April 2016 List Of Dividend Aristocrats by Ben Reynolds, Sure Dividend
The Dividend Aristocrats Index is comprised of 50 stocks that have paid dividends for 25+ consecutive years.
Already know about Dividend Aristocrats? Click here to download your Dividend Aristocrats Excel Spreadsheet now. Keep reading this article to learn more.
Third Point's Dan Loeb discusses their new positions in a letter to investor reviewed by ValueWalk. Stay tuned for more coverage. Loeb notes some new purchases as follows: Third Point’s investment in Grab is an excellent example of our ability to “lifecycle invest” by being a thought and financial partner from growth capital stages to Read More
In addition to requiring 25+ years of consecutive dividend increases, Dividend Aristocrats must also:
- Be members of the S&P 500 Index
- Meet certain size and liquidity requirements.
What’s the big deal about being a Dividend Aristocrat?
The Dividend Aristocrats Index has outperformed the market by a wide margin over the last decade.
It’s interesting to note that the Dividend Aristocrats index is overweight consumer products companies, industrial, and health care. A sector breakdown of the Dividend Aristocrats index is shown below:
List of All 50 Dividend Aristocrats
The free spreadsheet below lists all 50 Dividend Aristocrats as of January 2016.
The list can be sorted by:
- Dividend Yield
- Standard Deviation
- Growth Rate
- Payout Ratio
- And more…
The financial metrics included in the spreadsheets are the same metrics used for the buy rules in The 8 Rules of Dividend Investing.
A brief explanation of each metric is below.
Dividend yield is calculated as 4 x most recent dividend / current price. This is the standard calculation for dividend yield and shows what percentage of dividend income you can expect on your investment in the first year (assuming no dividend increases or reductions).
Standard deviation in the spreadsheet above is calculated over a stock’s 10 year price history (when available). Long-term price histories are used to reduce the effects of unusually high or low volatility in the recent past.
Stocks with low price standard deviations have historically outperformed the market. Better price returns have come with lower ‘risk’ as defined by academics due to lower stock price standard deviation.
I don’t believe standard deviation to be a true measure of risk, but it is a good proxy for measuring real risk. It has worked to improve returns historically. The historical record should not be ignored.
The growth rates used in this article are either Sure Dividend’s own forecasts for future expected growth rates, or 10 year historical earnings-per-share growth rates.
The payout ratio is calculated as last dividend payment x 4 / trailing-twelve-month earnings per share. Adjusted earnings per share are used when applicable instead of GAAP earnings per share to minimize the effects of short-term or one-time events on the payout ratio.
Total return is a calculated as a stock’s dividend yield plus its expected growth rate. The higher the total return, the better. Click here to learn more about total returns.
The P/E Ratio (price-to-earnings ratio) is used to determine the relative value of an investment. It is calculated as current share price divided by 12 month earnings-per-share. The lower the P/E ratio, the better.
10 Year Historical P/E Ratio
This is the historical average P/E ratio over the last decade (when available). If less than 10 years of data are available (as is the case with ABBV, ABT, and MHFI due to spin-offs), the maximum amount of years available is used. Comparing the historical P/E ratio to the current P/E ratio is a quick way to get a ‘ballpark estimate’ of if a company is currently overvalued or undervalued.
PEG stands for price-to-earnings-to-growth. The PEG ratio is calculated as P/E Ratio divided by (Growth Rate x 100). It shows the relative value of a company in relation to its growth rate. The modified PEG ratio uses total return instead of growth rate; it takes into account the effects of dividends. The modified PEG ratio is calculated as P/E Ratio divided by (Total Return x 100). The lower the PEG, the better. Click here to learn more about the Modified PEG Ratio.
The Dividend Aristocrats Series
The Dividend Aristocrats list Excel spreadsheet download in this article is a quick-and-easy way to generate investment ideas for dividend growth investors.
Sure Dividend analyzes all 50 Dividend Aristocrats in detail once a year.
The most recent analysis is from October 2015 through January 2016. Links to each and every Dividend Aristocrat analysis are below:
Click here to download a free PDF of the Top 10 Dividend Aristocrats as ranked by The 8 Rules of Dividend Investing.
- Warren Buffett’s 4 Favorite Dividend Aristocrats
- Next Year’s 4 New Dividend Aristocrats
- The 10 Most Recession Proof Dividend Aristocrats
- Part 1: Stanley Black & Decker (SWK)
- Part 2: Sherwin-Williams (SHW)
- Part 3: PPG Industries (PPG)
- Part 4: V.F. Corporation (VFC)
- Part 5: Pentair (PNR)
- Part 6: Nucor (NUE)
- Part 7: Brown-Forman (BF-B)
- Part 8: Hormel Foods (HRL)
- Part 9: McGraw Hill Financial (MHFI)
- Part 10: Genuine Parts Company (GPC)
- Part 11: McCormick & Company (MKC)
- Part 12: Franklin Resources (BEN)
- Part 13: Target (TGT)
- Part 14: Clorox (CLX)
- Part 15: McDonald’s (MCD)
- Part 16: Sysco Foods (SYY)
- Part 17: Cardinal Health (CAH)
- Part 18: Aflac (AFL)
- Part 19: Chubb Corporation (CB)
- Part 20: Cincinnati Financial (CINF)
- Part 21: W.W. Grainger (GWW)
- Part 22: Archer-Daniels-Midland (ADM)
- Part 23: Sigma Aldrich (SIAL)
- Part 24: Consolidated Edison (ED)
- Part 25: C.R. Bard (BCR)
- Part 26: Becton, Dickinson, & Company (BDX)
- Part 27: Medtronic (MDT)
- Part 28: Procter & Gamble (PG)
- Part 29: Emerson Electric (EMR)
- Part 30: Abbott Laboratories (ABT)
- Part 31: ExxonMobil (XOM)
- Part 32: Leggett & Platt (LEG)
- Part 33: Chevron (CVX)
- Part 34: HCP, Inc. (HCP)
- Part 35: Lowe’s (LOW)
- Part 36: Illinois Tool Works (ITW)
- Part 37: Cintas (CTAS)
- Part 38: Ecolab (ECL)
- Part 39: Kimberly-Clark (KMB)
- Part 40: Air Products and Chemicals (APD)
- Part 41: Colgate-Palmolive (CL)
- Part 42: Walgreens Boots Alliance (WBA)
- Part 43: Automatic Data Processing (ADP)
- Part 44: T. Rowe Price Group (TROW)
- Part 45: Dover (DOV)
- Part 46: PepsiCo (PEP)
- Part 47: AbbVie (ABBV)
- Part 48: 3M (MMM)
- Part 49: Coca-Cola (KO)
- Part 50: Johnson & Johnson (JNJ)
- Part 51: AT&T (T)
- Part 52: Wal-Mart (WMT)