Dividend Aristocrats and Dividend Kings explained
Dividend Aristocrats and Dividend Kings are shortcuts for companies with long records of raising their dividend every year. They are popular starting points for dividend investors, but a long streak is a fact about the past, not a promise about the future.
Dividend Aristocrats
The term usually refers to companies in the S&P 500 index that have increased their dividend for at least 25 consecutive years and meet size and trading-volume requirements. The list is reviewed and changes over time as companies join or lose their streak.
Dividend Kings
Dividend Kings are companies that have raised their dividend for 50 or more consecutive years. The label is used informally by investors and writers, so different lists can vary slightly.
What the labels do and do not tell you
- A long streak shows management values the dividend and has had enough cash flow to grow it through several economic cycles.
- Streaks can end. A cut or a freeze removes a company from the list, often after the share price has already fallen.
- A tiny yearly increase still counts, so the streak says nothing about how fast the dividend grows.
- Current yield on these stocks is often modest, because prices have risen alongside dividends.
Frequently asked questions
How many years of increases make a Dividend Aristocrat?
At least 25 consecutive years, among S&P 500 companies that also meet size and liquidity requirements.
Is a Dividend King better than an Aristocrat?
A longer streak shows more history, but it does not guarantee future increases or a better return. Each company should be judged on its own finances.
Keep reading
General education only, not investment, tax or legal advice. Rules can differ by country and security.