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.
When Will Air Travel Return to Pre-Pandemic Levels?
COVID-19 hit the air travel industry hard. But passenger traffic is slowly recovering, and by 2025, things are expected to return to ‘normal.’
When Will Air Travel Return to Pre-Pandemic Levels?
Many industries were hit hard by the global pandemic, but it can be argued that air travel suffered one of the most severe blows.
The aviation industry as a whole suffered an estimated $370 billion loss in global revenue because of COVID-19. And while air travel has been slowly recovering from the trough, flight passenger traffic has yet to fully bounce back.
Where is the industry at in 2022 compared to pre-COVID times, and when is air passenger travel expected to return to regular levels? This graphic by Julie R. Peasley uses data from IATA to show current and projected air passenger ridership.
Air Travel Traffic: 2021 and 2022
After an incredibly difficult 2020, the airline industry started to see significant improvements in travel frequency. But compared to pre-pandemic levels, there’s a lot of ground to cover.
In 2021, overall passenger numbers only reached 47% of 2019 levels. This influx was largely driven by domestic travel, with international passenger numbers only reaching 27% of pre-COVID levels.
|Passenger numbers (% of 2019)||2021||2022|
From a regional perspective, Central America experienced one of the fastest recoveries. In 2021, overall passenger numbers in the region had reached 72% of 2019 levels, and they are projected to reach 96% by the end of 2022.
In fact, the Americas as a whole has seen a quick recovery. Both North America and South America also reached above 50% of 2019 ridership in 2021, and are projected to reach 94% and 88% ridership in 2022, respectively.
On the opposite end of the spectrum, Asia Pacific has experienced the slowest recovery. This is likely due to stricter lockdowns and travel restrictions put into effect in this region (which was harder hit by SARS in 2003), especially in places like Shanghai.
Forecasting Traffic in 2023 and Beyond
While recovery has looked different from region to region, airlines are largely expected to see a full recovery to their ridership levels by 2025.
|Forecasted Passengers (% of 2019)||2023||2024||2025|
This recovery is a signifier of a much broader mindset shift, as governments continue to reassess their COVID-19 management strategies.
But while the future seems promising, IATA stressed that the forecast does not take into account the potential impact of the Russia-Ukraine conflict and other geopolitical concerns, which could have far-reaching consequences on the global economy (and travel) in the coming years.
All of the World’s Money and Markets in One Visualization (2022)
From the wealth held to billionaires to all debt in the global financial system, we look at the vast universe of money and markets in 2022.
All of the World’s Money and Markets in One Visualization
The era of easy money is now officially over.
For 15 years, policymakers have tried to stimulate the global economy through money creation, zero interest-rate policies, and more recently, aggressive COVID fiscal stimulus.
With capital at near-zero costs over this stretch, investors started to place more value on cash flows in the distant future. Assets inflated and balance sheets expanded, and money inevitably chased more speculative assets like NFTs, crypto, or unproven venture-backed startups.
But the free money party has since ended, after persistent inflation prompted the sudden reversal of many of these policies. And as Warren Buffett says, it’s only when the tide goes out do you get to see “who’s been swimming naked.”
Measuring Money and Markets in 2022
Every time we publish this visualization, our common unit of measurement is a two-dimensional box with a value of $100 billion.
Even though you need many of these to convey the assets on the balance sheet of the U.S. Federal Reserve, or the private wealth held by the world’s billionaires, it’s quite amazing to think what actually fits within this tiny building block of measurement:
Our little unit of measurement is enough to pay for the construction of the Nord Stream 2 pipeline, while also buying every team in the NHL and digging FTX out of its financial hole several times over.
Here’s an overview of all the items we have listed in this year’s visualization:
|SBF (Peak Net Worth)||$26 billion||Bloomberg||Now sits at <$1B|
|Pro Sports Teams||$340 billion||Forbes||Major pro teams in North America|
|Cryptocurrency||$760 billion||CoinMarketCap||Peaked at $2.8T in 2021|
|Ukraine GDP||$130 billion||World Bank||Comparable to GDP of Mississippi|
|Russia GDP||$1.8 trillion||World Bank||The world's 11th largest economy|
|Annual Military Spending||$2.1 trillion||SIPRI||2021 data|
|Physical currency||$8.0 trillion||BIS||2020 data|
|Gold||$11.5 trillion||World Gold Council||There are 205,238 tonnes of gold in existence|
|Billionaires||$12.7 trillion||Forbes||Sum of fortunes of all 2,668 billionaires|
|Central Bank Assets||$28.0 trillion||Trading Economics||Fed, BoJ, Bank of China, and Eurozone only|
|S&P 500||$36.0 trillion||Slickcharts||Nov 20, 2022|
|China GDP||$17.7 trillion||World Bank|
|U.S. GDP||$23.0 trillion||World Bank|
|Narrow Money Supply||$49.0 trillion||Trading Economics||Includes US, China, Euro Area, Japan only|
|Broad Money Supply||$82.7 trillion||Trading Economics||Includes US, China, Euro Area, Japan only|
|Global Equities||$95.9 trillion||WFE||Latest available 2022 data|
|Global Debt||$300.1 trillion||IIF||Q2 2022|
|Global Real Estate||$326.5 trillion||Savills||2020 data|
|Global Private Wealth||$463.6 trillion||Credit Suisse||2022 report|
|Derivatives (Market)||$12.4 trillion||BIS|
|Derivatives (Notional)||$600 trillion||BIS|
Has the Dust Settled Yet?
Through previous editions of our All the World’s Money and Markets visualization, we’ve created snapshots of the world’s assets and markets at different points in time.
For example, in our 2017 edition of this visualization, Apple’s market capitalization was only $807 billion, and all crypto assets combined for $173 billion. The global debt total was at $215 trillion.
|Asset||2017 edition||2022 edition||Change (%)|
|Apple market cap||$807 billion||$2.3 trillion||+185%|
|Crypto||$173 billion||$760 billion||+339%|
|Fed Balance Sheet||$4.5 trillion||$8.7 trillion||+93%|
|Stock Markets||$73 trillion||$95.9 trillion||+31%|
|Global Debt||$215 trillion||$300 trillion||+40%|
And in just five years, Apple nearly quadrupled in size (it peaked at $3 trillion in January 2022), and crypto also expanded into a multi-trillion dollar market until it was brought back to Earth through the 2022 crash and subsequent FTX implosion.
Meanwhile, global debt continues to accumulate—growing by $85 trillion in the five-year period.
With interest rates expected to continue to rise, companies making cost cuts, and policymakers reining in spending and borrowing, today is another unique snapshot in time.
Now that the easy money era is over, where do things go from here?
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