In this article I discuss the 2019 Dividend Aristocrats. The Dividend Aristocrats are U.S. stocks that that have grown their dividend for 25+ years in a row. The stock must also be included in the S&P 500 and have a minimum market capitalization of $3B. For this reason, a Dividend Aristocrat can also be a Dividend Champion but not vice-versa. These stocks can be found in the S&P 500 Dividend Aristocrats index. There are currently 57 constituents of the index. Note that it is possible for a company to be a Dividend Aristocrat and also a Dividend King. Dividend Kings have raised the dividend for at least 50 consecutive years. I have previously provided a list of Dividend Kings. You can also see the list of Dividend Champions.
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Additions to the Dividend Aristocrats in 2019
The list of Dividend Aristocrats in 2019 is a fairly select list since there are only 57 companies. This is out of the over 4,000 companies listed on stock exchanges at end of 2018. These companies have survived periods of inflation, stock market crashes, global crises and deep recessions. They may not have grown revenue and earnings per share every year, but they annually raised the dividend without fail for 25 years straight. The most recent members are Chubb (CB), People’s United Financial (PBCT), Caterpillar (CAT), and United Technologies (UTX).
Dividend Aristocrats by Sector
Stocks from the consumers staples sector have the greatest representation on the list of Dividend Aristocrats at 23.7%. This is likely due to relatively stable earnings and cash flow characteristics of these stocks. In addition, these companies tend to grow earnings over time permitting dividend increases. The second sector with high representation is industrials. This class of stocks tend to have somewhat more volatile earnings and cash flows but may have low payout ratios letting them grow the dividends during recessions and economic downturns. The sector breakdown for the 57 Dividend Aristocrats is seen in the chart below. The sector composition has changed with time due to changes in the S&P 500 index composition. Additionally, the Great Recession caused many previous Dividend Aristocrats to freeze or even cut their dividend. These mostly financial stocks were dropped from the list of Dividend Aristocrats. A few industrial stocks were also dropped from the list. In fact, between 2009 and 2010 nineteen companies were dropped from the list of Dividend Aristocrats.
Facts on the Current Dividend Aristocrats
The largest Dividend Aristocrat by market capitalization is Johnson & Johnson (JNJ). Combined the 57 Dividend Aristocrats have a total market capitalization of over $4T. The smallest Dividend Aristocrat is Leggett & Platt (LEG). The one with the highest yield is AT&T (T) and the one with the lowest yield is Roper Technologies Inc (ROP). Dover Corp (DOV) is the Dividend Aristocrat with longest streak of consecutively increasing the dividend at 64 years. The two newest Dividend Aristocrats are A.O. Smith (AOS) and United Technologies (UTX) with 24 straight years of increasing the dividend. On average the Dividend Aristocrats have a yield of about 2.5%, which is greater than the broader market average. The average 10-year dividend growth rate is approximately 8.9% and the average payout ratio is ~55%. As a group, the Dividend Aristocrats have exhibited higher returns with lower volatility compared with the S&P 500 resulting in higher Sharpe ratios. Over the past ten years, the Dividend Aristocrats have had an annualized return of 14.74% and a standard deviation of 11.29%, while the S&P 500 has had an annualized return of 13.45% and a standard deviation of 12.57%.
The Dividend Aristocrat list serves as a screen for further investigating a stock for a dividend growth portfolio. It is a list of companies with stable businesses that have competitive advantages and have returned cash to shareowners consistently through dividends and in some cases buybacks.
List of Dividend Aristocrats in 2019
| Company Name | Ticker | Industry | No. Year | Dividend Yield (%) | 10-yr Dividend Growth Rate (%) | Payout Ratio (%) | Market Cap |
|---|---|---|---|---|---|---|---|
| Dover Corp. | DOV | Machinery | 64 | 2.09 | 9.7 | 47.12 | $ 13,850 |
| Genuine Parts Co. | GPC | Distributors | 63 | 3.38 | 6.3 | 56.59 | $ 13,400 |
| Procter & Gamble Co. | PG | Household Products | 63 | 2.48 | 6.2 | 201.59 | $ 308,650 |
| Emerson Electric | EMR | Electrical Equipment | 62 | 3.29 | 4.7 | 62.42 | $ 37,140 |
| 3M Company | MMM | Industrial Conglomerates | 61 | 3.56 | 10.5 | 70.07 | $ 95,230 |
| Cincinnati Financial | CINF | Insurance | 59 | 1.99 | 3.2 | 30.23 | $ 18,880 |
