Dividend Aristocrats List: The Best Dividend Stocks to Buy and Hold (2022)
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Are you in search of reliable and consistent dividend income? Look no further than the Dividend Aristocrats list.
This group of elite stocks has a long history of boosting shareholder payouts year after year. With yields that beat the average savings account, they offer the perfect combination of wealth-building potential and security.
Ready to find out more? Keep reading to learn everything you need to know about this exclusive club.
Related reading: Living Off Dividends – How to Live on Your Investments in Retirement
What Is a Dividend Aristocrat?
A Dividend Aristocrat is a stock with 25+ consecutive years of dividend increases. This impressive feat is only accomplished by the most reliable companies out there, with time-tested business models and strong fundamentals.
To be included on this coveted list, a company must also be a member of the S&P 500 index. This ensures that only the biggest and most successful US businesses make the cut. (If a company has 25+ years of consecutive dividend growth but is not a member of the S&P 500, it is considered a Dividend Champion.)
There are also requirements in terms of market cap and cash flow. This ensures that only financially healthy companies are considered for the list.
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Dividend Aristocrats List
Here are the 65 companies that qualify for the 2022 edition of the Dividend Aristocrats list.
Please note: This list is not intended to provide financial or investing advice. Investing in the stock market involves risk, and if you’re looking for personalized advice, please speak with a financial advisor or financial professional.
| Company | Sector | Consecutive Years of Dividend Growth |
|---|---|---|
| Dover (DOV) | Industrials | 66 |
| Genuine Parts Co. (GPC) | Consumer Discretionary | 66 |
| Procter & Gamble (PG) | Consumer Staples | 66 |
| Emerson Electric (EMR) | Industrials | 65 |
| 3M (MMM) | Industrials | 64 |
| Cincinnati Financial (CINF) | Financials | 61 |
| Coca-Cola (KO) | Consumer Staples | 60 |
| Johnson & Johnson (JNJ) | Healthcare | 60 |
| Colgate-Palmolive (CL) | Consumer Staples | 59 |
| Illinois Tool Works (ITW) | Industrials | 58 |
| Hormel Foods (HRL) | Consumer Staples | 56 |
| Stanly Black & Decker (SWK) | Industrials | 54 |
| Federal Realty Investment Trust (FRT) | Real Estate | 54 |
| Sysco (SYY) | Consumer Staples | 53 |
| W. W. Grainger (GWW) | Industrials | 51 |
| Becton, Dickinson & Co. (BDX) | Healthcare | 50 |
| PPG Industries (PPG) | Materials | 50 |
| Target (TGT) | Consumer Discretionary | 50 |
| AbbVie (ABBV) | Healthcare | 50 |
| Abbott Laboratories (ABT) | Healthcare | 50 |
| Kimberly Clark (KMB) | Consumer Staples | 50 |
| PepsiCo (PEP) | Consumer Staples | 50 |
| Nucor (NUE) | Materials | 49 |
| S&P Global (SPGI) | Financials | 49 |
| Archer-Daniels-Midland (ADM) | Consumer Staples | 49 |
| Walmart (WMT) | Consumer Staples | 49 |
| VF Corp. (VFC) | Consumer Discretionary | 48 |
| Consolidated Edison (ED) | Utilities | 48 |
| Lowe’s (LOW) | Consumer Discretionary | 48 |
| Automatic Data Processing (ADP) | Information Technology | 47 |
| Walgreens Boots Alliance (WBA) | Consumer Staples | 46 |
| Pentair (PNR) | Industrials | 46 |
| The Clorox Co. (CLX) | Consumer Staples | 46 |
| McDonald’s (MCD) | Consumer Discretionary | 45 |
| Medtronic (MDT) | Healthcare | 45 |
| Sherwin-Williams (SHW) | Materials | 44 |
| Franklin Resources (BEN) | Financials | 40 |
| Air Products & Chemicals (APD) | Materials | 40 |
| Aflac (AFL) | Financials | 39 |
| Amcor PLC (AMCR) | Materials | 39 |
| ExxonMobil (XOM) | Energy | 39 |
| Brown-Forman (BF.B) | Consumer Staples | 38 |
| Cintas (CTAS) | Industrials | 38 |
| Atmos Energy Corporation (ATO) | Utilities | 38 |
| McCormick & Co. (MKC) | Consumer Staples | 36 |
| T. Rowe Price Group (TROW) | Financials | 36 |
| Cardinal Health (CAH) | Healthcare | 36 |
| Chevron (CVX) | Energy | 35 |
| Ecolab (ECL) | Materials | 30 |
| A.O. Smith (AOS) | Industrials | 30 |
| West Pharmaceutical Services, Inc. (WST) | Healthcare | 29 |
| Linde (LIN) | Healthcare | 29 |
| Roper Technologies (ROP) | Industrials | 29 |
| Caterpillar (CAT) | Industrials | 29 |
| Chubb (CB) | Financials | 29 |
| Expeditors International of Washington, Inc. (EXPD) | Industrials | 29 |
| People’s United Financial Inc. (PBCT) | Financials | 29 |
| Albemarle Corp. (ALB) | Materials | 28 |
| Essex Property Trust, Inc. (ESS) | Real Estate | 28 |
| Realty Income Corporation (O) | Real Estate | 28 |
| International Business Machines (IBM) | Information Technology | 28 |
| NextEra Energy Inc. (NEE) | Utilities | 28 |
| Brown & Brown (BRO) | Financials | 28 |
| Church & Dwight (CHD) | Consumer Staples | 26 |
| General Dynamics (GD) | Industrials | 25 |
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Why Invest in Dividend Aristocrats?
