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Are Dividend Aristocrats in Your Portfolio in 2022?

Are Dividend Aristocrats in Your Portfolio in 2022?

Ready for some major dividend activity to go your way in 2022? Many investors turn to dividend income for a solid way to grow their portfolio and tap into a cash flow. You may especially want to consider this option if you want to use dividends to live off of in retirement.

Why not consider one (or several) of the Dividend Aristocrats, a fancy description for high-performing dividend stocks? 

Let's find out more about the Dividend Aristocrats and pick a handful for this year's go-round in the stock market.

What are the Dividend Aristocrats? 

First of all, if you're not completely squared away with the definition of dividends, it simply means that when a publicly-traded company generates profits it can direct the funds into research and development, save the money or return the profits to shareholders as dividends. As a shareholder, your goal is to reap the benefits of these dividends, whether you squirrel them away for use later on, reinvest them or spend them right away — you've gotta eat, right?

The Dividend Aristocrats simply refer to well-known companies that are part of the S&P 500 that pay dividends. The Dividend Aristocrats must possess a few distinct qualifications to qualify as part of this elite group. Each company must have:

  • Increased the annual total dividend per share for 25 straight years in a row.
  • A market capitalization of at least $3 billion.
  • A daily trading amount of at least $5 million. 

Here are a few companies that hit the bullseye for those requirements (but note that there are 65 Dividend Aristocrats, so this doesn't come close to the full list):

Three new additions to the family made the list in 2021: International Business Machines IBM) (NYSE: IBM, NextEra Energy NYSE: NEE, and West Pharmaceutical Services NYSE: WST. Unfortunately, six companies got kicked out of the family: Raytheon NYSE: RTX, Carrier Global NYSE: CARR, Otis Worldwide NYSE: OTIS, Church and Dwight NYSE: CHD, Stryker Corporation NYSE: SYK and Leggett & Platt Inc. NYSE: LEG.


Consider Adding The Following Dividend Aristocrats to Your Portfolio

Take a look at a few we've chosen for you to eyeball if your main goal is to have dividends at your disposal. Instead of the main biggies like Johnson & Johnson, Procter & Gamble, and other tried-and-true companies, we've tackled four Dividend Aristocrats that may not be on your radar.

Federal Realty Investment Trust NYSE: FRT

Federal Realty Investment Trust NYSE: FRT, based in Maryland, is one of the most notable Dividend Aristocrats and real estate investment trusts (REITs). The company owns, operates, and develops retail and mixed-use neighborhoods in the northeastern United States, the mid-Atlantic states, California and South Florida. The company recently acquired the Twinbrooke Shopping Centre in Fairfax, Virginia, bringing off-market acquisitions to five properties.

In Q3, net income was $50.1 million, and earnings per diluted share were $0.64 for the third quarter of 2021. In the third quarter of 2021, Federal Realty generated an FFO of $118.0 million, or $1.51 per diluted share. Its Board of Trustees also declared a regular quarterly cash dividend of $1.07 per common share, which means an indicated annual rate of $4.28 per common share. The regular common dividend will be payable on January 18, 2022, to common shareholders of record as of January 3, 2022.

Amcor plc NYSE: AMCR

Amcor plc NYSE: AMCR, an Australian company, is a global leader in developing and producing responsible packaging for food, beverage, pharmaceutical, medical, home, and personal care, and other products offering high yield and years of continued dividend growth. 

As of Q3, Amcor plc GAAP shored up net income of $202 million, up 2%, and GAAP earnings per share (EPS) up 4% from 13.1 cents per share. It also showed an adjusted EPS of 17.7 cents per share, up 12% on a comparable constant currency basis, and an adjusted EBIT of $381 million, up 7%. The company also increased returns to shareholders; the quarterly dividend increased to 12 cents per share.

Cardinal Health Inc. NYSE: CAH

Cardinal Health Inc. NYSE: CAH, headquartered in Dublin, Ohio, Cardinal Health, Inc. NYSE: CAH distributes pharmaceuticals, manufactures, and distributes medical and laboratory products globally and serves as a provider of performance and data solutions for health care facilities.

Cardinal Health Inc. grew revenue 6% versus the prior year to $162 billion and grew non-GAAP EPS and surpassed its enterprise cost savings target for the third consecutive year in Q4 2021.

The company returned nearly $800 million to shareholders through dividends and share repurchases and returned a total of 49 cents per share as a quarterly dividend. The company strengthened its balance sheet by paying down approximately $550 million of long-term debt. 

Archer-Daniels-Midland Co. NYSE: ADM

Archer-Daniels-Midland Co. NYSE: ADM, headquartered in Chicago, focuses on animal and human nutrition and transforms natural products into ingredients and flavors for foods and beverages. The company also works to improve nutrition for pets and livestock with a commitment to sustainable practices.

Archer-Daniels-Midland Co. had Q3 net earnings of $526 million and adjusted net earnings of $548 million, a segment operating profit of $1 billion. It had an adjusted EPS up 9% despite a higher effective tax rate and continued upward growth. 

Archer-Daniels-Midland Co. also offered $1.48 in annual dividends to shareholders.

