Uncover 2022’s Goldmine: Your Guide to the Top Dividend Aristocrats Worth Investing and Holding Onto

Want steady income through dividends? The Dividend Aristocrats list is your trusted guide! This elite collection of stocks has a solid record of increasing dividends annually. They reward users with yields higher than most savings accounts, presenting a great option for building wealth securely.

Curious? Let’s dive deeper.

Dividend Aristocrats are stocks with a track record of 25+ years of consistent dividend increases. These are typically solid and reliable companies with effective business models and sound financials. To earn the Dividend Aristocrat status, a company should also belong to the S&P 500 index, ensuring it is among the biggest and most successful US businesses.

Furthermore, qualifying companies meet certain market cap and cash flow criteria, ensuring financial health. Some of these superstars with their respective sectors and years of dividend growth include Procter & Gamble (Consumer Staples, 66 years), Johnson & Johnson (Healthcare, 60 years), and Coca-Cola (Consumer Staples, 60 years) among others.

So, why invest in Dividend Aristocrats? Generally, their long sequence of dividend increases predicts future success (although this can never be guaranteed). Aristocrat stocks are typically stable, shielding investors from severe market drops during economic downturns. Thanks to their diverse revenue streams and a long history of dividend growth, they lessen reliance on economic cycles. Plus, they offer some of the highest dividend yields, making them ideal for income investors.

However, always bear in mind the inherent risks. Aristocrat stocks might not perform as well during bull markets as investors chase high-growth stocks. Furthermore, they can be vulnerable to increases in interest rates, which might render their yields less appealing.

One simple way to invest in Dividend Aristocrats is via an index fund, like the ProShares S&P 500 Dividend Aristocrats ETF (NOBL). This option offers exposure to a wide range of these stocks, without the need to buy them individually.

Before wrapping up, let’s address some common queries:

1. How is a Dividend King different from a Dividend Aristocrat? A company needs 50 straight years of dividend increases to qualify as a King, making it an exclusive club. However, neither is necessarily a better investment.

2. How many Dividend Aristocrats are there? As of now, the count stands at 65, but it alters yearly.

3. Are Dividend Aristocrats safe investments? Ideally, no investment is “safe”, but Aristocrats are considered relatively secure due to their high stature, diverse revenue, and strong financial fundamentals.

Whether you choose dividend or growth stocks depends on your financial goals. Dividend stocks offer stability and income, while growth stocks carry potential for capital appreciation. Finally, consider diversifying your portfolio across different sectors and asset classes to mitigate potential risks.

Happy Investing!