Top 10 Dividend Aristocrats

Top 10 Dividend Aristocrats

At Dividend Income Streams we love investing in companies that pay dividends. Not all dividends are created equally, and many investors fall into the trap of chasing yield. If a company pays a dividend that isn’t sustainable, what good is it? The prestigious Dividend Aristocrat list has become the go to for many income investors looking for companies with a long history of rewarding shareholders through dividends. We put together a list of our top 10 Dividend Aristocrats.

There are currently 65 companies that make up the elite group of Dividend Aristocrats. The requirements for membership include:

  • Being a member of the S&P 500 index
  • Must be worth in excess of $3 billion at the time of each rebalancing
  • Have paid dividends for 25 consecutive years
  • Increased the dividend for 25 consecutive years

Income investors love this group of equities because of their stable dividends and annual increases. By receiving an increase in the dividend payment each year these companies allow investors to maximize the powers of compounding.

At Dividend Income Streams we went through each equity and put together our top 10 Dividend Aristocrats list:

10. International Business Machines (IBM)

  • Information Technology
  • 25 years of consecutive dividend increases
  • $150.29 share price
  • $5.56 dividend per share
  • Dividend Yield of 3.7%

9.  Johnson & Johnson (JNJ)

  • Healthcare
  • 59 years of consecutive dividend increases
  • $165.15 share price
  • $4.24 dividend per share
  • Dividend Yield of 2.57%

8.  PepsiCo (PEP)

  • Consumer Staples
  • 48 years of consecutive dividend increases
  • $146.87 share price
  • $4.30 dividend per share
  • Dividend Yield of 2.93%

7. Proctor & Gamble (PG)

  • Consumer Staples
  • 65 years of consecutive dividend increases
  • $136.22 share price
  • $3.48 dividend per share
  • Dividend Yield of 2.55%

6. Walgreens Boots Alliance (WBA)

  • Consumer Staples
  • 45 years of consecutive dividend increases
  • $53.81 share price
  • $1.87 dividend per share
  • Dividend Yield of 3.48%

5. Realty Income (O)

  • Real Estate
  • 26 years of consecutive dividend increases
  • $70.90 share price
  • $2.82 dividend per share
  • Dividend Yield of 3.98%

4. Chevron (CVX)

  • Energy
  • 34 years of consecutive dividend increases
  • $108.42 share price
  • $5.36 dividend per share
  • Dividend Yield of 4.94%

3. Kimberly Clark (KMB)

  • Consumer Staples
  • 48 years of consecutive dividend increases
  • $130.66 share price
  • $4.56 dividend per share
  • Dividend Yield of 3.49%

2. Consolidated Edison (ED)

  • Utilities
  • 47 years of consecutive dividend increases
  • $76.7 share price
  • $3.10 dividend per share
  • Dividend Yield of 4.04%
  1. The Coke-Cola Company (KO)
  • Consumer Staples
  • 59 years of consecutive dividend increases
  • $55.71 share price
  • $1.68 dividend per share
  • Dividend Yield of 3.02%

These 10 companies have a combined 456 years of dividend increases among them. If you were to purchase 1 share of each company your initial investment would be $1,094.71 and it would generate $36.97 in annual dividends prior to compounding. These are some of the largest companies in the United States and diversifying across all 10 companies you would gain exposure to 6 sectors and create a dividend yield of 3.38%. While there are 65 members of the prestigious Dividend Aristocrat list these are our 10 favorites at Dividend Income Streams.

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