Dividend aristocrat
A dividend aristocrat is commonly used to describe a company that has continuously increased its dividend for at least 25 years. This core definition is consistent with that of the S&P 500 Dividend Aristocrat . However, there are also different definitions. For example, according to S&P, even Japanese companies “only” need 10 years of continuous dividend increases to be included in the S & P / JPX Dividend Aristocrats .
Occurrence
By far the greatest number of dividend aristocrats come from the USA, where a reliable dividend payment in the context of retirement provision with stocks, also through government subsidies such as the 401 (k) plans, is a high priority. However, there are also dividend aristocrats in the sense of a continuous increase in the dividend over 25 years outside the USA in Canada and Europe.
Dividend aristocrat as a quality feature
The increase in dividends over 25 years is a quality feature, especially for long-term investors. However, in order to maintain the title, Dividend Aristocrats tend to continue, even if only marginally, to raise the dividend even in bad times. As a result, dividend aristocrats can regularly be found with payout ratios of over 100%. Likewise, the dividend aristocrat status can be lost.
Individual evidence
- ↑ James Chen: What Is a Dividend Aristocrat? In: Investopedia. August 14, 2019, accessed on May 2, 2020 .
- ^ S&P 500 Dividend Aristocrats Index. Retrieved September 14, 2018 .
- ^ S & P / JPX Dividend Aristocrats Index. Retrieved September 14, 2018 .
- ↑ US Dividend Champions - List of US Dividend Aristocrats. Retrieved September 14, 2018 .
- ^ List of dividend aristocrats also outside the USA. Retrieved September 14, 2018 .
- ↑ List of dividend aristocrats including payout ratio. Retrieved September 14, 2018 .
- ↑ Listing of the S&P Dividend Aristocrats from 1992–2015. (PDF) Retrieved September 14, 2018 (English).