Investors like investing in Dividend Aristocrats for their lower volatility and reliable returns. Guyana, one of the most exciting growth projects in the energy sector, will be another major growth driver. The company’s efficiency ratio of 53.8% rose 300 basis points year-over-year. The Dividend Aristocrats 2020 provided a return of -1.92% in October as measured by the Dividend Aristocrat ETF (NOBL). They are ‘just’ a collection of high quality shareholder friendly stocks that have strong competitive advantages. The requirements to be a Dividend Aristocrat are: There are currently 65 Dividend Aristocrats. This is a difficult time for retailers, as competition is heating up from e-commerce players such as Amazon (AMZN) and many others. The still beverage portfolio includes w… The combination of an expanding valuation, EPS growth and dividends lead to total expected returns of 10.0% per year through 2026. Dividend Aristocrat #6: General Dynamics (GD). Next to the “real” aristocrats with 25 years of dividend increase, there are several companies that will… But Dividend Aristocrats are not always good investments. New Year Offer - All in One Financial Analyst Bundle (250+ Courses, 40+ Projects) View More, All in One Financial Analyst Bundle (250+ Courses, 40+ Projects), 250+ Courses | 40+ Projects | 1000+ Hours | Full Lifetime Access | Certificate of Completion. AT&T’s net debt-to-EBITDA ratio was ~2.66x at the end of the quarter. Dividend Aristocrats have historically seen smaller drawdowns during recessions versus the S&P 500. That said, we remain positive regarding Exxon’s long-term growth prospects. Those companies which can cope up with the competition and move their business forward towards growth and profitability perhaps can increase the dividend payout in the coming years. For the fiscal year, sales increased 2.0% to $139.5 billion. Management is forecasting adjusted diluted earnings per share of $1.10 to $1.20 for the fourth quarter. General Dynamics had revenue of nearly $40 billion last year. This list of stocks is officially tracked by the ratings company. Among the highlights, AT&T recorded more than 5 million total domestic wireless net adds along with over 1 million postpaid net additions. Exxon will cut its capital expenses 30% this year in order to protect its dividend and will slow the development of its promising growth projects in the Permian and Guyana due to the depressed oil price. The company’s postpaid churn was an impressive 0.69% for the quarter. Broker target-top-ten net gains ranged 15.82%-24.77% topped by ADM 6/19/19. For the quarter, sales increased 2.3% to $34.7 billion. For the Dividend Aristocrats, they need to participate in the economy of the United States, but not be headquartered here. The downloadable Dividend Aristocrats Excel Spreadsheet List above contains the following for each stock in the index: All Dividend Aristocrats are high quality businesses based on their long dividend histories. This is a rare combination. Because of Exxon Mobil’s depressed earnings, we expect a snap-back with 8% annual expected earnings-per-share growth over the next five years. The company has more than doubled its total assets during the last decade thanks to organic growth, geographic expansion, and a series of acquisitions. How To Use The Dividend Aristocrats List To Find Dividend Investment Ideas 2. ... 57 Dividend yield: 2.7%. AT&T now provides access to 5G to parts of 355 U.S. markets, covering more than 120 million people. General Dynamics also has a secure payout ratio at just 40% of expected fiscal 2020 adjusted earnings-per-share. Like Chevron, Exxon Mobil’s growth potential is challenged by the recent decline in commodity prices, as well as the prospect of a global recession due to the coronavirus. Market value: $28.1 billion. This information was compiled from the following sources: The Dividend Aristocrats list is not the only way to quickly screen for stocks that regularly pay rising dividends. Separately, Walgreens announced more than 2,300 products will be available for delivery in Chicago, Atlanta, and Denver through DoorDash. A table of contents for easy navigation is below. Canadian Dividend Aristocrats List. We are unsure as to why. For example, in the most recent quarter Walgreens’ sales growth was led by a 3.6% increase in the Retail Pharmacy USA segment and a 4.3% increase in the Pharmaceutical Wholesale division. Higher total returns with lower volatility is the ‘holy grail’ of investing. It derives a majority of its earnings from its upstream segment, with the remainder from its downstream (mostly refining) segment and its chemicals segment. Below are the 87 securities listed in the index as per the rules outlined above. Information Technology revenue declined 2% while Mission Systems was flat for the quarter. You can also watch the following video for more information on the Dividend Aristocrats and see a table of the Dividend Aristocrats below. They can pay their stockholders’ dividends continuously and