It’s been a while. I stopped writing articles but have not stopped learning and investing for a moment. Last night, I started checking the S&P 500 dividend aristocrats and their dividend payment history.
I came up with the idea of creating an investment pie of safe dividend-paying companies using the Trading212 platform. After a couple of hours, I finished forming the pie that I am happy to put some money in the coming weeks as interest rate hikes and inflation have rattled the market.
In this article, I will show the companies and their details, and, in the end, I will share the pie link for you to use on your portfolio. So bear with me now!
What are Dividend Aristocrats?
A Dividend Aristocrat is a publicly-traded company that has been consistently paying dividends every year to its shareholders, as well as increasing its dividend yields for the past 25 years or more.
For any long-term investor, it is a fantastic sign of a stable company that maintains steady cash flow for day-to-day activities and returns a payout to its investors.
According to research conducted by S&P Global, Dividend growth stocks, particularly High Yield Dividend Aristocrats, have outperformed the market consistently since the time period of 1999-2021, providing protection against market volatility. Coca-Cola (NYSE:KO), Proctor & Gamble (NYSE:PG), 3M (NYSE:MMM) are a few to mention.
Latest Dividend Aristocrats List
Currently, 65 companies fall into the dividend aristocrats list. At the top of the table, Dover (NYSE:DOV) and Genuine Parts (NYSE:GPC) have been paying and increasing dividends for the last 65 years. Realty Income (NYSE:O), International Business Machines (NYSE:IBM) and NextEra Energy (NYSE:NEE) are at the bottom of the table and have been doing so for 26 years so far.
Here is the list of all current dividend aristocrats with the ticker symbols, the industry they belong to, and the number of years in dividend growth.
|Company||Sector||Years of Dividend Growth|
|Genuine Parts (NYSE:GPC)||Consumer discretionary||65|
|Emerson Electric (NYSE:EMR)||Industrials||64|
|Procter & Gamble (NYSE:PG)||Consumer staples||64|
|Cincinnati Financial (NASDAQ:CINF)||Financials||60|
|Coca-Cola (NYSE:KO)||Consumer staples||59|
|Johnson & Johnson (NYSE:JNJ)||Healthcare||59|
|Colgate-Palmolive (NYSE:CL)||Consumer staples||57|
|Hormel Foods (NYSE:HRL)||Consumer staples||55|
|Stanley Black & Decker (NYSE:SWK)||Industrials||53|
|Federal Realty Investment Trust (NYSE:FRT)||Real estate||53|
|Clorox (NYSE:CLX)||Consumer staples||52|
|Sysco (NYSE:SYY)||Consumer staples||52|
|Illinois Tool Works (NYSE:ITW)||Industrials||50|
|Leggett & Platt (NYSE:LEG)||Consumer discretionary||50|
|Target (NYSE:TGT)||Consumer discretionary||50|
|W.W. Grainger (NYSE:GWW)||Industrials||50|
|Becton, Dickinson & Co. (NYSE:BDX)||Healthcare||49|
|PPG Industries (NYSE:PPG)||Materials||49|
|Abbott Laboratories (NYSE:ABT)||Healthcare||49|
|Kimberly Clark (NYSE:KMB)||Consumer staples||49|
|PepsiCo (NASDAQ:PEP)||Consumer staples||49|
|S&P Global (NYSE:SPGI)||Financials||48|
|VF Corp. (NYSE:VFC)||Consumer discretionary||47|
|Archer Daniels Midland (NYSE:ADM)||Consumer staples||47|
|Walmart (NYSE:WMT)||Consumer staples||47|
|Automatic Data Processing (NASDAQ:ADP)||Information technology||46|
|Consolidated Edison (NYSE:ED)||Utilities||46|
|Lowe’s (NYSE:LOW)||Consumer discretionary||46|
|Walgreens Boots Alliance (NASDAQ:WBA)||Consumer staples||45|
|McDonald’s (NYSE:MCD)||Consumer discretionary||45|
|Franklin Resources (NYSE:BEN)||Financials||40|
|Air Products & Chemicals (NYSE:APD)||Materials||39|
|Amcor PLC (NYSE:AMCR)||Materials||38|
|Brown-Forman (NYSE:BF.B)||Consumer staples||37|
|Atmos Energy Corporation (NYSE:ATO)||Utilities||37|
|AT&T (NYSE:T)||Communications services||35|
|McCormick & Co. (NYSE:MKC)||Consumer staples||35|
|T. Rowe Price Group (NASDAQ:TROW)||Financials||34|
|Cardinal Health (NYSE:CAH)||Healthcare||34|
|General Dynamics (NYSE:GD)||Industrials||30|
|A.O. Smith (NYSE:AOS)||Industrials||29|
|West Pharmaceutical Services, Inc. (NYSE:WST)||Healthcare||28|
|Roper Technologies (NYSE:ROP)||Industrials||28|
|People’s United Financial (NASDAQ:PBCT)||Financials||27|
|Albemarle Corp. (NYSE:ALB)||Materials||27|
|Essex Property Trust, Inc. (NYSE:ESS)||Real estate||27|
|Expeditors International of Washington, Inc. (NASDAQ:EXPD)||Industrials||27|
|Realty Income Corporation (NYSE:O)||Real estate||26|
|International Business Machines (NYSE:IBM)||Information Technology||26|
|NextEra Energy Inc (NYSE:NEE)||Utilities||26|
A piece of info regarding the industries: there are 13 companies from both Industrials and Consumer staples and only one company from Communication services.
