Printed on February twentieth, 2025 by Bob CiuraSpreadsheet knowledge up to date every day
The Dividend Aristocrats are a choose group of 69 S&P 500 shares with 25+ years of consecutive dividend will increase.
The necessities to be a Dividend Aristocrat are:
Be within the S&P 500
Have 25+ consecutive years of dividend will increase
Meet sure minimal dimension & liquidity necessities
There are at the moment 69 Dividend Aristocrats.
You’ll be able to obtain an Excel spreadsheet of all 69 Dividend Aristocrats (with metrics that matter resembling dividend yields and price-to-earnings ratios) by clicking the hyperlink beneath:
Disclaimer: Certain Dividend shouldn’t be affiliated with S&P World in any approach. S&P World owns and maintains The Dividend Aristocrats Index. The data on this article and downloadable spreadsheet relies 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 traders higher perceive this ETF and the index upon which it’s primarily based. Not one of the data on this article or spreadsheet is official knowledge from S&P World. Seek the advice of S&P World for official data.
Nevertheless, even Dividend Aristocrats can fall from grace. For instance, Walgreens Boots Alliance (WBA) was faraway from the Dividend Aristocrats listing in 2024.
The corporate slashed its dividend attributable to a pronounced enterprise downturn within the brick-and-mortar pharmacy retail trade, amid elevated aggressive threats from on-line pharmacies.
This was after Walgreens Boots Alliance had maintained a 40+ 12 months streak of consecutive dividend will increase.
Whereas dividend cuts from Dividend Aristocrats are surprising, they’ve occurred–and will occur once more. To be clear, the next 3 Dividend Aristocrats are usually not at the moment in jeopardy of slicing their dividends.
Their dividend payouts are supported with enough underlying earnings (for now). If their earnings stay steady or proceed to develop, they’ve at the least a good change of continuous their dividend development.
However, the three Dividend Aristocrats beneath are dealing with basic challenges to various levels, and at the moment obtain our lowest Dividend Danger Scores of C, D, or F.
This text will present an in depth evaluation on the three Dividend Aristocrats most at risk of a future dividend lower.
Desk of Contents
Pink Flag Dividend Aristocrat For 2025: Fastenal Co. (FAST)
Dividend Danger Rating: C
Dividend Yield: 2.3%
Fastenal started in 1967 when Bob Kierlin and 4 pals pooled collectively $30,000 to open the primary retailer. The unique intent was to dispense nuts and bolts through merchandising machine, however that concept bought off the bottom after 20 years.
The corporate went public in 1987 and at this time supplies fasteners, instruments and provides to its prospects through 1,597 public branches, 2,031 energetic Onsite areas and over 126,900 managed stock units.
In mid-January, Fastenal reported (1/17/25) outcomes for the fourth quarter of fiscal 2024. It grew its internet gross sales 4% over the prior 12 months’s quarter due to development in Onsite areas whereas costs remained flat. Earnings-per-share remained flat at $0.46, lacking the analysts’ consensus by $0.02.
One purpose for stagnant earnings is that the corporate’s margins have steadily declined over the previous two years.
Supply: Investor Presentation
Fastenal’s earnings-per-share are anticipated to extend in 2025, however the firm’s dividend payout has elevated sooner than its earnings lately.
Because of this, the payout ratio is anticipated to succeed in 80% in 2025. It is a dangerously excessive degree that doesn’t depart a lot monetary wiggle room. If earnings unexpectedly declined, attributable to a recession or another excuse, the dividend payout could possibly be at risk.
Click on right here to obtain our most up-to-date Certain Evaluation report on FAST (preview of web page 1 of three proven beneath):
Pink Flag Dividend Aristocrat For 2025: Amcor plc (AMCR)
Dividend Danger Rating: F
Dividend Yield: 5.0%
Amcor plc is without doubt one of the world’s most distinguished designers and producers of packaging for meals, pharmaceutical, medical, and different shopper merchandise. The corporate emphasizes making accountable packaging that’s light-weight, recyclable, and reusable.
At the moment, the Amcor plc, which trades on the NYSE, was fashioned in June 2019 with the merger between two packaging firms, U.S-based Bemis Co. Inc. and Australia-based Amcor Ltd. Amcor plc’s present headquarters is in Bristol, U.Okay.
The present dividend yield is engaging in comparison with the broader market, however the payout ratio is excessive at almost 70% anticipated for 2025.
As a packaging producer, Amcor is especially uncovered to the worldwide economic system. It could be tough for the corporate to keep up its dividend in a steep recession in consequence. AMCR inventory receives our lowest Dividend Danger Rating of ‘F’.
Click on right here to obtain our most up-to-date Certain Evaluation report on AMCR (preview of web page 1 of three proven beneath):
Pink Flag Dividend Aristocrat For 2025: Franklin Sources (BEN)
Dividend Danger Rating: C
Dividend Yield: 6.1%
Franklin Sources is an funding administration firm. It was based in 1947. At the moment, Franklin Sources manages the Franklin and Templeton households of mutual funds.
On January thirty first, 2025, Franklin Sources reported internet revenue of $163.6 million, or $0.29 per diluted share, for the primary fiscal quarter ending December 31, 2024.
This marked a big enchancment from the earlier quarter’s internet lack of $84.7 million, although EPS remained decrease than the $251.3 million internet revenue recorded in the identical quarter final 12 months.
Supply: Investor presentation
The previous few years have been tough for Franklin Sources. Franklin Sources was gradual to adapt to the altering setting within the asset administration trade.
The explosive development in exchange-traded funds and indexing investing shocked conventional mutual funds.
ETFs have develop into highly regarded with traders due largely to their decrease charges than conventional mutual funds. In response, the asset administration trade has needed to lower charges and commissions or threat dropping consumer belongings.
Earnings-per-share are anticipated to say no in 2025 in consequence. The corporate nonetheless maintains a manageable payout ratio of 51% anticipated for 2025, but when EPS continues to say no, the dividend payout could possibly be at risk down the highway.
Click on right here to obtain our most up-to-date Certain Evaluation report on BEN (preview of web page 1 of three proven beneath):
Ultimate Ideas
The Dividend Aristocrats are among the many finest dividend development shares available in the market.
And whereas most Dividend Aristocrats will proceed to boost their dividends annually, there could possibly be some that find yourself slicing their payouts.
Whereas it’s uncommon, traders have seen a number of Dividend Aristocrats lower their dividends over the previous a number of years, together with Walgreens Boots Alliance, 3M Firm (MMM), V.F. Corp. (VFC), and AT&T Inc. (T).
Whereas the three Dividend Aristocrats offered right here have been profitable elevating their dividends annually so far, all of them face various ranges of challenges to their underlying companies.
Because of this, revenue traders ought to view the three purple flag Dividend Aristocrats on this article cautiously going ahead.
Extra Studying
Moreover, the next Certain Dividend databases include probably the most dependable dividend growers in our funding universe:
For those who’re in search of shares with distinctive dividend traits, take into account the next Certain Dividend databases:
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