Investing

Investing in S&P 500 Dividend Aristocrats using Trading 212 Pie

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.

CompanySectorYears of Dividend Growth
Dover (NYSE:DOV)Industrials65
Genuine Parts (NYSE:GPC)Consumer discretionary65
Emerson Electric (NYSE:EMR)Industrials64
Procter & Gamble (NYSE:PG)Consumer staples64
3M (NYSE:MMM)Industrials63
Cincinnati Financial (NASDAQ:CINF)Financials60
Coca-Cola (NYSE:KO)Consumer staples59
Johnson & Johnson (NYSE:JNJ)Healthcare59
Colgate-Palmolive (NYSE:CL)Consumer staples57
Hormel Foods (NYSE:HRL)Consumer staples55
Stanley Black & Decker (NYSE:SWK)Industrials53
Federal Realty Investment Trust (NYSE:FRT)Real estate53
Clorox (NYSE:CLX)Consumer staples52
Sysco (NYSE:SYY)Consumer staples52
Illinois Tool Works (NYSE:ITW)Industrials50
Leggett & Platt (NYSE:LEG)Consumer discretionary50
Target (NYSE:TGT)Consumer discretionary50
W.W. Grainger (NYSE:GWW)Industrials50
Becton, Dickinson & Co. (NYSE:BDX)Healthcare49
PPG Industries (NYSE:PPG)Materials49
AbbVie (NYSE:ABBV)Healthcare49
Abbott Laboratories (NYSE:ABT)Healthcare49
Kimberly Clark (NYSE:KMB)Consumer staples49
PepsiCo (NASDAQ:PEP)Consumer staples49
Nucor (NYSE:NUE)Materials48
S&P Global (NYSE:SPGI)Financials48
VF Corp. (NYSE:VFC)Consumer discretionary47
Archer Daniels Midland (NYSE:ADM)Consumer staples47
Walmart (NYSE:WMT)Consumer staples47
Automatic Data Processing (NASDAQ:ADP)Information technology46
Consolidated Edison (NYSE:ED)Utilities46
Lowe’s (NYSE:LOW)Consumer discretionary46
Walgreens Boots Alliance (NASDAQ:WBA)Consumer staples45
McDonald’s (NYSE:MCD)Consumer discretionary45
Pentair (NYSE:PNR)Industrials45
Medtronic (NYSE:MDT)Healthcare44
Sherwin-Williams (NYSE:SHW)Materials42
Franklin Resources (NYSE:BEN)Financials40
Air Products & Chemicals (NYSE:APD)Materials39
Aflac (NYSE:AFL)Financials38
Amcor PLC (NYSE:AMCR)Materials38
Cintas (NASDAQ:CTAS)Industrials38
ExxonMobil (NYSE:XOM)Energy37
Brown-Forman (NYSE:BF.B)Consumer staples37
Atmos Energy Corporation (NYSE:ATO)Utilities37
AT&T (NYSE:T)Communications services35
McCormick & Co. (NYSE:MKC)Consumer staples35
T. Rowe Price Group (NASDAQ:TROW)Financials34
Cardinal Health (NYSE:CAH)Healthcare34
Chevron (NYSE:CVX)Energy33
General Dynamics (NYSE:GD)Industrials30
Ecolab (NYSE:ECL)Materials29
A.O. Smith (NYSE:AOS)Industrials29
Linde (NYSE:LIN)Materials29
West Pharmaceutical Services, Inc. (NYSE:WST)Healthcare28
Roper Technologies (NYSE:ROP)Industrials28
Chubb (NYSE:CB)Financials28
Caterpillar (NYSE:CAT)Industrials27
People’s United Financial (NASDAQ:PBCT)Financials27
Albemarle Corp. (NYSE:ALB)Materials27
Essex Property Trust, Inc. (NYSE:ESS)Real estate27
Expeditors International of Washington, Inc. (NASDAQ:EXPD)Industrials27
Realty Income Corporation (NYSE:O)Real estate26
International Business Machines (NYSE:IBM)Information Technology26
NextEra Energy Inc (NYSE:NEE)Utilities26

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.

CompanyDiv YieldP/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
3M (NYSE:MMM)3.35%17.41
Cincinnati Financial (NASDAQ:CINF)2.2%6.83
Coca-Cola (NYSE:KO)3.17%29.01
Johnson & Johnson (NYSE:JNJ)2.64%24.2
Colgate-Palmolive (NYSE:CL)2.38%23.69
Hormel Foods (NYSE:HRL)2.4%26.51
Federal Realty Investment Trust (NYSE:FRT)3.54%61.4
Clorox (NYSE:CLX)2.82%29.31
Sysco (NYSE:SYY)2.33%81.66
Illinois Tool Works (NYSE:ITW)2.36%25.75
Leggett & Platt (NYSE:LEG)3.69%15.13
AbbVie (NYSE:ABBV)4.77%29.92
Kimberly Clark (NYSE:KMB)3.45%22.66
PepsiCo (NASDAQ:PEP)2.85%26.61
VF Corp. (NYSE:VFC)2.87%26.25
Archer Daniels Midland (NYSE:ADM)2.43515.44
Consolidated Edison (NYSE:ED)4.33%22.3
Walgreens Boots Alliance (NASDAQ:WBA)4.08%17.95
McDonald’s (NYSE:MCD)2.27%26.98
Franklin Resources (NYSE:BEN)3.72%12.42
Air Products & Chemicals (NYSE:APD)2.33%29.89
Aflac (NYSE:AFL)2.49%6.58
Amcor PLC (NYSE:AMCR)4.01%19.45
ExxonMobil (NYSE:XOM)5.71%n/a
Atmos Energy Corporation (NYSE:ATO)2.78%17.14
AT&T (NYSE:T)7.66%n/a
T. Rowe Price Group (NASDAQ:TROW)2.18%15.4
Cardinal Health (NYSE:CAH)3.93%23.44
Chevron (NYSE:CVX)5.14%58.01
General Dynamics (NYSE:GD)2.4%17.6
Caterpillar (NYSE:CAT)2.28%24.48
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

Conclusion

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.

I am an SEO professional, expert in both on-content and technical search engine optimisation. Besides eating, breathing and sleeping SEO, I am passionate about travelling, photography, collecting vintage mobile handsets and philately. I am also keen on financial freedom - saving, investing and passive income.

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