These listed companies have consistently increased their dividends over the past 25 years.
In recent months, investors have shown a growing interest in a particular group of stocks, whose companies have been able to distribute and even increase their dividends for 25 years.
But which ones are they exactly and why are they attracting the attention of experts, especially in the context of lowering interest rates by central banks?
These stocks have been increasing their dividends for 25 years
This group of stocks, known as the “Dividend Aristocrats,” includes companies within the S&P 500 index that have not only paid but also increased their dividends every year for at least 25 consecutive years.
This consistency in distributing profits to shareholders makes them particularly attractive for those looking for a stable and long-term investment. The companies that are part of this group are usually large, well-established, and with a solid financial base.
The recent lowering of interest rates by central banks has had a significant impact on the global financial market. In a low-interest environment, bonds and other fixed-income instruments tend to offer lower yields, prompting investors to look for alternatives to earn higher returns.
This is where Dividend Aristocrats come in. Offering a steady and growing stream of dividends, these companies are a viable alternative for those seeking stable returns in an environment of economic uncertainty and market volatility.
Below are the best Dividend Aristocrats stocks by dividend yield:
| Ticker | Firm | Price | Market cap | Yield | P/E Ratio |
|---|---|---|---|---|---|
| WBA | WALGREENS BOOTS ALLIANCE INC | $9.25 | $7,985,000,000 | 10.80% | |
| BEN | FRANKLIN RESOURCES INC | $20.24 | $10,585,000,000 | 6.10% | 12.6 |
| T | ATandT INC | $19.90 | $142,688,000,000 | 5.60% | 11.4 |
| O | REALTY INCOME CORP | $62.11 | $54,090,000,000 | 5.10% | 57.5 |
| TROW | T ROWE PRICE GROUP INC | $106.04 | $23,604,000,000 | 4.70% | 12.5 |
| AMCR | AMCOR PLC | $11.44 | $16,535,000,000 | 4.40% | 22.7 |
| CVX | CHEVRON CORP | $147.95 | $270,588,000,000 | 4.40% | 14.7 |
| FRT | FEDERAL REALTY INVESTMENT TRUST | $115.00 | $9,613,000,000 | 3.80% | 33.9 |
| HRL | HORMEL FOODS CORP | $32.55 | $17,847,000,000 | 3.50% | 23.3 |
| KMB | KIMBERLY-CLARK CORP | $144.66 | $48,722,000,000 | 3.40% | 21.4 |
| ED | CONSOLIDATED EDISON, INC. | $101.56 | $35,123,000,000 | 3.30% | 19.8 |
| ADM | ARCHER-DANIELS-MIDLAND CO | $60.99 | $29,162,000,000 | 3.30% | 12.2 |
| IBM | INTERNATIONAL BUSINESS MACHINES CORP. | $202.13 | $186,192,000,000 | 3.30% | 21.2 |
| MDT | MEDTRONIC PLC | $88.58 | $113,603,000,000 | 3.20% | 29.8 |
| ABBV | ABBVIE INC | $196.31 | $346,751,000,000 | 3.20% | 65.7 |
| SWK | STANLEY BLACK and DECKER INC | $102.36 | $15,759,000,000 | 3.20% | |
| XOM | EXXON MOBIL CORP | $117.94 | $524,007,000,000 | 3.20% | 14.1 |
| ESS | ESSEX PROPERTY TRUST INC | $301.79 | $19,378,000,000 | 3.20% | 37.4 |
| CLX | CLOROX CO | $158.31 | $19,609,000,000 | 3.10% | 70.7 |
| PEP | PEPSICO INC | $172.88 | $237,463,000,000 | 3.10% | 25.1 |
| JNJ | JOHNSON and JOHNSON | $165.86 | $399,265,000,000 | 3.00% | 24.9 |
| TGT | TARGET CORP | $153.62 | $70,911,000,000 | 2.90% | 17.2 |
| GPC | GENUINE PARTS CO | $143.26 | $19,959,000,000 | 2.80% | 16.6 |
| KO | COCA-COLA CO | $72.47 | $312,336,000,000 | 2.70% | 29.5 |
| NEE | NEXTERA ENERGY INC | $80.51 | $165,410,000,000 | 2.60% | 26.1 |
| SYY | SYSCO CORP | $77.97 | $38,324,000,000 | 2.60% | 20.1 |
| ATO | ATMOS ENERGY CORPORATION | $130.74 | $20,295,000,000 | 2.50% | 19.4 |
| APD | AIR PRODUCTS AND CHEMICALS INC | $278.85 | $61,992,000,000 | 2.50% | 24.2 |
| CINF | CINCINNATI FINANCIAL CORPORATION | $137.03 | $21,410,000,000 | 2.40% | 10.1 |
| ITW | ILLINOIS TOOL WORKS INC. | $253.18 | $75,169,000,000 | 2.40% | 24.8 |
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Should You Invest in Dividend Aristocrats?
An interesting aspect that is emerging in the current landscape is the fact that nearly 60% of U.S. stocks are currently trading at or above fair value, meaning that many stocks are considered overvalued by many analysts. In contrast, Dividend Aristocrats, on average, are trading at a 3% discount to their historical fair value.
Another element that strengthens the appeal of Dividend Aristocrats is the guarantee of a stable and predictable dividend flow. For many investors, this security represents a lifeline in a financial world characterized by uncertainty and volatility.
The idea that Dividend Aristocrats offer an average 2.3% yield, combined with an average price growth of 9%, contrasts with the average performance of 12% for the S&P 500 Index. This balance of stable dividends and capital growth makes Dividend Aristocrats an attractive investment choice for those seeking both yield and protection against market volatility.
The JNJ Case
A more well-known example of a Dividend Aristocrat is Johnson & Johnson (J&J), one of the largest and most recognized multinationals in the pharmaceutical sector. The company has a market capitalization of around $430 billion, a dividend yield of around 2.7%, and a 5-year dividend growth rate (CAGR) of 6% while maintaining a profit margin of 20%.
- JNJ, 1W graph
- Source: Baha.com
Original article published on Money.it Italy 2024-09-03 10:08:04. Original title: Questi titoli hanno un dividendo in salita da 25 anni
