Dividend Aristocrat

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Definition of 'Dividend Aristocrat'

A dividend aristocrat is a company that has increased its dividend payout for at least 25 consecutive years. These companies are considered to be some of the most stable and reliable investments, as they have a proven track record of paying out dividends. Dividend aristocrats are often blue-chip companies with a long history of success. They are typically well-established companies with a strong financial position. Dividend aristocrats are often considered to be a safe investment, as they are less likely to cut their dividends during economic downturns. However, it is important to note that no investment is without risk. Even dividend aristocrats can experience periods of stock price decline.

There are a number of factors that can contribute to a company's ability to increase its dividend payout for an extended period of time. These factors include:

* A strong financial position
* A history of profitability
* A stable business model
* A conservative dividend policy

Companies that meet these criteria are more likely to be able to continue increasing their dividends over time. Dividend aristocrats can be a valuable addition to any investment portfolio. They provide a source of income that can help to offset the volatility of the stock market. Additionally, dividend aristocrats can help to improve the overall performance of a portfolio.

If you are looking for a safe and reliable investment, dividend aristocrats may be a good option for you. However, it is important to remember that no investment is without risk. Before investing in any company, it is important to do your own research and understand the risks involved.

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