03/04/2016 9:00 am EST
Near the beginning of every year, S&P Dow Jones Indices publishes the new list of Dividend Aristocrats—companies in the S&P 500 that have 25 consecutive years of increased cash payments to shareholders—explains Beth Piskora in S&P The Outlook.
This year, it seems like the list couldn’t have appeared at a better time, as a down market and ongoing volatility have investors more interested in the guarantee of dividend payments.
The table below lists all the S&P 500 Dividend Aristocrats that also garner a STARS ranking of at least 4 out of 5 stars.
This rating means that S&P Global equity analysts—who operate independently from S&P Dow Jones Indices—believe these stocks will outperform in the next 12 months.
Below is the list these 4 and 5 star-rated aristocrats, including their current yield and the number of successive years of dividend increases.
AbbVie (ABBV)—yielding 4.3 (43 years)
Aflac (AFL)—yielding 2.9 (33 years)
AT&T (T)—yielding 5.3 (31 years)
Cardinal Health (CAH)—yielding 2.0 (28 years)
Cintas (CTAS)—yielding 1.3 (31 years)
Dover (DOV)—yielding 2.8 (53 years)
ExxonMobil (XOM)—yielding 3.6 (33 years)
Johnson & Johnson (JNJ)—yielding 3.0 (53 years)
McDonald's (MCD)—yielding 3.0 (39 years)
Medtronic (MDT)—yielding 2.1 (38 years)
Nucor (NUE)—yielding 3.8 (42 years)
Pentair (PNR)—yielding 3.0 (39 years)
PPG Industries (PPG)—yielding 1.6 (44 years)
Sherwin-Williams (SHW)—yielding 1.0 (36 years)
T. Rowe Price (TROW)—yielding 3.1 (29 years)
VF Corp. (VFC)—yielding 2.5 (43 years)
Walgreens Boots Alliance (WBA)—yielding 1.9 (40 years)
S&P Dow Jones Indices maintains both the S&P 500 Dividend Aristocrats index, as well as the S&P High Yield Dividend Aristocrats index, which consists of S&P 1500 companies that raised their dividend for 20 or more consecutive years.
Investors can also get exposure to the S&P High Yield Dividend Aristocrats index through an exchange-traded fund, SPDR S&P Dividend ETF (SDY)., which sports a 2.7% dividend yield and has a 0.35% expense ratio.
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