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Dividend Aristocrat Performance: Coronavirus Edition

Published Mon, 02 Mar 2020 11:15:59 -0500 on Seeking Alpha

Components of the S&P 500 that have paid steadily increasing dividends for at least 25 years have outperformed the broader market over time.
This article demonstrates that historic outperformance and lists the current Dividend Aristocrat constituents and their recent returns.
In down months for the S&P 500, the Dividend Aristocrats have outperformed 70% of the time, driving the strategy's long-run outperformance.
That was not the case in the February sell-off as the Dividend Aristocrats lagged the broad market on average.
By showing the recent performance of the Dividend Aristocrats, some active dividend growth investors may be able to suss out relative bargains in this virus-induced sell-off.
February ended with a thud as coronavirus concerns reverberated across markets. The last week of February saw a -11.4% return for the S&P 500 (SPY), the fourth worst weekly performance for the broad market index since World War II. On the month, the -8.2% return for the S&P 500 was its worst monthly performance since the December 2018 sell-off.
The Dividend Aristocrats, components of the S&P 500 that have paid increasing dividends from 25 or more years, tend to outperform in risk-off environments. Using the full available dataset for the Dividend Aristocrat Index dating back to January 1990, we have 362 monthly observations for the Dividend Aristocrats and the broader S&P 500. As tabled below, the Dividend Aristocrats tend to outperform in down months for the broad market more than 70% of the time.
The Dividend Aristocrats were slightly more likely to outperform in a given month (52.8% vs. 47.2%) in the sample period, but that has principally been driven by the overwhelming tendency to outperform in down markets.
Taking this same data and calculating annualized returns, we see that over this 30-plus year dataset that the Dividend Aristocrats have outperformed by roughly 2% annualized. This outperformance has been... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ABBVIE 70.83   26.0 2.72 4.28 6.28
EXXON MOBIL 71.98   17.3 4.15 3.48 4.83
CARDINAL HEALTH 48.48   10.8 4.51 1.92 4.01
CHEVRON 121.42   15.7 7.72 4.76 3.91
LEGGETT PLATT 42.18   19.6 2.15 1.60 3.82
REALTY INCOME 74.49   56.9 1.31 2.72 3.69
CONSOLIDATED EDISON 90.19   21.4 4.21 2.96 3.31
CLOROX 160.20   25.3 6.34 4.24 2.68
ESSEX PROPERTY TRUST 324.02   52.2 6.21 7.80 2.43
ALBEMARLE 69.28   13.5 5.12 1.47 2.15
SYSCO 77.72   24.3 3.20 1.56 2.03
ATMOS ENERGY 109.44   25.9 4.23 2.10 1.93
SPDR S&P 500 ETF 301.29   0.0 0.00 5.42 1.82
EXPEDITORS INT 75.21   20.8 3.62 1.00 1.32
ROSS STORES 109.36   24.8 4.40 1.02 0.94

ABBVIE - ABBV
ABBVIE - ABBV  


Older articles featuring Abbvie (ABBV):
Dividend Investors: These 5 Aristocrats Are Trading At Historic Discounts
Dividend Aristocrat Performance: March 2020
Insiders Are Buying These Beaten Down Dividend Stocks
The 64 Dividend Aristocrats Ranked By Quality Score
February 2020 Dividend Portfolio Update
Nicholas Ward's Dividend Growth Portfolio: February 2020 Update
Bert's February Dividend Income Summary
Dividend Aristocrat Consumer Defensive Sector Yield Is Tops Of 64 For March
My Dividend Growth Portfolio February Update: 48 Holdings, 22 Buys, 4.27% Yield, Down 45k
5%+ Dividend Yield Portfolio: Winning In A Tough Market (Feb 2020 Review)

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