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Home>UPDATE: Why it pays to take a second look at this year's worst-performing Dividend Aristocrat stocks

UPDATE: Why it pays to take a second look at this year's worst-performing Dividend Aristocrat stocks

UPDATE: Why it pays to take a second look at this year's worst-performing Dividend Aristocrat stocks

09/23/2017

By Philip van Doorn, MarketWatch

These companies' shares may have fallen this year, but many are able to keep raising their payouts

There are no safe bets when selecting stocks, but if you're looking for income, a company's track record for paying dividends might outweigh concerns over its share price.

A review of the worst-performing Dividend Aristocrat stocks this year illustrates that point.

The S&P 500 Dividend Aristocrats Index is made up of the 51 S&P 500 companies that have raised regular dividend payouts for at least 25 years. One way to invest in the entire index is the $3.1 billion ProShares S&P 500 Dividend Aristocrats ETF (NOBL), which attempts to mirror the index. (Disclosure: I hold shares of this ETF.)

Here's how the S&P 500 Dividend Aristocrats Index's total return has compared to that of the S&P 500 over the past 10 years:

S&P Dow Jones Indices maintains that index and also the broader S&P High-Yield Dividend Aristocrats Index , which is made up of the 107 companies included in the S&P 1500 Composite Index that have raised regular dividends for at least 20 years. So any Dividend Aristocrat is also a high-yield Dividend Aristocrat. One way to play the high-yield Aristocrats as a group is the SPDR S&P Dividend (SDY).

Read:5 solid stocks for a rocky September (http://www.marketwatch.com/story/5-solid-stocks-for-a-rocky-september-2017-09-07)

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