Beat the Market by Investing in S&P 500 Dividend Aristocrats

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 Dividend Aristocrats S&P 500 Returns 1 Month 5.49% 6.68% 3 Month 6.98% 10.76% YTD 19.35% 15.06% Annualized Returns 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... Read more