S&P Dividend Aristocrats for 2012

Reducing the Cost of Medical Care

A few years back, I published a list of “Dividend Aristocrats” — companies in the S&P 500 that have increased their dividend payouts for at least 25 consecutive years. These are large, blue chip companies that have historically provided (slightly) better performance and (slightly) lower volatility than the S&P 500 as a whole.

The list declined from 52 companies in 2009 to 42 in 2010 as many companies cut their dividend payouts. It then held steady in 2011, with three companies being dropped and three added. For 2012, one company (CenturyLink; CTL) has been removed from the index while ten companies have being added.

These ten include:

  • AT&T (T)
  • Colgate-Palmolive (CL)
  • Franklin Resources (BEN)
  • Genuine Parts (GPC)
  • HCP (HCP)
  • Illinois Tool Works (ITW)
  • Medtronic (MDT)
  • Nucor (NUE)
  • Sysco (SYY)
  • T. Rowe Price Group (TROW)

The full list of 51 companies follows:

  • 3M Co (MMM)
  • AFLAC Inc (AFL)
  • Abbott Laboratories (ABT)
  • Air Products & Chemicals Inc (APD)
  • Archer-Daniels-Midland Co (ADM)
  • AT&T (T)
  • Automatic Data Processing (ADP)
  • Bard, C.R. Inc (BCR)
  • Becton, Dickinson & Co (BDX)
  • Bemis Co Inc (BMS)
  • Brown-Forman Corp B (BF/B)
  • Chubb Corp (CB)
  • Cincinnati Financial Corp (CINF)
  • Cintas Corp (CTAS)
  • Clorox Co (CLX)
  • Coca-Cola Co (KO)
  • Colgate-Palmolive (CL)
  • Consolidated Edison Inc (ED)
  • Dover Corp (DOV)
  • Ecolab Inc (ECL)
  • Emerson Electric Co (EMR)
  • Exxon Mobil Corp (XOM)
  • Family Dollar Stores Inc (FDO)
  • Franklin Resources (BEN)
  • Genuine Parts (GPC)
  • Grainger, W.W. Inc (GWW)
  • HCP (HCP)
  • Hormel Foods Corp (HRL)
  • Illinois Tool Works (ITW)
  • Johnson & Johnson (JNJ)
  • Kimberly-Clark (KMB)
  • Leggett & Platt (LEG)
  • Lowe’s Cos Inc (LOW)
  • McCormick & Co (MKC)
  • McDonald’s Corp (MCD)
  • McGraw-Hill Cos Inc (MHP)
  • Medtronic (MDT)
  • Nucor (NUE)
  • PPG Industries Inc (PPG)
  • PepsiCo Inc (PEP)
  • Pitney Bowes Inc (PBI)
  • Procter & Gamble (PG)
  • Sherwin-Williams Co (SHW)
  • Sigma-Aldrich Corp (SIAL)
  • Stanley Black & Decker (SWK)
  • Sysco (SYY)
  • T. Rowe Price Group (TROW)
  • Target Corp (TGT)
  • VF Corp (VFC)
  • Wal-Mart Stores (WMT)
  • Walgreen Co (WAG)

Unfortunately, if you’re interested in a mutual fund or ETF that tracks this group, you’re out of luck. The closest thing that I’ve been able to find has been the SPDR S&P Dividend ETF (SDY), which seeks to track the S&P High Yield Dividend Aristocrats. This is a list of the 60 highest yielding members of the S&P Composite 1500 index that have increased their dividends for at least 25 straight years.

Thus, SDY tracks the performance of companies drawn from a broader swath of the market (the S&P 1500 vs. S&P 500) and selects for those Aristocrats with the highest yield rather than including them all. As of this writing, the SDY has a dividend yield of 3.20% compared to 2.02% for SPY, which tracks the entire S&P 500.

3 Responses to “S&P Dividend Aristocrats for 2012”

  1. Anonymous

    Investing in the dividend aristocrats is the best way to ensure cash flows from dividends that grow enough to cover the effects of inflation particularly for retirement accounts. Anyone who invests in mutual funs for retirement will eventually find out that managing cash flows and preserving capital is difficult at best.

  2. Anonymous

    Hmm…SDY is no magic bullet if one looks at their 10 year track record. I guess nothing is in the market for us buy and holders. With their div rate and accounting for inflation and taxes one is behind any way one looks at it. Though the only way to win is to time the market. I concentrate on one stock only and plan on dumping it when I can realize a good return. Microplace lending looks good compared to the market.

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