Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

3M Co (MMM), AT&T Inc. (T) & More: The Dow Jones Industrial Average (.DJI)’s Dividend Aristocrats

Page 1 of 2

Over the next few weeks I’ll be taking an in-depth look at each one of the Dow Jones Industrial Average (INDEXDJX:.DJI)‘s nine dividend aristocrats. What makes for an aristocrat, which Dow components are a part of this elite group, and why so investors need to know about these stocks? Let’s take a closer look.


What does it mean to be a dividend aristocrat?
A dividend aristocrat is a company that has for at least 25 years consecutively not only paid a dividend but also increased it once or more a year during that period. Over the past quarter-century, the U.S. has been in a number of recessions, economic downturns, and years of slow growth, but these companies managed to continue not only making money, but also giving capital back to their shareholders.

When the U.S. or even world economies are firing on all cylinders, it’s easy for companies to come in and increase their dividend one or two years in a row, but to do it for at least 25 years straight — and as you’ll soon see, most have done it much longer than that — takes a certain type of management team and company philosophy to keep the business in a financial position where it can continue increasing its payouts.

Who are the Dow’s aristocrats?
Currently, nine of the Dow Jones Industrial Average (INDEXDJX:.DJI)’s only 30 components are dividend aristocrats, while only 54 of the S&P’s 500 stocks are part of the group. Let’s review the Dow’s nine aristocrats.

Company Name Year Started Increasing Dividend Current Dividend Yield
3M Co (NYSE:MMM) 1959 2.3%
AT&T Inc. (NYSE:T) 1985 5.1%
Chevron Corporation (NYSE:CVX) 1988 3.4%
Exxon Mobil Corporation (NYSE:XOM) 1983 2.8%
Johnson & Johnson (NYSE:JNJ) 1963 3.1%
McDonald’s Corporation (NYSE:MCD) 1977 3.1%
The Procter & Gamble Company (NYSE:PG) 1957 3.1%
The Coca-Cola Company (NYSE:KO) 1963 2.8%
Wal-Mart Stores, Inc. (NYSE:WMT) 1975 2.5%

These companies have a few things in common. They’re consumer oriented, offering products that everyone uses on almost a daily basis, so even though they may experience a slowdown during tough economic times, they won’t be in danger of going out of business simply because the economy takes a downturn. Most Americans would agree that it would be difficult to live without the things these companies produce. The Procter & Gamble Company (NYSE:PG), 3M Co (NYSE:MMM), and Johnson & Johnson (NYSE:JNJ), for example, all sell products we use nearly every day of our lives, whether it be home cleaning products, office supplies, or a Band-Aid when your child scratches his knee.

And since these companies have proved in the past that they can live through tough economic times and still give back to their investors, these are the types of stocks we want to own and live on during retirement. During the later years of our lives, a quarterly dividend check may be a large and important part of your income, and if it’s coming from one of the aristocrats, you’ll probably sleep a little better at night knowing the track record of the company your income is coming from. Just consider the healthy returns from these companies and their very safe yields. AT&T Inc. (NYSE:T) leads the way with a very respectable 5.1%, while the low end of the nine Dow Jones Industrial Average (INDEXDJX:.DJI) aristocrats is 3M Co (NYSE:MMM) at 2.3%, while The Procter & Gamble Company (NYSE:PG) and Johnson & Johnson (NYSE:JNJ) are both at 3.1%.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!