What are the dividend aristocrats S&P 500®?

Standard & Poors (S&P) 500® Divided Aristocrats are members of the list that includes only the foremost dividend shares. In order for the company to be included in this elite list, the company must meet certain strict requirements. It must first be a member of the S&P 500®. Companies that are named in the list of divided aristocrats are all shares with large capital, blue chips. In addition, any company that creates a list must increase their dividends for each of the previous 25 consecutive years.

These criteria are strictly followed, which is why the dividend aristocrats S&P 500® are a list of aristocracy of income shares. Being marked with a dividend aristocrat indicates a very stable society. For 25 years, the company exceeded the recession or other discrepancies of boom and bust on the stock market and managed to increase revenues to its shareholders.

The composition of the dividend aristocrats S&P 500® changes over time. Sometimes can change dramatically and often depending onSti on economic shocks. Every December is again balanced in an annual review, which ensures that only the most dangerous, consistent dividend shares remain on the list.

In the annual review, any current dividend aristocrat, which was removed from the S&P 500® in the previous year, is removed from the list. If an existing member should decide to freeze his dividend for a year, he is also removed from the list. Finally, if the current member of the List Dividend Aristocrats decides to reduce its dividend sometime in the next 12 months after the annual review, the following list will be canceled from the list of the following December. After being launched from the List of Dividends of the Aristocrats, society will, no matter how big or important, have to wait another 25 years to re -include. Likewise, any S&P 500® company that exceeds the threshold of 25 PO sBoth years of increasing dividend are added to the list every December.

Investors often look at dividend aristocrats as providing a list of solid companies with excellent records in which they can invest. Dividend aristocrats are usually not among the highest revenue shares that the investor can find. High returns are not a prerequisite for being named on the list. The most important is stability and longevity in ensuring a consistent increase in dividends for shareholders rather than providing the most return on investment.