Dividend Aristocrats List for 2021

Editorial IndependenceWe need to provide help to make extra knowledgeable choices. Some hyperlinks on this web page — clearly marked — could take you to a associate web site and will lead to us incomes a referral fee. For extra data, see How We Make Money.Dividend-paying shares are a well-liked addition to any funding portfolio. Investors love them as a result of they generate passive revenue. When you obtain dividends, you’re getting a portion of income from the businesses you’re investing in. Among dividend-paying shares, Dividend Aristocrats are among the many greatest. A Dividend Aristocrat is an organization that has paid out dividends to buyers in every of the final 25 years. “We name it the new sauce on the portfolio — to spice it up slightly bit,” mentioned Jordan Benold, an authorized monetary planner at Benold Financial Planning.Here’s a breakdown of what the present Dividend Aristocrats are, and why you may contemplate including them to your funding portfolio.What Are Dividend Aristocrats?A Dividend Aristocrat is a publicly traded firm that has persistently paid dividends yearly to its buyers for the final 25 years. There are at the moment 65 firms on the Dividend Aristocrat checklist. Every 12 months, new firms are added after they hit that 25-year threshold. If an organization fails a dividend improve, it should wait one other 25 years earlier than it may be put again on the checklist. In order to be a Dividend Aristocrat, an organization should be a part of the S&P 500, which is an index that tracks the five hundred largest firms listed on the inventory change.Dividend Aristocrats are in a position to be invested in conventional and on-line brokerage accounts. You also can spend money on Dividend Aristocrats via exchange-traded funds (ETFs). This ETF incorporates all aristocrats quite than particular person ones.The present Dividend Aristocrats checklist for 2021 is beneath.List of Dividend Aristocrats for 2021The present checklist of Dividend Aristocrats contains 65 firms:CompanySectorYears of dividend growth3M (MMM)Industrials63A.O. Smith (AOS)Industrials28Abbott Laboratories (ABT)Health care49AbbVie (ABBV)Health care49Aflac (AFL)Financials38Air Products and Chemicals (APD)Materials39Albemarle Corp. (ALB)Materials27Amcor PLC (AMCR)Materials38Archer-Daniels-Midland Co. (ADM)Consumer staples47AT&T (T)Communications services36Atmos Energy Corp. (ATO)Utilities34Automatic Data Processing (ADP)Information technology46Becton, Dickinson & Co. (BDX)Health care49Brown-Forman Corp. (BF-B)Consumer staples37Cardinal Health (CAH)Health care34Caterpillar (CAT)Industrials27Chevron (CVX)Energy34Chubb (CB)Financials28Cincinnati Financial (CINF)Financials61Cintas Corp. (CTAS)Industrials37The Clorox Co. (CLX)Consumer staples45The Coca-Cola Co. (KO)Consumer staples59Colgate-Palmolive (CL)Consumer staples59Consolidated Edison (ED)Utilities47Dover (DOV)Industrials65Ecolab (ECL)Materials29Emerson Electric (EMR)Industrials59Essex Property Trust Inc. (ESS)Real estate27Expeditors International of Washington Inc. (EXPD)Industrials27ExxonMobil (XOM)Energy37Federal Realty Investment Trust (FRT)Real estate49Franklin Resources (BEN)Financials40General Dynamics (GD)Industrials30Genuine Parts (GPC)Consumer discretionary65Hormel Foods (HRL)Consumer staples55Illinois Tool Works (ITW)Industrials50International Business Machines (IBM)Information technology25Johnson & Johnson (JNJ)Health care59Kimberly Clark (KMB)Consumer staples48Leggett & Platt (LEG)Consumer discretionary50Linde (LIN)Materials28Lowe’s (LOW)Consumer discretionary47McCormick & Co. (MKC)Consumer staples35McDonald’s (MCD)Consumer discretionary44Medtronic (MDT)Health care43NextEra Energy Inc. (NEE)Utilities25Nucor (NUE)Materials48Pentair (PNR)Industrials44People’s United Financial (PBCT)Financials28PepsiCo (PEP)Consumer staples48PPG Industries (PPG)Materials49Procter & Gamble (PG)Consumer