This is a battle that has been going on for centuries: which are the safest, most reliable dividend stocks? Most investors would agree with those who believe the Aristocrats of investing (the Coca-Cola Company), while others prefer to invest in more aggressive Dividend Kings like 3M. Here’s how you can decide whether an aristocrat or king makes sense for your portfolio.
The “dividend kings list 2022” is a dividend stock list that includes the best stocks to invest in. The “Aristocrats” are the stocks that have been deemed not worthy or too risky for investors.
Companies That Raise Dividends Every Year Stocks
Dividend Kings versus Dividend Aristocrats is a comparison and contrast article.
Additionally, it presents some stock suggestions. For putting up a portfolio of the greatest firms from these rankings.
Let’s take a look at a few of these outstanding dividend-paying firms first.
These companies were chosen because they are excellent additions to any dividend portfolio…
I may get compensation for purchases made via links in this article at no cost to you.
Kings of Dividends
To begin, consider the following Dividend Kings:
A Select List Of Dividend Kings (Table 1)
|Company 3M (MMM)|
|Water Service of California (CWT)|
|Investment Trust for Federal Real Estate (FRT)|
|Hormel Foods, Inc. (HRL)|
|Johnson & Johnson (JNJ)|
|Procter & Gamble (PG)|
|Stanley Black & Decker (SWK)|
The Highest Dividend Aristocrats
Second, there are a number of top Dividend Aristocrats:
A Select List Of Dividend Aristocrats (Table 2)
|Data Processing by Machine (ADP)|
|Exxon Mobil Corporation (XOM)|
|McCormick & Company (MKC)|
|McDonald’s is a fast food restaurant chain (MCD)|
|Energy company NextEra (NEE)|
|Rental Income (O)|
Now consider the following instances. Let us now examine and contrast Kings and Aristocrats.
So, when we’re through, you’ll know precisely what kinds of dividend stocks we’re talking about.
Then, before you go, have a look at all of our…
Tips for Investing in Dividends
Key Takeaways from Dividend Kings vs. Dividend Aristocrats
Aristocrats and Kings are similar in that they are noted for growing their dividend rate per share year after year. As a result, stockholders will get an increasing stream of dividend income.
The number of consecutive years of dividend increases produced by these two kinds of equities is the most important difference between them.
Because aristocrats have consistently increased dividends over the last 25 years. While the King has a 50-year track record of increasing dividends.
Furthermore, due to various factors. Some Dividend Kings, although not all, are also Dividend Aristocrats.
Finally, maintaining a dividend increase for at least 50 years is quite tough. As a result, there are fewer Dividend Kings than Aristocrats.
Consider the following scenario:
Venn Diagram of Dividend Kings & Aristocrats
Okay. Those are the main points. After that, I’d want to go a bit further.
And do it by deconstructing the Dividend Kings versus Aristocrats definition.
Here we go…
Dividend Aristocrats: What Are They?
Dividend Aristocrats are significant publicly listed firms in the United States with highly liquid stocks. Every year, they have raised the dividend rate per share. And I’ve been doing it for at least 25 years.
The following are the exact requirements for being called a Dividend Aristocrat:
1) Paying a greater dividend rate per share for at least 25 years
2) The stock is publicly traded and part of the S&P 500 stock market index
3) The firm must have a market valuation of at least $3 billion.
4) The stock’s daily trading value is at least $5 million.
The difference between Dividend Kings and Aristocrats is now defined…
Dividend Kings: What Are They?
Companies that have grown their dividend rate per share for at least 50 years are known as Dividend Kings.
In comparison to the Aristocrats, these stocks only have one barrier to overcome. However, it is a very tough obstacle to overcome.
Why Should You Invest In Dividend Kings And Aristocrats?
For those looking to start a dividend portfolio. It is vital to do thorough investing research.
Because knowing precisely what you’re investing in is crucial. And why.
Because it is your money. Also, dividend investments have the potential to lose money.
Losses arise as a result of carelessness. Keeping a short-term perspective. Or just not understanding what you’re doing.
As a result, not every investor is a stock research specialist. They also don’t have the time to train to be one.
By investing in companies with a history of increasing dividends over time. Much of the investment research and investing activity may be eliminated.
Increased dividends are usually an indication of good financial success. And a business that has lasted the test of time, such as King’s and Aristocrats.
As a consequence, they are expected to maintain their excellent financial performance in the future.
Of course, there’s an old adage that previous success does not ensure future success.
Yes. That is correct. There are no assurances.
A good long-term dividend track record, on the other hand, is a step in the right way. To be optimistic about a company’s future possibilities.
Then there’s an option for people who don’t want to choose and own particular stocks…
The Best ETF For Dividend Aristocrats And Dividend Kings
Because you have the option of investing in an ETF that buys and holds Kings and Aristocrats for you.
