The dividend aristocrats is a very important list for me. I shared the Canadian Dividend Aristocrats list and now is the time to share the over due U.S Dividend Aristocrats. It’s amazing the size of some U.S. corporations compared to Royal Bank – the largest company in Canana. When you want to talk about economic moat, many of them sure have it.
What I find most interesting with the list is that by itself, you can get a really good asset diversification with major corporations. In Canada, many of the aristocrats are either in the financial or the resource sector. In the U.S., you can span all the sectors and find an aristocrat to represent that sector. Being Canadian, I have to take into account where I hold my U.S. investments form a tax perspective, but I would be curious what a dividend aristocrat portfolio does over time.
U.S. Dividend Aristocrat Requirements
The following criteria must be met to become a U.S. Dividend Aristocrat:
- Universe: Member of the S&P 500
- Financial Viability: Must have increased dividends for 25 consecutive years
- Size: Have at least 3B$ in market capitalization
- Liquidity: Must have an average trading volume of US$ 5 million in the past 6 months
- Reconstitution: The index is reviewed annually
- Stock Diversification: At each review, there must be at least 40 companies
- Sector Diversification: No more than 30% of a sector weight in the index
S&P Dividend Aristocrats
Now with live updates!
Addition to the S&P Dividend Aristocrats List
This is quite a list. I hope you weren’t waiting for them to be dividend aristocrats before paying attention
- T - AT&T
- CL – Colgate-Palmolive Co
- MDT – Medtronic Inc
- ITW – Illinois Tool Works Inc
- BEN – Franklin Resources Inc
- SYY – Sysco Corp
- TROW – T Row Price Group Inc
- HCP – HCP Inc
- NUE – Nucor Corp
- GPC – Genuine Parts Co
Removal from the S&P Dividend Aristocrats List
- CTL – CenturyLink
The list is outstanding and I welcome the addition. As you can see, no crazy yields here and it highlights the fact that those companies continue to grow and provide return on equity for investors. With AT&T in the list, all my U.S. holdings are now dividend aristocrats.
Disclaimer: I am long T, JNJ, KO and KMB.
Readers: Would you see yourself with a portfolio of those companies only?