In recent years, investors have often enjoyed rising dividends. In times of crisis, however, it is not unusual for companies to suspend or reduce dividend payments. Those who wish to avoid this "danger" will find a solution in the form of the so-called Dividend aristocrats Companies that have a history of continuously increasing dividends over many years, regardless of the success of the current fiscal year.
What is a dividend aristocrat?
As Dividend aristocrats is the term used to describe companies that have 25 years (or more) their Dividend continuously annually increases have. Long-term investors often see this as a sign of a company's quality, and there is a high probability that dividend payments will also be increased in the coming years.
Dividend aristocrats in the USA
Equity investments play an important role in the U.S. for private investors as well as for institutional investors such as pension funds as a means of Retirement provision The role of dividends is far more important in the US than in Germany, for example. This is why the American corporate landscape traditionally has a somewhat different dividend culture.
On the one hand, here are usually quarterly dividends paid out (in some cases even monthly), on the other hand, far more more dividend aristocrats than in other countries, as companies attach importance to radiating stability and reliability by increasing dividends even in crisis years. In bad fiscal years, however, this can also lead to a company's payout ratio rising to over 100%.
Selection of dividend aristocrats from the USA
The following is an overview of a selection of U.S. dividend aristocrats that have been 40-60 years increasing dividends can show.