How Are the S&P's Dividend Aristocrats Performing?

It seems it has been some time since I updated the performance of Standard & Poor's Dividend Aristocrats. Year to date through November 4, 2009, the Aristocrats have generated a better return than the Dow Jones Industrial Index, 12.2% versus 11.7%, respectively. However, the Aristocrats performance has trailed the return on the S & P 500 Index's return of 15.9%.

In the below table, I have shaded the rows for those companies that have cut their dividend this year.

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Comments

[buoy:]

very rude ^

Nov 05 08:22 AM

[a. palmer jr.:]

What are we doing, selling T-shirts on SA now? I guess times are tough all over!

Nov 05 08:22 AM

[George Edwards:]

This article is helpful, but the Aristocrats list needs updating and completion: ROH no longer exists, and RPM, SYY, FPL, and NFG are not mentioned - Aristocrats all.

Nov 05 08:51 AM

[BlueOkie:]

Nice job!

Nov 05 09:07 AM

[David Van K...:]

George: S&P maintains the Aristocrats list, this author is merely commenting on it. S&P updates the list once/year, in December. You're right, it needs to be updated--take it up with S&P. The yearly updating is one of the huge weaknesses in the list, which unfortunately many people take as gospel. Membership on the list means NOTHING by itself. Go to S&P and read their little booklet about how the list is produced, and your regard for the list will fall. Dividend investors have to do their own due diligence.

Nov 05 09:28 AM

[mbkelly75:]

David is right and the author has done a good job with the information that he had been given by the S&P. The Google Docs layout has a lot of stuff in a small space and is helpful. You still need to do your own DD - that should be a given to everyone. But, this is a nice start for that DD.

Nov 05 11:47 AM

[connorport:]

Can anyone convince me not to invest in FTR. Great yield and rebound potential from what i can see. Additional info would be appreciated.

Nov 05 01:48 PM

[mbkelly75:]

FTR - Okay, it is a great yield (13.99%) BUT - the payout ratio for that yield is 216.31% !!!!!! That is NOT sustainable by any stretch of imagination. Even their 5 year average payout ratio is an unsustainable 108%. Their debt (long term AND short term is HUGE) and that is not good either. They have enough cash to pay the dividend ($1.00/share annually) with $1.45/share in cash, but they have a great many other places to put that cash considering their debt load. Their PEG @ 6.59, P/S @ 1.03, and their P/FCF = 15.56 all show that they are at best - mildly over-valued and could be considered hugely over-valued according to that PEG. On the good side - insiders were buying at $6.95 and they have been trending up (somewhat shaky but up) since 7 Oct when their Moving Averages formed a Golden Cross. Their Quick Ratio is good at 2.12 so they have some financial strength some where, if only by having more cash/share (1.45) than book value/share (1.40). If you are buying for the dividend - it is NOT safe. If you are buying it for a trade so you can ride the price up while it is trending up - maybe. It is not a strong up-trend and they could head back down anytime. I would not - there are LOTS of better places - but it is your choice. You can do a dividend capture play later on - the X-Div date is 7 Dec (I think - double check that at their website) so you have time yet.

Nov 05 03:47 PM