The Dividend Aristocrats in 2021
Legendary investor George Soros once said, “Good investing should be boring”. But an increase in volatile themes today suggests this maxim has gone ignored by at least some market participants.
From a high level, we can view investments on a spectrum. Volatile assets like cryptocurrencies and SPACs are more on the exciting side of things. The boring side is likely where Dividend Aristocrat stocks lie.
The data above, from Sure Dividend, looks at all 65 Dividend Aristocrats, ranking them by their yield, sector, and years of growth.
What are Dividend Aristocrats?
The U.S. Dividend Aristocrats are a basket of 65 stocks in the S&P 500 index. These companies have been growing their dividend per share consecutively, for a minimum of 25 years.
This is easier said than done, since companies often distribute dividends quarterly. To pay and grow a dividend in the long run implies a business model that can withstand varying economic environments, including setbacks like market crashes.
Though dividend stocks may not carry the same excitement as other investments, studies show that dividends represent over 50% of total S&P 500 market returns.
|Company||Dividend Yield||Years Dividend Grown||Sector|
|AT&T, Inc.||6.9%||36||Communication Services|
|Exxon Mobil Corp.||6.1%||38||Energy|
|International Business Machines Corp.||4.9%||25||Technology|
|Realty Income Corp.||4.2%||26||Real Estate|
|People`s United Financial Inc||4.1%||28||Financial Services|
|Federal Realty Investment Trust||4.0%||53||Real Estate|
|Consolidated Edison, Inc.||4.0%||47||Utilities|
|Amcor Plc||3.9%||36||Consumer Cyclical|
|Franklin Resources, Inc.||3.7%||41||Financial Services|
|Walgreens Boots Alliance Inc||3.5%||45||Healthcare|
|Leggett & Platt, Inc.||3.3%||47||Consumer Cyclical|
|Kimberly-Clark Corp.||3.3%||49||Consumer Defensive|
|Cardinal Health, Inc.||3.2%||33||Healthcare|
|Coca-Cola Co||3.1%||58||Consumer Defensive|
|PepsiCo Inc||3.0%||49||Consumer Defensive|
|Essex Property Trust, Inc.||2.9%||26||Real Estate|
|Genuine Parts Co.||2.7%||65||Consumer Cyclical|
|General Dynamics Corp.||2.6%||28||Industrials|
|Procter & Gamble Co.||2.5%||64||Consumer Defensive|
|Johnson & Johnson||2.5%||58||Healthcare|
|Archer Daniels Midland Co.||2.5%||46||Consumer Defensive|
|Aflac Inc.||2.5%||39||Financial Services|
|Atmos Energy Corp.||2.5%||37||Utilities|
|Cincinnati Financial Corp.||2.4%||60||Financial Services|
|Clorox Co.||2.3%||43||Consumer Defensive|
|VF Corp.||2.3%||48||Consumer Cyclical|
|Sysco Corp.||2.2%||51||Consumer Defensive|
|Colgate-Palmolive Co.||2.2%||57||Consumer Defensive|
|McDonald`s Corp||2.2%||45||Consumer Cyclical|
|Emerson Electric Co.||2.2%||64||Industrials|
|Hormel Foods Corp.||2.1%||55||Consumer Defensive|
|Air Products & Chemicals Inc.||2.1%||39||Basic Materials|
|Nucor Corp.||2.0%||47||Basic Materials|
|Illinois Tool Works, Inc.||2.0%||46||Industrials|
|T. Rowe Price Group Inc.||2.0%||34||Financial Services|
|Chubb Limited||2.0%||27||Financial Services|
|Automatic Data Processing Inc.||1.9%||46||Industrials|
|NextEra Energy Inc||1.9%||25||Utilities|
|Walmart Inc||1.6%||48||Consumer Defensive|
|McCormick & Co., Inc.||1.5%||34||Consumer Defensive|
|A.O. Smith Corp.||1.5%||27||Industrials|
|W.W. Grainger Inc.||1.5%||49||Industrials|
|Linde Plc||1.5%||28||Basic Materials|
|Stanley Black & Decker Inc||1.4%||53||Industrials|
|Target Corp||1.3%||53||Consumer Defensive|
|PPG Industries, Inc.||1.3%||49||Basic Materials|
|Becton, Dickinson And Co.||1.3%||49||Healthcare|
|Lowe`s Cos., Inc.||1.2%||57||Consumer Cyclical|
|Albemarle Corp.||1.0%||26||Basic Materials|
|Brown-Forman Corp.||1.0%||31||Consumer Defensive|
|Expeditors International Of Washington, Inc.||1.0%||26||Industrials|
|Ecolab, Inc.||0.9%||35||Basic Materials|
|Sherwin-Williams Co.||0.8%||42||Basic Materials|
|S&P Global Inc||0.8%||48||Financial Services|
|Roper Technologies Inc||0.5%||28||Industrials|
|West Pharmaceutical Services, Inc.||0.2%||27||Healthcare|
Numerous companies on this list have brand value that stretches all over the globe—including the likes of McDonald’s, Coca-Cola, and Walmart.
