Dividend stocks are in a sweet spot, as they bridge the difference between growth and income.
Among dividend stocks, so-called Dividend Aristocrats are considered by some to be the cream of the crop.
Companies with long track records of annual dividend increases, as a group, have performed well over a long period. And some have dividend yields that are high enough to attract income-seeking investors, which may be important in the coming years if the Federal Reserve follows the European Central Bank down the road of incredibly low — or even negative — interest rates.
There are two Dividend Aristocrat indexes.
S&P 500 Dividend Aristocrats
The S&P 500 Dividend Aristocrats Index SP50DIV, +0.01% is maintained by S&P Dow Jones Indices and is made up of the 57 companies in the S&P 500 SPX, -0.49% that have increased regular dividends on common shares for at least 25 consecutive years. It makes no difference how high a stock’s current dividend yield is.
You can invest in the entire S&P 500 Dividend Aristocrats group with the ProShares S&P 500 Dividend Aristocrats ETF NOBL, -0.16%
Here’s how the S&P 500 Dividend Aristocrats Index has performed against the broader S&P 500 over various periods:
| Index | Total return - 2019 through July 23 | Total return - 3 years | Total return - 5 years | Total return - 10 years | Total return - 15 years | Total return - 20 years |
| S&P 500 Dividend Aristocrats Index | 18% | 36% | 73% | 325% | 383% | 532% |
| S&P 500 | 21% | 47% | 68% | 279% | 278% | 226% |
| Source: FactSet | ||||||
In the past five years, with the S&P 500’s performance being weighted toward the FAANG group (Facebook FB, -2.14% Amazon.com AMZN, -0.68% Apple AAPL, -0.34% Netflix NFLX, +1.94% and Google holding company Alphabet GOOG, -1.05% GOOGL, -0.98% ) and other rapidly growing technology companies, the S&P 500 Dividends Aristocrats Index’s return has lagged that of the benchmark. However, the total returns for 10, 15 and 20 years speak for themselves.
The ProShares S&P 500 Dividend Aristocrats ETF was established on Oct. 10, 2013. Here’s a comparison of its long-term performance against the SPDR S&P 500 ETF SPY, -0.51% :
| ETF | Total return - 2019 through July 23 | Total return - 3 years | Total return - 5 years | Total return - Oct. 10, 2013, through July 23, 2019 |
| ProShares S&P 500 Dividend Aristocrats ETF NOBL, -0.16% | 17% | 34% | 69% | 94% |
| SPDR S&P 500 ETF SPY, -0.51% | 21% | 46% | 67% | 99% |
| Source: FactSet | ||||
S&P High-Yield Dividend Aristocrats
S&P Dow Jones Indices also maintains the S&P High-Yield Dividend Aristocrats Index SPHYDA, -0.28% which includes the 112 companies in the S&P 1500 Composite Index that have increased their regular dividend payouts for at least 20 straight years. (The S&P 1500 Composite Index is made up of the S&P 500 SPX, -0.49% the S&P 400 Mid-Cap Index MID, -0.58% and the S&P Small-Cap 600 Index SML, -0.56% So all S&P 500 Dividend Aristocrats are also high-yield Dividend Aristocrats.)
