Dividend aristocrats are a group of dividend paying stocks on the S&P 500 with a 25+ year history of consecutive dividend increases. These companies are a great to look into when first starting your dividend investment journey since they are usually strong and large companies with decent fundamentals and stellar dividend histories.

Dividend Aristocrats (January 3rd, 2020)

Ticker Name Price Yield
ABBV AbbVie Inc. $86.89 USD 5.31%
ABT Abbott Laboratories $105.19 USD 1.67%
ADM Archer-Daniels-Midland Company $45.98 USD 3.11%
ADP Automatic Data Processing, Inc. $137.55 USD 3.31%
AFL Aflac Incorporated $36.02 USD 3.08%
alb Albemarle Corporation $86.86 USD 2.2%
AMCR Amcor plc $10.85 USD 5.3%
AOS A. O. Smith Corporation $53.73 USD 1.79%
APD Air Products and Chemicals, Inc. $293.86 USD 1.7%
ATO Atmos Energy Corporation $95.1 USD 3.63%
BDX Becton, Dickinson and Company $225.43 USD 1.4%
BEN Franklin Resources, Inc. $20.04 USD 4.04%
Cah Cardinal Health, Inc. $46.89 USD 4.11%
CAT Caterpillar Inc. $147.41 USD 3.49%
CB Chubb Limited $114.34 USD 2.68%
CINF Cincinnati Financial Corporation $77.89 USD 3.8%
CL Colgate-Palmolive Company $76.22 USD 2.86%
CLX The Clorox Company $210.41 USD 2.04%
CTAS Cintas Corporation $330.26 USD 0.77%
CVX Chevron Corporation $71.9 USD 8.83%
DOV Dover Corporation $108.24 USD 2.73%
ECL Ecolab Inc. $197.45 USD 1.19%
ED Consolidated Edison, Inc. $76.98 USD 4.94%
EMR Emerson Electric Co. $65.16 USD 3.07%
ESS Essex Property Trust, Inc. $199.6 USD 3.06%
EXPD Expeditors International of Washington, Inc. $91.77 USD 1.11%
FRT Federal Realty Investment Trust $72.99 USD 7.21%
GD General Dynamics Corporation $138.55 USD 3.85%
GPC Genuine Parts Company $94.74 USD 3.31%
GWW W.W. Grainger, Inc. $352.08 USD 1.66%
HRL Hormel Foods Corporation $48.51 USD 2.35%
ITW Illinois Tool Works Inc. $193.47 USD 1.66%
JNJ Johnson & Johnson $147.06 USD 2.67%
KMB Kimberly-Clark Corporation $146.34 USD 2.9%
KO The Coca-Cola Company $48.92 USD 3.33%
LEG Leggett & Platt, Incorporated $40.72 USD 4.91%
LIN Linde plc $236.43 USD 2.41%
LOW Lowe's Companies, Inc. $162.26 USD 1.36%
mcd McDonald's Corporation $218.68 USD 2.86%
MDT Medtronic plc $102.69 USD 2.75%
MKC McCormick & Company, Incorporated $189.89 USD 1.61%
MMM 3M Company $159.81 USD 4.58%
Nue Nucor Corporation $44.74 USD 2.7%
O Realty Income Corporation $61.1 USD 5.31%
PBCT People's United Financial, Inc. $10.15 USD 7.05%
pep PepsiCo, Inc. $137.2 USD 3.63%
PG The Procter & Gamble Company $137.26 USD 2.82%
PNR Pentair plc $45.79 USD 1.64%
PPG PPG Industries, Inc. $120.33 USD 1.72%
ROP Roper Technologies, Inc. $401.36 USD 0.5%
ROST Ross Stores, Inc. $91.05 USD 0%
SHW The Sherwin-Williams Company $705.67 USD 1.11%
SPGI S&P Global Inc. $356.98 USD 0.91%
SWK Stanley Black & Decker, Inc. $161.48 USD 2.15%
SYY Sysco Corporation $61.17 USD 3.58%
T AT&T Inc. $28.3 USD 9.15%
TGT Target Corporation $156.94 USD 1.69%
TROW T. Rowe Price Group, Inc. $127.52 USD 2.71%
UTX United Technologies Corporation $86.01 USD 0%
VFC V.F. Corporation $69.66 USD 3.45%
WBA Walgreens Boots Alliance, Inc. $35.4 USD 6.53%
WMT Walmart Inc. $137.14 USD 1.57%
XOM Exxon Mobil Corporation $34.28 USD 10.15%

Dividend aristocrats are usually well established companies that have a history of generating positive cash flow that can be used to pay their dividends. Since they have all been increasing dividend payments for over 25 years, they also will have a history of increasing profits since they need to be able to cover those increasing dividends.

Why should I care?

Dividend aristocrats are a great place to start your dividend journey since they pay a consistent increasing dividend. This increase of dividends every year increases your yield on cost making your yearly dividend earnings go up every year. This further increases your compounding since you can then use that extra money to purchase more dividend stocks and so on.

How do I invest in dividend aristocrats?

There are many ways that you can invest in the dividend aristocrats. One way to do it is to choose a basket of stocks from each industry within the aristocrats and purchase them. This will make sure that you have a diversified portfolio of dividend payers. Another approach you can take is to invest in a dividend aristocrat ETF like NOBL (ProShares S&P 500 Dividend Aristocrats ETF). This will give you exposure to all stocks in the dividend aristocrats and will have the most diversification.

Final Thoughts

Overall, dividend aristocrats are a good option when you want to build a portfolio of strong blue-chip companies that have a history of increasing dividends. You should not expect these companies to grow like a growth stock since they are mature, but rather expect to earn a relatively stable, increasing amount every year.

As always - this post is not to be taken as financial advice. Please consult a financial advisor before making any financial decisions.