Home / Bitcoin Latest News / These ‘Dividend Aristocrat’ stocks have risen as much as 31% this year, bucking a bad trend

These ‘Dividend Aristocrat’ stocks have risen as much as 31% this year, bucking a bad trend

The underperformance of the S&P 500 Dividend Aristocrats Index this 12 months highlights a worrisome trend for venerable user manufacturers. Still, there are a collection of secure payers that have carried out smartly.

The S&P 500 Dividend Aristocrats Index

SPDAUDP, +0.32%

 is made up of 53 S&P 500

SPX, +0.26%

 firms that have higher their common dividend payouts for a minimum of 25 consecutive years. That’s the one qualification — it makes no distinction how top a inventory’s present dividend yield is.

Over the previous 10 years, the Dividend Aristocrats Index has very much outperformed the S&P 500 and the Dow Jones Industrial Average

DJIA, +0.16%

with dividends reinvested:


That’s an excellent observe file all over a time of (most commonly) very low rates of interest. Of path, taking a look again under no circumstances signifies whether or not the outperformance will proceed over the following 10 years.

One simple option to play the Dividend Aristocrats as a team is through making an investment within the ProShares S&P 500 Dividend Aristocrats ETF

NOBL, +0.28%

(Disclosure: I dangle stocks of NOBL.)

First, the losers

So a ways in 2018, the Dividend Aristocrats Index is down 1.five% (with dividends reinvested), whilst the S&P 500 is up 2.6% and the Dow is up 1%.

That’s no longer horrible efficiency for the Aristocrats, and it will not be a giant marvel at a time when rates of interest are emerging, as a result of when charges upward thrust, the marketplace values of income-producing securities generally tend to fall over the fast time period. But 27 of the Aristocrats are down thus far this 12 months and a fast take a look at the worst 10 underscores one of the vital main stock-market topics for 2018:

Company Ticker Sector Industry Total go back – 2018 thru May 16 Dividend yield
Clorox Co.

CLX, -0.74%

Consumer Staples Household/Personal Care -19% three.24%
Procter & Gamble Co.

PG, +0.30%

Consumer Staples Household/Personal Care -19% three.90%
PepsiCo Inc.

PEP, +0.14%

Consumer Staples Beverages: Non-Alcoholic -18% three.82%
Colgate-Palmolive Co.

CL, -0.06%

Consumer Staples Household/Personal Care -17% 2.71%
Stanley Black & Decker Inc.

SWK, +0.95%

Industrials Tools & Hardware -16% 1.78%
Franklin Resources Inc.

BEN, +1.17%

Financials Investment Managers -15% 2.73%
AT&T Inc.

T, -0.37%

Telecommunication Services Major Telecommunications -15% 6.19%
3M Company

MMM, +1.17%

Industrials Industrial Conglomerates -14% 2.72%
Federal Realty Investment Trust

FRT, -0.55%

Real Estate Real Estate Investment Trusts -13% three.51%
Illinois Tool Works Inc.

ITW, +0.90%

Industrials Industrial Machinery -13% 2.16%
Source: FactSet

The 4 worst performers are within the consumer-staples sector, which has been the worst of the benchmark index’s sectors this 12 months with a decline of 12.five% (with dividends reinvested). Investors have been appearing how fearful they’re that well-known consumer brands are losing their pricing power.

Here are some feedback from the 4 worst performers’ most up-to-date income calls from transcripts equipped through FactSet:

• When requested through Deutsche Bank Securities analyst Stephen Powers all over the corporate’s income name on May 2 about “a shift in the historic balance of power” from “incumbent big-branded” manufacturers of user merchandise “towards new area of interest avid gamers, towards retail inclusive of Amazon

AMZN, +0.33%

 and private-label manufacturers,” Clorox

CLX, -0.74%

 CEO Benno Dorer stated it was once “[c]ertainly not an easy environment.”

• During Procter & Gamble’s

PG, +0.30%

 income name on April 19, CEO David Taylor stated: “The market [in the U.S.] is changing and some customers are aggressively pursuing private label with aggressive pricing. The lower private label pricing has been a real challenge, particularly for our Luvs brand.”

• PepsiCo

PEP, +0.14%

 CEO Indra Nooyi was once extra refined in her feedback all over the corporate’s income name on April 26: “[W]e are watching grocery pricing very, very carefully. And we want to make sure we don’t destroy the pricing architecture across the industry. … But if it’s a question of media spending to make sure that the consumer understands that Pepsi is still a strong, vibrant brand, we’re going to spend on media.”

During Colgate-Palmolive’s

CL, -0.06%

 income name on April 27, CEO Ian Cook stated there were a “slowing of category growth in some markets around the world. And what that has resulted in, in some cases, is heightened promotional activity … to try and get more of that smaller pie. And that puts pressure on pricing.” He added that “we see pricing now flat, which is not common in our industry space.”

Rising rates of interest, the adulthood of its core industry and the uncertainty over whether or not federal regulators will allow it to finish its acquisition of Time Warner have mixed to push stocks of AT&T down 15% this 12 months. That has driven up the dividend yield to six.19%, and the dividend appears safe based on AT&T’s level of free cash flow, to not point out the corporate’s glaring dedication to elevating payouts once a year.

And the winners

Here are the 10 S&P 500 Dividend Aristocrats that have carried out the most efficient thus far in 2018:

Company Ticker Sector Industry Total go back – 2018 thru May 16 Dividend yield
W.W. Grainger Inc.

GWW, -0.04%

Industrials Wholesale Distributors 31% 1.78%
S&P Global Inc.

SPGI, +0.10%

Financials Financial Publishing/Services 17% 1.01%
Target Corp.

TGT, +1.09%

Consumer Discretionary Discount Stores 17% three.30%
Cintas Corp.

CTAS, +0.31%

Industrials Business Services 17% zero.89%
T. Rowe Price Group

TROW, -0.14%

Financials Investment Managers 16% 2.32%
Archer-Daniels-Midland Co.

ADM, +1.06%

Consumer Staples Agricultural Commodities/Milling 13% three.01%
AbbVie Inc.

ABBV, -0.49%

Health Care Pharmaceuticals 11% three.66%
Ecolab Inc.

ECL, +0.08%

Materials Chemicals: Specialty 10% 1.11%
Automatic Data Processing Inc.

ADP, +0.54%

Information Technology Data Processing Services 10% 2.16%
Brown-Forman Corp. Class B

BF.B, +0.70%

Consumer Staples Beverages: Alcoholic eight% 1.08%
Source: FactSet

You can click on the tickers for more info about every corporate, together with information, profiles, worth ratios and financials.

Don’t leave out: 15 dividend stocks whose 4%-plus yields beat Treasury bonds

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