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These ‘Dividend Aristocrat’ Stocks Have Risen Up To 24% A Year For A Decade: NOBL/SDY

TedTed
in Fund Discussions
FYI: S&P Dow Jones Indices actually maintains two indices of Dividend Aristocrats:

1. The S&P 500 Dividend Aristocrats Index SPDAUDP, -0.91% includes the 50 S&P 500 companies that have raised their regular dividend payouts for at least 25 consecutive years. That’s the only criterion. It makes no difference how high a company’s dividend yield is. An example of an ETF tracking this index is the ProShares S&P 500 Dividend Aristocrats ETF NOBL, -0.93%

2. The S&P High-Yield Dividend Aristocrats Index SPHYDA, -0.62% includes components of the S&P Composite 1500 that have raised their dividends for at least 20 consecutive years. This is made up of 107 stocks, including all of the S&P 500 Dividend Aristocrats. The SPDR S&P Dividend ETF SDY, -0.72% tracks the performance of this index.
Regards,
Ted
http://www.marketwatch.com/story/these-dividend-aristocrat-stocks-have-risen-up-to-24-a-year-for-a-decade-2016-03-01/print

Comments

  • MarkMark
    Works for me but I choose to own the individual companies rather than either of those two elf's who's blended yields give me pause.
  • jstr
    OUSA is also a recent, promising choice if you're into that particular stock "universe" oshares.com/news/shark-tanks-kevin-oleary-launches-an-etf-ousa/
  • PRESSmUPPRESSmUP
    Mark said:

    Works for me but I choose to own the individual companies rather than either of those two elf's who's blended yields give me pause.

    Likewise. So far, this year is similar to 2011 where the dividend payers provided the positive ballast for the equity holdings. But...it's still early.

  • davidrmorandavidrmoran
    Interesting how NOBL and OUSA (thanks for tip) have beaten SCHD over their brief lives; worth looking into as augmentation to DSENX.
  • rabockma
    I am sticking with SCHD and its .05 expense ratio as well as being commission free. FWIW, I am also an investor in DSENX.
  • MarkMark
    @davidmoran - not that you shouldn't but I'm unwilling to hang my hat on a 6-mo performance record but even more important to me is the yield generation, the persistence thereof and the growth of same over time. Capital gains are a nice add-on but too dependent on the collective whims of market participants. Just my own opinion.
  • davidrmorandavidrmoran
    Yeah, shoulda made clear I invest in these (and in everything else) for investment growth, never income stream. I would be chary about OUSA too, but you gotta start somewhere. I was the same about DSENX back when I first read about it here.
  • jstr
    One of the selling features of OUSA is that it's holdings are "equal weighted" ...
  • davidrmorandavidrmoran
    Huh. It strongly outperforms RSP over its seven months.
  • MarkMark
    David - apples to oranges. RSP equal weights all 500 stocks in the S&P 500. According to the blurb linked by jstr OUSA contains "The 140 stocks in the Index are selected from the FTSE USA Index, comprised of 600 of the largest U.S. publicly-listed equities." Close, but no cigar.
  • davidrmorandavidrmoran
    ah, thanks.
  • wxman123
    Why not just buy SHW and go home? I'd bet that simple paint stock beat 95%+ of all mutual funds and hedge funds over a 15 year period (almost 18% avg return). Up in 2008-2009. Biggest loss under 8%. Unreal. Anyone know a better more stable issue?
  • davidrmorandavidrmoran
    Ain't hindsight something.

    As for stabler, B is smoother since 1972, sort of, as are PG and JNJ. With a log scale (M*) it's less easy to detect smoothness and the opposite, of course.
    SHW has had this remarkable rise the last six years, so there is that. Do you think in a greener world going forward that this will continue? Is that how you yourself are betting?
  • wxman123
    davidrmoran said:

    Ain't hindsight something.

    As for stabler, B is smoother since 1972, sort of, as are PG and JNJ. With a log scale (M*) it's less easy to detect smoothness and the opposite, of course.
    SHW has had this remarkable rise the last six years, so there is that. Do you think in a greener world going forward that this will continue? Is that how you yourself are betting?

    What charts are you looking at? It's not a close call or a fair fight with the issues you mentioned...I guess a case MIGHT be made for JNJ in terms of the ride, but its avg return for the past 15 years is 6.8%. SHW is 18%. I'm really not sure what you're looking at. You mention 1972, that's a long time ago. I assume you realize that SHW split 4 times since 1981; 1 share bought then for $35 now equals 32 shares at $281. You'll look a long time for something better than that coupled with a max draw down for the past 15 years of under 8%. As to the future, gun to head to pick one place to put my money for the next 15, SHW may be it. They're going to sell a lot of paint in China and the ROW. And I say all of this having nothing currently invested in the stock, regrettably. That will change at the next opportunity.
  • davidrmorandavidrmoran
    edited March 2016
    What charts? Growth of $10k, M*, looking at curve smoothness over time.
    Do it yourself.
    Takes into account splits, of course.
    I set start point as inception of SHW, hence the year.
    Log scale does its own smoothing as a function of increase, sort of, as I note.
    Did not say anyone was better than SHW. It was you who used the characterization stabler.
    I love hindsight with individual stocks, cocktail party talk about CVS, Costco, Nike, Apple, Altria, B-H, the ones I already mentioned (nobody on earth knows who Barnes Group is).
    You may well have a winner, and you have the courage of your convictions, yay. But do they have a moat? Is there barrier to entry overseas? Why not Chinese paint?
    Anyway, check this out:
    http://blogs.wsj.com/moneybeat/2016/01/29/the-best-stock-over-the-last-30-years-youve-never-heard-of-it/
  • wxman123
    DM, as I said, I don't own SHW...but wish I did. Interesting that Balchem is a specialty chemical co., like SHW. Perhaps it's easier to fly under the radar when you make animal feed or paint, thanks for the link. As for SHW, it is expensive and debt increasing, but also has a very specific focus and deep market penetration. I also see the investment case, in retrospect of course. In bad times (08-09), people renovate. In good times new construction needs paint. I do think I'll be adding when SHW touches the bottom of its bollinger bands. It really seems to pop after those rare events and then rides the skyline for a good long while.
  • davidrmorandavidrmoran
    You're welcome of course.

    Cool analysis if it proves true, so g/l. I hope some of my mfunds own it:)
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