You can invest in the High-Yield Aristocrats as a group with the SPDR S&P Dividend ETF SDY, -0.26%
The SPDR S&P Dividend ETF was established Nov. 15, 2005. The S&P 500 High-Yield dividend Aristocrats Index was established Dec. 7, 1999. Here’s how the performance of the ETF and the High-Yield Dividends Aristocrats Index compare to that of the S&P 1500 Composite Index for various periods:
| Index | Total return - 2019 through July 23 | Total return - 3 years | Total return - 5 years | Total return - 10 years | Total return - Nov. 15, 2005, through July 23, 2019 | Total return - 15 years | Total return - Dec. 7, 1999, through July 23, 2019 |
| SPDR S&P Dividend ETF SDY, -0.26% | 15% | 31% | 66% | 268% | 226% | N/A | N/A |
| S&P High Yield Dividend Aristocrats Index | 15% | 33% | 70% | 282% | 238% | 294% | 577% |
| S&P Composite 1500 Index | 21% | 45% | 66% | 279% | 228% | 284% | 236% |
| Source: FactSet | |||||||
Performance for all the Dividend Aristocrats
First, here are total returns for the S&P 500 Dividend Aristocrats, sorted by how well they have performed this year:
| Company | Ticker | Industry | Total return - 2019 | Total return - 3 years | Total return - 5 years | Dividend yield |
| Cintas Corp. | CTAS, -0.09% | Other Consumer Services | 55% | 150% | 337% | 0.79% |
| Air Products and Chemicals Inc. | APD, +0.28% | Chemicals | 45% | 80% | 106% | 2.03% |
| S&P Global Inc. | SPGI, -0.49% | Financial Publishing/ Services | 44% | 114% | 211% | 0.94% |
| Roper Technologies Inc. | ROP, -2.02% | Industrial Conglomerates | 41% | 120% | 169% | 0.49% |
| Dover Corp. | DOV, +0.52% | Miscellaneous Manufacturing | 40% | 82% | 52% | 1.96% |
| Cincinnati Financial Corp. | CINF, +0.22% | Property/ Casualty Insurance | 39% | 55% | 160% | 2.10% |
| Ecolab Inc. | ECL, +0.17% | Chemicals | 36% | 72% | 93% | 0.92% |
| Target Corp. | TGT, -0.91% | Specialty Stores | 36% | 32% | 73% | 2.98% |
| Linde PLC | LIN, -1.68% | Chemicals: Specialty | 34% | 88% | 77% | 1.69% |
| V.F. Corp. | VFC, -0.08% | Apparel/ Footwear | 33% | 63% | 72% | 2.31% |
| Automatic Data Processing Inc. | ADP, +0.14% | Data Processing Services | 29% | 88% | 162% | 1.88% |
| United Technologies Corp. | UTX, +1.60% | Industrial Conglomerates | 28% | 37% | 38% | 2.18% |
| Stanley Black & Decker Inc. | SWK, -0.50% | Tools & Hardware | 28% | 33% | 94% | 1.82% |
| Procter & Gamble Co. | PG, -0.26% | Household/ Personal Care | 27% | 46% | 67% | 2.62% |
| Illinois Tool Works Inc. | ITW, +0.42% | Industrial Machinery | 26% | 47% | 105% | 2.55% |
| Sherwin-Williams Co. | SHW, +1.13% | Industrial Specialties | 25% | 72% | 140% | 0.92% |
| Abbott Laboratories | ABT, -0.56% | Medical Specialties | 24% | 118% | 129% | 1.44% |
| Colgate-Palmolive Co. | CL, +0.36% | Household/ Personal Care | 24% | 4% | 19% | 2.38% |
| Aflac Inc. | AFL, -0.24% | Life/ Health Insurance | 22% | 61% | 95% | 1.96% |
| McDonald's Corp. | MCD, +0.29% | Restaurants | 22% | 81% | 160% | 2.17% |
| Walmart Inc. | WMT, -0.13% | Specialty Stores | 22% | 64% | 65% | 1.89% |