| Johnson & Johnson | JNJ | Pharmaceuticals | 57 | 2.96 | 7.0 | 63.02 | $ 347,830 |
| Coca-Cola Company | KO | Beverages | 57 | 2.91 | 7.5 | 94.67 | $ 238,680 |
| Colgate-Palmolive Co. | CL | Household Products | 56 | 2.32 | 7.8 | 63.24 | $ 64,380 |
| Hormel Foods Corp. | HRL | Food Products | 53 | 1.97 | 15.0 | 46.15 | $ 23,170 |
| Federal Realty Inv. Trust | FRT | Equity Real Estate Investment Trusts (REITs) | 52 | 3.25 | 4.9 | 127.27 | $ 9,860 |
| Stanley Black & Decker | SWK | Machinery | 52 | 2.08 | 7.4 | 49.11 | $ 21,360 |
| Target Corp. | TGT | Multiline Retail | 52 | 2.47 | 15.4 | 44.30 | $ 56,810 |
| Sysco Corp. | SYY | Food & Staples Retailing | 49 | 2.10 | 5.0 | 54.55 | $ 38,540 |
| W.W. Grainger Inc. | GWW | Trading Companies & Distributors | 48 | 2.10 | 13.2 | 39.24 | $ 15,300 |
| Leggett & Platt Inc. | LEG | Household Durables | 48 | 4.30 | 4.0 | 74.77 | $ 5,190 |
| PPG Industries Inc. | PPG | Chemicals | 48 | 1.84 | 5.9 | 41.05 | $ 26,900 |
| Becton Dickinson & Co. | BDX | Health Care Equipment & Supplies | 47 | 1.21 | 10.2 | 77.00 | $ 70,750 |
| Kimberly-Clark Corp. | KMB | Household Products | 47 | 2.92 | 6.2 | 77.88 | $ 50,000 |
| PepsiCo Inc. | PEP | Beverages | 47 | 2.79 | 8.0 | 45.26 | $ 193,670 |
| Nucor Corp. | NUE | Metals & Mining | 46 | 3.27 | 1.5 | 22.50 | $ 15,420 |
| S&P Global Inc. | SPGI | Capital Markets | 46 | 0.88 | 8.6 | 28.93 | $ 65,790 |
| VF Corp. | VFC | Textiles, Apparel & Luxury Goods | 46 | 2.10 | 12.5 | 55.84 | $ 34,290 |
| Wal-Mart Inc. | WMT | Food & Staples Retailing | 46 | 1.86 | 8.3 | 46.19 | $ 328,840 |
| Consolidated Edison | ED | Multi-Utilities | 45 | 3.33 | 2.0 | 70.31 | $ 29,730 |
| Illinois Tool Works | ITW | Machinery | 45 | 2.86 | 11.3 | 57.45 | $ 49,710 |
| Archer Daniels Midland | ADM | Food Products | 44 | 3.68 | 9.9 | 61.40 | $ 21,300 |
| Automatic Data Proc. | ADP | IT Services | 44 | 1.86 | 10.0 | 60.31 | $ 75,640 |
| Walgreens Boots Alliance Inc. | WBA | Food & Staples Retailing | 44 | 3.57 | 15.0 | 37.20 | $ 47,020 |
| McDonald’s Corp. | MCD | Hotels, Restaurants & Leisure | 43 | 2.12 | 9.9 | 60.18 | $ 171,260 |
| Pentair Ltd. | PNR | Machinery | 43 | 2.00 | 4.4 | 32.88 | $ 6,250 |
| Clorox Company | CLX | Household Products | 42 | 2.68 | 8.0 | 66.98 | $ 20,440 |
| Medtronic plc | MDT | Health Care Equipment & Supplies | 42 | 2.00 | 11.9 | 65.85 | $ 147,000 |
| Sherwin-Williams Co. | SHW | Chemicals | 41 | 0.86 | 9.4 | 39.07 | $ 49,440 |
| Franklin Resources | BEN | Capital Markets | 39 | 3.96 | 13.2 | 41.11 | $ 13,740 |
| AFLAC Inc. | AFL | Insurance | 37 | 2.15 | 8.0 | 26.21 | $ 37,600 |
| Air Products & Chem. | APD | Chemicals | 37 | 2.05 | 9.6 | 59.49 | $ 50,500 |
| ExxonMobil Corp. | XOM | Oil, Gas & Consumable Fuels | 37 | 5.08 | 7.6 | 83.86 | $ 298,460 |
| Cintas Corp. | CTAS | Commercial Services & Supplies | 36 | 0.78 | 16.1 | 25.50 | $ 28,020 |
| Brown-Forman Class B | BF-B | Beverages | 35 | 1.13 | 8.1 | 44.56 | $ 28,310 |
| AT&T Inc. | T | Diversified Telecommunication Services | 35 | 5.79 | 2.3 | 89.47 | $ 261,050 |
| McCormick & Co. | MKC | Food Products | 33 | 1.40 | 9.0 | 44.71 | $ 21,830 |
| T. Rowe Price Group | TROW | Capital Markets | 33 | 2.75 | 11.3 | 38.24 | $ 26,790 |
| Chevron Corp. | CVX | Oil, Gas & Consumable Fuels | 32 | 4.04 | 5.9 | 61.74 | $ 228,040 |
| General Dynamics | GD | Aerospace & Defense | 28 | 2.13 | 10.5 | 36.14 | $ 55,920 |
| Ecolab Inc. | ECL | Chemicals | 27 | 0.89 | 12.2 | 34.33 | $ 61,060 |
| People’s United Financial | PBCT | Banks | 27 | 4.94 | 1.8 | 55.47 | $ 5,940 |
| Caterpillar Inc. | CAT | Machinery | 26 | 3.46 | 7.7 | 40.12 | $ 68,480 |
| Chubb Limited | CB | Insurance | 26 | 1.92 | 10.2 | 36.99 | $ 72,660 |
| Linde Plc | LIN | Chemicals | 26 | 1.85 | 8.2 | 37.31 | $ 103,030 |
| Roper Technologies Inc. | ROP | Industrial Conglomerates | 26 | 0.50 | 19.0 | 17.47 | $ 38,590 |
| A.O. Smith Corp. | AOS | Building Products | 25 | 1.89 | 19.9 | 35.48 | $ 7,830 |
| United Technologies | UTX | Aerospace & Defense | 25 | 2.26 | 7.7 | 42.24 | $ 115,860 |
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Prakash Kolli is the founder of the Dividend Power site. He is a self-taught investor, analyst, and writer on dividend growth stocks and financial independence. His writings can be found on Seeking Alpha, InvestorPlace, Business Insider, Nasdaq, TalkMarkets, ValueWalk, The Money Show, Forbes, Yahoo Finance, and leading financial sites. In addition, he is part of the Portfolio Insight and Sure Dividend teams. He was recently in the top 1.0% and 100 (73 out of over 13,450) financial bloggers, as tracked by TipRanks (an independent analyst tracking site) for his articles on Seeking Alpha.