Printed on January ninth, 2025 by Bob Ciura
Dividends are a welcome signal for dividend buyers.
And dividend progress is much more appreciated.
When a inventory’s dividend per share is elevated, shareholders get a lift to their passive earnings – with out lifting a finger.
Dividend progress is measured in:
- Years of consecutive will increase
- Share or compound improve over quite a few years.
All different issues being equal, longer streaks and better share will increase are most well-liked.
Longer streaks are most well-liked as a result of they present an organization can improve dividends over a variety of financial and aggressive environments. They present proof of a sturdy aggressive benefit. It’s no small feat to spice up a dividend year-after-year for many years at a time, by means of recessions, wars, and epidemics.
Larger share dividend will increase are most well-liked as a result of they present that the corporate is keen and in a position to pay extra to shareholders. This can be a signal administration expects money circulation progress and stability on a per share foundation.
With all this in thoughts, we created an inventory of all 66 Dividend Aristocrats, a bunch of shares within the S&P 500 Index, with 25+ years of dividend will increase.
There are presently 66 Dividend Aristocrats. You’ll be able to obtain an Excel spreadsheet of all 66 Dividend Aristocrats (with metrics that matter similar to dividend yields and price-to-earnings ratios) by clicking the hyperlink beneath:
Disclaimer: Certain Dividend shouldn’t be affiliated with S&P International in any method. S&P International owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet is predicated on Certain Dividend’s personal overview, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person buyers higher perceive this ETF and the index upon which it’s based mostly. Not one of the info on this article or spreadsheet is official information from S&P International. Seek the advice of S&P International for official info.
And since dividends are paid with precise money, they’ll’t be faked. An organization can not pay dividends out of fictional earnings.
An organization can not pay dividends for any significant size of time with out producing money flows to help the dividend.
Dividend progress is a robust sign of an organization’s monetary well being, administration’s confidence, and dedication to long-term worth creation.
The next listing is comprised of the ten greatest dividend shares utilizing the dividend progress sign.
These 10 Dividend Aristocrats had been chosen based mostly on their projected future 5-year annual earnings-per-share progress within the Certain Evaluation Analysis Database.
The shares are ranked by 5-year anticipated EPS progress charges, from lowest to highest.
Desk of Contents
You’ll be able to immediately bounce to any particular part of the article by clicking on the hyperlinks beneath:
Greatest Inventory Utilizing the Dividend Progress Sign: West Pharmaceutical Providers (WST)
West Pharmaceutical Providers manufactures packaging and elements concerned within the distribution and utility of prescription drugs. The corporate’s merchandise embody Zenith Crystal, a medical glass various, and SmartDose, an automated medicine supply system.
West Pharmaceutical Providers reported its second quarter earnings outcomes on July 25. The corporate reported that its revenues totaled $702 million, which represents a income decline of seven% in comparison with the prior 12 months’s quarter.
West Pharmaceutical Providers’ revenues had been decrease than what the analyst group had anticipated, in contrast to throughout the earlier quarter, when it beat the consensus estimate. Revenues weren’t positively impacted by foreign money price modifications throughout the interval, in contrast to throughout the earlier 12 months.
West Pharmaceutical Providers generated adjusted earnings-per-share of $1.52 throughout the second quarter, which represents a decline of 28% in comparison with the prior 12 months’s quarter.
Click on right here to obtain our most up-to-date Certain Evaluation report on WST (preview of web page 1 of three proven beneath):
Greatest Inventory Utilizing the Dividend Progress Sign: Cintas Company (CTAS)
Cintas Company is the U.S. business chief in uniform design, manufacturing & rental. The corporate additionally presents first help provides, security companies, and different business-related companies.
Cintas reported second quarter earnings on December nineteenth, 2024, and outcomes had been largely in step with expectations. Natural income was 7.1% within the quarter, which excludes foreign exchange translation and the impacts of acquisitions.
Income was up 7.6% year-on-year to $2.56 billion, assembly expectations. Earnings got here to $1.09 per share, which was seven cents forward of estimates.
Gross margin was $1.28 billion, up from $1.14 billion a 12 months in the past. As a share of income, gross margin was 49.8%, up 180 foundation factors from a 12 months in the past. Power bills had been 20 foundation factors decrease, contributing to among the margin achieve.
Working earnings was 18.4% increased, and was up 210 foundation factors as a share of income at 23.1%. On a greenback foundation, earnings got here to $449 million, up from $375 million a 12 months in the past, up 20%. On a per-share foundation, earnings had been $1.09, up from 90 cents.
Click on right here to obtain our most up-to-date Certain Evaluation report on CTAS (preview of web page 1 of three proven beneath):
Greatest Inventory Utilizing the Dividend Progress Sign: Brown & Brown Inc. (BRO)
Brown & Brown Inc. is a number one insurance coverage brokerage agency that gives threat administration options to each people and companies, with a concentrate on property & casualty insurance coverage. Brown & Brown has a notably excessive degree of insider possession.