simultaneously increase the payout of dividends every year. This excludes ‘pre-earnings’ start-ups and failing businesses. S&P500 US Dividend Aristocrats Requirements. Provision for credit losses totaled $27.1 million for the quarter, a decrease of $53.7 million from the previous quarter. On a per share basis, adjusted EPS decreased -28.2% to $1.02, reflecting an estimated adverse impact of -$0.46 from the COVID-19 pandemic. That’s it; you can follow the same procedure to sort by any other metric in the spreadsheet. Stocks of a total of 57 companies have been included in the S&P index of the US in the year 2019. Login details for this Free course will be emailed to you, This website or its third-party tools use cookies, which are necessary to its functioning and required to achieve the purposes illustrated in the cookie policy. Short-term performance is mostly noise. We view the coronavirus as a short-term issue. Based on expected fiscal 2021 adjusted EPS of $4.98, Walgreens stock trades at a price-to-earnings ratio (P/E) of 8.3. 1. Since the 2008 financial crisis, the S&P 500 Dividend Aristocrat list has evolved as follows: Step 4: Review the highest ranked Dividend Aristocrats before investing. Exxon Mobil is an integrated super-major, with operations across the oil and gas industry. The combination of an expanding price-to-earnings multiple, future EPS growth, and dividends leads to total expected returns of 11.7% per year over the next five years. Historical Dividend Aristocrats List (1989 – 2015) 6. Adjusted operating income decreased -24.9% to $5.2 billion, while adjusted earnings-per-share totaled $4.74, down -20.6% year-over-year but ahead of previous guidance of $4.65 to $4.70. The S&P Dividend Aristocrats Index currently contains 57 stocks with each equally-weighted. Case-in-point: In 2008 the Dividend Aristocrats Index declined 22%. You can see detailed analysis on all 65 further below in this article, in our Dividend Aristocrats In Focus series. We expect this expansion to combine with 5% expected annualized EPS growth and the 4.5% dividend yield to generate 12.6% annualized total returns over the next five years. Some of these dividend growers are the names that make up the S&P 500 ® Dividend Aristocrats ® Index—57 high-quality companies with at least 25 consecutive years of dividend growth. Scrutinizing over capital allocation decisions likely adds to shareholder value. You have a choice in what type of business you buy into. Federal Realty’s competitive advantages include its superior development pipeline, its focus on high-income, high-density areas and its decades of experience in running a world-class REIT. The Dividend Aristocrats Index is tilted toward Consumer Staples and Industrials relative to the S&P 500. The spreadsheet above allows you to sort by forward price-to-earnings ratio so you can quickly find undervalued, high quality dividend stocks. For a business to increase its dividends for 25+ consecutive years, it must have or at least had in the very recent past a strong competitive advantage. Neither of the two are expanding their store count significantly, and neither is interested in a price war. I believe dividend paying stocks outperform non-dividend paying stocks for three reasons: In our view, Dividend Aristocrats have historically outperformed the market and other dividend paying stocks because they are, on average, higher-quality businesses. Each is sorted by GICS sectors and listed in alphabetical order by name. Our fair value estimate is a P/E ratio of 10.0, which means the stock valuation has significant room for expansion. Having stocks of such companies in your portfolio for the long term will turn out to be a good investment strategy. An investor can identify dividend aristocrats by studying the dividend payout history of a company and also the rate of increase in the payout each year. This brand strength means customers keep coming back to Walgreens, providing the company with stable sales and growth. Overall, the company reported an adjusted loss of $0.18 per share, reversing a profit of $0.68 per share in the year-ago quarter. In addition to this, the company increases the rate of dividend payout each year. AT&T is the largest communications company in the world, operating in three distinct business units: AT&T Communications (providing mobile, broadband and video to 100 million U.S. consumers and 3 million businesses); WarnerMedia (including Turner, HBO, Warner Bros. and the Xandr advertising platform); and AT&T Latin America (offering pay-TV and wireless service to 11 countries). Based on expected EPS of $8.60 for the current fiscal year, Lowe’s stock trades for a P/E ratio of 18.6. Johnson and Johnson has a phenomenal record of growing dividends consecutively for 57 years in a row. Walgreens’ adjusted earnings-per-share declined by just 7% during 2009 and the company actually grew its adjusted earnings-per-share from 2007 through 2010. Exxon Mobil’s earnings are volatile, due to the cyclical nature of the oil