The daddy of worth investing, Benjamin Graham urged selecting shares with “uninterrupted [dividend] funds for a minimum of the previous 20 years.” Shares within the S&P 500 Dividend Aristocrat Index comply with the identical thought, 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 present has 65 constituents. You possibly can spend money on the total record of Dividend Aristocrats by way of 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 Circulate (FCF) are three-year averages. The concept 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.