| T. Rowe Price Group | TROW, +0.90% | Investment Managers | 21% | 62% | 58% | 2.75% |
| Kimberly-Clark Corp. | KMB, +0.51% | Household/ Personal Care | 21% | 11% | 51% | 3.05% |
| General Dynamics Corp. | GD, -0.21% | Aerospace & Defense | 20% | 37% | 70% | 2.19% |
| PepsiCo Inc. | PEP, -0.39% | Beverages: Non-Alcoholic | 20% | 31% | 67% | 2.92% |
| Franklin Resources Inc. | BEN, -1.38% | Investment Managers | 20% | 17% | -27% | 2.97% |
| Brown-Forman Corp. Class B | BF.B, -1.05% | Beverages: Alcoholic | 18% | 48% | 65% | 1.19% |
| Chevron Corp. | CVX, -0.52% | Integrated Oil | 18% | 34% | 15% | 3.78% |
| AT&T Inc. | T, +1.74% | Telecommunications | 18% | -12% | 18% | 6.36% |
| PPG Industries Inc. | PPG, +0.36% | Industrial Specialties | 17% | 16% | 22% | 1.71% |
| Coca-Cola Co. | KO, -1.52% | Beverages: Non-Alcoholic | 17% | 31% | 57% | 2.94% |
| People's United Financial Inc. | PBCT, +0.21% | Major Banks | 16% | 19% | 35% | 4.35% |
| Consolidated Edison Inc. | ED, -0.77% | Electric Utilities | 15% | 19% | 82% | 3.42% |
| Chubb Limited | CB, -0.17% | Property/ Casualty Insurance | 15% | 22% | 57% | 2.04% |
| McCormick & Co. Inc. | MKC, +1.25% | Food: Specialty/ Candy | 15% | 60% | 151% | 1.44% |
| Leggett & Platt Inc. | LEG, -0.40% | Home Furnishings | 14% | -17% | 42% | 3.98% |
| Becton, Dickinson and Co. | BDX, -0.16% | Medical Specialties | 14% | 54% | 133% | 1.20% |
| Sysco Corp. | SYY, +0.05% | Food Distributors | 14% | 45% | 116% | 2.22% |
| Emerson Electric Co. | EMR, -0.80% | Electrical Products | 14% | 31% | 17% | 2.93% |
| Exxon Mobil Corp. | XOM, -0.50% | Integrated Oil | 13% | -10% | -13% | 4.62% |
| Medtronic PLC | MDT, -0.58% | Medical Specialties | 13% | 25% | 78% | 2.13% |
| Lowe's Companies Inc. | LOW, -0.54% | Home Improvement Chains | 13% | 35% | 134% | 2.14% |
| Federal Realty Investment Trust | FRT, -0.42% | Real Estate Investment Trusts | 12% | -15% | 20% | 3.14% |
| Caterpillar Inc. | CAT, +1.59% | Trucks/ Construction/ Farm Machinery | 11% | 89% | 49% | 2.98% |
| Nucor Corp. | NUE, -0.42% | Steel | 11% | 16% | 28% | 2.83% |
| Clorox Co. | CLX, +0.08% | Household/ Personal Care | 8% | 32% | 107% | 2.58% |
| Pentair PLC | PNR, -0.59% | Miscellaneous Manufacturing | 6% | -1% | -10% | 1.83% |
| A.O. Smith Corp. | AOS, -0.07% | Building Products | 6% | 4% | 90% | 1.97% |
| Genuine Parts Co. | GPC, -0.10% | Wholesale Distributors | 3% | 6% | 31% | 3.14% |
| Cardinal Health Inc. | CAH, +0.15% | Medical Distributors | 2% | -41% | -29% | 4.33% |
| Johnson & Johnson | JNJ, +0.62% | Pharmaceuticals | 1% | 12% | 44% | 2.95% |
| Archer-Daniels-Midland Co. | ADM, +0.57% | Agricultural Commodities/ Milling | 1% | 2% | -3% | 3.45% |
| W.W. Grainger Inc. | GWW, -2.11% | Wholesale Distributors | 0% | 37% | 28% | 2.07% |
| Hormel Foods Corp. | HRL, +0.77% | Food: Meat/ Fish/ Dairy | -2% | 18% | 89% | 2.04% |
| 3M Co. | MMM, -0.77% | Industrial Conglomerates | -5% | 6% | 40% | 3.24% |
| Walgreens Boots Alliance Inc. | WBA, -0.67% | Drugstore Chains | -19% | -28% | -17% | 3.35% |
| AbbVie Inc. | ABBV, -0.65% | Pharmaceuticals | -23% | 20% | 51% | 6.32% |
