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Philip van Doorn

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July 28, 2019, 9:53 a.m. EDT

Dozens of Dividend Aristocrat stock have been big winners in 2019

Few of them have declined, as low interest rates have made them more attractive

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    S&P 500 Dividend Aristocrats Index (SP50DIV)
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By Philip van Doorn, MarketWatch


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Shares of Target have returned 36% this year (through July 23).

Dividend stocks are in a sweet spot, as they bridge the difference between growth and income.

Among dividend stocks, so-called Dividend Aristocrats are considered by some to be the cream of the crop.

Companies with long track records of annual dividend increases, as a group, have performed well over a long period. And some have dividend yields that are high enough to attract income-seeking investors, which may be important in the coming years if the Federal Reserve follows the European Central Bank down the road of incredibly low — or even negative — interest rates.

There are two Dividend Aristocrat indexes.

S&P 500 Dividend Aristocrats

The S&P 500 Dividend Aristocrats Index /zigman2/quotes/210598428/delayed XX:SP50DIV -2.44%  is maintained by S&P Dow Jones Indices and is made up of the 57 companies in the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.0020%  that have increased regular dividends on common shares for at least 25 consecutive years. It makes no difference how high a stock’s current dividend yield is.

You can invest in the entire S&P 500 Dividend Aristocrats group with the ProShares S&P 500 Dividend Aristocrats ETF /zigman2/quotes/208747379/composite NOBL -0.10% .

Here’s how the S&P 500 Dividend Aristocrats Index has performed against the broader S&P 500 over various periods:

Index Total return - 2019 through July 23 Total return - 3 years Total return - 5 years Total return - 10 years Total return - 15 years Total return - 20 years
S&P 500 Dividend Aristocrats Index 18% 36% 73% 325% 383% 532%
S&P 500 21% 47% 68% 279% 278% 226%
Source: FactSet

In the past five years, with the S&P 500’s performance being weighted toward the FAANG group (Facebook /zigman2/quotes/205064656/composite FB +1.06% , Amazon.com /zigman2/quotes/210331248/composite AMZN +0.22% , Apple /zigman2/quotes/202934861/composite AAPL -0.81% , Netflix   /zigman2/quotes/202353025/composite NFLX -1.70%  and Google holding company Alphabet /zigman2/quotes/205453964/composite GOOG +0.51%   /zigman2/quotes/202490156/composite GOOGL +0.49% ) and other rapidly growing technology companies, the S&P 500 Dividends Aristocrats Index’s return has lagged that of the benchmark. However, the total returns for 10, 15 and 20 years speak for themselves.

The ProShares S&P 500 Dividend Aristocrats ETF was established on Oct. 10, 2013. Here’s a comparison of its long-term performance against the SPDR S&P 500 ETF /zigman2/quotes/209901640/composite SPY -0.0066%

ETF Total return - 2019 through July 23 Total return - 3 years Total return - 5 years Total return - Oct. 10, 2013, through July 23, 2019
ProShares S&P 500 Dividend Aristocrats ETF /zigman2/quotes/208747379/composite NOBL   17% 34% 69% 94%
SPDR S&P 500 ETF /zigman2/quotes/209901640/composite SPY   21% 46% 67% 99%
Source: FactSet

S&P High-Yield Dividend Aristocrats

S&P Dow Jones Indices also maintains the S&P High-Yield Dividend Aristocrats Index /zigman2/quotes/210599901/delayed XX:SPHYDA -0.18% , which includes the 112 companies in the S&P 1500 Composite Index that have increased their regular dividend payouts for at least 20 straight years. (The S&P 1500 Composite Index is made up of the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.0020% , the S&P 400 Mid-Cap Index /zigman2/quotes/210599897/delayed MID -0.19%  and the S&P Small-Cap 600 Index /zigman2/quotes/210599868/delayed SML -0.52% . So all S&P 500 Dividend Aristocrats are also high-yield Dividend Aristocrats.)

