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Who are the Dividend Aristocrats in 2021?

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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.

CompanyDividend YieldYears Dividend GrownSector
AT&T, Inc.6.9%36Communication Services
Exxon Mobil Corp.6.1%38Energy
Chevron Corp.5.1%33Energy
International Business Machines Corp.4.9%25Technology
Abbvie Inc4.8%49Healthcare
Realty Income Corp.4.2%26Real Estate
People`s United Financial Inc4.1%28Financial Services
Federal Realty Investment Trust4.0%53Real Estate
Consolidated Edison, Inc.4.0%47Utilities
Amcor Plc3.9%36Consumer Cyclical
Franklin Resources, Inc.3.7%41Financial Services
Walgreens Boots Alliance Inc3.5%45Healthcare
Leggett & Platt, Inc.3.3%47Consumer Cyclical
Kimberly-Clark Corp.3.3%49Consumer Defensive
Cardinal Health, Inc.3.2%33Healthcare
Coca-Cola Co3.1%58Consumer Defensive
PepsiCo Inc3.0%49Consumer Defensive
3M Co.3.0%62Industrials
Essex Property Trust, Inc.2.9%26Real Estate
Genuine Parts Co.2.7%65Consumer Cyclical
General Dynamics Corp.2.6%28Industrials
Procter & Gamble Co.2.5%64Consumer Defensive
Johnson & Johnson2.5%58Healthcare
Archer Daniels Midland Co.2.5%46Consumer Defensive
Aflac Inc.2.5%39Financial Services
Atmos Energy Corp.2.5%37Utilities
Cincinnati Financial Corp.2.4%60Financial Services
Clorox Co.2.3%43Consumer Defensive
VF Corp.2.3%48Consumer Cyclical
Sysco Corp.2.2%51Consumer Defensive
Colgate-Palmolive Co.2.2%57Consumer Defensive
McDonald`s Corp2.2%45Consumer Cyclical
Emerson Electric Co.2.2%64Industrials
Hormel Foods Corp.2.1%55Consumer Defensive
Air Products & Chemicals Inc.2.1%39Basic Materials
Nucor Corp.2.0%47Basic Materials
Illinois Tool Works, Inc.2.0%46Industrials
T. Rowe Price Group Inc.2.0%34Financial Services
Chubb Limited2.0%27Financial Services
Automatic Data Processing Inc.1.9%46Industrials
NextEra Energy Inc1.9%25Utilities
Medtronic Plc1.8%43Healthcare
Caterpillar Inc.1.8%26Industrials
Walmart Inc1.6%48Consumer Defensive
McCormick & Co., Inc.1.5%34Consumer Defensive
A.O. Smith Corp.1.5%27Industrials
W.W. Grainger Inc.1.5%49Industrials
Linde Plc1.5%28Basic Materials
Abbott Laboratories1.4%49Healthcare
Dover Corp.1.4%65Industrials
Stanley Black & Decker Inc1.4%53Industrials
Target Corp1.3%53Consumer Defensive
PPG Industries, Inc.1.3%49Basic Materials
Becton, Dickinson And Co.1.3%49Healthcare
Pentair plc1.3%44Industrials
Lowe`s Cos., Inc.1.2%57Consumer Cyclical
Albemarle Corp.1.0%26Basic Materials
Brown-Forman Corp.1.0%31Consumer Defensive
Expeditors International Of Washington, Inc.1.0%26Industrials
Ecolab, Inc.0.9%35Basic Materials
Cintas Corporation0.9%38Industrials
Sherwin-Williams Co.0.8%42Basic Materials
S&P Global Inc0.8%48Financial Services
Roper Technologies Inc0.5%28Industrials
West Pharmaceutical Services, Inc.0.2%27Healthcare

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.

Zooming In

Divident Aristocrats Sector Analysis Supplemental 2

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.

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Personal Finance

Visualizing the Tax Burden of Every U.S. State

Tax burden measures the percent of an individual’s income that is paid towards taxes. See where it’s the highest by state in this graphic.

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Visualizing the Tax Burden of Every U.S. State

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

This map graphic visualizes the total tax burden in each U.S. state as of March 2024, based on figures compiled by WalletHub.

It’s important to understand that under this methodology, the tax burden measures the percent of an average person’s income that is paid towards state and local taxes. It considers property taxes, income taxes, and sales & excise tax.

Data and Methodology

The figures we used to create this graphic are listed in the table below.

StateTotal Tax Burden
New York12.0%
Hawaii11.8%
Vermont11.1%
Maine10.7%
California10.4%
Connecticut10.1%
Minnesota10.0%
Illinois9.7%
New Jersey9.5%
Rhode Island9.4%
Utah9.4%
Kansas9.3%
Maryland9.3%
Iowa9.2%
Nebraska9.2%
Ohio8.9%
Indiana8.9%
Arkansas8.8%
Mississippi8.8%
Massachusetts8.6%
Virginia8.5%
West Virginia8.5%
Oregon8.4%
Colorado8.4%
Pennsylvania8.4%
Wisconsin8.3%
Louisiana8.3%
Kentucky8.3%
Washington8.0%
New Mexico8.0%
Michigan8.0%
North Carolina7.9%
Idaho7.9%
Arizona7.8%
Missouri7.8%
Georgia7.7%
Texas7.6%
Alabama7.5%
Montana7.5%
South Carolina7.5%
Nevada7.4%
Oklahoma7.0%
North Dakota6.8%
South Dakota6.4%
Delaware6.4%
Tennessee6.1%
Florida6.1%
Wyoming5.7%
New Hampshire5.6%
Alaska4.9%

From this data we can see that New York has the highest total tax burden. Residents in this state will pay, on average, 12% of their income to state and local governments.

Breaking this down into its three components, the average New Yorker pays 4.6% of their income on income taxes, 4.4% on property taxes, and 3% in sales & excise taxes.

At the other end of the spectrum, Alaska has the lowest tax burden of any state, equaling 4.9% of income. This is partly due to the fact that Alaskans do not pay state income tax.

Hate Paying Taxes?

In addition to Alaska, there are several other U.S. states that don’t charge income taxes. These are: Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming.

It’s also worth noting that New Hampshire does not have a regular income tax, but does charge a flat 4% on interest and dividend income according to the Tax Foundation.

Learn More About Taxation From Visual Capitalist

If you enjoyed this post, be sure to check out this graphic which ranks the countries with the lowest corporate tax rates, from 1980 to today.

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