The daddy of worth investing, Benjamin Graham advised selecting shares with “uninterrupted [dividend] funds for at the very least the previous 20 years.” Shares within the S&P 500 Dividend Aristocrat Index comply with the identical concept, however go one step additional. It is a group of shares within the S&P 500 Index which have paid and elevated dividends for 25 consecutive years. The index at the moment has 65 constituents. You’ll be able to spend money on the total listing of Dividend Aristocrats by the ProShares S&P 500 Aristocrat ETF (NOBL). The highest sectors are Industrials, Shopper Staples, Supplies and Well being Care.
The downloadable Dividend Aristocrats Excel Spreadsheet accommodates the sector, present inventory worth, market capitalization, enterprise worth, EV/EBIT, P/E, P/FCF, Dividend yield, Dividend payout ratio for every inventory within the index. The spreadsheet is up to date weekly.
Earnings earlier than curiosity and taxes (EBIT), Earnings and Free Money Circulation (FCF) are three-year averages. The thought behind utilizing common earnings comes from Graham and Dodd’s basic textual content Safety Evaluation, the place they argued for smoothing a agency’s earnings. Graham and Dodd famous that one-year earnings had been too risky to judge a agency’s true earnings energy.