Dividend Aristocrats vs. Dividend Kings: Comparing Long-Term Dividend Track Records

When looking for stocks to invest in, many investors seek out companies with a strong record of dividend payments. Two groups of companies that have gained attention for their dividend track records are the Dividend Aristocrats and the Dividend Kings.

What are the Dividend Aristocrats?

The Dividend Aristocrats are a group of S&P 500 companies that have increased their dividend payouts for at least 25 consecutive years. As of 2021, there are 65 companies that meet this criteria. These companies are seen as stable investments, as they have demonstrated a commitment to returning value to shareholders.

What are the Dividend Kings?

The Dividend Kings are an even more exclusive group of companies that have increased their dividend payouts for at least 50 consecutive years. As of 2021, there are only 31 companies that meet this criteria. These companies are seen as some of the most reliable long-term investments, as they have weathered many economic downturns.

How do the Dividend Aristocrats and Dividend Kings compare?

While both the Dividend Aristocrats and the Dividend Kings have impressive dividend track records, the Dividend Kings are seen as the more exclusive club. In addition to needing more consecutive years of dividend increases, the Dividend Kings also have a smaller total number of companies included.

However, there is some overlap between the two groups. Of the 31 Dividend Kings, 17 are also included in the Dividend Aristocrats.

When comparing performance, the Dividend Kings have historically outperformed the S&P 500, while the Dividend Aristocrats have performed in line with the overall market.

Are the Dividend Aristocrats and Dividend Kings good investments?

Both the Dividend Aristocrats and Dividend Kings are generally viewed as stable, long-term investments. However, it is important to note that past performance is not indicative of future results. Investors should always do their own research and consider a company's financials, industry trends, and overall business strategy before making an investment decision.

Overall, the Dividend Aristocrats and Dividend Kings are both well-respected groups of companies with impressive dividend track records. Investors who prioritize dividend payments may find these groups useful when conducting research and building their portfolios.