Want to Beef Up on Dividend Stocks? Here Are Some NOBL Opportunities

One of the time-tested strategies for investors is buying companies with an increasing dividend policy. To say it is one of the most loved and most watched strategies would be something of an understatement given the incremental income it generates for investors and the $6.7 billion in assets held by ProShares S&P 500 Dividend Aristocrats exchange-traded fund , which tracks the S&P 500 Dividend Aristocrats Index. If there was any question as to the results of the strategy of buying a portfolio of companies with a long history of boosting their dividends, the below chart should be enough of an answer: The companies that comprise the S&P 500 Dividend Aristocrats Index are a cross section of S&P 500 constituents that have increased their dividends for at least 25 years. The index is equal weighted in nature, which means the position size for each is the same, and the qualifying universe of companies is reviewed each January. In addition, per the index's methodology document, prospective index constituents must also have a minimum float adjusted market cap of at least $3 billion at the time of the rebalance data and have an average daily value traded of at least $5 million for the three-months prior to the rebalancing reference date. Last year, four companies were added to the Dividend Aristocrats: Caterpillar , Chubb Limited , People's United Financial and United Technologies , which lifted the number of constituents to 57 up from 53 in 2018. With January 2020 having come and gone, the S&P has added seven companies to the Dividend Aristocrats class of 2020. With no deletions, that means the number of Aristocrats now stands at 64. Joining the ranks of long-time Aristocrats such as Johnson & Johnson and Coca-Cola are: Albemarle , a specialty chemical company with a quarterly dividend of 36.75 cents per share that yields 1.7% Amcor , a packager for food, beverage, home and personal products, sports a dividend yield of 4.5% Regulated utility Atmos Energy currently offers investors a quarterly dividend of 57.5 cents, which equates to an annualized yield near 2.0%. Essex Property Trust is a real estate investment trust that focuses primarily on West Coast apartment buildings, and the current dividend yield on the shares is near 2.6%. Because it is a REIT, it must pay out at least 90% of its taxable income to shareholders every year. If history holds, in the coming weeks we should soon learn about the company's next dividend hike. Shipping and logistic company Expeditors International of Washington offers investors a dividend yield near 1.3%, which reflects its current quarterly dividend of 50 cents per share. Unlike the other six additions to the Aristocrats, Realty Income , a REIT that serves some 47 distinct industries, rewards shareholders with monthly dividend payments. The current monthly dividend per share is 23.25 cents and equates to a dividend yield near 3.5%. The dividend yield for Trifecta Portfolio holding Ross Stores , a discount apparel retailer, may not be earth shattering at roughly 1.0%, but the company has been built its quarterly dividend to the current 25.5 cents over the last two plus decades. I'd note the company tends to boost its quarterly dividend toward the end of the current quarter. For those looking to scoop up some or all of these new Aristocrats, generally speaking, when a company is added to an index it spurs buying in the shares as investment strategies that mimic that index have to build their position in the new constituent. As such, you may want to sit on the sidelines as all that index matching buying lifts the shares at least in the short-term and circle back in the coming days.

Want to Beef Up on Dividend Stocks? Here Are Some NOBL Opportunities

The S&P 500 has added these companies to the Dividend Aristocrats class of 2020.

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