None of the S&P 500 Dividend Aristocrat stocks—a group of 65 companies that have increased dividends for at least 25 years—have reduced their payouts, according to a recent article in MarketWatch.
A pretty comforting fact given that 63 companies in the S&P 500 have cut or suspended dividends this year, the article notes, adding that of those 63 companies, 56 have suffered double-digit declines and 49 have dropped by at least 20%.
“The entire S&P 500 Dividend Aristocrats Index is down 2.4% this year, which may seem a poor showing against the 6.5% return for the broader S&P 500 Index” the article says, adding, “However, large technology companies that dominate the benchmark index have had an outsized effect on its market-capitalization-weighted performance.”
The article notes that even though there have been no cuts this year, there’s no guarantee that payouts won’t be reduced. “So,” it concludes, “you need to do your own research before considering a Dividend Aristocrat, or any other company, for investment.”