Dividend Aristocrats List for 2024

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Dividend Growth Investor
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The S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years in a row. The index is equally weighted, and rebalanced every quarter.

To qualify for membership in the S&P 500 Dividend Aristocrats index, a stock must satisfy the following criteria:

  1. Be a member of the S&P 500
  2. Have increased dividends every year for at least 25 consecutive years
  3. Meet minimum float-adjusted market capitalization and liquidity requirements defined in the index inclusion and index exclusion rules below.

The group of companies in the Dividend Aristocrats index tend to generate reliable dividend income, and provide the potential for strong total returns. The list is well diversified across sectors.

There are a record 67 companies in the Dividend Aristocrats index for 2023.

For 2024, there were several changes. The index added:

  • Fastenal Co (NASDAQ: FAST)

The index removed:

  • Walgreens Boots Alliance Inc (NASDAQ:WBA).

The index also added KenVue, which was a spin-off from Johnson & Johnson later in 2023. The S&P Index Committee assigned the dividend history record of Johnson & Johnson to Kenvue. This is what they had done previously with Abbvie/Abbott in 2013. However, they didn’t do this for Altria/Phillip Morris International/Kraft in 2007/2008.

The index also removed VF Corp (NYSE:VFC) in early 2023, when the company cut dividends.

Since the inception of the index in 1989, the number of holdings has fluctuated from 26 to 68 holdings. This year marks the highest number of dividend aristocrats ever, on record. It is still not even half the number of Dividend Champions however.

The 2023 Dividend Aristocrats are listed below:

Symbol Name Sector Years of Annual Dividend Increases 10 year Dividend Growth Dividend Yield
ABBV AbbVie Inc. Health Care 51 13.98% 4.00%
ABT Abbott Laboratories Health Care 51 13.80% 2.00%
ADM Archer-Daniels-Midland Co Consumer Staples 48 9.00% 2.49%
ADP Automatic Data Processing Information Technology 48 12.64% 2.40%
AFL AFLAC Inc Financials 42 8.99% 2.42%
ALB Albemarle Corp. Materials 29 5.21% 1.11%
AMCR Amcor Materials 28 #N/A 5.28%
AOS Smith A.O. Corp Industrials 30 18.16% 1.55%
APD Air Products & Chemicals Inc Materials 41 9.51% 2.56%
ATO Atmos Energy Utilities 40 7.86% 2.78%
BDX Becton Dickinson & Co Health Care 52 6.13% 1.56%
BEN Franklin Resources Inc Financials 44 11.99% 4.16%
BF.B Brown-Forman Corp B Consumer Staples 39 6.89% 1.58%
BRO Brown & Brown Financials 30 9.89% 0.73%
CAH Cardinal Health Inc Health Care 27 5.60% 1.99%
CAT Caterpillar Inc Industrials 30 7.89% 1.76%
CB Chubb Ltd Financials 30 5.39% 1.52%
CHD Church & Dwight Consumer Staples 27 6.89% 1.15%
CHRW C.H. Robinson Worldwide Industrials 26 5.71% 2.82%
CINF Cincinnati Financial Corp Financials 63 5.99% 2.90%
CL Colgate-Palmolive Co Consumer Staples 60 3.69% 2.41%
CLX Clorox Co Consumer Staples 46 5.83% 3.37%
CTAS Cintas Corp Industrials 41 20.57% 0.90%
CVX Chevron Corp Energy 36 4.47% 4.05%
DOV Dover Corp Industrials 68 5.30% 1.33%
ECL Ecolab Inc Materials 32 8.71% 1.15%
ED Consolidated Edison Inc Utilities 49 2.79% 3.56%
EMR Emerson Electric Co Industrials 67 2.31% 2.16%
ESS Essex Property Trust Real Estate 29 6.80% 3.73%
EXPD Expeditors International Industrials 29 8.69% 1.08%
FAST Fastenal Industrials 25 13.35% 2.16%
FRT Federal Realty Invt Trust Real Estate 56 3.84% 4.23%
GD General Dynamics Industrials 32 9.07% 2.03%
GPC Genuine Parts Co Consumer Discretionary 67 5.71% 2.74%
GWW Grainger W.W. Inc Industrials 52 7.36% 0.90%
HRL Hormel Foods Corp Consumer Staples 58 12.46% 3.52%
IBM Intl Business Machines Information Technology 28 6.01% 4.06%
ITW Illinois Tool Works Inc Industrials 49 13.07% 2.14%
JNJ Johnson & Johnson Health Care 61 6.14% 3.04%
KMB Kimberly-Clark Consumer Staples 51 4.46% 3.88%
KO Coca-Cola Co Consumer Staples 61 5.09% 3.12%
KVUE Kenvue 61 #N/A 1.91%
LIN Linde plc Materials 30 7.83% 1.24%
LOW Lowe’s Cos Inc Consumer Discretionary 61 20.25% 1.98%
MCD McDonald’s Corp Consumer Discretionary 48 7.16% 2.25%
MDT Medtronic plc Health Care 46 9.76% 3.35%
MKC McCormick & Co Consumer Staples 37 8.66% 2.46%
MMM 3M Co Industrials 65 8.98% 5.49%
NEE NextEra Energy Utilities 29 10.98% 3.08%
NDSN Nordson Corp Industrials 60 15.36% 1.03%
NUE Nucor Corp Materials 51 3.33% 1.24%
O Realty Income Corp. Real Estate 31 3.57% 5.36%
PEP PepsiCo Inc Consumer Staples 51 8.13% 2.98%
PG Procter & Gamble Consumer Staples 67 4.67% 2.57%
PNR Pentair PLC Industrials 48 3.16% 1.27%
PPG PPG Industries Inc Materials 52 7.70% 1.74%
ROP Roper Technologies, Inc Industrials 31 15.26% 0.55%
SHW Sherwin-Williams Co Materials 45 13.76% 0.78%
SJM J.M. Smucker Consumer Staples 26 6.58% 3.35%
SPGI S&P Global Financials 50 12.39% 0.82%
SWK Stanley Black & Decker Industrials 56 4.98% 3.30%
SYY Sysco Corp Consumer Staples 53 5.86% 2.73%
TGT Target Corp Consumer Discretionary 56 10.68% 3.09%
TROW T Rowe Price Group Inc Financials 37 12.37% 4.53%
WMT Wal-Mart Consumer Staples 50 2.30% 1.45%
WST West Pharmaceutical Services Health Care 31 7.18% 0.23%
XOM Exxon Mobil Corp Energy 41 4.11% 3.80%
Note: Data as of 12/31/2023

