Dividend Growth Investor: Dividend Aristocrats List For 2023
Income investors tend to gravitate towards companies that pay out increasing dividends annually. Even if the initial yields are low, such as the 1 percent range, growth over time can make up for it.
Plus, companies that grow their dividends tend to have rising earnings. That will lead to a rising share price over time as well. Looking at the S&P 500, a full 67 companies were Dividend Aristocrats going into 2023.
They have all increased their dividends annually for at least 25 years. And despite a rough 2022 for markets, no companies fell off the Dividend Aristocrat list by either reducing, or failing to raise, their dividend payouts.
One company did leave the list, but only because it was acquired in a merger.
This year saw a record number of Dividend Aristocrats, thanks to the addition of three new companies.
One such company is Nordson Corporation (NDSN). It’s a maker of specialty adhesives, coatings, and polymers. That’s the kind of business that can continue growing earnings and profits consistently over time, even if it gets overlooked by investors looking for a big growth story.
Shares don’t yield much, about 1.1 percent. But the company just raised its dividend payout for the 25th consecutive year, from $2.18 per share to $2.60. And shares returned 7 percent last year, even as the overall market dropped.
To view the full list of Dividend Aristocrats, including the two other new additions, click here.