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Dividend Aristocrats: The Top Performing Stocks of the Last Decade

By RealtyBiz News | September 14, 2022

The dividend aristocrats are a select group of stocks that have outperformed the market for the last decade. These stocks have a proven track record of dividend growth and are a safe bet for long-term investors. Keep reading to learn more about the top-performing stocks of the last decade.

What are the dividend aristocrats?


The dividend aristocrats list is a select group of stocks that have increased their dividends for 25 consecutive years or more. They are the top-performing stocks of the last decade, with an average annual return of 16.1%. The dividend aristocrats outperform the S&P 500 by 2.5 percentage points and the Dow Jones Industrial Average by 3.8 percentage points.

Several factors contribute to the outperformance of the dividend aristocrats. First, they are high-quality stocks with stable businesses and strong fundamentals. They have low debt levels, high returns on equity, and consistent earnings growth. Second, they pay generous dividends that provide income and downside protection in bear markets. And finally, they are attractively priced relative to other stocks in today's market.

The dividend aristocrats include some of the most well-known companies in the world. The top dividend aristocrats of the last decade are ExxonMobil, Johnson & Johnson, Procter & Gamble (PG), Coca-Cola (KO), Intel, Merck, Pfizer, Wal-Mart Stores, McDonald's (MCD), Abbott Laboratories, and Automatic Data Processing.

What risks should you be aware of before investing?

Before investing in dividend aristocrats, there are a few risks. The first is that, while these stocks have historically outperformed the market, there is no guarantee they will do so in the future. Some investors believe that high-yielding stocks are overvalued and ripe for a fall.

Another risk is that dividend aristocrats may not perform as well as other stocks in a bull market. Since they are seen as being less risky, they may not provide the same level of returns as other stocks that are considered to be more speculative. Additionally, many of these companies are exposed to the same economic headwinds as the rest of the market, so they could see their share prices decline if conditions worsen. Finally, it's important to remember that even the best stocks can experience short-term price fluctuations; investing in a dividend aristocrat should be viewed as a long-term commitment.

What are the benefits of investing in a dividend aristocrat stock?


There are several reasons why dividend aristocrat stocks may be a wise investment choice. These companies are seen as being more stable and reliable than others. They have a proven track record of increasing their dividends even in tough times. Dividend aristocrats typically offer above-average yields. This is because they are seen as less risky than other stocks and in demand by income-oriented investors.

Another reason to invest in dividend aristocrats is their history of outperforming the market. A study by S&P Global Ratings found that dividend aristocrats outperformed the S&P 500 by an average of 2.5 percentage points per year from 2007 to 2017. This makes them a sound investment choice for anyone looking to maximize their returns.

Finally, dividend aristocrats are a good way to diversify your portfolio. They offer exposure to several different industries, so you can invest in various companies without taking on too much risk. This makes them a wise choice for investors who want to minimize risk without sacrificing returns.

While there are many reasons to consider investing in a dividend aristocrat stock, there are also some potential drawbacks worth noting. One such drawback is that many dividend aristocrats are expensive relative to their peers. Another potential downside to investing in a dividend aristocrat stock is that it may not grow as quickly as other companies with no history of paying dividends.

Dividend aristocrat stocks have outperformed the overall market and other dividend-paying stocks over the past decade. This is likely due to their consistent dividend growth and commitment to shareholder returns.

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