Long-term investing
Dividend Aristocrats
Definition
Members of the S&P 500 index that have raised their dividend for at least 25 consecutive years, tracked by S&P Dow Jones Indices in an index of the same name. A long record shows discipline; it does not prevent a future cut.
Example
Say a company in the S&P 500 has raised its dividend every year for 25 years, from $0.40 to $1.30 a share, so it now qualifies as an Aristocrat. If in year 26 it holds the dividend flat at $1.30, the streak ends and it no longer qualifies, even though it never cut the payment. And the streak itself is no promise: a company with decades of raises can still cut when its earnings fall.
Hypothetical numbers, for illustration only.
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