Brown & Brown posted third quarter earnings on October twenty eighth, 2024, and outcomes had been higher than anticipated on each the highest and backside traces. Adjusted earnings-per-share got here to 91 cents, which was three cents forward of expectations.
Income was up over 10% year-over-year to $1.18 billion, and beat estimates by $10 million. Commissions and charges income rose 10.1%, whereas natural income rose 9.5%. Revenue earlier than taxes was $317 million, hovering 31% year-over-year. As a share of income, it rose from 22.7% to 26.7%.
Internet earnings was $234 million, up $58 million year-over-year. On a per-share foundation, web earnings was up from 81 cents a 12 months in the past to 91 cents. Brown & Brown boosted its dividend by 15.4% to a brand new payout of 60 cents per share yearly. That is additionally the corporate’s thirty first 12 months of consecutive dividend will increase.
Its aggressive benefit comes from its willingness to execute small and frequent acquisitions. This growth-by-acquisition technique provides the corporate an everlasting alternative to proceed rising its enterprise for the foreseeable future.
Click on right here to obtain our most up-to-date Certain Evaluation report on BRO (preview of web page 1 of three proven beneath):
Greatest Inventory Utilizing the Dividend Progress Sign: Emerson Electrical Co. (EMR)
Emerson Electrical is a diversified world chief in expertise and engineering. Its world buyer base and various product and repair choices afford it greater than $17 billion in annual income.
Emerson posted fourth quarter and full-year earnings on November fifth, 2024, and outcomes had been higher than anticipated on each the highest and backside traces. Adjusted earnings-per-share got here to $1.48 for the quarter, which was a penny forward of estimates.
Income was up 13% year-over-year to $4.62 billion, which was $60 million forward of expectations. Natural gross sales had been up 4%, with the steadiness accruing from web acquisitions and divestitures.
Adjusted revenue margin was up 70 foundation factors year-over-year within the fourth quarter, rising to 26.2% of income. Working money circulation was up 8% year-over-year to $1.073 billion, whereas free money circulation was up 10% to $905 million.
Emerson additionally boosted its dividend for the 68th consecutive 12 months.
Click on right here to obtain our most up-to-date Certain Evaluation report on EMR (preview of web page 1 of three proven beneath):
Greatest Inventory Utilizing the Dividend Progress Sign: Automated Information Processing, Inc. (ADP)
Automated Information Processing is among the largest enterprise companies outsourcing firms on this planet. The corporate supplies payroll companies, human assets expertise, and different enterprise operations to greater than 700,000 company clients.
ADP posted first quarter earnings on October thirtieth, 2024, and outcomes had been higher than anticipated on each the highest and backside traces. Adjusted earnings-per-share got here to $2.33, which was 12 cents forward of estimates.
Earnings had been up from $2.08 within the year-ago interval. Income was up 6.7% year-over-year to $4.8 billion, beating expectations by $30 million.
Administration famous income and margin efficiency exceeded expectations as the corporate benefited from new enterprise bookings, sturdy income retention and better shopper funds curiosity income.
Employer Providers income was $3.26 billion, up 7% year-over-year whereas phase earnings grew 15% to $1.16 billion. That was adequate from pretax margin to rise from 33.1% of income to 35.7%.
Click on right here to obtain our most up-to-date Certain Evaluation report on ADP (preview of web page 1 of three proven beneath):
Greatest Inventory Utilizing the Dividend Progress Sign: Roper Applied sciences (ROP)
Roper Applied sciences is a specialised industrial firm that manufactures merchandise similar to medical and scientific imaging tools, pumps, and materials evaluation tools.
Roper Applied sciences additionally develops software program options for the healthcare, transportation, meals, vitality, and water industries. The corporate was based in 1981, generates round $5.4 billion in annual revenues, and is predicated in Sarasota, Florida.
On October twenty third, 2024, Roper posted its Q3 outcomes for the interval ending September thirtieth, 2024. Quarterly revenues and adjusted EPS had been $1.76 billion and $4.62, indicating a year-over-year improve of 13% and seven%, respectively.
The corporate’s momentum throughout the quarter remained sturdy, with natural progress coming in at 4% and acquisitions additional boosting top-line progress.
Natural progress was as soon as once more pushed by broad-based power throughout its portfolio of niche-leading companies.
Click on right here to obtain our most up-to-date Certain Evaluation report on ROP (preview of web page 1 of three proven beneath):
Greatest Inventory Utilizing the Dividend Progress Sign: Nordson Corp. (NDSN)
Nordson was based in 1954 in Amherst, Ohio by brothers Eric and Evan Nord, however the firm can hint its roots again to 1909 with the U.S. Automated Firm.
