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Sunday, February 21, 2021

The Dividend Aristocrats Ranked By Quality Scores

This article updates an article I wrote in October 2020.

Since the October article, the S&P Dow Jones Indices announced the annual rebalancing of the S&P 500 Dividend Aristocrats index. Three stocks were added to the index, while three spin-offs were removed because their combined dividends as three separate entities decreased. So there are still 65 Dividend Aristocrats, but their sector distribution changed. 

This article again ranks the Dividend Aristocrats using DVK Quality Snapshots, providing updated key metrics, quality indicators, and fair value estimates. Additionally, I provide a downloadable spreadsheet with fundamental and added value data for all Dividend Aristocrats.

On 22 January 2021, the S&P Dow Jones Indices announced the annual rebalancing results for the S&P 500 Dividend Aristocrats. These changes took effect prior to the market opening on 1 February 2021.

The newcomers are International Business Machines (IBM), NextEra Energy (NEE), and West Pharmaceutical Services (WST). These companies replaced Carrier Global (CARR), Otis Worldwide (OTIS), and Raytheon Technologies (RTN).

CARR, OTIS, and RTX were spin-offs when United Technologies Corporation (UTX) merged with Raytheon Company (RTN). In January, these companies were removed from the index because their dividends as three separate entities were lower than the dividend paid under the UTX umbrella.

Please read this article at Seeking Alpha to read about my new approach to portfolio management and diversification and to download a spreadsheet with fundamental and added value metrics for all the Dividend Aristocrats.

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