Dividend growth investors love regular dividend increases. Dividend Aristocrats are companies in the S&P 500 that have raised their dividends for at least 25 consecutive years. There are only 67 of them.  With 503 companies in the S&P 500, this means just 13% qualify as Dividend Aristocrats.
There's no minimum dividend yield requirement. In fact, the third part of the watchlist is the Cannibal Companies, so those don't necessarily pay a dividend. They may return capital only through buybacks, so we'd consider a company like AutoZone or NVR for example.
There will be consideration of the starting yield vs the growth rate of the dividend - so if a company has a low starting yield, we'll want to see a higher dividend growth rate.
Awesome concept and chart listing them all. And 67 - wow, that's a high number to me.
Does your methodology have a minimum dividend yield for the business to be considered for the portfolio?
There's no minimum dividend yield requirement. In fact, the third part of the watchlist is the Cannibal Companies, so those don't necessarily pay a dividend. They may return capital only through buybacks, so we'd consider a company like AutoZone or NVR for example.
There will be consideration of the starting yield vs the growth rate of the dividend - so if a company has a low starting yield, we'll want to see a higher dividend growth rate.