S&P 500 Dividend Aristocrats

13 Pages Posted: 4 Jan 2009

Date Written: December 2008


Since 1926, dividends have contributed to approximately one-third of total return while capital appreciations have contributed two-thirds. Therefore, both sustainable dividend income and capital appreciation potential are important to total return expectations. Managers use stable and increasing dividends as a sign of confidence in their firm's prospects, while investors consider such track records as a sign of corporate maturity and strength. The S&P 500 Dividend Aristocrats Index measures the performance of the S&P 500 index constituents that have followed a policy of consistently increasing dividends every year for at least 25 consecutive years. The S&P 500 Dividend Aristocrats Class of 2009 includes 52 securities diversified across 10 sectors. The constituents have both growth and value characteristics. The composition of the S&P 500 Dividend Aristocrats contrasts with that of typical dividend oriented lists and benchmarks that have high exposure to Financials and Utilities sectors and have a steep value bias.

Keywords: dividend

JEL Classification: C52

Suggested Citation

Soe, Aye M., S&P 500 Dividend Aristocrats (December 2008). Available at SSRN: https://ssrn.com/abstract=1321681 or http://dx.doi.org/10.2139/ssrn.1321681

Global Research & Design S&P Dow Jones Indices (Contact Author)

S&P Dow Jones Indices ( email )

New York, NY 10041
United States

Aye M. Soe

Standard & Poor's ( email )

London EC2M 7NJ
United Kingdom

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