High Dividend Achievers vs. High Dividend Aristocrats

Written by The Dividend Guy on August 31, 2007

The are basically two lists is North American that track the dividend increases for thousands of companies: high dividend achievers and high dividend aristocrats. The primary criteria for these lists are a consistent record of dividend increases for a specific number of years. When I say consistent, I mean it. Each company on each list must not have missed a dividend increase in the requisite number of years. So what is the real difference between the two groups of stocks?

The difference lies in the number of years a company has consecutively increased its dividend:

* High Dividend Achievers = at least 10 years
* High Dividend Aristocrat = at least 25 years

The effect this has on the number of stocks on each list is large. The more stringent of the two, Aristocrats, has only 59 stocks on its list (Note: Excel File). By comparison, the Achievers has 312 on the list.

What does this really mean to a dividend investor? Investing is all about finding companies with consistent track records of things like revenue, EPS, and cash flow. The longer there is evidence that a company has performed well, the more comfortable an investor can be when buying stock in that company. It is no guarantee of solid future performance, but it is more important to have it than not. The same can be said for dividend increases. I would argue that the longer a company has been increasing its dividend, the more likely it will continue to do so in the future. Therefore if you are really focused on finding companies with LONG track records of dividend increases then the Aristocrats list is a better starting point to identify stocks for further analysis.



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12 Comments so far

  1. Yielder September 1, 2007 6:21 am

    We have not had a recession since the early 90s. If you look at that period, you see slowing dividend increases, dividend increase freezes, & dividend cuts. In a recession, expect many of the 312 Achievers to have dividend problems. It’s possible that some of the Aristocrats will too since many are probably not the same company today that they were then.

  2. Mr. Cheap September 2, 2007 12:53 pm

    Any chance you have comparable lists for Canadian companies? :-)

  3. Stefan September 8, 2007 6:34 pm

    Yes, me too, I’d like to see a list for Canadian companies, please.

  4. The Dividend Guy September 8, 2007 7:14 pm

    There is no comparable list for the Aristocrats, however there are Canadian companies listed here:

    http://www.dividendachievers.com/Site/others/constituents.php?id=56&preview=

    If anyone knows if the S&P does an Aristocrats list for Canadian companies, please let me know.

    The Dividend Guy

  5. Stock Analysis: Canadian Dividend Stock IGM Financial September 11, 2007 8:59 pm

    […] Ah, my favorite metric when looking at a stock. Usually, if I am examining a stock a lot closer then it has already passed the dividend growth test because it is either a Dividend Achiever or a Dividend Aristocrat. However, I want to look at the trend here as well to see if things are moving along steadily. If dividend increases seem to be slowing down, then I need to figure out why. Things are clipping along nicely at IGM, with what appears to be some acceleration in the rate of dividend increases. […]

  6. Pre-Screened Securities Through Your Broker September 23, 2007 5:13 pm

    […] that the stocks on the list include a large number of blue chip companies that are included on the Dividend Achievers list of companies that consistently increase their dividends. These are companies that I like and […]

  7. Weekly Dividend Investing Roundup - October 19, 2007 October 19, 2007 8:02 am

    […] The list is the Dividend Achievers list of stocks. Whether you are old or young, I think this list is a good place to start looking for dividend stock […]

  8. 5 Things Dividend Investors Should Do To Make It Through Volatile Markets November 13, 2007 12:20 pm

    […] stocks, then check out the SPDR S&P Dividend ETF (SPY) tracks the S&P High Yield Dividend Aristocrats Index. This will help diversify away some company specific risk while giving you a yield that is […]

  9. Top 7 Screening Criteria When Using Online Screening Software to Find Dividend Stocks November 22, 2007 8:50 am

    […] a dividend investor, I consistently use the Dividend Achievers and Dividend Aristocrats list when coming up with potential future investment ideas. However, one thing that I have been […]

  10. Some New Additions to The S&P 500 Dividend Aristocrats » The Dividend Guy Blog December 13, 2007 9:10 am

    […] policy of consistently increasing dividends every year for at least 25 years. It is called the S&P 500 Dividend Aristocrats a very elite list of companies and is one of the first places I go when I am looking for stocks to […]

  11. Upgrading to a New Computer - No Dividend Stock Analysis Today » The Dividend Guy Blog December 19, 2007 9:33 am

    […] High Dividend Achievers vs. High Dividend Aristocrats […]

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    […] To see more of my articles about Dividend Aristocrats and Dividend Achievers, please see my post, High Dividend Achievers vs. High Dividend Aristocrats. […]

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