If you want to maximize your overall portfolio capital appreciation and dividends, it may be time to join the aristocracy, or more specifically, the dividend aristocracy. For long-term investors, dividend earnings are crucial. This Dividend aristocrats list contains the darlings of income-seeking investors because they attempt to provide a stable dividend and enhance that payment year after year.
Because of their consistent performance, many people see them as the best stock dividend investments available. They get extra revenue beyond the capital gains earned by retaining these stocks. Therefore, it clearly gives these companies a key advantage over their competitors.
Want to know more? Keep reading to find out about the top 50 dividend aristocrats in 2022. We will also discuss their key features and the requirements needed to become a dividend aristocrat for a company.
Dividend Aristocrats
According to Investopedia, a dividend aristocrat is a stock in the S&P 500 INDEX that pays a dividend constantly and increases the size of the distribution on an annual basis. These companies rank according to various factors, such as their company size, liquidity, or the number of consecutive years they have shown dividend growth.
These firms are enormous in scale, with years of rapid expansion behind them. They are recession-proof companies with the ability to assist investors in surviving market recessions while delivering regular dividend payments. (although their price can fluctuate, and any company can go Bankrupt)
The S&P 500 Dividend Aristocrats Index is the most well-known ranking of dividend aristocrats. The key features of these companies are:
- They have increased their dividend for at least 25 consecutive years.
- They are in S&P 500 stock index.
- They have at least a $3 billion market capitalization.
- They are often big, established businesses that no longer benefit from supercharged expansion.
- They had an average trading value of at least $5 million in the three months before the latest rebalancing.
Top 50 Dividend Aristocrats list
Following is the list of top 50 dividend aristocrats list as of Feb. 1, 2022. This list includes the companies’ industries and the dividend yield they offer. It also mentions how long each has been increasing its payouts to its shareholders.
Sr No. | COMPANY | INDUSTRY | YEARS OF DIVIDEND GROWTH | DIVIDEND YIELD |
1. | International Business Machines Corp (IBM) | Information technology | 26 | 4.8% |
2. | AbbVie Inc. (ABBV) | Health Care | 49 | 4.5% |
3. | Realty Income Corp. (O) | Real Estate | 26 | 4.4% |
4. | ExxonMobil Corp. (XOM) | Energy | 37 | 4.3% |
5. | Amcor PLC (AMCR) | Materials | 39 | 4.2% |
6. | Chevron Corp. (CVX) | Energy | 34 | 4.1 |
7. | Walgreens Boots Alliance Inc. (WBA) | Consumer Staples | 45 | 3.8% |
8. | Consolidated Edison Inc. (ED) | Utilities | 47 | 3.7% |
9. | Franklin Resources Inc. (BEN) | Financials | 40 | 3.7% |
10. | 3M Co. (MMM) | Industrials | 63 | 3.7% |
11. | Cardinal Health Inc. (CAH) | Health care | 34 | 3.6% |
12. | Federal Realty Investment trust (FRT) | Real Estate | 27 | 3.5% |
13. | Kimberly-Clark Corp. (KMB) | Consumer staples | 48 | 3.5% |
14. | People’s United Financial Inc. (PBCT) | Financials | 28 | 3.4% |
15. | The Clorox Co. (CUX) | Consumer staples | 45 | 3.2% |
16. | VF Corp. (VFC) | Consumer discretionary | 49 | 3.2% |
17. | T. Rowe Price Group Inc. (TROW) | Financials | 35 | 2.9% |
18. | Essex Property Trust Inc. (ESS) | Real Estate | 27 | 2.7% |
19. | The Coca-Cola Co. (KO) | Consumer staples | 59 | 2.7% |
20. | Air Products & Chemicals Inc. | Material | 39 | 2.6% |
21. | Atmos Energy Corp (ATO) | Utilities | 34 | 2.6% |
22. | Aflac Inc. (AFC) | Financials | 38 | 2.5% |
23. | Genuine Parts Co. (GPC) | Consumer discretionary | 55 | 2.5% |
24. | Johnson & Johnson (JNJ) | Health care | 59 | 2.5% |
25. | Medtronic PLC (MDT) | Health care | 43 | 2.5% |
26. | PepsiCo. Inc. (PEP) | Consumer staples | 48 | 2.5% |
27. | Sysco Corp. (SYY) | Consumer staples | 41 | 2.3% |
28. | Caterpillar Inc. (CAT) | Industrials | 27 | 2.2% |
29. | Cincinnati Financial Corp. (CINF) | Financials | 61 | 2.2% |
30. | Colgate-Palmolive Co. (CL) | Consumer staples | 59 | 2.2% |
31. | General Dynamics Corp. (GPC) | Industrials | 30 | 2.2% |
32. | Hormel Food Corp. (HRL) | Consumer staples | 55 | 2.2% |
33. | Illinois Tool Works Inc. (ITW) | Industrialist | 50 | 2.2% |
34. | Proctor and Gamble Co. (PG) | Consumer staples | 65 | 2.2% |
35. | Archers-Daniels-Midland Co. (ADM) | Consumer staples | 47 | 2.1% |
36. | Emerson Electric Co. (ESS) | Industrialist | 59 | 2.1% |
37. | McDonald’s Corp. (MCD) | Consumer discretionary | 44 | 2.1% |
38. | NextEra Energy Inc. (NEE) | Utilities | 25 | 2% |
39. | Automatic Data Processing Inc. (ADP) | Information Technology | 46 | 2% |
40. | Stanley Black & Decker Inc. (SWK) | Industrialist | 53 | 1.9% |
41. | Nucor Corp. (NUE) | Materials | 48 | 1.7% |
42. | Target Corp. (TGT) | Consumer discretionary | 49 | 1.7% |
43. | Chubb Ltd. (CB) | Financials | 28 | 1.6% |
44. | Walmart Inc. (WMT) | Consumer staples | 48 | 1.6% |
45. | A.O Smith Corp (AOS) | Industrialist | 28 | 1.5% |
46. | Abbott Laboratories (ABT) | Health Care | 49 | 1.5% |
47. | PPG Industries Inc. (PEP) | Materials | 49 | 1.5% |
48. | Linde PLC (LIN) | Materials | 28 | 1.4% |
49. | Lowe’s Cos. Inc. (LOW) | Consumer discretionary | 47 | 1.4% |
50. | McCormick & Co. (MKC) | Consumer staples | 35 | 1.4% |
Final Thoughts
The primary function of dividend aristocrats in a portfolio is to provide consistent dividend earnings. Whether you’re looking forward to picking individual stocks or for socially responsible investing goals, these can be an excellent starting point for locating outstanding dividend growth shares.
However, buyers must always undertake adequate due research before purchasing a stock. It is crucial to keep in mind that all investments, including high yield companies like the Dividend Aristocrats, are risky.
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