Ranked by their annual compound rate of increase. Standard & Poor's compiles the Dividend Aristocrats list, defining the constituents as "large cap, blue chip companies within the S&P 500 that have followed a policy of increasing dividends every year for at least 25 consecutive years." The current recession has caused a variety of companies to fall of the list as they cut their dividends. There are presently only 42 Dividend Aristocrats. When buying dividend stocks, it is important to consider not only the current yield, but also whether the company consistently increases its dividend at a rate that exceeds inflation. If it does not, you are losing money. I have analyzed the current Aristocrat's list and calculated the annual compound rate of dividend increase for each constituent over the last decade. The top 10 dividend growers over this time period, with their annual increase, are as follows:
- CTL, CenturyTel, Inc., 30.6%
- MCD, McDonald's Corporation, 25.9%
- LOW, Lowe's Companies, 24.6%
- AFL, AFLAC Incorporated, 21.5%
- WAG, Walgreen Company, 16.7%
- WMT, Wal-Mart Stores, Inc., 16.2%
- ADP, Automatic Data Processing, Inc., 15.6%
- BDX, Becton, Dickinson and Company, 15.2%
- SIAL, Sigma-Aldrich Corporation, 14.9%
- PEP, Pepsico, Inc., 12.4%
Who was at the bottom of the list? Consolidated Edison (ED) only increased its dividend over the last decade at a compound annual rate of 0.8%, followed by Integrys Energy (TEG) at 2.7%, and Pitney Bowes (PBI) at 2.8%.
Notes: Dividend increases which were announced, but not yet paid for the first quarter were included in the calculations. This included CTL's recent quarterly increase to $0.725, plus announced increases by Air products (APD), Coca-Cola (KO), and Sherwin Williams (SHW). Disclosure: The author is long Pepsico and Becton Dickinson and Company.
Excellent post.I really like to read it.Thanks for information about penny stocks.
Posted by: Penny Stocks | March 05, 2010 at 12:43 AM
I am not surprised that McDonalds is way up there since it is one of the largest companies in the world. I think it is safe to say that their international capital management is really good. Their revenue seems to be growing each and every year even if there is recession these days in the United States.
Posted by: Andrew Paul | April 09, 2010 at 05:29 AM
For me, the surprises on this list were Century Tel and Sigma-Aldrich (which I was not familiar with).
Also, Lowe's yield is fairly low, even though it increases its dividend regularly.
Posted by: Diogenes | April 09, 2010 at 08:38 AM
It's really great to post my comments on such a blog. I would like to appreciate the great work done by the web master and would like to tell everyone that they should post their interesting comments and should make this blog interesting.
Posted by: AllenMass | April 10, 2010 at 05:31 AM
Really good stuff. I greatly appreciate the detail. After reading this, we'll have to think more about it.
Posted by: Penny Stocks | September 30, 2010 at 03:11 AM
what you can do for your country
Posted by: Supra Cruizer | November 08, 2010 at 12:36 AM
Everywhere , spring brings the blessed reassurance that life goes on , that death is no more than a passing season
Posted by: Jordan retro 2010 | November 08, 2010 at 12:43 AM
companies to fall of the list as they cut their dividends. There are presently only 42 Dividend Aristocrats. When buying dividend stocks, it is important to consider not only the current yield, but also whether the company consistently increases its dividend at a rate that exceeds inflation. If it does not, you are losing money. I have analyzed the current Aristocrat's list and
Posted by: Shox TL3 Shoes | November 12, 2010 at 10:11 PM
I really look forward to read other useful post from you. Its really interesting and thanks for sharing your knowledge with others.
Posted by: Penny Stocks | November 19, 2010 at 03:51 AM
The funny thing about marriage is that the newness soon wear off.
Posted by: Ugg For Sale | December 09, 2010 at 07:59 PM
The greater the man， the more restrained his anger.
Posted by: supra shoes | February 11, 2011 at 06:25 PM
Information is great and certainly understandable. Please carry on to write more on this subject..
Posted by: Penny Stocks | June 02, 2011 at 02:19 AM
Hey ! am I glad to vist your blog ! from this I can get some information and facts that I didn’t know prior to. You made my day. Thank you rather much!
Posted by: moncler coats outlet | October 16, 2011 at 08:48 PM
I'm grateful for the blog.Thanks Again.
Posted by: Hot Stocks | February 03, 2012 at 03:53 AM