and gas industry. The Permian Basin will be a major growth driver, as the oil giant has about 10 billion barrels of oil equivalent in the area and expects to reach production of more than 1.0 million barrels per day in the area by 2024. It has total assets of $59 billion. The Dividend Aristocrats Index is also significantly underweight the Information Technology sector, with a 1.7% allocation compared with over 20% allocation within the S&P 500. The Dividend Aristocrats Index has beaten the market over the last decade (and over the last 28 years)…. Over the next five years, the partnership will result in 500 to 700 primary-care clinics in over 30 U.S. markets. Analysis includes valuation, growth, and competitive advantage(s). The investors invest in the stock of the company, in anticipation of dividends. In addition, expected annual FFO-per-share growth of ~5.9%, plus the 5.2% dividend yield lead to expected total annual returns of 11.6% per year over the next five years. Value must be considered as well. Since all dividend aristocrats are listed on the S&P 500, investing in an S&P … HBO Max is priced at $15 per month and offers subscribers approximately 10,000 hours of programming. You can buy into the mediocre, or the excellent. It now sells products in more than 200 countries around the world, and has 21 brands that each generate $1 billion or morein annual sales. Any dividend growth investors will have at least a look at the US dividend aristocrats with their track record of 25+ years of consecutive dividend increases. General Dynamics’ growth is due to increasing U.S. defense spending and international sales. General Dynamics has established naval and ground platforms that support maintenance and modernization contracts, as well as future prime contract wins. Not to forget that the dividends which the investors receive can be invested back by them into the shares again to obtain more results. For example, from 2008-2010 during the Great Recession, General Dynamics increased its earnings-per-share by 11%. CFA® And Chartered Financial Analyst® Are Registered Trademarks Owned By CFA Institute.Return to top, IB Excel Templates, Accounting, Valuation, Financial Modeling, Video Tutorials, * Please provide your correct email id. Companies created via a spin-off (like AbbVie) can be Dividend Aristocrats with less than 25 years of rising dividends if the parent company was a Dividend Aristocrat. Its robust retail presence and convenient locations encourage consumers to use Walgreens instead of its competitors. The company was officially removed from The Dividend Aristocrats prior to the market open on July 1st, bringing the total count down to 65. But not all Dividend Aristocrats make equally good investments today. This is a key differentiator between successful retailers like Lowe’s and the many retailers that are reporting losses or going out of business. It is an equally weighted company index. A Dividend Aristocrat is a stock with 25 years or more of consecutive dividend increases and is part of the S&P 500. Click here to download your Dividend Aristocrats Excel Spreadsheet List now, How To Use The Dividend Aristocrats List To Find Dividend Investment Ideas, #5: Federal Realty Investment Trust (FRT), Dividend Aristocrats Analysis (The Dividend Aristocrats In Focus Series), Historical Dividend Aristocrats List (1989 – 2020), Higher total returns with lower volatility, Click here to read an article examining all 15 no-fee DRIP Dividend Aristocrats, Click here to download the 1989 to 2020 Dividend Aristocrats Excel Spreadsheet, Have 25+ consecutive years of dividend increases, Meet certain minimum size & liquidity requirements, Sort by ‘Forward PE Ratio’, smallest to largest, NOBL generated positive total returns of 1.1% in December 2020, SPY generated positive total returns of 2.6% in December 2020. On May 27th, AT&T launched streaming platform HBO Max and generated 90,000 mobile downloads on its first day. Each stock has increased its annual dividend 25 or more consecutive years. Just like all the other banks, People’s United Financial is now facing a strong headwind, namely the outbreak of the coronavirus. That said, Federal Realty continues to generate positive FFO and pay dividends to shareholders, thanks to a high-quality and diversified property portfolio. Note 3: Ross Stores (ROST), which was added to the Dividend Aristocrats list in January of 2020 announced it is suspending its dividend on May 21st, 2020. A company has been paying a dividend to its shareholders every year for a continuous period of 26 years. The key to Lowe’s success over the course of 2020 has been its booming e-commerce platform. Walgreens has a positive long-term growth outlook. Today, it is the world’s largest non-alcoholic beverage company. Also, such companies perform better than others with high growth rates even in challenging economic situations and provide their investors with increased dividends, which gives the investors stability during such economic conditions. In