Dividend Aristocrats

Also known as "Dividend Aristocrats", these companies have a long history on the stock market and pamper their shareholders by paying an ever-increasing dividend in par value year after year.

Dividends play an important role in generating total stockholder return. Since 1926, dividends have contributed approximately 32% of the total return of the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are important factors in total return expectations.

Companies use stable and growing dividends as a signal of confidence in their company's prospects, while market participants view this track record as a sign of company maturity and balance sheet strength.

In recent years, a growing body of academic and professional research has demonstrated that a stable, consistent and growing dividend yield is an offsetting risk factor and has historically generated excess returns relative to a market capitalization-weighted benchmark.