The index has generated strong total returns over time past decade.

It tends to shine during bear markets, such as 2000 – 2003, 2007 – 2009 and 2022. I wanted to note that in 2008, the Dividend Aristocrats index declined by 21.88%. The S&P 500 however declined by 37%.

The dividend aristocrats index tends to shine during bear markets and low return environments. However, it also pulls its weight when we are in a bull market too. It is the best of both worlds really.

These are the returns since the launch of the Dividend Aristocrats Index in 1989:

Dividend Aristocrats Returns Since 1989

You can see the performance of the Dividend Aristocrats Index versus S&P 500 since 1989. The S&P 500 dominated during the 1990’s. However, the Dividend Aristocrats index did very well during the next decade. During the past decade, the Dividend Aristocrats Index has basically matched S&P 500 until early 2020. Over the past two years, it has trailed S&P 500 slightly.

Performance of S&P Dividend Aristocrats versus S&P 500

I first stumbled upon the Dividend Aristocrats index in late 2007, and instantly understood why dividend growth investing is such a powerful wealth generating tool. If someone had invested in the Dividend Aristocrats index after reading my review of the list at the beginning of 2008, they would have more than tripled their money.

As I gained more experience however, I have gravitated more towards the Dividend Champions list, which was created by Dave Fish. The Dividend Champions list is more complete, as it doesn’t exclude companies due to low liquidity, or due to market capitalization below a certain threshold. In addition, I find that historically, the list of Dividend Champions has followed a more consistent approach than the list of Dividend Aristocrats. Sadly, Dave passed away last year. Luckily, another person has agreed to update it for the time being. You can view the 2024 Dividend Champions List here.

When I review the list of historical changes in the Dividend Aristocrats index, I see some inconsistencies in the way portfolio components are added or removed.

For example, the Dividend Aristocrats index removed Altria in 2007, after it spun-off Kraft Foods and as a result its dividend decreased. It could be argued that the dividend income for the investor was not decreased, because they kept getting a dividend from Altria as well as dividends from Kraft Foods.

The S&P committee seems to have rectified this issue, and have kept both Abbott and Abbvie after legacy Abbott Laboratories split in two companies in early 2013.

Ironically, Dave Fish had Altria listed as a Dividend Champion. However, he didn’t have Abbott nor Abbvie listed as a dividend champion (they are listed as Dividend Aristocrats however).

This is why you need to perform your own checks as an investor.

In addition, I wanted to let you know that I would not purchase all companies from either lists blindly. I run my entry criteria screen to come up with a list of companies for further research. Before investing in any individual stock, I research it enough to gain some understanding of the business and its trends in fundamentals.

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Article by Dividend Growth Investor