![]() ![]() True, the Dividend Aristocrats index likewise finished the year in the red, but it held up far better than the broader market.Īs you can see in the above chart, in 2022, the S&P 500 Dividend Aristocrats outperformed the S&P 500 by 24 percentage points on a total return basis (price change plus dividends). If nothing else, the S&P 500 Dividend Aristocrats offered an effective way to play defense in 2022 – a year in which the S&P 500 logged its worst annual performance since the Great Financial Crisis of 2008. And although they're scattered across pretty much every sector of the market, they do all share one thing in common: a commitment to reliable and long-term dividend growth. This list of the S&P 500's best dividend stocks is a mix of household names and more obscure firms, but they all play key roles in the American economy. The Dividend Aristocrats are companies in the S&P 500 Index that have raised their payouts annually for at least 25 consecutive years. "Dividend growth oriented companies have historically participated in up markets and helped to mitigate risk during periods of heightened volatility and market drawdowns." Enter the S&P 500 Dividend Aristocrats active equities portfolio management, respectively, at Nuveen. "Investing in companies with sustainable dividend growth can help augment total returns and reduce volatility while providing a growing income stream," write David Park and David Chalupnik, portfolio manager and head of U.S. When a firm manages to raise its dividend year after year, through recession, war, market crashes and more, it's making a powerful statement about both its financial resilience and its commitment to shareholders. And the money that money makes, makes money."Ĭompanies with long histories of annual dividend growth also offer some peace of mind. As Ben Franklin famously said, "Money makes money. ![]() Barring disaster, the value of your $100 equity investment will appreciate in price as well.) ![]() (We're talking returns from dividends alone in this example. If You'd Put $1,000 Into Netflix Stock 20 Years Ago, Here's What You'd Have TodayĪnd after 25 years of dividend hikes? Your original $100 will generate $32.50 in annual income, or a yield of 32.5%. ![]()
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