The daddy of worth investing, Benjamin Graham advised selecting shares with “uninterrupted [dividend] funds for at the very least the previous 20 years.” Shares within the S&P 500 Dividend Aristocrat Index comply with the identical concept, however go one step additional. It is a group of shares within the S&P 500 Index which have paid and elevated dividends for 25 consecutive years. The index at the moment has 65 constituents. You may put money into the total checklist of Dividend Aristocrats by means of the ProShares S&P 500 Aristocrat ETF (NOBL). The highest sectors are Industrials, Client Staples, Supplies and Well being Care.
The downloadable Dividend Aristocrats Excel Spreadsheet incorporates the sector, present inventory value, market capitalization, enterprise worth, EV/EBIT, P/E, P/FCF, Dividend yield, Dividend payout ratio for every inventory within the index. The spreadsheet is up to date weekly.
Earnings earlier than curiosity and taxes (EBIT), Earnings and Free Money Stream (FCF) are three-year averages. The thought behind utilizing common earnings comes from Graham and Dodd’s traditional textual content Safety Evaluation, the place they argued for smoothing a agency’s earnings. Graham and Dodd famous that one-year earnings had been too risky to guage a agency’s true earnings energy.