Categories: Stocks / ETFs

A Rare Event You Might Have Missed


In 1989, the first Dividend Aristocrats list was published. At the time it was just a curated list of twenty companies that had increased their dividends for 25 consecutive years. Fast forward to 2002, the criteria for inclusion on the list was formalized and the status showed resilience through the dot-com-bubble and recovery.

Every January, the list is rebalanced to ensure companies still meet the qualifications. This year something incredible happened. For the first time in the history of the list, there were no changes at the annual rebalance.

Let me put that in perspective. Here’s what we’ve seen in the past few years:

  • 2025: 3 additions, 1 removal, the list hit a new record of 69 companies

  • 2024: 1 addition, 2 removals

  • 2023: 3 additions, plus a mid-year adjustment with a removal and addition of a spin-off

  • 2022: 2 additions, 2 removals

  • 2021: 3 additions, 4 removals

  • 2020: 7 additions, plus a mid-year merger and removal

Maybe this is a testament to the quality of the list. These are the companies that have made it through the Great Recession of 2008, the Iraq War, and COVID. If a company can make it through that, it should be able to weather any storm, right?

So, I headed over to the list to see if I was missing anything in my portfolio right now even though the list hadn’t changed.

Double Check the List

You can’t just go adding a stock to your portfolio because it’s got aristocrat status. Removals happen. Past performance does not guarantee future success. There’s also the rub that many of these companies don’t pay enough to meet my minimum yield threshold of 3.5%.

That’s just the bare minimum I think we deserve. Usually, I’m looking for over 4% for a safe, long-term wealth builder. We need an even higher yield if we’re speculating and taking on more risk. The average yield of the Dividend Aristocrats is just 2.6%, however, 17 make the cut.

In order to take a quick closer look, I added PE ratio and payout ratio to my list. These give me an idea of how the market is valuing the company and if the dividend payout is sustainable. Plus, they can be quickly pulled from any major stock data service.

Here are the results:

Right off the bat, we can see that J.M. Smucker Co. (SJM) must have negative earnings. And the 855% payout ratio for Genuine Parts Co. (GPC) is more than a little concerning. That’s not sustainable for another 25 years.

Out of these, I think T. Rowe Price Group (TROW), Eversource Energy (ES), and McCormick & Co. (MKC) all deserve a closer look as we move through earnings season.

The Other Dividend Royalty

I ran a similar screener on the Dividend Kings list. The only requirement to be part of this list is 50 years of consecutive dividend increases. There is of course overlap between the two lists, but this list can include stocks that aren’t part of the S&P 500. It’s currently 57 companies with an average dividend yield of 2.7%.

Again, we have some red flags in the payout ratio column. From these numbers, Universal Corp. (UVV) is the only one of interest, but I already know it’s not my favorite tobacco stock.

After looking at both lists, I’m still happy with the Dividend Aristocrats I hold in my portfolio.

Clorox (CLX) is still one of my favorite buys right now. I think it’s a solid play for the wealth building part of your portfolio you’ll be able to hold for years to come.

Chevron (CVX) is a great company to hold if you already have it in your portfolio. I liked it a few months ago when the Hess acquisition still wasn’t priced in. Shares have seen a run in 2026, and I don’t want to add to my position at these prices.

Finally, keep an eye on Target Corp. (TGT), Kimberly-Clark (KMB), and Kenvue (KVUE). This is a big transition year for all three companies. By the end of the year, I think we’ll have confirmation if they are stocks that will be long-term holdings for years to come.

For more income, now and in the future,

 

 

Kelly Green

Originally published on April 8, 2026

For more news, information, and strategy, visit ETF Trends.



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