The S&P 500 Dividend Aristocrats index measures the performance of companies which have increased their dividends for at least 25 consecutive years. This index beat the S&P 500 index over the past 1, 3, 5 and 7 years. The table below shows the recent performances of S&P 500 Dividend Aristocrats and S&P 500 indices.
Table Date: December 31, 2010 | S&P 500 DividendAristocrats | S&P 500 | |
Returns | 1 Month | 5.49% | 6.68% |
3 Month | 6.98% | 10.76% | |
YTD | 19.35% | 15.06% | |
Annualized | 1 Year | 19.35% | 15.06% |
3 Years | 5.67% | -2.86% | |
5 Years | 6.27% | 2.29% | |
7 Years | 7.16% | 3.85% | |
Dividend Yield Annualized | 2.82% | 1.81% | |
Source: www.standardandpoors.com
During the last 12 months the companies in S&P 500 Dividend Aristocrats index have gained 17.24%, vs. 14.44% gain for the SPY. Average pay-out ratio of those stocks is 45% and the average dividend yield is 2.66%.Here is how the 42 stocks of S&P 500 Dividend Aristocrats indexperformed this year:
No: | Stock | Ticker | Pay-out ratio | Divident Yield | Return |
1 | 3M Co | 37% | 2.30% | 17.26% | |
2 | AFLAC Inc | 23% | 2.11% | 2.04% | |
3 | Abbott Laboratories | 58% | 3.66% | -6.89% | |
4 | Air Products & Chemicals Inc | 41% | 2.18% | 25.00% | |
5 | Archer-Daniels-Midland Co | 20% | 1.69% | 30.22% | |
6 | Automatic Data Processing | 58% | 2.78% | 18.22% | |
7 | Bard, C.R. Inc | 13% | 0.73% | 14.43% | |
8 | Becton, Dickinson & Co | 27% | 2.00% | 0.94% | |
9 | Bemis Co Inc | 50% | 2.91% | 12.96% | |
10 | Brown-Forman Corp B | 68% | 1.84% | 19.69% | |
11 | CenturyLink Inc | 93% | 7.13% | 25.55% | |
12 | Chubb Corp | 22% | 2.50% | 18.47% | |
13 | Cincinnati Financial Corp | 69% | 4.92% | 18.52% | |
14 | Cintas Corp | 66% | 3.28% | 6.53% | |
15 | Clorox Co | 52% | 3.07% | 11.62% | |
16 | Coca-Cola Co | 35% | 2.77% | 21.64% | |
17 | Consolidated Edison Inc | 69% | 4.78% | 19.74% | |
18 | Dover Corp | 29% | 1.66% | 44.34% | |
19 | Ecolab Inc | 29% | 1.33% | 16.77% | |
20 | Emerson Electric Co | 46% | 2.36% | 19.42% | |
21 | Exxon Mobil Corp | 28% | 2.13% | 27.99% | |
22 | Family Dollar Stores Inc | 22% | 1.24% | 46.34% | |
23 | Grainger, W.W. Inc | 30% | 1.59% | 27.08% | |
24 | Hormel Foods Corp | 28% | 1.61% | 34.97% | |
25 | Johnson & Johnson | 44% | 3.66% | -5.22% | |
26 | Kimberly-Clark | 59% | 4.11% | 7.96% | |
27 | Leggett & Platt | 92% | 4.52% | 15.00% | |
28 | Lowe's Cos Inc | 30% | 1.54% | 14.19% | |
29 | McCormick & Co | 38% | 2.15% | 32.95% | |
30 | McDonald's Corp | 49% | 3.10% | 15.61% | |
31 | McGraw-Hill Cos Inc | 35% | 2.48% | 11.22% | |
32 | PPG Industries Inc | 47% | 2.47% | 41.12% | |
33 | PepsiCo Inc | 48% | 2.99% | -0.57% | |
34 | Pitney Bowes Inc | 104% | 5.95% | 7.60% | |
35 | Procter & Gamble | 51% | 3.15% | -0.92% | |
36 | Sherwin-Williams Co | 34% | 1.73% | 28.47% | |
37 | Sigma-Aldrich Corp | 21% | 1.04% | 21.02% | |
38 | Stanley Black & Decker | 102% | 1.87% | 34.15% | |
39 | Target Corp | 21% | 1.82% | -3.67% | |
40 | VF Corp | 47% | 2.59% | 23.36% | |
41 | Wal-Mart Stores | 27% | 2.42% | -3.13% | |
42 | Walgreen Co | 28% | 1.66% | 12.09% | |
Average Performance | 45.00% | 2.66% | 17.24% | ||
SPY | 14.44% | ||||
FDO has had the best performance in this index for the last 12 months.Jim Simons’ Medallion Fund and Stephen Mandel’s Lone Pine Capital are among the investors of FDO. FDO has gained 46.34% in the last 12 months, beating the SPY by a large margin. The worst performing stock in this list was ABT, losing 6.87% since the end of March 2010. Jim Simons has $160 million invested in ABT. ABT is also one of three top picks of Smead Value Fund’s Bill Smead.
Our research has shown that investors were able to beat the market by investing in hgh dividend paying stocks. These stocks are also less risky, i.e.decline less in down markets, compared to other stocks in the S&P 500 index. We believe investors can form a well diversified portfolio by buying these 42 names and manage to perform better than ordinary index funds over the long term.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Wikio
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