Choosing the Dividend Aristocrats
If you are familiar with Trading 212 pies, you will know that you can create a pie of 50 stocks, which means we need to trim some of the entries from the list.
I took an easier route. I looked at the dividend yields and removed any company with less than a 2% annual yield. This filtering gave me 38 companies – I believe that a 2% dividend is a good one to start; it’s not too high or too low, in my opinion.
However, AT&T (NYSE:T) and ExxonMobil (NYSE:XOM) have the highest yields, 7.66% and 5.71%, respectively.
Here is a table of these 38 dividend aristocrats with dividend yields and the P/E ratio.
|Company||Div Yield||P/E Ratio|
|Genuine Parts (NYSE:GPC)||2.68%||22.47|
|Emerson Electric (NYSE:EMR)||2.12%||24.69|
|Procter & Gamble (NYSE:PG)||2.49%||25.77|
|Cincinnati Financial (NASDAQ:CINF)||2.2%||6.83|
|Johnson & Johnson (NYSE:JNJ)||2.64%||24.2|
|Hormel Foods (NYSE:HRL)||2.4%||26.51|
|Federal Realty Investment Trust (NYSE:FRT)||3.54%||61.4|
|Illinois Tool Works (NYSE:ITW)||2.36%||25.75|
|Leggett & Platt (NYSE:LEG)||3.69%||15.13|
|Kimberly Clark (NYSE:KMB)||3.45%||22.66|
|VF Corp. (NYSE:VFC)||2.87%||26.25|
|Archer Daniels Midland (NYSE:ADM)||2.435||15.44|
|Consolidated Edison (NYSE:ED)||4.33%||22.3|
|Walgreens Boots Alliance (NASDAQ:WBA)||4.08%||17.95|
|Franklin Resources (NYSE:BEN)||3.72%||12.42|
|Air Products & Chemicals (NYSE:APD)||2.33%||29.89|
|Amcor PLC (NYSE:AMCR)||4.01%||19.45|
|Atmos Energy Corporation (NYSE:ATO)||2.78%||17.14|
|T. Rowe Price Group (NASDAQ:TROW)||2.18%||15.4|
|Cardinal Health (NYSE:CAH)||3.93%||23.44|
|General Dynamics (NYSE:GD)||2.4%||17.6|
|People’s United Financial (NASDAQ:PBCT)||4.06%||25.45|
|Essex Property Trust, Inc. (NYSE:ESS)||2.56%||52.85|
|Realty Income Corporation (NYSE:O)||4.29%||68.1|
|International Business Machines (NYSE:IBM)||4.58%||24.17|
To avoid complexity, I am not going to create a market-cap-weighted pie which means Johnson & Johnson (NYSE:JNJ) won’t have the bigger slice of the pie for being the largest market cap company in this list. Its current market cap is $423.6 billion, and the total market cap of these 38 companies is $3.441 trillion.
In this pie, I am allocating around 3% for each company. This will give me an average of 3.3% annual dividend yield.
Where is the pie?
Finally, I added the stocks to Trading212 and created the pie. Here is a link to the pie if you want to avoid the pain 🙂
I kept the Auto invest option on. So, as these companies will pay and increase their dividends, the size of my investment will keep growing 🙏 – I am a firm believer in compounding and this portfolio fits the strategy perfectly.
Dividend Aristocrats ETFs
If you don’t want to go through the pain of creating and updating the pie manually, you can let the professionals do it for you for a small fee using investing in ETFs. There are the top two dividend aristocrats ETFs you can invest in right now.
- ProShares S&P 500 Dividend Aristocrats ETF (NOBL)
- SPDR® S&P Global Dividend Aristocrats UCITS ETF (GBDV) – available on T212 platform
I really had fun doing the research and creating the pie. In my opinion, it was worth spending my time learning and practising investing. If you like that post or the idea, don’t forget to leave a comment.
As always, this is not an investment recommendation. It should be used for education purposes only.