The S&P 500 (SPY) Dividend Aristocrats has some of the best growth stocks. Ten outstanding Dividend Aristocrats with excellent track records of growth over the last 10 years are shown below. Each stock has at least doubled while the Dow (DIA) gained 27% and the S&P 500 went up only 15%.
- Sherwin Williams (SHW) has been increasing dividends for 33 consecutive years. The stock has more than tripled to $83 in the last 10 years and yields 1¾%. SHR manufactures and sells paints, coatings, etc. around the world. In addition it operates paint stores and operates branches. The P/E is 16X.
- Stanley Black & Decker (SWK) has been increasing the annual dividend since 1968 and has been paying dividends annually since 1877. The stock rose 150% to $75 in 10 years and yields 2.2% (highest yield in the group). SWK manufactures tools and security solutions to be sold around the world. Products include mechanical and electronic, security products and systems. SWK is known for selling mechanic tools (like hammers) and storage systems used in construction, remodeling, furniture making and manufacturing applications. The P/E is 15X.
- Archer Daniels Midland (ADM) has been increasing the dividend annually since 1975. The stock has more than doubled to $36 in the last 10 years and provides a 1.8% yield. ADM merchandises agricultural commodities and products in the US and internationally. It operates in 3 segments: Oilseeds Processing, Corn Processing and Agricultural Services. The P/E is a modest 11X.
- W.W. Grainger (GWW) has been increasing dividends for 40 consecutive years. The stock has done very well, up 350% to $135 in the last 10 years and yields 1.6%. GWW distributes facilities maintenance products including material handling equipment, safety and security supplies, electrical products, pumps and maintenance supplies to businesses, large corporations and government entities. The P/E is 17X.
- Hormel Foods (HRL) has been increasing the dividend for 46 consecutive years. The stock has almost tripled to $27 and yields 1.9%. HRL produces and markets meat and food products in the US and internationally. Products include fresh, frozen and perishable meats along with nutritional food products. The P/E is 16X.
- Ecolab (ECL) became an S&P 500 Dividend Aristocrat last December and has paid dividends annually for 74 years. The stock has more than doubled to $49 in the last 10 years and provides a 1.4% yield. ECL manufactures, sells and services products that clean, sanitize and promote food safety and infection prevention. Its customers are in food service, healthcare, government, education and commercial sectors around the world. The P/E is 19X.
- Family Dollar Stores (FDO) was been increasing the annual dividend for 35 consecutive years. The stock has doubled to $51 in the last 10 years and yields 1.4%. FDO operates a chain of self-service retail discount stores primarily in the US by selling a wide variety of products at low prices (many products sell for $1 or less) in 6,800 stores in 44 states and DC. The P/E is 16½X.
- Sigma-Aldrich (SIAL) has been increasing the dividend for 35 consecutive years. The stock rose 150% to $63 over 10 years and yields 1.1%. SIAL manufactures and distributes chemicals, biochemicals and equipment worldwide. Products are used in scientific research and high technology manufacturing (doctors and medical researchers are primary users). The P/E is 17X.
- C. R. Bard (BCR) has been increasing the dividend for 40 consecutive years. In the last 10 years the stock has done quite well, up 350% to $96 with a modest yield of 0.75%. BCR manufactures and sells a wide range of medical, surgical, diagnostic and patient care devices worldwide. The P/E is a moderate 15X.
- Brown-Forman (BF.B) should need no introduction to most people (I don't imbibe and even I know the name). The stock almost tripled in the last 10 years to $67 and yields 1.9%. BF-B manufactures and sells alcoholic beverages and is best known for Jack Daniels, along with a wide variety of other alcoholic beverages. The beverages are sold around the world. It has the highest P/E (20X) in the group.
While these companies represent a variety of businesses, they share a common characteristic of growth. Past records do not guarantee future performance. But their records provide more comfort for new investors than other companies that stuttered or were subject to significant fluctuations in the last decade. A bonus is that they share a commitment to increasing annual dividends.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.