Dividend Aristocrats: High Payouts and Stability
Dividend aristocrats are companies that have continuously increased their dividends for at least 25 years. This group of stocks offers investors remarkable stability in terms of payouts and is particularly interesting for investors who rely on regular income.
European Dividend Aristocrats
In Europe, there are only a few companies that hold this title. Currently, there are five companies that have increased their dividends annually for at least 25 years. Two of the most well-known are Roche and Novartis, both from the pharmaceutical industry. These companies not only have a long history of dividend growth but also a wide economic moat that stabilizes their market position.
- Roche: The annual dividend has increased by an average of 9.5% over the last 25 years. In the last five years, growth slowed to 2.1% per year. The current dividend stands at 9.30 CHF.
- Novartis: The company recorded an annual dividend growth of 5.8% over the past 25 years. In the last five years, growth was 5.7% per year. The current dividend is 3.30 CHF.
Highest Dividend Yields
The highest dividend yields among the dividend aristocrats can reach up to 7.2%, which is particularly attractive for investors seeking high income. However, such high yields are not typical for European dividend aristocrats, which often impress with stability and long-term growth.
Investor Interest
For private investors and savers, dividend aristocrats are interesting as they provide a regular source of income. The average dividend yield of all aristocrats is around 2.9%, which can be attractive compared to other investment forms.
Conclusion
Dividend aristocrats offer investors a combination of stability and regular payouts. Although yields can vary, they are particularly suitable for long-term-oriented investors who rely on continuous income. In Europe, Roche and Novartis are examples of such companies with a long history of dividend growth and a strong economic moat.