Category Archives: Dividends

This Dividend Aristocrat Is Well on Its Way to a ‘Coronation’

This Dividend Aristocrat Is Well on Its Way to a ‘Coronation’

Recently I touched on the several new additions to the S&P Dow Jones Dividend Aristocrats, a group of S&P 500 constituents that have increased their dividends for at least 25 years. Now, I am circling back to the latest dividend payment from an existing Aristocrat: PepsiCo (PEP) .

Widely known for its products that include Pepsi, Lays, Mountain Dew, Doritos, Gatorade, Tropicana, and Aquafina water, the company has been paying consecutive quarterly cash dividends since 1965. Indeed, 2019 marked the company’s 47th consecutive annual dividend increase, which has the company approaching the rarified air of the Dividend Kings. As a reminder, a Dividend King is an S&P 500 company that has increased its dividend for at least 50 consecutive years, an incredible achievement, which explains why there were only 28 such names in 2019.

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Want to Beef Up on Dividend Stocks? Here Are Some NOBL Opportunities

Want to Beef Up on Dividend Stocks? Here Are Some NOBL Opportunities

One of the time-tested strategies for investors is buying companies with an increasing dividend policy. To say it is one of the most loved and most watched strategies would be something of an understatement given the incremental income it generates for investors and the $6.7 billion in assets held by ProShares S&P 500 Dividend Aristocrats exchange-traded fund (NOBL) , which tracks the S&P 500 Dividend Aristocrats Index. If there was any question as to the results of the strategy of buying a portfolio of companies with a long history of boosting their dividends, the below chart should be enough of an answer:

The companies that comprise the S&P 500 Dividend Aristocrats Index are a cross-section of S&P 500 constituents that have increased their dividends for at least 25 years. The index is equal-weighted in nature, which means the position size for each is the same, and the qualifying universe of companies is reviewed each January. In addition, per the index’s methodology document, prospective index constituents must also have a minimum float-adjusted market cap of at least $3 billion at the time of the rebalance data and have an average daily value traded of at least $5 million for the three months prior to the rebalancing reference date.

Last year, four companies were added to the Dividend Aristocrats: Caterpillar (CAT), Chubb Limited (CB), People’s United Financial (PBCT)  and United Technologies (UTX), which lifted the number of constituents to 57 up from 53 in 2018. With January 2020 having come and gone, the S&P has added…

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This Company Presents Shareholders With a Dual Dividend Gift

This Company Presents Shareholders With a Dual Dividend Gift

Everybody loves getting a present, be it an expected or unexpected one, and we are certainly in the present-giving time of year. For investors, the unexpected present could be a surge in the share price of one of their holdings, a larger-than-expected dividend increase or, in some very special instances, a special dividend.

Special dividends are dividends paid to shareholders that are outside the usual quarterly dividend payment, and as its name suggests, they are not expected recurring payments. That said, there are some companies that tend to pay special dividends to shareholders on a frequent basis. Very recently one of those companies not only declared its latest special dividend but also announced a 20% increase in its quarterly dividend.

That company is… Read more here