You can invest in the High-Yield Aristocrats as a group with the SPDR S&P Dividend ETF /zigman2/quotes/206871683/composite SDY -0.15% .

/zigman2/quotes/210598428/delayed
XX : S&P Global Thematic Indices
529.23
-13.23 -2.44%
Volume: 0.00
Aug. 9, 2019 5:04p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,006.79
+0.06 +0.0020%
Volume: 1.55B
Sept. 19, 2019 5:17p
loading...
/zigman2/quotes/208747379/composite
US : Cboe BZX US Equities Exchange
$ 71.75
-0.07 -0.10%
Volume: 458,145
Sept. 19, 2019 4:10p
loading...
/zigman2/quotes/205064656/composite
US : U.S.: Nasdaq
$ 190.14
+2.00 +1.06%
Volume: 10.47M
Sept. 19, 2019 4:00p
P/E Ratio
32.22
Dividend Yield
N/A
Market Cap
$542.46 billion
Rev. per Employee
$1.57M
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 1,821.50
+4.04 +0.22%
Volume: 2.08M
Sept. 19, 2019 4:00p
P/E Ratio
75.57
Dividend Yield
N/A
Market Cap
$901.02 billion
Rev. per Employee
$359,671
loading...
/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 220.96
-1.81 -0.81%
Volume: 22.19M
Sept. 19, 2019 4:00p
P/E Ratio
18.84
Dividend Yield
1.39%
Market Cap
$998.56 billion
Rev. per Employee
$1.98M
loading...
/zigman2/quotes/202353025/composite
US : U.S.: Nasdaq
$ 286.60
-4.96 -1.70%
Volume: 8.55M
Sept. 19, 2019 4:00p
P/E Ratio
112.39
Dividend Yield
N/A
Market Cap
$125.48 billion
Rev. per Employee
$2.22M
loading...
/zigman2/quotes/205453964/composite
US : U.S.: Nasdaq
$ 1,238.71
+6.30 +0.51%
Volume: 1.00M
Sept. 19, 2019 4:00p
P/E Ratio
25.01
Dividend Yield
N/A
Market Cap
$801.29 billion
Rev. per Employee
$1.39M
loading...
/zigman2/quotes/202490156/composite
US : U.S.: Nasdaq
$ 1,238.75
+6.10 +0.49%
Volume: 847,002
Sept. 19, 2019 4:00p
P/E Ratio
25.01
Dividend Yield
N/A
Market Cap
$801.32 billion
Rev. per Employee
$1.39M
loading...
/zigman2/quotes/209901640/composite
US : U.S.: NYSE Arca
$ 301.08
-0.02 -0.0066%
Volume: 78.10M
Sept. 19, 2019 8:00p
loading...
/zigman2/quotes/208747379/composite
US : Cboe BZX US Equities Exchange
$ 71.75
-0.07 -0.10%
Volume: 458,145
Sept. 19, 2019 4:10p
loading...
/zigman2/quotes/209901640/composite
US : U.S.: NYSE Arca
$ 301.08
-0.02 -0.0066%
Volume: 78.10M
Sept. 19, 2019 8:00p
loading...
/zigman2/quotes/210599901/delayed
XX : ICE Gib Ind
3,458.69
-6.26 -0.18%
Volume: 0.00
Sept. 19, 2019 6:59p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,006.79
+0.06 +0.0020%
Volume: 1.55B
Sept. 19, 2019 5:17p
loading...
/zigman2/quotes/210599897/delayed
US : S&P US
1,949.66
-3.77 -0.19%
Volume: 654.58M
Sept. 19, 2019 5:17p
loading...
/zigman2/quotes/210599868/delayed
US : S&P US
965.34
-5.00 -0.52%
Volume: 424.45M
Sept. 19, 2019 5:17p
loading...
/zigman2/quotes/206871683/composite
US : U.S.: NYSE Arca
$ 103.07
-0.15 -0.15%
Volume: 309,868
Sept. 19, 2019 8:00p
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