9 Dividend Aristocrats of the Future

The Dividend Aristocrats – members of the Standard & Poor’s 500-stock index that have increased their annual dividend payments for 25 years or longer – aren’t just useful as sources of income.

Stockholm is often called the Venice of the North because of the numerous waterways, and the bridges that traverse them.Here on Skeppsholmsbron bridge in central Stockholm, it connects Blasie
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The Dividend Aristocrats – members of the Standard & Poor’s 500-stock index that have increased their annual dividend payments for 25 years or longer – aren’t just useful as sources of income. They’re powerful performers that have delivered 44% more in total returns on an annualized basis than the S&P 500 over the past decade.

These consistent dividend growers typically have durable, conservatively managed businesses, resulting in not only excellent long-term total returns but also fast-growing dividend income. The ProShares S&P 500 Dividend Aristocrats ETF (NOBL (opens in new tab)) – an exchange-traded fund that tracks these stocks – grew its payout by 15% in 2016 and 25% in 2015.

Income investors likely are familiar with many of the current Dividend Aristocrats – companies such as Coca-Cola (KO (opens in new tab)) and Procter & Gamble (PG (opens in new tab)). But they might not know about some of the high-quality dividend growth stocks that are on track to join this exclusive group over the next few years. Many of these stocks aren’t as widely followed – yet – but the consistency and resiliency of their businesses make them worth some attention.

Here are nine stocks that are on pace to become Dividend Aristocrats within the next three years.

Data is as of Nov. 6, 2017. Dividend yields are calculated by annualizing the most recent quarterly payout and dividing by the share price. Stocks are listed in alphabetical order. Click on ticker-symbol links in each slide for current share prices and more.

Brian Bollinger
Contributing Writer, Kiplinger.com

Brian Bollinger is President of Simply Safe Dividends, a company that provides online tools and research designed to help investors generate safe retirement income from dividend stocks without the high fees associated with many other financial products.