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2012 S&P Dividend Aristocrats

S&P Dividend AristocratsThe 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:

  1. Universe: Member of the S&P 500
  2. Financial Viability: Must have increased dividends for 25 consecutive years
  3. Size: Have at least 3B$ in market capitalization
  4. Liquidity: Must have an average trading volume of US$ 5 million in the past 6 months
Here are specifics about the list itself:
  1. Reconstitution: The index is reviewed annually
  2. Stock Diversification: At each review, there must be at least 40 companies
  3. Sector Diversification: No more than 30% of a sector weight in the index
Many of the companies you are going to see have paid dividends for longer the 25 years and some have increased dividends for more than 25 years as well. That’s quite a commitment to shareholders.

S&P Dividend Aristocrats

Now with live updates!

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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

Thoughts

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?

Image: digitalart / FreeDigitalPhotos.net

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5 Responses to "2012 S&P Dividend Aristocrats"

  1. I wouldn’t see myself with a portfolio of only those companies because it’s too limiting. Some of my favorite dividend growth stocks such as PM and CVX don’t make the list.

    Off topic question: If you could only invest in 1 Canadian bank, which one would you choose? why?

    • The Passive Income Earner says:

      @CI
      Thanks for your comments. You brought up a couple of good picks that indeed aren’t in the list. It goes to show the picking is not slim :)

      As for the banks, it’s a difficult question to pick one amongst my beloved banks :) I own the top 6. BNS has exposure to latin america, TD is mostly in the US and so is BMO. NA is much smaller and still mostly focused in Canada. RY is the largest and dealing abroad on many front. CM is not one of my favorite … Do you have a horizon?

  2. hi, very interesting stats you have their, referring to European banks or better said British banks. I recently purchased shears in Northern Rock which you probably all ready know it collapsed 4 years ago, but as I am a mortgage broker I know that their mortgage books seem to be extremely healthy this is the reason why I have purchased some shares, not a lot of shares just a few, but I will update you at the end of the year of my profit.

  3. AAAMP Blog says:

    Great information…I like to follow these stocks because they are the “cream of the crop”. However, they are very popular now and most of them are now overvalued. You now have to work harder than ever to find great companies with good valuations.

  4. WoolyBugger says:

    I most definitely see myself owning these shares infact I already own and have owned for many years; T, CL, MDT and SYY.

    Investing is not about buying what’s in vogue but rather it’s investing your capital in stocks with growing incomes that share their profits with investors.

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