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Dividend Aristocrats

Increase your income with the Dividend Aristocrats index.

Dividend Investing

If you are currently investing for dividends, passive income, or have any plans to begin dividend investment then you should sit down and familiarize yourself with the Dividend Aristocrats.  No, these are not cats that pay dividends nor are they snobby men that hand out money, it is an index of stocks that have something in common: they pay dividends, they do it consistently, and they consistently increase the payout.

To be more specific, the companies on this list have paid dividends for the last 25 years, they have raised their dividends for the past 25 years and at no point have they suspended or decreased payout.  If you are wondering why this list is so important then you first need to understand the concept of yield on cost.

Yield On Cost

In short, your yield will continue to grow on your original cost of investment.  If you buy a stock for $10.00 today with a dividend of 30 cents a year, then you fast forward 10 years and the dividend is now at 90 cents!  A measly 3% dividend yield is now at a more beefy 9% yield on cost!  Who wouldn’t love to have a savings account yielding 9%?  Good luck finding it, but investing this way is pretty close risk-wise.

Dividend Aristocrats Index List 2010

So what stocks are in this magical little index?  This Dividend Aristocrats Index 2010 list is current as of August 2010.  Please view below:

 

Company NameTicker
3M CoMMM
AFLAC IncAFL
Abbott LaboratoriesABT
Air Products & Chemicals IncAPD
Archer-Daniels-Midland CoADM
Automatic Data ProcessingADP
Bard, C.R. IncBCR
Becton, Dickinson & CoBDX
Bemis Co IncBMS
Brown-Forman Corp BBF/B
CenturyLink IncCTL
Chubb CorpCB
Cincinnati Financial CorpCINF
Cintas CorpCTAS
Clorox CoCLX
Coca-Cola CoKO
Consolidated Edison IncED
Dover CorpDOV
Emerson Electric CoEMR
Exxon Mobil CorpXOM
Family Dollar Stores IncFDO
Grainger, W.W. IncGWW
Integrys Energy Group IncTEG
Johnson & JohnsonJNJ
Kimberly-ClarkKMB
Leggett & PlattLEG
Lilly, Eli & CoLLY
Lowe’s Cos IncLOW
McDonald’s CorpMCD
McGraw-Hill Cos IncMHP
PPG Industries IncPPG
PepsiCo IncPEP
Pitney Bowes IncPBI
Procter & GamblePG
Sherwin-Williams CoSHW
Sigma-Aldrich CorpSIAL
Stanley Black & DeckerSWK
Supervalu IncSVU
Target CorpTGT
VF CorpVFC
Wal-Mart StoresWMT
Walgreen CoWAG

There are quite a few household names on that list.  That is because, generally, companies that can afford to consistently payout and raise dividends are well-managed, well-established businesses.  Many of them have pioneered their industry or become the dominant force.  Throughout the next couple of months we are going to slowly be building up a series about this particular index.  You will be able to look forward to a more in-depth analysis on some of the companies that are listed as we continue forward.

Honorable Mentions:

Photo Credit: Lady Orlando

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