And I think the best one is: ProShares S&P 500 Dividend Aristocrats ETF (NOBL).
The fund aims to own all of the The Highest Dividend Aristocrats. And we already know that some Dividend Aristocrats are also Dividend Kings.
By definition, a single share of this ETF is an investment. Gives you wide exposure to some of the strongest dividend growth equities available.
What is the biggest drawback of investing in Kings and Aristocrats in this manner? The fund’s low cost ratio is the reason behind this.
The charge was only.35 percent of assets at the time of writing.
To put it another way, for every $1,000 you have put into NOBL. The annual charge for you will be $3.50.
This cost is taken out of your dividends. You must wait till you get them from the fund.
Additionally, by acquiring the shares without paying a commission, you may keep your expenditures low. You may accomplish it with the help of a stock trading software like Webull.
Trading made simple, quick, and commission-free.
I’m a member of Webull. That’s what I do, for what it’s worth.
Allow me to have an argument next…
Should You Invest In Dividend Kings Or Aristocrats? Pros And Cons
Because you may be considering whether or not to invest in Kings and Aristocrats. And I believe the best approach to do it is to look at the benefits and drawbacks of dividend growth companies.
Let’s get started…
The Benefits of Investing In Dividend Aristocrats And Dividend Kings
Dividend growth stocks, for starters, are a wonderful source of passive income. When assessing their potential for financial gains, they are also regarded for good overall investment returns.
Investors might also generate a snowball effect by reinvesting dividends. By increasing dividends from dividends reinvested.
This is one of the most effective techniques to increase your net worth. To construct it more swiftly.
Finally, if you need dividends to meet your financial obligations. In retirement, for example.
Dividend hikes have resulted in greater dividends. Provide inflation protection.
As a result, your dividend income might increase by the same amount or more. As do your outgoings.
Then there’s the other side of the argument…
Investing In Dividend Kings And Dividend Aristocrats Has Its Drawbacks
First and foremost, dividends are not free money.
Because the company has decided to pay a dividend to its shareholders. These enterprises that pay dividends have an opportunity cost.
Rather of putting the money received in dividends back into their company. As a result, their stock prices should rise faster.
Following that, unlike exchange gratitude. Dividends are subject to income tax when received.
Buy and hold an appreciating stock that does not provide a dividend, on the other hand. Then, under existing tax legislation, you won’t have to pay income tax until you sell your stock.
Furthermore, many dividend stocks are concentrated in certain stock market sectors.
Health care, consumer products, and utilities are only a few examples. As a result, obtaining appropriate variety may be more challenging. As a result, investment risk rises.
Finally, as I have said, past success does not imply future outcomes.
Simply because a company’s dividend has been increasing for many years. That isn’t to say they can’t or won’t continue to raise it in the future.
In the worst-case scenario, they may have to lower their dividend yield owing to financial troubles. Because I’ve discovered that dividend suspensions, eliminations, and cutbacks are among the worst things that can happen to dividend investors.
As a result, if you would like some assistance building out your dividend portfolio. To avoid some of these possible pitfalls. For this, I recommend the Simply Investing Report & Analysis Platform.
Simply Investing offers the most up-to-date dividend figures for hundreds of dividend equities. Also included are stock suggestions. When should you purchase them?
I’ve been a long-time user of Simply Investing. And I like the added value it provides to my dividend investment strategy.
Okay. I’m ready to call it a day. So, here are my last thoughts…
Dividend Kings vs Dividend Aristocrats Conclusions
I have been building my dividend portfolio for many years now. And the Kings of Dividends and the The Highest Dividend Aristocrats have been a big part of my strategy.
Regarding your scenario…
Whether or not you pick individual stocks. Alternatively, invest in an ETF that tracks Dividend Kings and Aristocrats.
In any case, I feel they are a great addition to a diversified stock portfolio as a whole or as part of it. Whether you choose Dividend Aristocrats over Kings or the other way around.
More Information about Dividends
Do you want to increase your dividends?
Then be sure to check out this article about 3 of the Kings of Dividends for your money.
For a more diverse range of dividend stock alternatives, try this.
On a whiteboard, the conclusion is written.
Disclosure & Disclaimer: I am not a licensed investment adviser, financial adviser, or tax professional. And I am not providing you with individual investment advice, financial guidance, or tax counsel. Furthermore, this website’s only purpose is information & entertainment. And we are not liable for any losses suffered by any party because of information published on this blog.
Explained: Dividend Kings vs. Aristocrats
The “dividend kings etf” is a fund that invests in companies that have the best dividend yields. This ETF has been around for a while, and is one of the best options to invest in.
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