Immediately the corporate has operations in over 35 international locations and engineers, manufactures, and markets merchandise used for meting out adhesives, coatings, sealants, biomaterials, plastics, and different supplies, with functions starting from diapers and straws to cell telephones and aerospace.
Supply: Investor Presentation
On August 14th, 2024, Nordson elevated its dividend by 15% to $0.78 per share quarterly, marking 61 years of will increase.
On December eleventh, 2024, Nordson reported fourth quarter outcomes for the interval ending October thirty first, 2024. For the quarter, the corporate reported gross sales of $744 million, 4% increased in comparison with $719 million in This fall 2023, which was pushed by a optimistic acquisition influence, and offset by natural lower of three%.
Industrial Precision noticed gross sales lower by 3%, whereas the Medical and Fluid Options and Superior Know-how Options segments had gross sales will increase of 19% and 5%, respectively. The corporate generated adjusted earnings per share of $2.78, a 3% improve in comparison with the identical prior-year quarter.
Click on right here to obtain our most up-to-date Certain Evaluation report on NDSN (preview of web page 1 of three proven beneath):
Greatest Inventory Utilizing the Dividend Progress Sign: Walmart Inc. (WMT)
Walmart traces its roots again to 1945 when Sam Walton opened his first low cost retailer. The corporate has since grown into one of many largest retailers on this planet, serving over 230 million clients every week. Income will possible be round $600 billion this 12 months.
Walmart posted second quarter earnings on August fifteenth, 2024, and outcomes had been glorious, sending the inventory hovering. Adjusted earnings-per-share beat estimates by two cents at 67 cents. Income was up virtually 5% year-over-year to $169.3 billion, and beat estimates by virtually $2 billion.
Walmart posted third quarter earnings on November nineteenth, 2024, and outcomes had been higher than anticipated on each the highest and backside traces, and by vast margins for each.
Adjusted earnings-per-share got here to 58 cents, which was a nickel forward of estimates, or virtually 10%. Income was up 5.5% to $170 billion, which beat estimates by virtually $3 billion.
Comparable gross sales within the US had been up 5.3%, 150 foundation factors higher than anticipated. Transactions had been 3.1% increased throughout the quarter, whereas common ticket was up 2.1%.
E-commerce gross sales rose 27% throughout the quarter and was chargeable for greater than half of the full comparable gross sales achieve.
Click on right here to obtain our most up-to-date Certain Evaluation report on Walmart (preview of web page 1 of three proven beneath):
Greatest Inventory Utilizing the Dividend Progress Sign: Ecolab, Inc. (ECL)
Ecolab Inc. is the worldwide chief in water, hygiene, and vitality applied sciences and companies, with a presence in additional than 170 international locations.
The corporate operates in 4 main enterprise segments: International Industrial, International Institutional, International Healthcare and International Pest Elimination.
In late October, Ecolab reported (10/29/24) monetary outcomes for the third quarter of fiscal 2024. Natural gross sales grew 4% over the prior 12 months’s quarter, primarily due to sturdy progress within the Institutional phase, which grew its gross sales 7%.
Because of increased volumes, materials value hikes and decrease provide chain prices, adjusted earnings-per-share grew 19%, from $1.54 to $1.83, and exceeded the analysts’ consensus by $0.01.
Furthermore, due to sturdy pricing and optimistic gross sales momentum, administration barely improved its steerage for earnings-per-share in 2024, from $6.50-$6.70 to $6.60-$6.70, implying 28% progress over the prior 12 months on the mid-point.
Click on right here to obtain our most up-to-date Certain Evaluation report on ECL (preview of web page 1 of three proven beneath):
Greatest Inventory Utilizing the Dividend Progress Sign: S&P International (SPGI)
S&P International is a worldwide supplier of economic companies and enterprise info and income of over $13 billion. Via its varied segments, it supplies credit score scores, benchmarks and indices, analytics, and different information to commodity market members, capital markets, and automotive markets.
S&P International has paid dividends constantly since 1937 and has elevated its payout for 51 consecutive years.
S&P International posted third quarter earnings on October twenty fourth, 2024, and outcomes had been fairly sturdy as soon as once more. Adjusted earnings-per-share got here to $3.89, which was 25 cents forward of estimates. Earnings had been down from $4.04 in Q2, however a lot increased than $3.21 within the year-ago interval.
Income soared 16% increased year-on-year to $3.58 billion, which additionally beat estimates by $150 million. Progress within the Scores and Indices phase led the highest line increased in Q3, though power was broad.
Click on right here to obtain our most up-to-date Certain Evaluation report on SPGI (preview of web page 1 of three proven beneath):
Further Studying
The Dividend Aristocrats are among the many greatest dividend progress shares to purchase and maintain for the long term. However the Dividend Aristocrats listing shouldn’t be the one strategy to shortly display for shares that often pay rising dividends.
We’ve compiled a studying listing for added dividend progress inventory investing concepts:
Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to [email protected].