There are many reasons to invest in dividend stocks, but the Aristocrats offer some unique advantages.
Firstly, their long history of dividend increases is a strong indicator of future success (although future performance can never be guaranteed). Companies that can maintain such a streak are usually those with strong cash flows and solid fundamentals.
Secondly, these stocks tend to be less volatile than the overall market. This means that they are less likely to experience sharp downturns during times of economic uncertainty.
Dividend Artistocrasts are less volatile that the average stock because:
- They are large, well-established companies with diverse revenue streams
- They have a long track record of dividend growth, which instills investor confidence
- They tend to be less reliant on economic cycles
What’s more, Aristocrats offer some of the highest dividend yields around. This is especially true when you consider that you may also see an above-average dividend increase as well.
This combination of high current dividend yield and long-term dividend growth potential makes them an ideal choice for income investors.
Related reading: Income-Producing Assets to Generate Cash Flow
Risks to Consider
Investing in Dividend Aristocrat stock does come with some risks, and these should be considered before making any decisions.
For instance, a dividend stock may underperform during bull markets. This is because investors are more likely to take risks during these periods, chasing after high-flying growth stocks. Additionally, these established companies are no longer in a phase of business that is conducive to rapid growth.
Dividend stocks also tend to be more sensitive to changes in interest rates. This is because their yields become less attractive when rates rise.
That being said, these risks can be mitigated to some degree by diversifying your portfolio across different sectors and asset classes.
Dividend Aristocrats Index Fund
One of the easiest ways to invest in dividend aristocrats is through an index fund. The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is one such option.
This fund tracks the S&P 500 Dividend Aristocrats Index. As a result, investors can get exposure to a wide range of Dividend Aristocrats in a single fund, rather than purchasing many different individual stocks. The expense ratio of 0.35% may be worth the convenience if you prefer a simple approach.
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Frequently Asked Questions
To qualify as a Dividend Kings, a company must have increased dividends for at least 50 years straight, as opposed to 25 years to be a Dividend Aristocrat. So, the Dividend Kings list is more exclusive. However, that doesn’t mean that Dividend Kinds are necessarily a better investment than Dividend Aristocrat stocks. Future performance could vary, plus increases and decreases in the stock price will have a big impact on overall performance.
At present, there are 65 companies on the Dividend Aristocrats list, but the number can change each year.
A Dividend Aristocrat may offer several advantages, including a long history of dividend payment increases, less volatility than the overall market, and high dividend yield. However, there are also some risks to consider before investing, such as underperformance during bull markets and sensitivity to changes in interest rates.
There is no such thing as a “safe” investment, but Dividend Aristocrats are often considered to be a relatively safe choice. This is because they are large, well-established companies with diverse revenue streams and strong fundamentals. They tend to be less volatile than the stock market as a whole.
The main downside to dividend stocks is that they can underperform during bull markets. This is because investors are more likely to take risks and chase growth during these periods. Dividend stocks may also be more sensitive to changes in interest rates. However, these risks can be mitigated through diversification.
It depends on your investment goals. Dividend stocks offer income and stability, while growth stocks have the potential for capital gains. If you’re looking for immediate income, dividend stocks may be a better choice because of the dividend payout. If you’re looking to invest for the long term, growth stocks may have more upside potential.
Yes, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) tracks the S&P 500 Dividend Aristocrats Index. This provides exposure to a wide range of Dividend Aristocrats in a single fund. The expense ratio is 0.35%.
Final Thoughts on Dividend Aristocrats
Dividend Aristocrats offer many advantages for income investors. With a long history of dividend growth and above-average yields, they provide the perfect combination of stability and income potential. Just remember to consider the risks before making any decisions.
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