Dividend Aristocrats

Dividend Aristocrats

Dividend aris­to­crats are tru­ly a gift that keeps on giv­ing. They are com­pa­nies with decades-long his­to­ries of increas­ing div­i­dends. For the patient investor, it means that div­i­dend pay­outs increase to keep up with infla­tion.

The term ‘div­i­dend aris­to­crats’ gen­er­al­ly refer to larg­er US com­pa­nies, but the con­cept applies to any mar­ket.

Increasing div­i­dends com­pound over time and com­pound even faster when they are rein­vest­ed. Dividend increas­es present a pow­er­ful lens through which to look at port­fo­lio suc­cess over time. Think of annu­al div­i­dend increas­es as an annu­al raise. Are you get­ting an annu­al raise at your job? If you do, will get get it every year for the next three decades? Will the raise you get beat infla­tion? I mean, these rais­es are fun.

Who are the div­i­dend aris­to­crats? Sure Dividend pro­vides an updat­ed list month­ly. Sure Dividend is a site that ana­lyzes div­i­dend stocks. I refer to Sure Dividend reg­u­lar­ly for my own stock analy­sis (Elephant’s Paycheck offers edu­ca­tion, not analy­sis or rec­om­men­da­tions.) I have even had the plea­sure of writ­ing a guest post on Sure Dividend about the met­rics used in an Elephant’s Paycheck port­fo­lio.

Dividend Aristocrat Posts on Elephant’s Paycheck

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How to Get a Big Pay Raise Every Year

Aug 21, 2013

Growth is an impor­tant part of invest­ing, right? Do bet­ter this year than last year. Better next year than this year. At work, you think in terms of a big pay raise to mea­sure doing bet­ter year over year. Why think dif­fer­ent­ly about invest­ing? It’s com­mon to focus on net worth. In my expe­ri­ence it’s […]

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No Translation Necessary

Aug 20, 2013

Read any retire­ment plan­ning guide, and at some point they’ll talk about con­vert­ing a “pile of mon­ey” into a retire­ment income (often referred to as a ‘with­draw­al rate’ or ‘the 4% rule’). This need to trans­late between two amounts is prob­lem­at­ic for two rea­sons:

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Dividend Reinvestments: An IRS Blindspot

Jul 11, 2013

The Elephant’s Paycheck invest­ment strat­e­gy for 401K rollovers is sim­ple to under­stand. Invest in div­i­dend aris­to­crats and allow div­i­dend rein­vest­ments to ampli­fy your rewards. What are div­i­dend rein­vest­ments?

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Dividend Aristocrats: The Gift That Keeps on Giving

Jul 10, 2013

The Elephant’s Paycheck invest­ment strat­e­gy for 401K rollovers is sim­ple to under­stand. Invest in div­i­dend aris­to­crats and allow div­i­dend rein­vest­ments to ampli­fy your rewards. What are div­i­dend aris­to­crats? They’re com­pa­nies that have increased their div­i­dends every year for at least the past 25 years in a row. They’re also larg­er com­pa­nies and pay reg­u­lar and con­sis­tent […]

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Reducing Investing Risk

Apr 3, 2013

We’ve all heard the brokerage/financial advi­sor CYA dis­claimer: “past per­for­mance is no guar­an­tee of future results”. I sort of pre­fer this quote, which I recent­ly saw at 37 Signals: In the­o­ry there is no dif­fer­ence between the­o­ry and prac­tice. But, in prac­tice, there is. An invest­ing the­o­ry tru­ism is that you can’t get reward with­out […]

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