Investing in Dividend Aristocrats (Part 2)

In our previous article we compiled a list of 21 stocks that form the S&P 500 (SPY) Dividend Aristocrats Index and showed that they have beaten the SPY since the beginning of this year. The S&P 500 Dividend Aristocrats Index tracks the large-cap S&P 500 companies that have increased their dividends for at least 25 consecutive years. Since the beginning of 2011, 42 stocks in the S&P 500 Dividend Aristocrats Index returned 8.8% vs. 6.85% gain for the SPY. (The market data are sourced from Standard & Poors and Fidelity) We believe investors should be cautious of the upcoming inflationary environment and play more defensively in the near future. We think the Dividend Aristocrats that are able to increase dividends may provide protection against inflation with a better risk-return combination. Below, we compiled the remaining constituents of the S&P 500 Dividend Aristocrats Index and showed... Read more