staples65Realty Income Corp. (O)Real estate26Roper Technologies (ROP)Industrials28S&P Global (SPGI)Financials 48Sherwin-Williams (SHW)Materials42Stanley Black & Decker (SWK)Industrials53Sysco (SYY)Consumer staples41T. Rowe Price Group (TROW)Financials35Target (TGT)Consumer discretionary49VF Corp. (VFC)Consumer discretionary49W.W. Grainger (GWW)Industrials50Walgreens Boots Alliance (WBA)Consumer staples45Walmart (WMT)Consumer staples48West Pharmaceutical Services Inc. (WST)Health care28Should You Invest in Dividend Aristocrat Stocks?Like any funding, Dividend Aristocrat shares play a particular position. Their principal objective in a portfolio is to generate constant dividend revenue over the long run.“They’re not at all times the best dividend yields,” mentioned Brett Maikowski, an funding adviser at THM Wealth Management. “But they’ve been sustainable, they usually’ve been constant, they usually’ve grown.”That may make sense for you in case you want that constant revenue to take care of your spending and way of life. Traditionally, Dividend Aristocrats have appealed to retirees, who prioritize revenue over capital progress. But younger buyers ought to contemplate including Dividend Aristocrats to their funding portfolios. Dividend Aristocrats are long run investments. With the facility of time and compound curiosity, you possibly can reinvest any dividends you obtain and watch the worth of your portfolio develop.Keep in thoughts, before you purchase up a bunch of Dividend Aristocrats, ask your self a couple of questions: What is your funding objective? Is your portfolio diversified? What position would the Dividend Aristocrats play? Make certain your portfolio matches along with your long-term objectives.“It’s actually necessary to know what your standards is, after which make certain your investments mirror that,” Maikowski mentioned.Pro TipYou can spend money on Dividend Aristocrats utilizing a tax-advantaged funding account like a standard or Roth IRA.Dividend Aristocrats ETFIf you’ve determined dividend investing is sensible for you, a simple option to get began is with a Dividend Aristocrat ETF.Here’s the way it works: An ETF, or exchange-traded fund, is mainly an funding that tracks a particular group of shares. In this case, that’s Dividend Aristocrats.“Whether it’s an ETF or a fund, you’re shopping for a basket of shares,” Maikowski mentioned.Every ETF is completely different, however a Dividend Aristocrat ETF may merely spend money on all 65 firms weighted equally, supplying you with publicity to the entire group with out requiring you to spend money on every firm individually.“ETFs are nice since you get diversification and also you personal all of them,” Benold mentioned.Make certain you look below the hood of any ETF before you purchase. Yield isn’t the one information level that’s necessary, Maikowski mentioned. Pay consideration to how the businesses are weighted inside, and take a look at these firms’ earnings and income progress. The extra data you possibly can collect earlier than investing, the higher.Dividend Aristocrat Companies With the Highest DividendsDividend Aristocrats are identified for the consistency of their dividends, not essentially the excessive yield. A dividend yield is a ratio that tells the investor what share of an organization’s share value is paid out annually. Here are the 15 Dividend Aristocrats that at the moment have the best dividends:CompanyDividend yieldAT&T (T)6.93percentT Rowe Price (TROW)6.15percentExxonMobil (XOM)5.80%Chevron (CVX)5.05percentAbbVie (ABBV)4.91%Illinois Tool Works (ITW)4.51%Peoples United Financial (PBCT)4.03%Amcor (AMCR)4.01%Consolidated Edison (ED)3.99%Federal Realty Investment Trust (FRT)3.54%Kimberly-Clark (KMB)3.54%Franklin Resources (BEN)3.51%Cardinal Health (CAH)3.44%Walgreens Boots Alliance (WBA)3.42%Leggett & Platt (LEG)3.22%


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