| Source: FactSet | ||||||
And here are total returns for the remaining 55 High-Yield Dividend Aristocrats:
| Company | Ticker | Industry | Total return - 2019 | Total return - 3 years | Total return - 5 years | Dividend yield |
| International Business Machines Corp. | IBM, +0.03% | Information Technology Services | 35% | 5% | -6% | 4.31% |
| Bank OZK | OZK, -2.16% | Regional Banks | 35% | -14% | 5% | 3.20% |
| RenaissanceRe Holdings Ltd. | RNR, +2.35% | Property/ Casualty Insurance | 34% | 57% | 75% | 0.76% |
| Aptargroup Inc. | ATR, +0.05% | Containers/ Packaging | 33% | 62% | 112% | 1.16% |
| Carlisle Cos. Inc. | CSL, +0.19% | Miscellaneous Manufacturing | 32% | 29% | 68% | 1.21% |
| ABM Industries Inc. | ABM, +0.58% | Miscellaneous Commercial Services | 31% | 17% | 79% | 1.74% |
| Eaton Vance Corp. | EV, -1.27% | Investment Managers | 30% | 30% | 39% | 3.12% |
| Brown & Brown Inc. | BRO, -0.28% | Insurance Brokers/ Services | 30% | 99% | 140% | 0.90% |
| RLI Corp. | RLI, -0.83% | Property/ Casualty Insurance | 29% | 44% | 148% | 1.04% |
| Ross Stores Inc. | ROST, -0.65% | Apparel/ Footwear Retail | 28% | 82% | 254% | 0.96% |
| Black Hills Corp. | BKH, +0.40% | Electric Utilities | 27% | 37% | 64% | 2.57% |
| West Pharmaceutical Services Inc. | WST, +8.13% | Medical Specialties | 26% | 61% | 213% | 0.49% |
| SEI Investments Co. | SEIC, +1.26% | Investment Managers | 26% | 17% | 77% | 1.14% |
| TJX Cos. Inc. | TJX, +0.03% | Apparel/ Footwear Retail | 23% | 44% | 121% | 1.68% |
| Fastenal Co. | FAST, -0.33% | Wholesale Distributors | 23% | 63% | 62% | 2.78% |
| J.M. Smucker Co. | SJM, +0.97% | Food: Specialty/ Candy | 22% | -20% | 22% | 3.02% |
| Polaris Industries Inc. | PII, -1.03% | Recreational Products | 22% | 3% | -30% | 2.64% |
| Essex Property Trust Inc. | ESS, +1.03% | Real Estate Investment Trusts | 22% | 42% | 77% | 2.64% |
| Aqua America Inc. | WTR, +0.32% | Water Utilities | 21% | 28% | 87% | 2.14% |
| NextEra Energy Inc. | NEE, -1.18% | Electric Utilities | 21% | 73% | 142% | 2.41% |
| United Bankshares Inc. | UBSI, -0.32% | Regional Banks | 20% | 6% | 40% | 3.70% |
| Brady Corp. Class A | BRC, +0.65% | Miscellaneous Manufacturing | 19% | 66% | 110% | 1.67% |
| Nordson Corp. | NDSN, -1.09% | Industrial Machinery | 18% | 64% | 89% | 1.00% |
| Atmos Energy Corp. | ATO, -0.29% | Gas Distributors | 17% | 43% | 138% | 1.95% |
| MSA Safety Inc. | MSA, -4.24% | Other Consumer Specialties | 17% | 106% | 110% | 1.54% |
| Sonoco Products Co. | SON, +1.20% | Containers/ Packaging | 16% | 29% | 73% | 2.84% |
| H.B. Fuller Co. | FUL, -1.80% | Industrial Specialties | 15% | 8% | 11% | 1.31% |
| Donaldson Co. Inc. | DCI, -0.85% | Industrial Specialties | 15% | 47% | 33% | 1.69% |
| Church & Dwight Co. Inc. | CHD, +0.25% | Household/ Personal Care | 15% | 57% | 143% | 1.21% |
| American States Water Co. | AWR, +0.16% | Water Utilities | 15% | 84% | 167% | 1.44% |
| Old Republic International Corp. | ORI, -1.71% | Property/ Casualty Insurance | 14% | 36% | 77% | 3.47% |
| RPM International Inc. | RPM, -0.23% | Industrial Specialties | 14% | 37% | 66% | 2.13% |