Boost Your Portfolio with the Aristocrats

The "Aristocrats" — the glitzy name just sounds like companies poised for success, right?

There's a reason. These aptly-named companies show a proven dividend track record and solid, consistent performance. It's no wonder many investors rush to these exact equity income investments to round out their portfolios.

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Should you invest $1,000 in 3M right now?

Before you consider 3M, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and 3M wasn't on the list.

While 3M currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

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Melissa Brock
About The Editor

Melissa Brock

Associate Editor & Contributing Author

Contributing Author

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
3M (MMM)
4.4906 of 5 stars
4.49 / 5 stars
$104.97+1.0%2.67%-8.25Hold$112.17
A. O. Smith (AOS)
3.8802 of 5 stars
3.88 / 5 stars
$88.79+0.9%1.44%23.00Hold$89.43
Abbott Laboratories (ABT)
4.989 of 5 stars
4.99 / 5 stars
$103.74+1.7%2.12%32.32Moderate Buy$120.70
AbbVie (ABBV)
4.8557 of 5 stars
4.86 / 5 stars
$173.61+0.7%3.57%51.52Moderate Buy$185.31
Aflac (AFL)
4.5609 of 5 stars
4.56 / 5 stars
$94.50+1.7%2.12%10.43Hold$85.15
AT&T (T)
4.6467 of 5 stars
4.65 / 5 stars
$18.56-2.9%5.98%9.98Moderate Buy$21.85
Caterpillar (CAT)
4.6652 of 5 stars
4.67 / 5 stars
$347.87+0.1%1.49%15.71Hold$329.63
Chevron (CVX)
4.9105 of 5 stars
4.91 / 5 stars
$157.03-1.3%4.15%14.45Moderate Buy$186.22
Coca-Cola (KO)
4.0515 of 5 stars
4.05 / 5 stars
$64.77-0.8%3.00%25.91Moderate Buy$70.00
Exxon Mobil (XOM)
4.8346 of 5 stars
4.83 / 5 stars
$115.28-0.7%3.30%14.13Moderate Buy$134.78
International Business Machines (IBM)
4.3519 of 5 stars
4.35 / 5 stars
$184.15+0.5%3.63%20.86Hold$182.53
Johnson & Johnson (JNJ)
4.8853 of 5 stars
4.89 / 5 stars
$154.24-0.3%3.22%9.62Moderate Buy$174.64
McDonald's (MCD)
4.7738 of 5 stars
4.77 / 5 stars
$259.54+0.9%2.57%22.03Moderate Buy$308.57
NextEra Energy (NEE)
4.6558 of 5 stars
4.66 / 5 stars
$72.90+1.3%2.83%19.86Moderate Buy$77.79
PepsiCo (PEP)
4.7714 of 5 stars
4.77 / 5 stars
$167.66-1.0%3.23%24.33Moderate Buy$185.53
Procter & Gamble (PG)
4.3925 of 5 stars
4.39 / 5 stars
$168.28+0.2%2.39%27.50Moderate Buy$172.95
Target (TGT)
4.7443 of 5 stars
4.74 / 5 stars
$151.02+0.9%2.91%16.95Moderate Buy$176.57
Walmart (WMT)
4.7602 of 5 stars
4.76 / 5 stars
$70.38-0.5%1.18%30.12Moderate Buy$71.09
West Pharmaceutical Services (WST)
4.9797 of 5 stars
4.98 / 5 stars
$318.02+0.0%0.25%41.96Moderate Buy$442.75
RTX (RTX)
4.2439 of 5 stars
4.24 / 5 stars
$103.77+0.9%2.43%40.69Hold$98.33
Carrier Global (CARR)
4.6909 of 5 stars
4.69 / 5 stars
$68.00+2.7%1.12%47.55Hold$64.93
Otis Worldwide (OTIS)
3.7745 of 5 stars
3.77 / 5 stars
$99.47+1.8%1.57%28.75Hold$99.67
Church & Dwight (CHD)
4.302 of 5 stars
4.30 / 5 stars
$100.65-1.9%1.12%31.95Hold$106.76
Stryker (SYK)
4.7545 of 5 stars
4.75 / 5 stars
$342.63+0.5%0.93%39.11Moderate Buy$372.05
Leggett & Platt (LEG)
2.6966 of 5 stars
2.70 / 5 stars
$12.88+1.7%1.55%-11.10Reduce$12.00
Federal Realty Investment Trust (FRT)
4.3899 of 5 stars
4.39 / 5 stars
$110.80+1.2%3.94%39.43Moderate Buy$114.00
Amcor (AMCR)
2.6794 of 5 stars
2.68 / 5 stars
$10.15+0.4%4.93%22.56Hold$10.15
Cardinal Health (CAH)
4.9113 of 5 stars
4.91 / 5 stars
$95.42+0.4%2.12%42.41Hold$109.67
Archer-Daniels-Midland (ADM)
3.8758 of 5 stars
3.88 / 5 stars
$64.15-0.1%3.12%11.25Reduce$67.43
Compare These Stocks  Add These Stocks to My Watchlist 


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