Dividend Aristocrats Can Soften the Blow of a Down Market

What stocks make sense in a down market? Consider owning stocks that have a long uninterrupted record of paying increasing dividends. With a dividend-paying stock, you receive regular cash payments that you can save, spend or buy more shares through dividend reinvestment. So while stock prices languishes, you can at least add some value to your portfolio through dividend accumulation.

To find great dividend-paying stocks, check out the Dividend Aristocrats series that includes four indices of companies that have a history of consistently raising dividends:

S&P 500 Dividend Aristocrats includes stocks from the S&P 500 index that have consistently increased dividends for at least 25 consecutive years. See complete list of stocks.
S&P High Yield Dividend Aristocrats includes stocks from the S&P Composite 1500 index that have consistently increased dividends every year for at least 25 years.
S&P/TSX Canadian Dividend Aristocrats Index includes stocks from the S&P/Citigroup Broad Market Index (BMI) Canada index that have consistently increased dividends every year for at least seven years.
S&P Europe 350 Dividend Aristocrats includes stocks from the S&P Europe 350 index that have consistently increased dividends for at least 10 consecutive years.

Many of the companies included in the indices are excellent candidates for the portfolio of a long-term investor who wants income or wants to reinvest dividends.

You can own stocks from the S&P High Yield Dividend Aristocrats index with the SPDR S&P Dividend ETF (SDY), an exchange-traded fund that usually delivers a dividend yield of one to two points higher than the yield of the S&P 500.

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Posted February 8, 2008.