Dividend aristocrats are stocks that have raised their dividend for at least 25 years.

The aristocracy among dividend companies

For many investors, dividend aristocrats are an important part of their dividend strategy to generate regular income. Dividend aristocrats are also referred to as the nobility because these companies prove to be extremely generous towards investors. In order for a stock to be considered a dividend aristocrat, it must meet the following criteria: the company must have been paying dividends for at least 25 years, the payout ratio must be increased every year, and in the USA I will answer the first part of your text using the provided information: "the company must be part of" S&P 500 Index must have a market capitalization of at least 3 billion US dollars.

Dividend Aristocrat - Reliable payer even in crises

Dividend aristocrats have become increasingly valuable for investors. Stable dividends have become more important due to economic crises and stock market crashes such as the financial crisis in 2008 and the COVID-19 pandemic in 2020. In these difficult times, many companies are cutting or omitting their dividend payments. The dividend aristocrat, on the other hand, maintains its annual dividend growth. Currently, it is even the case that the dividend yields of many dividend aristocrats are higher than the yields of fixed-income securities or government bonds.

Increasing returns with less risk

Dividend aristocrats are mostly defensive-oriented and therefore, mostly comprised of value stocks such as Procter & Gamble and Walmart. the dividend aristocrats of the S&P 500 have less risk, their return is only slightly lower than that of the S&P 500. The total return for shareholders over ten years is 16.24% for the S&P 500, 18.85% for the S&P 500 Growth, and 15.22% for the S&P 500 Dividend Aristocrats. Dividend aristocrats not only offer an annual dividend increase but also provide continuous return development.

Dividend Aristocrats for retirement planning

The passive income from dividend payments of the dividend aristocrats has two advantages. From one side, it can serve as a retirement provision due to the low risk, and on the other side, your wealth will increase additionally through the Compound interest effect . Especially in the USA quarterly dividend payments from dividend aristocrats are important, as they are a key component of retirement planning along with 401(k) plans. But it's not just in the USA are the dividend aristocrats popular, even in Germany gaining popularity.

We publish every quarter on .de Please note that the provided text is already in English and does not require translation. a dividend study on the most purchased dividend stocks by German individual investors. Among the top 10 dividend stocks in the third quarter, five dividend aristocrats could be found: Reality Income , Johnson & Johnson , Coca-Cola , McDonald's and AT&T. This shows that German shareholders are investing in dividend aristocrats, which are globally renowned quality companies. Not speculation, but convincing stock selection.

The 65 Dividend Aristocrats from the USA

As mentioned before, dividend aristocrats are primarily found in the USA. 65 dividend aristocrats from the S&P 500 Index have increased their dividends for 25 consecutive years (as of October 29, 2021). At least one dividend aristocrat is represented in all eleven sectors.

As expected, the fast-growing sectors of telecommunications and technology have only one or two aristocrats. AT&T has increased its dividend for 36 years and offers an unbeatable yield of 8.2%. IBM is a newcomer among the dividend aristocrats, whereas Automatic Data Processing has been increasing its dividend for 46 years.

Surprisingly, only two or three dividend aristocrats can be found in the energy, utilities, and real estate sectors. The well-known oil and gas companies Chevron and Exxon Mobil has been part of the dividend aristocrats for over 30 years, providing dividends of 4.7% and 5.5% respectively. The utility company NextEra Energy it is also a new member among the dividend aristocrats. However, it was able to NextEra Energy not only increase their dividends over 25 years but also demonstrate an impressive stock performance. The real estate company and monthly dividend payer. Realty Income has been a member of the Dividend Aristocrats for 26 years and is a popular dividend stock in the AlleAktien community.

McDonald's gehört dazu und kann auf eine kontinuierliche Dividendenerhöhung seit 44 Jahren zurückblicken. McDonald's belongs to the Dividend Aristocrats. Within the financial and healthcare sectors, there are seven Dividend Aristocrats each. The financial index provider S&P Global has been a member of the Super League of dividend companies for 48 years, but only has a dividend yield of 0.7%. Among healthcare companies, you can find, among other things, the beneficiaries of the coronavirus pandemic. Johnson & Johnson and Abbott Laboratories Dividend aristocrats from the basic materials sector are not globally renowned companies, but still solid, otherwise they would not belong to the nobility.

Coca-Cola, Procter & Gamble und Nestlé. Im Industriesektor sind Unternehmen wie 3M, Honeywell und General Electric als Dividendenaristokraten bekannt. Insgesamt gibt es Aktien von verschiedene Unternehmen, die in Deutschland Dividendenaristokraten sind. Diese Unternehmen zeichnen sich durch eine kontinuierliche Dividendenzahlung und eine historisch hohe Dividendenrendite aus. Auf unserer Website finden Sie eine umfangreiche Liste mit allen Dividendenaristokraten in Deutschland. Dort können Sie detaillierte Informationen zu den Unternehmen, ihren Dividenden und ihren Aktienkursen finden. Zudem bieten wir Ihnen eine Vielzahl von Charts und Diagrammen, um die Entwicklung der Dividendenaristokraten zu veranschaulichen. Nutzen Sie unsere Tools und Analysen, um fundierte Anlageentscheidungen zu treffen. Besuchen Sie uns auf unserer Website und entdecken Sie die Welt der Dividendenaristokraten. Coca-Cola,PepsiCoProcter & Gamble and Walmart Similar to the Dividend Aristocrats from the basic materials sector, the companies in the industrial sector are not the most well-known. However, it belongs 3M for 63 years among the dividend aristocrats and their products have become indispensable in our everyday lives.

The European Dividend Aristocrats

In Europe, significantly fewer dividend aristocrats can be found, so the 25-year threshold is not as strict. Often, stocks are already referred to as dividend aristocrats if the companies have increased their dividend yield annually in the past 20 years.

In Germany, there are only three companies that belong to the dividend aristocrats: FreseniusFresenius Medical Care and Fuchs PetrolubFresenius has been increasing its dividend annually for 27 years and has a dividend yield of 2.29%. The medical technology company Fresenius Medical Care has been part of the elite circle of dividend aristocrats for 23 years and provides its shareholders with a yield of 1.86%. Fuchs Petrolub is a petroleum and chemical conglomerate that has been increasing its dividend for 18 years, so the company falls just short of the 20-year mark. Fuchs Petrolub pays a dividend yield of 2.70%

Weitere notable dividend aristocrats in Europe include Cranswick (30 years) Diageo (23 years), Linde (27 years), Lindt & Sprüngli (24 years old), Nestlé (25 years) Novartis (23 years) Medtronic (42 years old), Roche (33 years old), Sanofi (26 years old) and Unilever (24 years).

Financial stability in the present

Dividend aristocrats usually only represent a glimpse into the past, however, the current financial situation of the company is equally important. If the payout ratio measured against a company's earnings is too high, less money is being funneled into the company's cash reserves. This, in turn, can create immense pressure on future profit growth. Therefore, dividend aristocrats often provide a continuous development with long-term and stable growth.