2024 Dividend aristocrats list (2024)

Dividend aristocrats are a special class of S&P 500 stocks. They have proven their commitment to dividends through thick and thin. The S&P 500 dividend aristocrats have raised their annual dividend payouts for 25 consecutive years.

What is a dividend aristocrat?

The S&P 500 Dividend Aristocrats is an index that S&P Dow Jones Indices maintains. It tracks the performance of that have increased dividends for at least 25 years.

There are 67 current dividend aristocrats, according to the S&P Dow Jones Indices fact sheet. But the number will soon drop to 66 stocks because 3M announced its plans to cut its dividend.

Noah Schwab, a certified financial planner at Stewardship Concepts Financial Services, said dividend aristocrats are among the best long-term investments. “These investments are one of the best ways to maintain purchasing power against inflation and generate growth at a modest rate.”

Raising dividends on an annual basis is a major financial commitment for a company. That’s especially true during recessions, market downturns and periods of heavy investment in products and services.

Dividends aristocrat list

S&P Dow Jones Indices maintains the S&P 500 Dividends Aristocrat index. It updates the list regularly to account for new members, dividend cuts and other factors These can include spinoffs and mergers.

In addition to the requirement of 25 consecutive years of dividend hikes, dividend aristocrats must:

• Maintain a market capitalization of at least $3 billion.
• Hold an average daily trading volume of at least $5 million.
• Maintain their status in the .

Dividend aristocrat additions

The dividend aristocrats list regularly gains new members.

The newest member of the dividend aristocrats list is Fastenal (FAST), which was added in February 2024.

Before Fastenal, Kenvue (KVUE) was added in August 2023. KVUE is a unique circ*mstance. The company has only been public since its initial public offering in May 2023. But S&P added it because former Kenvue parent company Johnson & Johnson is a constituent.

Dividend aristocrat removals

Dividend aristocrats are also regularly removed from the list.

Walgreens Boots Alliance (WBA) was booted in February 2024 when it cut its dividend. The company slashed it by nearly 50% to help strengthen its balance sheet.

In February 2023, VF Corp. (VFC) was dropped from the list. The drop occurred after the company implemented its first dividend cut in more than 50 years.

In April 2022, People’s United Financial Inc. (PBCT) was removed when it merged with M&T Bank Corp. (MTB).

List of dividend aristocrats

Here’s a look at the complete list of S&P 500 dividend aristocrats.

Top 10 dividend aristocrats by yield

A stock must increase its annual per-share dividend payment each year to be a dividend aristocrat. That doesn’t necessarily mean its dividend yield will rise each year, though.

Dividend investors often focus on dividend yield because it represents the hypothetical annual return.

Yield is calculated by dividing the annual per-share dividend by the share price. Therefore, a stock’s dividend yield and share price are inversely proportional. The higher a stock price rises, the lower the dividend yield falls, and vice versa.

The S&P 500’s overall dividend yield is about 1.8%. But many dividend aristocrats have higher yields.

A dividend stock’s total return is calculated by adding market gains to dividend income. It’s taken over a given period and divided by the price you paid when initially investing.

Because many dividend aristocrats have generated significant gains, their dividend yields have remained relatively stable. Decades of annual dividend hikes are offset by decades of market gains.

Dividend aristocrats list by yield

Here are the dividend aristocrats with the highest dividend yields, as of May 2024. The chart below excludes 3M because of the company’s plans to slash its dividend.

Dividend kings vs aristocrat

Dividend aristocrats that have increased dividends for at least 50 years are informally classified as dividend kings.

Dividend kings take all the reliability of the dividend aristocrats to the next level. Each has demonstrated stability and commitment to capital returns for more than half a century.

These dividend stocks can be an excellent investment for anyone looking for a reliable source of dividend income. Unfortunately, the downside to these dividend-paying stalwarts is that many generate little or no growth. Therefore, dividend kings may not be the best way for younger investors to grow their wealth.

On the other hand, dividend kings can be a great way to diversify an investment portfolio. Dividend payments are typically made regardless of the ups and downs of the stock market. Dividend kings can also be an excellent investment for retirees seeking regular dividend income.

Notable dividend kings

The longest-tenured dividend king in the S&P 500 dividend aristocrats is Dover Corp. (DOV) at 68 years. That’s followed by Procter & Gamble Co. (PG) at 68 years and Genuine Parts Co. (GPC) at 67 years.

Outside of the S&P 500, the longest-tenured dividend king is American States Water (AWR) at 69 years. Then, it’s Northwest Natural Holding (NWN) at 68 years and Parker Hannifin (PH) at 67 years.

Consolidated Edison (ED) became the newest dividend king when it raised its dividend in January 2024. Walmart (WMT) and S&P Global (SPGI) were among several stocks that joined the dividend kings in 2023.

Little-known dividend aristocrats

Many of the S&P 500 dividend aristocrats tend to be well-known companies They’re S&P 500 members that have been around for at least 25 years. However, not every S&P 500 dividend aristocrat may be a household name. Here are several dividend aristocrats with relatively small market capitalizations or trading volumes:

• C.H. Robinson Worldwide (CHRW)
• Federal Realty Investment Trust (FRT)
• Nordson (NDSN)
• Cincinnati Financial (CINF)
• W.W. Grainger (GWW)

How to invest in dividend aristocrats

Because the dividend aristocrats are considered such high-quality investments, they are relatively low-risk stocks for investors.

Dividend investors can construct their portfolios based on factors aligning with their personal investment goals. They can focus on high-yield, long-term total returns, future growth outlook or even certain sectors.

While dividend aristocrats are relatively low-risk, investors can mitigate risk even further by diversifying. That means spreading out their portfolios rather than only investing in one or two individual stocks.

Dividend aristocrat ETFs

Perhaps the easiest way to take a diversified approach is a dividend aristocrats exchange-traded fund. The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is one popular way for U.S. investors. It has exposure to all the dividend aristocrats in one ETF.

The FT Cboe Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG) is a smaller alternative. It features dividend aristocrats with lower trading volumes.

Pros and cons of dividend aristocrats

There are plenty of pros for investors to love about the dividend aristocrats. However, investors should also understand several cons before going all in.

Pros:

• Stable income. Dividend payments can be a reliable source of income even during market downturns or recessions.
• Strong financials. Dividend aristocrats have maintained annual dividend hikes through the worst macroeconomic conditions of the last 25 years. This should demonstrate their financial strength.
• Relatively low risk. Dividend aristocrats are blue-chip companies with well-established leadership positions in their respective markets. This makes them relatively low-risk investments.

Cons:

• Low growth. Dividend aristocrats are typically mature companies with limited revenue growth opportunities.
• Limited capital gains. Dividend stocks don’t often deliver market-leading capital gains.
• Dividends are taxable. Annual dividend payments are typically unique, taxable events.

Frequently asked questions (FAQs)