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The S&P500 Dividend Aristocrats (2010 Edition)
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The S&P Dividend Aristocrats are companies in the S&P500 index that have increased their dividends every year for at least 25 consecutive years. Companies on the list have been increasing their dividends since 1984 – meaning they’ve increased it through the economic malaise of the early 90′s, the dot com bubble of the early 2000s, and the worst recession since the Great Depression!
Before you go out and snatch up a few shares of some of these companies, remember that there is only one reason why they are on this list – they have increased their dividends each year for twenty five years. It doesn’t mean they are good companies, it doesn’t mean they will continue to increase dividends (ten companies dropped from the list in 2009), and it doesn’t mean they make good investments. Remember to do your own homework and that past returns are not indicative of future performance.
The S&P doesn’t look at dividend coverage (how much of the dividend is covered by cash flow) or the yield, just that the total dollar amount of the dividend has increased every year for at least twenty five years.
Who are the Dividend Aristocrats?
There are currently 43 companies on the Dividend Aristocrats list. They are:
- 3M Co (MMM)
- AFLAC Inc (AFL)
- Abbott Laboratories (ABT)
- Air Products & Chemicals Inc (APD)
- Archer-Daniels-Midland Co (ADM)
- Automatic Data Processing (ADP)
- Bard, C.R. Inc (BCR)
- Becton, Dickinson & Co (BDX)
- Bemis Co Inc (BMS)
- Brown-Forman Corp B (BF/B)
- Centurytel Inc (CTL)
- Chubb Corp (CB)
- Cincinnati Financial Corp (CINF)
- Cintas Corp (CTAS)
- Clorox Co (CLX)
- Coca-Cola Co (KO)
- Consolidated Edison Inc (ED)
- Dover Corp (DOV)
- Emerson Electric Co (EMR)
- Exxon Mobil Corp (XOM)
- Family Dollar Stores Inc (FDO)
- Grainger, W.W. Inc (GWW)
- Integrys Energy Group Inc (TEG)
- Johnson & Johnson (JNJ)
- Kimberly-Clark (KMB)
- Leggett & Platt (LEG)
- Lilly, Eli & Co (LLY)
- Lowe’s Cos Inc (LOW)
- McDonald’s Corp (MCD)
- McGraw-Hill Cos Inc (MHP)
- PPG Industries Inc (PPG)
- PepsiCo Inc (PEP)
- Pitney Bowes Inc (PBI)
- Procter & Gamble (PG)
- Questar Corp (STR)
- Sherwin-Williams Co (SHW)
- Sigma-Aldrich Corp (SIAL)
- Stanley Works (SWK)
- Supervalu Inc (SVU)
- Target Corp (TGT)
- VF Corp (VFC)
- Wal-Mart Stores (WMT)
- Walgreen Co (WAG)
Changes for 2010
There were two additions to the Dividend Aristocrats (changes were made on December 18, 2009):
- Brown-Forman Corporation (BF.B) – manufactures, bottles, imports, experts, and markets several alcoholic beverage brands such as Jack Daniel’s, Southern Comfort, Finlandia, Korbel, Fetzer, etc.
- Cintas Corporation (CTAS) – most well known as a provider of uniforms through rental and sales but they also provide other specialized products and services to business such as entrance mats, restroom products, first aid, document management, etc.
There were ten removals from the list – Avery Dennison (AVY), BB&T Corp (BBT), Gannett (GCI), General Electric (GE), Johnson Controls (JCI), Legg Mason (LM), M&T Bank (MTB), Pfizer (PFE), State Street Corp. (STT), and US Bancorp (USB). Remember, to remain on the list they have to increase their dividend, just standing pat will get you removed from the list. You might see them come back in twenty five years. 
Poor Legg Mason, they were added when the list was adjusted in December 2008 (it’s adjusted every December), and they lasted just one year!
There you have it, the kings of the dividend jungle!
(Photo: law_keven)
{ 15 comments, please add your thoughts now! }Related Posts
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I haven’t looked yet, but maybe there are some ETFs that track this for a more diversified jump into dividend stocks?
I found one ETF under the symbol SDY that tracks “High Yield Dividend Aristocrats,” though it’s not a perfect match.
There is a ton on info on SDY available at https://www.spdrs.com/product/fund.seam?ticker=SDY.
You’ll also want to consider the tax implications of dividend ETF’s. Right now the dividend tax rate is 0% or 15% but that is set to expire in 2011 unless it is extended.
Sorry to double post, but I wanted to ask. Jim, are you planning on getting in to these stocks, or maybe something like SDY?
10 companies dropping out in a year is pretty high attrition. Out of curiosity I found the list from 2005 and less than 60% of the companies from 2005 are still on the list today. Some of that is due to mergers probably but I assume most of it is due to companies not increasing or cutting dividends.
that’s an interesting stat. it’s a nice list but for sure you have to do your research.
I just don’t have enough time to do research on individual companies and to keep up on them to to feel comfortable enough to keep investing.
I work for one of these companies and being on this list is very important from what I have seen. Even with the difficult times the past two years, raising the dividend has been a priority.
The one aspect that can shed more light on on well these companies are actually performing is to look at the percentage increase in the dividend on a year over year basis. In many cases, I would bet that the percentage increase dropped significantly in 2009.
I worked for one of these companies, too…and keeping the record is a priority. But you only have to raise the dividend every 8th quarter to show an increased dividend year on year… I’m not sure that is something that is important to me the investor.
Parker Hannifin today announced a dividend, with the following remark in their press release: “Parker has increased its annual dividends paid to shareholders for 53 consecutive years, among the top five longest-running dividend-increase records in the S&P 500 Index.” Why haven’t they made your list of aristocrats?
First, to clarify, it’s not my list of dividend aristocrats, it’s one created by the S&P.
Second, to be on the list you have to increase your dividend each year, they failed to increase their dividend in 1989. That doesn’t mean they’re a bad company, but does preclude them from the list.
Supervalu cut their dividend. Why are they still here?
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Dear Idiot,
Your list is missing McCORMICK & CO.
You are unreliable.
I have deleted you from my bookmarks list.
Abu
Tripoli
Libya
That’s because McCormick & Co was added in 2011 and this was written in 2010.