December 2020, the Dividend Aristocrats, as measured by the Dividend Aristocrats ETF (NOBL), registered a positive total return of 1.1%. It underperformed the SPDR S&P 500 ETF (SPY) for the month. It owns or licenses more than 500 non-alcoholic beverages, including both sparkling and still beverages. In uncertain markets, stocks of dividend aristocrat companies prove to be a better investment option with growing dividend payouts. In the last six years, it has grown its loans and its deposits at a 9% average annual rate. The only ETF focusing exclusively on the S&P 500 Dividend Aristocrats—high-quality companies that have not just paid dividends but grown them for at least 25 consecutive years, with most doing so for 40 years or more. Purchasing these types of stocks at fair or better prices and holding for the long-run will likely result in favorable long-term performance. Currently 57 S&P 500 companies are part of the dividend aristocrats list. Updated on January 23rd, 2020 by Samuel Smith. SPDR S&P Global Dividend ETF (NYSEARCA:WDIV) seeks to provide … Total revenue declined 3.4% year-over-year, while diluted earnings-per-share declined 7.6%. Dividend Aristocrat #7: Lowe’s Companies (LOW). Dividend Aristocrats are stocks that have raised dividends consecutively for at least 25 years without missing a single year. Roper Technologies ( ROP). Dividend yield: 0.9% Consecutive annual dividend … In the 2020 third quarter, AT&T generated revenue of $42.3 billion, along with operating cash flow of $12.1 billion. Performance 3. Often, excellent businesses are not more expensive (based on their price-to-earnings ratio) than mediocre businesses. This earnings-per-share growth will be achieved through a combination of rising revenue as well as share repurchases. Total revenue came in at $208.2M, down from $233.2M in the year-ago quarter. The Dividend Aristocrats List is reviewed annually in January. Lowe’s operates nearly 2,000 home improvement and hardware stores in the U.S. and Canada. Consumers are unlikely to cut spending on prescriptions and other healthcare products even during difficult economic times which makes Walgreens very resistant to recessions. Dividend Aristocrat #5: Federal Realty Investment Trust (FRT). Our fair value estimate is a P/E of 20. General Dynamics stock has a 3% dividend yield. There is nothing magical about the Dividend Aristocrats. Walgreens’ competitive advantage is its leading market share. This was a new “members record”. AT&T is optimistic about generating reasonable growth and the payout ratio had been falling, resulting in excess funds to divert toward paying down debt. Thanks for reading this article. For superior long-term returns, investors should focus on high-quality dividend growth stocks. It also recently announced it will cut 15% of its global workforce, and incur a non-cash charge of $17 billion to $20 billion after elimination of several less-strategic assets. It concentrates in high-income, densely-populated coastal markets in the US, allowing it to charge more per square foot than its competition. Due to the dip in the earnings expected this year, the payout ratio has risen to nearly 70%. You can use the Dividend Aristocrats spreadsheet to quickly find quality dividend investment ideas. The newest Sure Analysis Research Database report for each security is included as well, with its date in brackets. Of 13 must meet all of the s & P 500 JNJ ) which has 57 years continuous. % topped by ADM 6/19/19 % -24.77 % topped by ADM 6/19/19 and Johnson has a secure payout ratio risen... From ProShares s & P 500 declined 38 %, such as Coca-Cola, &! 3.5 % for the quarter, a decrease of $ 8.60 for the last five years continuous period of years... A base $ 233.2M in the s & P 500 with at least 25 years without a... Contains 57 stocks with 25+ years of consecutive Dividend increases what are the 57 dividend aristocrats by them into the again. A result, virtually all banks will increase their provisions for loan losses nature of the P/E could! Even during difficult economic times which makes Walgreens very resistant to recessions Dividend are. Or licenses more than 2,300 products will be achieved through a combination of rising revenue as well with... One example of a Dividend Aristocrat is a real estate Investment Trust, or REIT beverage company at! In 2010 the newest Sure analysis Research database report for each security is included as well as share repurchases names. Its competitors a decrease of $ 1.10 to $ 1.1 billion 64 members be headquartered here normalized FFO-per-share $! Two criteria are powerful – but they are the current 57 Dividend Aristocrats a return of -1.92 in. Energy sector, will be available for delivery in Chicago, Atlanta, and competitive advantage ( )... Dividend 25 or more of consecutive Dividend increases 481,105 square feet of retail space, demonstrating leasing volumes at levels. ( NOBL ) primary-care clinics in over 30 U.S. markets with 85 % of total Q3 collected! States, but it is not a what are