The UK Dividend Aristocrats List 2024
The title of dividend aristocrat is bestowed upon companies within the S&P 500 index which have raised their annual dividends every year for at least 25 consecutive years. These dividend aristocrats form the S&P 500 Dividend Aristocrats Index but is there something similar in the UK?
In this article, we will examine the S&P UK High Yield Dividend Aristocrats Index and provide the UK Dividend Aristocrats List 2024.
Table of Contents
The S&P UK High Yield Dividend Aristocrats Index
The S&P UK High Yield Dividend Aristocrats Index is composed of UK dividend stocks which are in the S&P United Kingdom BMI and trade on the London Stock Exchange (LSE).
To be eligible for the S&P UK High Yield Dividend Aristocrats Index, amongst other requirements, stocks must meet the following criteria:
- Have a float-adjusted market capitalisation of at least $1 billion ($800 million for current constituents).
- Have a maximum dividend yield of 10%
- New constituents must have a maximum dividend payout ratio of 100%. A dividend payout ratio is calculated by dividing dividend per share by Earnings per Share (EPS), in other words new constituents cannot have a dividend per share which is higher than their EPS.
- Existing constituents must have a non-negative dividend payout ratio. In other words, the company must have a positive EPS.
- Must have increased or maintained stable dividends every year for at least seven consecutive years.
So, unlike dividend aristocrats on the other side of the Atlantic, UK dividend aristocrats only need to have raised or maintained dividends for seven consecutive years.
At the index rebalancing every stock which meets the eligibility requirements is ranked by annual dividend yield and the 40 highest ranking stocks are selected for the index, with the index consisting of a minimum of 30 dividend stocks. If less than 30 are eligible, then the eligibility requirements are relaxed.
So, which companies currently make the cut and have the title of UK dividend aristocrat in 2024?
UK Dividend Aristocrats List 2024
At the time of writing, there are 34 UK dividend aristocrats in the index, the table below shows each constituent.
UK Dividend Aristocrats ETF
It is not possible to invest directly in the S&P UK High Yield Dividend Aristocrats Index. However, if investors want to gain exposure to the index, they can either build a portfolio based on the UK dividend aristocrats list above or invest in an Exchange-Traded Fund (ETF) which tracks the index.
The SPDR S&P UK Dividend Aristocrats UCITS ETF tracks the UK dividend aristocrats index and is one of more than 200 ETFs which is available for clients who invest with Admirals! Follow the steps below in order to learn how to invest in four simple steps:
- Open an Invest.MT5 account and log in to the Dashboard
- Find your account details and click ‘Invest’ to open the MetaTrader Web Terminal
- Search for the UK Dividend Aristocrats ETF and click the symbol in order to open the price chart
- Press ‘Create New Order’ at the bottom of the screen, enter the number of shares you wish to purchase and hit ‘Buy’ to send the order to the market!
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Dividend Aristocrats UK - FAQ
What Is a Dividend Aristocrat?
A dividend aristocrat is the name given to a stock in the S&P 500 which has raised its annual dividend payments every year for at least 25 consecutive years.
Companies which are able to meet this threshold tend to be older, blue-chip companies which operate in defensive industries, allowing them to earn consistent profit and continue to pay dividends even when times are tough.
What Is the Average Annual Return of the Dividend Aristocrats?
At the time of writing, over the last ten years, the total annualised return of the UK High Yield Dividend Aristocrats Index is 2.06%.
Other Articles You May Find Interesting:
- High Yield Dividend Stocks to Consider
- FTSE 100 Dividend Stocks to Consider
- What Are the Best FTSE 250 Dividend Stocks?
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This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.
