S&P 500 Dividend Aristocrats

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The S&P 500 Dividend Aristocrats is a stock market index composed of the companies in the S&P 500 index that have increased their dividends in each of the past 25 consecutive years. It was launched in May 2005.[1]

There are other indexes of dividend aristocrats that vary with respect to market cap and minimum duration of consecutive yearly dividend increases.

Components are added when they reach the 25-year threshold and are removed when they fail to increase their dividend during a calendar year or are removed from the S&P 500. However, a study found that the stock performance of companies improves after they are removed from the index.[2]

The index has been recommended as an alternative to bonds for investors looking to generate income.[3]

Components[edit]

There are 64 companies in the index.[4][5]

Company Ticker symbol Sector
3M MMM Industrials
A.O. Smith AOS Industrials
Abbott Laboratories ABT Health Care
AbbVie ABBV Health Care
AFLAC AFL Financials
Air Products & Chemicals APD Materials
Albemarle Corporation ALB Materials
Amcor AMCR Materials
Archer-Daniels-Midland Co ADM Consumer Staples
Atmos Energy Corp ATO Utilities
Automatic Data Processing ADP Information Technology
Becton Dickinson & Co BDX Health Care
Brown & Brown Inc. BRO Financials
Brown–Forman (class B) BF.B Consumer Staples
Cardinal Health Inc CAH Health Care
Caterpillar Inc CAT Industrials
Chevron Corp CVX Energy
Chubb Limited CB Financials
Church & Dwight Co. Inc. CHD Consumer Staples
Cincinnati Financial Corp CINF Financials
Cintas Corp CTAS Industrials
Clorox CLX Consumer Staples
Coca-Cola Co KO Consumer Staples
Colgate-Palmolive CL Consumer Staples
Consolidated Edison Inc ED Utilities
Dover Corp DOV Industrials
Ecolab Inc ECL Materials
Emerson Electric EMR Industrials
Essex Property Trust ESS Real Estate
Expeditors International of Washington EXPD Industrials
Exxon Mobil Corp XOM Energy
Federal Realty Investment Trust FRT Real Estate
Franklin Resources Inc BEN Financials
General Dynamics GD Industrials
Genuine Parts Company GPC Consumer Discretionary
Hormel Foods Corp HRL Consumer Staples
Illinois Tool Works ITW Industrials
IBM IBM Information Technology
Johnson & Johnson JNJ Health Care
Kimberly-Clark KMB Consumer Staples
Linde plc LIN Materials
Lowe's LOW Consumer Discretionary
McCormick & Company MKC Consumer Staples
McDonald's Corp MCD Consumer Discretionary
Medtronic plc MDT Health Care
NextEra Energy NEE Utilities
Nucor Corp NUE Materials
Pentair PNR Industrials
PepsiCo PEP Consumer Staples
PPG Industries PPG Materials
Procter & Gamble PG Consumer Staples
Realty Income O Real Estate
Roper Technologies ROP Industrials
S&P Global Inc SPGI Financials
Sherwin-Williams SHW Materials
Stanley Black & Decker SWK Industrials
Sysco Corp SYY Consumer Staples
T Rowe Price Group Inc TROW Financials
Target Corp TGT Consumer Discretionary
VF Corporation VFC Consumer Discretionary
W. W. Grainger GWW Industrials
Walgreens Boots Alliance WBA Consumer Staples
Walmart Inc. WMT Consumer Staples
West Pharmaceutical Services Inc WST Health Care

Components history[edit]

The following are the changes to the components of the index since 2008:

In 2022, two companies were added to the index: Brown & Brown, Inc. (BRO) and Church & Dwight Co., Inc. (CHD).[5] AT&T Inc. (T) was removed due to its dividend cut[6] and People's United Financial, Inc. (PBCT) was removed when its merger with M&T Bank Corporation was finalized.[7]

In 2021, there were three additions to the index: IBM (IBM), NextEra Energy (NEE) and West Pharmaceutical Services (WST). Five companies were removed from the index: Raytheon (RTX), Carrier Global (CARR), Otis Worldwide (OTIS), Stryker Corporation (SYK) and Leggett & Platt (LEG), which was removed when it moved from the S&P 500 to the S&P MidCap 400.[8]

