristocrats In Focus Evaluation Sequence

You’ll be able to see evaluation on each single Dividend Aristocrat beneath. Every is sorted by GICS sectors and listed in alphabetical order by title. The most recent Certain Evaluation Analysis Database report for every safety is included as properly.

Shopper Staples

Industrials

Well being Care

Shopper Discretionary

Financials

Supplies

Vitality

Info Expertise

Actual Property

Utilities

On the lookout for no-fee DRIP Dividend Aristocrats? Click on right here to learn an article analyzing all 15 no-fee DRIP Dividend Aristocrats intimately.

Historic Dividend Aristocrats Record(1989 – 2022)

The picture beneath exhibits the historical past of the Dividend Aristocrats Index from 1989 via 2022:

Observe: CL, GPC, and NUE had been all eliminated and re-added to the Dividend Aristocrats Index via the historic interval analyzed above. We’re uncertain as to why. Firms created through a spin-off (like AbbVie) might be Dividend Aristocrats with lower than 25 years of rising dividends if the dad or mum firm was a Dividend Aristocrat.

This data was compiled from the next sources:

Often Requested Questions

This part will handle a few of commonest questions traders have relating to the Dividend Aristocrats.

1. What’s the highest-paying Dividend Aristocrat?

Reply: VFC presently yields 7.1%.

2. What’s the distinction between the Dividend Aristocrats and the Dividend Kings?

Reply: The Dividend Aristocrats should be constituents of the S&P 500 Index, have raised their dividends for not less than 25 consecutive years, and fulfill plenty of liquidity necessities. The Dividend Kings solely must have raised their dividends for not less than 50 consecutive years.

3. Is there an ETF that tracks the Dividend Aristocrats?

Reply: Sure, the Dividend Aristocrats ETF (NOBL) is an exchange-traded fund that particularly holds the Dividend Aristocrats. For a extra detailed evaluation of dividend ETFs, click on right here.

4. What’s the distinction between the Dividend Aristocrats and the Dividend Champions?

Reply: The Dividend Aristocrats and Dividend Champions share one requirement, which is that an organization will need to have raised its dividend for not less than 25 consecutive years.

However just like the Dividend Kings, the Dividend Champions don’t should be within the S&P 500 Index, nor fulfill the assorted liquidity necessities.

5. Which Dividend Aristocrat has the longest lively streak of annual dividend will increase?

Presently, there are 4 Dividend Aristocrats tied at 66 years: Procter & Gamble, Real Elements, 3M Firm, and Dover Company.

6. What’s the common dividend yield of the Dividend Aristocrats?

Proper now, the common dividend yield of the 65 Dividend Aristocrats is 2.4%.

7. Are the Dividend Aristocrats secure investments?

Whereas there are by no means any ensures with regards to the inventory market, we imagine the Dividend Aristocrats are among the many most secure dividend shares with regards to the sustainability of their dividend payouts.

The Dividend Aristocrats have sturdy aggressive benefits that enable them to boost their dividends annually, even throughout a recession.

Different Dividend Lists & Closing Ideas

The Dividend Aristocrats checklist shouldn’t be the one method to shortly display screen for shares that often pay rising dividends.

There’s nothing magical concerning the Dividend Aristocrats. They’re ‘simply’ a group of high-quality shareholder pleasant shares which have robust aggressive benefits.

Buying a lot of these shares at honest or higher costs and holding for the long-run will possible end in favorable long-term efficiency.

You’ve gotten a alternative in what sort of enterprise you purchase into. You should purchase into the mediocre, or the superb.

Usually, wonderful companies are usually not costlier (based mostly on their price-to-earnings ratio) than mediocre companies.

“After we personal parts of excellent companies with excellent managements, our favourite holding interval is without end.”

– Warren Buffett

Disclaimer: Certain Dividend shouldn’t be affiliated with S&P World in any method. S&P World owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet is predicated on Certain Dividend’s personal evaluation, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person traders higher perceive this ETF and the index upon which it’s based mostly. Not one of the data on this article or spreadsheet is official knowledge from S&P World. Seek the advice of S&P World for official data.