The 2021 List of All 351 Dividend Achievers

Up to date on April twenty first, 2021 by Bob Ciura
Spreadsheet up to date day by day

The NASDAQ Dividend Achievers Index is made up of over 350 shares with 10+ consecutive years of dividend will increase, that additionally meet sure minimal measurement and liquidity necessities.

It is among the greatest sources to seek out high-quality dividend development shares.

The downloadable Dividend Achievers Spreadsheet Checklist beneath comprises the next for every inventory within the index:

• Sector
• Dividend yield
• Title and ticker
• Worth-to-earnings ratio
• Ahead price-to-earnings ratio

You’ll be able to obtain your Excel checklist of all Dividend Achievers by clicking on the hyperlink beneath:

Notice: The Dividend Achievers checklist is up to date utilizing the holdings from this Invesco ETF.

Use The Dividend Achievers Checklist To Discover High quality Dividend Development Shares

The checklist of all 351 Dividend Achievers is efficacious as a result of it offers dividend development traders with an extended checklist of shares which have elevated their dividends for no less than 10+ consecutive years.

These are firms with shareholder-friendly administration groups dedicated to rewarding traders with rising dividends, and have the power to extend their dividends on account of their long-term earnings development.

Collectively, these two standards type a highly effective pair. They turn into much more highly effective when an investor buys high-quality dividend development shares when they’re undervalued.

The spreadsheet above permits you to type by price-to-earnings ratio (or dividend yield) so you possibly can rapidly discover undervalued dividend paying companies with 10+ years of consecutive dividend will increase.

Right here’s easy methods to use the Dividend Achievers checklist to rapidly discover top quality dividend development shares probably buying and selling at a reduction:

1. Obtain the checklist
2. Kind by P/E ratio (or ahead P/E ratio), lowest to highest
3. Filter out shares yielding lower than 3%
4. Analysis the highest shares additional to seek out the very best concepts

Right here’s easy methods to filter out shares yielding lower than 3% in case you are unfamiliar with Excel:

Step 1: Click on on the dividend yield filter button:

Step 2: Go to ‘Quantity Filters’, after which click on on ‘Better Than or Equal To’:

Step 3: Enter your required yield quantity (as a decimal), .03 within the instance above. Then press ‘Okay’.

That’s it; the remaining shares will all have dividend yields above 3%.

Different Dividend Lists

The Dividend Achievers checklist is just not the one approach to rapidly display for shares with lengthy histories of dividend development. The Dividend Aristocrats Index is comprised of 65 shares with 25+ years of consecutive dividend will increase. It’s extra unique than the Dividend Achievers Index.

There’s a related group often called the Dividend Champions, which have additionally raised their dividends for 25+ consecutive years. Nevertheless, the Dividend Champions is an even bigger checklist because it consists of shares that will not qualify as Dividend Aristocrats on account of indexing or buying and selling quantity necessities.

The Dividend Kings Checklist is much more unique. It’s comprised of 30 shares with 50+ years of consecutive dividend will increase.

The Blue Chip Shares checklist has 250+ shares that belong to both the Dividend Achievers, Dividend Aristocrats, or Dividend Kings checklist.

The truth is, the Dividend Aristocrats checklist has considerably outperformed each the S&P 500 Index and the Dividend Achievers during the last decade.

Efficiency of the Dividend Achievers Index

Prior to now 5 years, the main ETF that tracks the Dividend Achievers, the Invesco Dividend Achievers ETF (PFM), generated 12.6% annualized whole returns. It has barely underperformed the comparable ETF that tracks the S&P 500 Index, with a ticker SPY, up to now 5 years. SPY has generated annualized whole returns of 16.6% up to now 5 years. There are a pair causes for this.

First, the Dividend Aristocrats index is equally weighted, whereas the Dividend Achievers index is market cap weighted.

On the floor, this doesn’t sound prefer it issues a lot, but it surely has severe repercussions for returns.

Because of this bigger shares with greater market caps make up a higher portion of the Dividend Achievers index. The highest 5 Dividend Achievers by weight are listed beneath (together with their weight):

1. Microsoft (MSFT): 4.0%
2. JP Morgan Chase (JPM): 3.1%
3. Johnson & Johnson (JNJ): 3.0%
4. Walmart Inc. (WMT): 2.7%
5. Visa Inc. (V): 2.6%

I’m not saying these giant holdings don’t make good dividend investments. Market cap has just about no sway in figuring out the very best Dividend Achievers. The issue with market cap weighting is that it is the other of worth investing.

Think about {that a} shares’ price-to-earnings ratio rises from 10 to twenty whereas earnings don’t change. The corporate’s market cap would double. In the actual world, paying twice as a lot for a similar factor is just not a ‘whole lot’. With market cap weighting, the Dividend Achievers index would maintain double its funding within the enterprise that noticed its P/E ratio double.

Additionally, the Dividend Achievers index doesn’t enhance possession in companies which have seen their market caps decline. Because of this if a unique enterprise noticed its price-to-earnings ratio decline from 30 to fifteen (and earnings had been unchanged), the Dividend Achievers Index would see its possession of this enterprise fall by 50%.

Market cap weighting buys excessive and sells low. Market cap weighting doesn’t reap the benefits of valuation, whereas equal weighting does.

With equal weighting, if an organization’s price-to-earnings ratio falls by 50%, the fund should purchase extra to maintain weights equal. Equally, an equal weighted fund should promote when the price-to-earnings ratio of a enterprise rises to maintain the fund equally weighted.

One other distinction between the Dividend Aristocrats and the Dividend Achievers is dividend historical past. 10 years is a sizeable streak of consecutive dividend funds. It covers (at greatest) 1 financial cycle.

25 years of consecutive dividend will increase covers a number of financial cycles. Dividend Achievers wouldn’t have the identical degree of consistency as Dividend Aristocrats. Dividend historical past issues.

Ideas on Underperformance

SPY and PFM are each market cap weighted. PFM has a better expense ratio, however earlier than operating historic efficiency numbers I’d have anticipated PFM to outperform SPY.

Dividend shares have traditionally outperformed non-dividend paying shares. Shares with lengthy dividend histories (Dividend Aristocrats) have traditionally outperformed the market.

Why haven’t the Dividend Achievers outperformed? One purpose might be that the valuation a number of of the broader SPY fund has expanded at a quicker price than for the Dividend Achievers ETF.

The lack of the Dividend Achievers index to outperform the S&P 500 over a time period that has been comparatively favorable for dividend shares (on account of falling rates of interest) is perplexing.

Regardless, there are higher dividend ETFs for fund traders to select from.

A Beginning Level

The Dividend Achievers checklist is greatest used as a place to begin for locating high-quality dividend development shares.

Being a Dividend Achiever in itself doesn’t mechanically assure a person inventory has a sturdy aggressive benefit, or that it’s a good funding.

Lengthy-term traders ought to confirm to that an funding has a robust and sturdy aggressive benefit, a shareholder pleasant administration, and trades at an inexpensive (ideally undervalued) valuation.

Combing the Dividend Achievers Index for these kind of companies can significantly velocity up the search for top of the range shareholder pleasant companies buying and selling at truthful or higher costs.