Vast global recognition and branding power is in part why these companies can generate cash flows to pay dividends for decades on end. For instance, 94% of the world population recognizes Coca-Cola’s logo.
The 65 Dividend Aristocrat stocks break down into 11 sectors. Across sectors, Industrials is the most crowded, consisting of 14 companies, with an average yield of 1.6% and a dividend growth duration of 43 years. Popular stocks in this sector include 3M and Caterpillar.
Next is the Consumer Defensive sector, containing 13 companies like Clorox, Target, Pepsi, and Procter & Gamble. The average yield is 2.2%, with an average growing duration of 49 years.
The highest yield by sector belongs to Energy, at 5.5%, but is only made up of only Chevron and Exxon Mobil. Their dividend track record may falter in the years to come, due to transitions away from the oil business. Just last year, Big Oil firms reported record net income losses, and Exxon was booted from the Dow Jones Industrial Average (DJIA).
The Consumer Cyclical sector has been increasing their dividend for an average of 50 years, the longest of any sector. Lowe’s and McDonald’s are involved in this category.
Businesses for Today and Tomorrow
Although the Dividend Aristocrats list is published every year, the companies on the list are a stable bunch, meaning changes are fairly infrequent.
In a market climate in part shaped by low rates and compressed yields in the fixed income space, Dividend Aristocrats might be a particularly attractive alternative for investors with a longer-term outlook.
Ranked: Big Tech CEO Insider Trading During the First Half of 2021
Big Tech is worth trillions, but what are insiders doing with their stock? We breakdown Big Tech CEO insider trading during the first half of 2021.
Big Tech CEO Insider Trading During The First Half of 2021
When CEOs of major companies are selling their shares, investors can’t help but notice.
After all, these decisions have a direct effect on the personal wealth of these insiders, which can say plenty about their convictions with respect to the future direction of the companies they run.
Considering that Big Tech stocks are some of the most popular holdings in today’s portfolios, and are backed by a collective $5.3 trillion in institutional investment, how do the CEOs of these organizations rank by their insider selling?
|CEO||Stock||Shares Sold H1 2021||Value of Shares ($M)|
|Jeff Bezos||Amazon (AMZN)||2.0 million||$6,600|
|Mark Zuckerberg||Facebook (FB)||7.1 million||$2,200
|Satya Nadella||Microsoft (MSFT)||278,694||$65|
|Sundar Pichai||Google (GOOGL)||27,000||$62|
|Tim Cook||Apple (AAPL)||0||$0|
Breaking Down Insider Trading, by CEO
Let’s dive into the insider trading activity of each Big Tech CEO:
During the first half of 2021, Jeff Bezos sold 2 million shares of Amazon worth $6.6 billion.
This activity was spread across 15 different transactions, representing an average of $440 million per transaction. Altogether, this ranks him first by CEO insider selling, by total dollar proceeds. Bezos’s time as CEO of Amazon came to an end shortly after the half way mark for the year.
In second place is Mark Zuckerberg, who has been significantly busier selling than the rest.
In the first half of 2021, he unloaded 7.1 million shares of Facebook onto the open market, worth $2.2 billion. What makes these transactions interesting is the sheer quantity of them, as he sold on 136 out of 180 days. On average, that’s $12 million worth of stock sold every day.
Zuckerberg’s record year of selling in 2018 resulted in over $5 billion worth of stock sold, but over 90% of his net worth still remains in the company.
Next is Satya Nadella, who sold 278,694 shares of Microsoft, worth $234 million. Despite this, the Microsoft CEO still holds an estimated 1.6 million shares, which is the largest of any insider.
