💸 Dividend Kings vs Aristocrats
Today is Dividend Day.
The series where I teach you 5 things about dividend investing in less than 5 minutes.
1️⃣ 50-Year Club
Do you know about Dividend Kings?
Dividend Kings are companies that have increased their dividends for 50+ consecutive years.
To put that in perspective:
These companies raised dividends through the 2008 Financial Crisis
Through the dot-com crash
Through COVID-19
This requirement is brutal: one missed increase and you’re out.
There are 57 Dividend Kings today.
Want to know all of them? Find it here.
2️⃣ Dividend Kings vs Aristocrats
Being a Dividend King is quite an achievement, but it doesn’t guarantee you a place on the Dividend Aristocrat list.
Aristocrats must meet extra rules, like being in the S&P 500.
This chart tell us the difference between them:
3️⃣ An Investing Quote
Building wealth is about ownership.
When you own strong businesses, you don’t chase money.
Money comes to you.
John D. Rockefeller understood this better than anyone:
"Do you know the only thing that gives me pleasure? It's to see my dividends coming in." — John D. Rockefeller
4️⃣ Seven Dividend Forecasts for 2026
S&P Global predicts that global dividends will reach $2.47 trillion.
While global growth is slowing, the S&P 500 is expected to grow payouts by 6.4%.
Key Takeaways:
U.S. Strength: S&P 500 dividends are outpacing global growth.
Mining Boom: The materials sector is set for an 11.3% increase in payouts.
Shipping Cut: Marine transport faces a sharp 40% dividend drop.
Payment Speed: More firms are paying dividends more frequently.
Global Split: Europe and India show growth, while Australia faces a 10% dip.
Access the report here.
5️⃣ Example of a Dividend King
Let’s look at Procter & Gamble (PG).
They’ve increased dividends for 68 consecutive years.
Key numbers:
Dividend Yield: 2.7%
5-Year Dividend CAGR: 6.0%
Payout Ratio: 60.5%
Brands: Tide, Pampers, Gillette, Crest
The math that matters:
If you bought PG in 1990 and reinvested dividends, a $10,000 investment would be worth over $450,000 today, with growing passive income.
Used sources
Interactive Brokers: Portfolio data and executing all transactions
Fiscal.ai: Financial data
Disclaimer
As a reader of Compounding Dividends, you agree with our disclaimer. You can read the full disclaimer here.