Dividend Investing Ideas Center
Have you ever wished for the safety of bonds, but the return potential...
If there is one thing Wall Street loves, it’s a clever marketing term. BRICs, Smart-Beta, Black Swans…the Street loves them all. Most likely because it’s easy to build a product or fund around a slogan. And as investors, it seems we can’t get enough of them either. At its peak, Goldman Sachs had nearly a billion dollars worth of assets in its BRIC mutual fund.
As dividend investors, we’ve all flocked to the concept — and the marketing — behind the so-called Dividend Aristocrats. Or Kings. Or Champions for that matter.
The concept of firms that have never decreased their payouts and offer long-term dividend growth is certainly appealing. But the real question is whether or not it’s just marketing fluff or actually full of substance.
The notion of the dividend aristocrats plays into dividend investors’ love of consistency. The official definition of S&P’s aristocrats are companies in the bread-and-butter S&P 500 Index that have increased dividends every year for the past 25 straight years. The definition of the Dividend “Kings” and “Champions” are similar, but the timelines are slightly different.