Dividend Aristocrats: What Are They? Why Are They Important?
As a dividend investor, you know that consistency is key. That's where the "Dividend Aristocrats" come in. What are Dividend Aristocrats? The term "Dividend Aristocrats" was coined by the S&P Dow Jones Indices, which maintains a list of companies that meet the following criteria: Member of the S&P 500 Index Increased dividends for at least 25 consecutive years Market capitalisation of at least $3 billion. It is slightly different when it comes to UK Dividend Aristocrats . To be considered a UK Dividend Aristocrat stock, a company must be listed on the London Stock Exchange and have increased its dividends every year for at least 10 consecutive years. Dividend Max Annual Dividends chart for Diageo showing increase in dividends Why are they important? Consistency A company that has consistently increased its dividends for 25+ years (10+ years for UK stocks) is likely financially stable and well-managed. This doesn't mean that Dividend Aristocrats are