The US Dividend Aristocrats is the best list for filtering US dividend stocks. This should be your starting point to create your core portfolio. Why should it be part of your core portfolio? It’s simple, the companies in the list must have increased their dividends every year for 25 years.
Many of those companies also exhibit consistent growth in value which is what you want along with dividend growth. Dividend investing can be many things and when I started, I looked for high yields but I have since adapted my strategy to look for dividend growth stocks with a double digit dividend growth history. There are many other reasons why my filtering start with dividend companies, see my post on why I chose dividend investing.
S&P US Dividend Aristocrats Requirements
The following criteria must be met to become a U.S. Dividend Aristocrat:
- Universe: Member of the S&P 500
- Financial Viability: Must have increased dividends for 25 consecutive years
- Size: Have at least 3B$ in market capitalization
- Liquidity: Must have an average trading volume of US$ 5 million in the past 6 months
- Reconstitution: The index is reviewed annually
- Stock Diversification: At each review, there must be at least 40 companies
- Sector Diversification: No more than 30% of a sector weight in the index
S&P US Dividend Aristocrats List
The constituents are sorted by market capitalization from largest to smallest.
See the Dividend Ambassadors for the best dividend growth aristocrats as not all dividend aristocrats grow their dividends at the same rate.
Jonhson & Johnson
Procter & Gamble
Walgreens Boots Alliance
Automatic Data Processing
Illinois Tool Works
Becton Dickinson & Co
S&P Global Inc
Air Products & Chemicals
Bard C.R. Inc
Stanley Black & Decker
T. Rowe Price Group
Cincinnati Financial Corp
McCormick & Company
Federal Realty Investment Trust
Legget & Plat
DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.
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