Stocks
Who are the Dividend Aristocrats in 2021?
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 |
Chevron Corp. | 5.1% | 33 | Energy |
International Business Machines Corp. | 4.9% | 25 | Technology |
Abbvie Inc | 4.8% | 49 | Healthcare |
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 |
3M Co. | 3.0% | 62 | Industrials |
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 |
Medtronic Plc | 1.8% | 43 | Healthcare |
Caterpillar Inc. | 1.8% | 26 | Industrials |
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 |
Abbott Laboratories | 1.4% | 49 | Healthcare |
Dover Corp. | 1.4% | 65 | Industrials |
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 |
Pentair plc | 1.3% | 44 | Industrials |
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 |
Cintas Corporation | 0.9% | 38 | Industrials |
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.
Zooming In
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.
Markets
Visualizing 90 Years of Stock and Bond Portfolio Performance
How have investment returns for different portfolio allocations of stocks and bonds compared over the last 90 years?

Visualizing 90 Years of Stock and Bond Portfolio Performance
This was originally posted on Advisor Channel. Sign up to the free mailing list to get beautiful visualizations on financial markets that help advisors and their clients.
Last year, stock and bond returns tumbled after the Federal Reserve hiked interest rates at the fastest speed in 40 years. It was the first time in decades that both asset classes posted negative annual investment returns in tandem.
Over four decades, this has happened 2.4% of the time across any 12-month rolling period.
To look at how various stock and bond asset allocations have performed over history—and their broader correlations—the above graphic charts their best, worst, and average returns, using data from Vanguard.
How Has Asset Allocation Impacted Returns?
Based on data between 1926 and 2019, the table below looks at the spectrum of market returns of different asset allocations:
Stock / Bond Portfolio Allocation | Best Annual Return | Worst Annual Return | Average Annual Return |
---|---|---|---|
0% / 100% | 32.6% | -8.1% | 5.3% |
10% / 90% | 31.2% | -8.2% | 6.0% |
20% / 80% | 29.8% | -10.1% | 6.6% |
30% / 70% | 28.4% | -14.2% | 7.2% |
40% / 60% | 27.9% | -18.4% | 7.8% |
50% / 50% | 32.3% | -22.5% | 8.3% |
60% / 40% | 36.7% | -26.6% | 8.8% |
70% / 30% | 41.1% | -30.7% | 9.2% |
80% / 20% | 45.4% | -34.9% | 9.6% |
90% / 10% | 49.8% | -39.0% | 10.0% |
100% / 0% | 54.2% | -43.1% | 10.3% |
We can see that a portfolio made entirely of stocks returned 10.3% on average, the highest across all asset allocations. Of course, this came with wider return variance, hitting an annual low of -43% and a high of 54%.
A traditional 60/40 portfolio—which has lost its luster in recent years as low interest rates have led to lower bond returns—saw an average historical return of 8.8%. As interest rates have climbed in recent years, this may widen its appeal once again as bond returns may rise.
Meanwhile, a 100% bond portfolio averaged 5.3% in annual returns over the period. Bonds typically serve as a hedge against portfolio losses thanks to their typically negative historical correlation to stocks.
A Closer Look at Historical Correlations
To understand how 2022 was an outlier in terms of asset correlations we can look at the graphic below:
The last time stocks and bonds moved together in a negative direction was in 1969. At the time, inflation was accelerating and the Fed was hiking interest rates to cool rising costs. In fact, historically, when inflation surges, stocks and bonds have often moved in similar directions.
Underscoring this divergence is real interest rate volatility. When real interest rates are a driving force in the market, as we have seen in the last year, it hurts both stock and bond returns. This is because higher interest rates can reduce the future cash flows of these investments.
Adding another layer is the level of risk appetite among investors. When the economic outlook is uncertain and interest rate volatility is high, investors are more likely to take risk off their portfolios and demand higher returns for taking on higher risk. This can push down equity and bond prices.
On the other hand, if the economic outlook is positive, investors may be willing to take on more risk, in turn potentially boosting equity prices.
Current Investment Returns in Context
Today, financial markets are seeing sharp swings as the ripple effects of higher interest rates are sinking in.
For investors, historical data provides insight on long-term asset allocation trends. Over the last century, cycles of high interest rates have come and gone. Both equity and bond investment returns have been resilient for investors who stay the course.
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