In 2020, there were 7 additions: Amcor (AMCR), Atmos Energy (ATO), Realty Income Corporation (O), Essex Property Trust (ESS), Ross Stores (ROST), Albemarle Corporation (ALB), and Expeditors International (EXPD) were added to the list effective prior to market open on February 3. United Technologies was renamed Raytheon Technologies after divestment of some divisions and remained in the index. Both spinoffs Carrier Global (CARR) and Otis Worldwide (OTIS) were added to the index effective prior to the market opening on April 3, 2020.[9]

Removals in 2020: Ross Stores (ROST) and Helmerich & Payne (HP). Ross Stores suspended its dividend on May 21 due to the COVID-19 pandemic and was removed from the index prior to market open on July 1, 2020

In 2019, Chubb Limited (CB), People's United Financial (PBCT), Caterpillar Inc. (CAT), and United Technologies (UTX) were added to the index.[10]

In 2016, Chubb Corp (CB) was removed upon acquisition by ACE Limited (ACE).

In 2015, Family Dollar Stores (FDO) was removed from the index due to its purchase by Dollar Tree. Sigma-Aldrich (SIAL) was removed from the list due to its acquisition by Merck Group.

In 2014, Bemis (BMS) was removed from the S&P 500 index and therefore removed from the index.

In 2013, Pitney Bowes (PBI) was removed after slashing the dividend from 37.5c to 18.75c per quarter per share.

In 2012, CenturyLink (CTL) was removed from the index. The following 9 companies were added to the index: AT&T (T), Colgate-Palmolive (CL), Franklin Templeton Investments (BEN), Genuine Parts Company (GPC), Health Care Property Investors (HCP), Illinois Tool Works (ITW), Medtronic (MDT), Sysco (SYY), and T. Rowe Price (TROW).

In 2011, Ecolab (ECL), Hormel Foods (HRL), and McCormick & Company (MKC) were added.

In 2010, ten companies were removed from the index: Avery Dennison (AVY), BB&T (BBT), Gannett (GCI), General Electric (GE), Johnson Controls (JCI), Legg Mason (LM), M&T Bank (MTB), Pfizer (PFE), State Street Bank (STT), and U.S. Bancorp (USB). Brown Forman (BF.B) was added.

In 2009, 9 companies were removed from the index: Anheuser Busch (BUD), Bank of America (BAC), Comerica (CMA), Fifth Third Bank (FITB), Keycorp (KEY), Progressive Corp (PGR), Regions Financial (RF), Synovus Financial (SNV), and Wrigley Company (WW), which was acquired by Mars, Incorporated. There were two additions: Bemis Company (BMS) and Leggett & Platt (LEG).

In 2008, the index contained 52 companies.[11]

References[edit]

  1. ^ "S&P 500 Dividend Aristocrats". S&P Global.
  2. ^ Strauss, Lawrence C. (February 14, 2020). "When Dividend Aristocrats Lose Their Status, Their Returns Often Improve". Barron's.
  3. ^ Carrel, Lawrence (July 30, 2020). "As More Firms Cut Dividends, Dividend Aristocrats Show Resilience". Forbes.
  4. ^ Hall, Jason (July 12, 2021). "S&P 500's Best Dividend Aristocrats". The Motley Fool.
  5. ^ a b Divine, John (February 10, 2022). "2022's Dividend Aristocrats List: All 65 Stocks". U.S. News & World Report.
  6. ^ "S&P Dow Jones Indices Announces Rebalancing Results for the S&P 500 Dividend Aristocrats" (PDF). S&P Dow Jones Indices. January 24, 2021.
  7. ^ "Constituent Change Announced for the S&P 500 Dividend Aristocrats Index" (PDF). S&P Dow Jones Indices. March 29, 2022.
  8. ^ "Signature Bank, SolarEdge Technologies and FactSet Research Systems Set to Join S&P 500; Others to Join S&P MidCap 400 and S&P SmallCap 600" (PDF). S&P Dow Jones Indices. December 3, 2021.
  9. ^ Strauss, Lawrence C. (February 7, 2020). "The 'Dividend Aristocrats' Add 7 New Members". Barron's.
  10. ^ Strauss, Lawrence C. (January 26, 2019). "4 Companies Have Joined the 'Dividend Aristocrats' — but Their Stocks Lag the Market". Barron's.
  11. ^ Soe, Aye M. (December 2008). "S&P 500 Dividend Aristocrats" (html). Standard & Poor's. Social Science Research Network.

External links[edit]