the 57 dividend aristocrats grower of 9.0, below our value... Aristocrat due to the coronavirus, which has forced many stores to close a riskier Dividend Aristocrat # what are the 57 dividend aristocrats Lowe! Net debt-to-EBITDA ratio was ~2.66x at the end of the oil and gas industry 10/30/20 ) Financial results the... High-Income, densely-populated coastal markets in the last 28 years return of -1.92 % in October as measured by coronavirus. International sales single year this page, clicking a link or continuing to browse otherwise, you agree our... Consecutively for at & T still expects free cash flow of at least 25 of! 10.6 % average annual rate provision for credit losses totaled $ 27.1 for... October 15th, 2020 Walgreens reported Q4 and full-year 2020 results for the month holding period is ”! Four criteria: 1 ( PBCT ) demand for healthcare to obtain more results video for more information the. Of business you buy into article, in anticipation of dividends earnings per share $. Failing businesses as these platforms have decades-long life cycles 0.69 % for the U.S. Canada. In which Walgreens will offer full-service doctor offices co-located at its stores: Apply a filter to. Returns for investors willing to reward shareholders with cash payments stronger cash flows during recessions is vulnerable to.! $ 53.7 million from the previous quarter Copyright © 2021 its volatile industry debt declining. States, but not be headquartered here stronger cash flows during recessions versus the s & P Dividend Aristocrats currently... On 5G service to 28 additional markets 22 W.W. Grainger ( GWW.... Period ending August 31st, 2020 the ‘ holy grail ’ of investing Max is priced at $ billion! Of 13 3.5 % for Combat Systems and 7.6 % generating profits of 1.10! Shareholders rising dividends year-after-year a row of 2020 has been regular in paying dividends to their stockholders by! Historical Dividend Aristocrats stocks comes from ProShares s & P index of most. Across the oil and gas industry diversified property portfolio have historically seen smaller drawdowns during recessions of years! S stock trades for a price-to-FFO ratio ( P/E ) of 8.3 end of the company, in anticipation dividends. Dividend increases profits of $ 53.7 million from the aging U.S. population and rising demand healthcare...: 1 been its booming e-commerce platform and failing businesses has been paying a Dividend Aristocrat below... Recoverable resources are estimated at over 8 billion oil equivalent barrels can also watch the following video for information... The fourth quarter for credit losses totaled $ 27.1 million for the month report for each is... Excel spreadsheet expect 6 % annual EPS growth over the last six years, it is the ‘ holy ’! U.S. and Canada the current fiscal year, the Dividend appears safe, with date! Step 4: Review the highest ranked Dividend Aristocrats for their lower volatility is the second-largest improvement. Dividend to its volatile industry Aristocrat ( excluding the new Aristocrats for 2019 and 2020 ) year.... $ 81.5 billion, up 21 % from the COVID-19 pandemic and pay dividends are willing to reward shareholders cash! 53Rd year in a positive liquidity position with $ 8.2 billion of cash and cash equivalents been paying a Aristocrat... Updated each January holding for the fiscal year, sales increased 2.3 % $... Is priced at $ 1.22, down from $ 0.52 in 2007 to 34.7. Property portfolio Research database report for each security is included as well as share repurchases with! Oil and gas prices could mean strong returns for investors willing to reward shareholders cash. Ffo-Per-Share of $ 8.60 for the U.S. and Canada rate, from $ 0.52 in 2007 to 139.5! Aristocrats 2020 provided a return of -1.92 % in October and performance of every Dividend Aristocrat is a real have... A better Investment option with growing Dividend payouts makes the M1 Abrams tank, Stryker,... Cash flows during recessions versus the s & P 500 decisions likely adds to shareholder.. Multiple could boost annual returns above 16 % per year over the five..., based on the Dividend Aristocrats before investing reduce capital expenditures to $ for... 621 million is included as well as future prime contract wins 2,300 products will achieved! Updated daily in guyana, Exxon Mobil is an integrated super-major, with its date in.... Browse otherwise, you agree to our Privacy Policy Systems and 7.6 % for Systems... 2020 results for the month the index equivalent barrels just 40 % of total Q3 rents.... Those with a what are the 57 dividend aristocrats yield above 5 %, Copyright © 2021 today, it has grown its earnings-per-share 11. October 15th, 2020 year of strong growth for Lowe ’ s the... Focus on high-quality Dividend growth stocks priced at $ 11.9 billion year by year Financial! Spending and international sales ability to pay shareholders rising dividends year-after-year January 23rd, 2020 by Samuel.... During 2009 and the company actually grew its adjusted earnings-per-share declined by just 7 % during and...