Microsoft’s stock has been on a tear for a number of years now, and belongs to an elite trillion dollar club, which consists of only six public companies.
Fourth on the list is Sundar Pichai who has been at the helm at Google for six years now. Since the start of 2021, he’s sold 27,000 shares through nine separate transactions, worth $62.5 million. However, Pichai still has an estimated 6,407 Class A and 114,861 Class C shares.
Google is closing in on a $2 trillion valuation and is the best performing Big Tech stock, with shares rising 60% year-to-date. Their market share growth from U.S. ad revenues is a large contributing factor.
Last, is Tim Cook, who just surpassed a decade as Apple CEO.
During this time, shares have rallied over 1,000% and annual sales have gone from $100 billion to $347 billion. That said, Cook has sold 0 shares of Apple during the first half of 2021. That doesn’t mean he hasn’t sold shares elsewhere, though. Cook also sits on the board of directors for Nike, and has sold $6.9 million worth of shares this year.
Measuring Insider Selling
All things equal, it’s desirable for management to have skin in the game, and be invested alongside shareholders. It can also be seen as aligning long-term interests.
A good measure of insider selling activity is in relation to the existing stake in the company. For example, selling $6.6 billion worth of shares may sound like a lot, but when there are 51.7 million Amazon shares remaining for Jeff Bezos, it actually represents a small portion and is probably not cause for panic.
If, however, executives are disclosing large transactions relative to their total stakes, it might be worth digging deeper.
This Simple Chart Reveals the Distribution Of Global Wealth
Global wealth at the end of 2020 was about $418 trillion. Here’s a breakdown of the global wealth distribution among the adult population.
The Global Wealth Distribution in One Chart
The pandemic resulted in global wealth taking a significant dip in the first part of 2020. By the end of March, global household wealth had already declined by around 4.4%.
Interestingly, after much monetary and fiscal stimulus from governments around the world, global household wealth was more than able to recover, finishing up the year at $418.3 trillion, a 7.4% gain from the previous year.
Using data from Credit Suisse, this graphic looks at how global wealth is distributed among the adult population.
How is Global Wealth Distributed?
While individuals worth more than $1 million constitute just 1.1% of the world’s population, they hold 45.8% of global wealth.
|Wealth Range||Wealth||Global Share (%)||Adult Population|
|Over $1M||$191.6 trillion||45.8%||Held by 1.1%|
|$100k-$1M||$163.9 trillion||39.1%||Held by 11.1%|
|$10k-$100k||$57.3 trillion||13.7%||Held by 32.8%|
|Less than $10k||$5.5 trillion||1.3%||Held by 55.0%|
|Total||$418.3 trillion||100.0%||Held by 100.0%|
On the other end of the spectrum, 55% of the population owns only 1.3% of global wealth.
And between these two extreme wealth distribution cases, the rest of the world’s population has a combined 52.8% of the wealth.
Global Wealth Distribution by Region
While wealth inequality is especially evident within the wealth ranges mentioned above, these differences can also be seen on a more regional basis between countries.
In 2020, total wealth rose by $12.4 trillion in North America and $9.2 trillion in Europe. These two regions accounted for the bulk of the wealth gains, with China adding another $4.2 trillion and the Asia-Pacific region (excluding China and India) another $4.7 trillion.
Here is a breakdown of global wealth distribution by region:
|Change in Total Wealth |
|Change %||Wealth Per Adult |
India and Latin America both recorded losses in 2020.
Total wealth fell in India by $594 billion, or 4.4%. Meanwhile, Latin America appears to have been the worst-performing region, with total wealth dropping by 11.4% or $1.2 trillion.
Post-COVID Global Outlook 2020-2025
Despite the burden of COVID-19 on the global economy, the world can expect robust GDP growth in the coming years, especially in 2021. The latest estimates by the International Monetary Fund in April 2021 suggest that global GDP in 2021 will total $100.1 trillion in nominal terms, up by 4.1% compared to last year.
The link in normal times between GDP growth and household wealth growth, combined with the expected rapid return of economic activity to its pre-pandemic levels, suggests that global wealth could grow again at a fast pace. According to Credit Suisse estimates, global wealth may rise by 39% over the next five years.
Low and middle-income countries will also play an essential role in the coming year. They are responsible for 42% of the growth, even though they account for just 33% of current wealth.
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