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]

Contents

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]

To invest in the index, there are several exchange-traded funds (ETFs), which seek to replicate the performance of the index. One example would be NOBL by ProShares, which is traded in BATS. [4]

Components

There are 67 companies in the index. [5]

Company Ticker symbol Sector
A.O. Smith AOSIndustrials
Abbott Laboratories ABTHealth Care
AbbVie ABBVHealth Care
AFLAC AFLFinancials
Air Products & Chemicals APDMaterials
Albemarle Corporation ALBMaterials
Amcor AMCRMaterials
Archer-Daniels-Midland Co ADMConsumer Staples
Atmos Energy Corp ATOUtilities
Automatic Data Processing ADPInformation Technology
Becton Dickinson & Co BDXHealth Care
Brown & Brown Inc. BROFinancials
Brown–Forman (class B)BF.BConsumer Staples
Cardinal Health Inc CAHHealth Care
Caterpillar Inc CATIndustrials
C.H. Robinson CHRWIndustrials
Chevron Corp CVXEnergy
Chubb Limited CBFinancials
Church & Dwight CHDConsumer Staples
Cincinnati Financial Corp CINFFinancials
Cintas Corp CTASIndustrials
Clorox CLXConsumer Staples
Coca-Cola Co KOConsumer Staples
Colgate-Palmolive CLConsumer Staples
Consolidated Edison Inc EDUtilities
Dover Corp DOVIndustrials
Ecolab Inc ECLMaterials
Emerson Electric EMRIndustrials
Essex Property Trust ESSReal Estate
Expeditors International of Washington EXPDIndustrials
Exxon Mobil Corp XOMEnergy
Fastenal FASTIndustrials
Federal Realty Investment Trust FRTReal Estate
Franklin Resources Inc BENFinancials
General Dynamics GDIndustrials
Genuine Parts Company GPCConsumer Discretionary
Hormel Foods Corp HRLConsumer Staples
Illinois Tool Works ITWIndustrials
IBM IBMInformation Technology
The J. M. Smucker Company SJMConsumer Staples
Johnson & Johnson JNJHealth Care
Kenvue, Inc. KVUEConsumer Staples
Kimberly-Clark KMBConsumer Staples
Linde plc LINMaterials
Lowe's LOWConsumer Discretionary
McCormick & Company MKCConsumer Staples
McDonald's Corp MCDConsumer Discretionary
Medtronic plc MDTHealth Care
NextEra Energy NEEUtilities
Nordson Corp NDSNIndustrials
Nucor Corp NUEMaterials
Pentair PNRIndustrials
PepsiCo PEPConsumer Staples
PPG Industries PPGMaterials
Procter & Gamble PGConsumer Staples
Realty Income OReal Estate
Roper Technologies ROPIndustrials
S&P Global Inc SPGIFinancials
Sherwin-Williams SHWMaterials
Stanley Black & Decker SWKIndustrials
Sysco Corp SYYConsumer Staples
T Rowe Price Group Inc TROWFinancials
Target Corp TGTConsumer Discretionary
W. W. Grainger GWWIndustrials
Walmart Inc. WMTConsumer Staples
West Pharmaceutical Services WSTHealth Care

Components history

In 2008, the index contained 52 companies. [6]

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

In 2024, Fastenal Co. (FAST) was added and Walgreens Boots Alliance Inc. (WBA) and the 3M Company (MMM) were removed from the list. [7] [8]

In 2023, four companies were added to the list: CH Robinson Worldwide (CHRW), Nordson (NDSN), J.M. Smucker (SJM) and Kenvue (KVUE). [9] [10] VF Corporation (VFC) was removed after a cut to its dividend. [11]

In 2022, two companies were added to the index: Brown & Brown, Inc. (BRO) and Church & Dwight Co., Inc. (CHD). [12] AT&T Inc. (T) was removed due to its dividend cut [13] and People's United Financial, Inc. (PBCT) was removed when its merger with M&T Bank Corporation was finalized. [14]

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. [15]

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. [16]
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. [17]

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).

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References

  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. "ProShares S&P 500 Dividend Aristocrats ETF".
  5. Ciura, Bob (August 1, 2023). "2023 Dividend Aristocrats List". Sure Dividend .
  6. Soe, Aye M. (December 2008). "S&P 500 Dividend Aristocrats" (html). Standard & Poor's . Social Science Research Network. SSRN   1321681.
  7. https://www.spglobal.com/spdji/en/documents/indexnews/announcements/20240124-1470263/1470263_spdaudp2024rebalanceannouncement.pdf (PDF). January 24, 2024.
  8. https://www.bloomberg.com/news/articles/2024-04-30/3m-to-cut-dividend-on-health-care-spin-losing-aristocrat-status.
  9. "S&P Dow Jones Indices Announces Rebalancing Results for the S&P 500 Dividend Aristocrats" (PDF).
  10. "Constituent Change Announced for the S&P 500 Dividend Aristocrats Index" (PDF). S&P Dow Jones Indices . August 22, 2023.
  11. Assis, Claudia (February 7, 2023). "North Face parent blows past Wall Street quarterly expectations, cuts dividend". MarketWatch .
  12. Divine, John (February 10, 2022). "2022's Dividend Aristocrats List: All 65 Stocks". U.S. News & World Report .
  13. "S&P Dow Jones Indices Announces Rebalancing Results for the S&P 500 Dividend Aristocrats" (PDF). S&P Dow Jones Indices . January 24, 2021.
  14. "Constituent Change Announced for the S&P 500 Dividend Aristocrats Index" (PDF). S&P Dow Jones Indices . March 29, 2022.
  15. "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.
  16. Strauss, Lawrence C. (February 7, 2020). "The 'Dividend Aristocrats' Add 7 New Members" . Barron's .
  17. Strauss, Lawrence C. (January 26, 2019). "4 Companies Have Joined the 'Dividend Aristocrats' — but Their Stocks Lag the Market" . Barron's .