S&P 500 Dividend Aristocrats Index Expands: 3 New Stocks Join Elite Group of Consistent Dividend Growers
Staff Editor S&P 500 Dividend Aristocrats Index Welcomes Three New Members
The S&P 500 Dividend Aristocrats Index, a prestigious group of 66 stocks known for their consistent dividend growth, has expanded its ranks with three new additions. This elite index, which requires companies to have increased their dividends for at least 25 consecutive years, continues to attract income-seeking investors with its average annual yield of 2.5%.
In times of market volatility, the Dividend Aristocrats have demonstrated remarkable stability. During recent market downturns, when the Nasdaq 100 and S&P 500 experienced significant plunges, the Aristocrats showed resilience. In 2022, while broader markets declined, the index outperformed, highlighting its appeal as a haven for investors seeking quality and stability.
Simeon Hyman, global investment strategist at ProShares, notes that the Dividend Aristocrats currently trade at more attractive valuations compared to the broader S&P 500. With a price-to-earnings ratio of 17, versus 20 for the S&P 500, and maintaining strong profit margins, the index presents an appealing option for investors concerned about market valuations.
The three new companies joining the Dividend Aristocrats represent diverse sectors of the economy. Factset Research Systems, a technology company with a market capitalization of $18 billion, brings a dividend yield of 0.96%. Erie Indemnity, from the financial sector, boasts a market cap of $18.8 billion and offers a 1.45% dividend yield. Eversource Energy, representing the utilities sector, has a market cap of $21.3 billion and provides the highest dividend yield among the new additions at 4.37%.
These new members further strengthen the Dividend Aristocrats’ reputation for stability and quality. As market uncertainties persist, investors may find the consistent dividend growth and proven track record of the S&P 500 Dividend Aristocrats Index an attractive option for their portfolios.