| Lincoln Electric Holdings Inc. | LECO, -2.29% | Industrial Machinery | 14% | 52% | 45% | 2.12% |
| nVent Electric PLC | NVT, -1.03% | Electronic Components | 13% | N/A | N/A | 2.81% |
| Realty Income Corp. | O, -0.92% | Real Estate Investment Trusts | 13% | 13% | 92% | 3.91% |
| Community Bank System Inc. | CBU, -0.33% | Regional Banks | 12% | 58% | 109% | 2.35% |
| California Water Service Group | CWT, -0.57% | Water Utilities | 12% | 68% | 154% | 1.49% |
| Expeditors International of Washington Inc. | EXPD, -1.70% | Air Freight/ Couriers | 12% | 57% | 79% | 1.33% |
| MDU Resources Group Inc | MDU, -0.52% | Gas Distributors | 11% | 15% | -8% | 3.11% |
| National Retail Properties Inc. | NNN, -0.76% | Real Estate Investment Trusts | 10% | 14% | 73% | 3.92% |
| New Jersey Resources Corp. | NJR, +0.08% | Gas Distributors | 10% | 41% | 108% | 2.36% |
| CDK Global Inc | CDK, +0.13% | Miscellaneous Commercial Services | 9% | -8% | N/A | 1.16% |
| Cullen/Frost Bankers Inc. | CFR, -1.95% | Regional Banks | 7% | 45% | 37% | 3.06% |
| Meredith Corp. | MDP, +0.61% | Publishing: Books/ Magazines | 6% | 7% | 37% | 4.26% |
| Commerce Bancshares Inc. | CBSH, -0.35% | Regional Banks | 6% | 49% | 82% | 1.76% |
| C.H. Robinson Worldwide Inc. | CHRW, -2.53% | Air Freight/ Couriers | 0% | 24% | 41% | 2.40% |
| Telephone and Data Systems Inc. | TDS, +0.18% | Wireless Telecommunications | 0% | 8% | 44% | 2.06% |
| Albemarle Corp. | ALB, -1.28% | Chemicals | -2% | -9% | 18% | 1.97% |
| John Wiley & Sons Inc. Class A | JW.A, +0.61% | Publishing: Books/ Magazines | -3% | -15% | -17% | 3.02% |
| National Fuel Gas Co. | NFG, -1.62% | Integrated Oil | -5% | -7% | -22% | 3.62% |
| UGI Corp. | UGI, +0.12% | Gas Distributors | -5% | 18% | 68% | 2.39% |
| Lancaster Colony Corp. | LANC, -0.14% | Food: Specialty/ Candy | -14% | 23% | 88% | 1.72% |
| Tanger Factory Outlet Centers Inc. | SKT, -0.24% | Real Estate Investment Trusts | -16% | -54% | -43% | 8.65% |
| Amcor PLC | AMCR, +2.01% | Containers/ Packaging | N/A | N/A | N/A | 0.00% |
| Kontoor Brands Inc. | KTB, -4.57% | Apparel/ Footwear | N/A | N/A | N/A | 7.23% |
| Source: FactSet | ||||||
Amcor PLC’s AMCR, +2.01% shares were first listed on the New York Stock Exchange on June 11 when the company, headquartered in Australia, acquired Bemis. The “new” Amcor hasn’t announced dividends for the combined company yet.
Shares of Kontoor Brands KTB, -4.57% were first listed on the New York Stock Exchange on May 9 after the company was separated from V.F. Corp. VFC, -0.08% which is an S&P 500 Dividend Aristocrat. Kontoor Brands declared a quarterly dividend of 56 cents a share on July 23. With this quarterly payout, the annual dividend yield is 7.23%, based on the closing share price of $31 on July 23.
We’ll update this story with more information about Amcor and Kontoor when it is available. Representatives of S&P Dow Jones Indices and State Street Global Advisors (which runs the SPDR ETFs) weren’t immediately available for comment.
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