Here's the best way to play the S&P Dividend Aristocrat stocks

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We combined three groups of Dividend Aristocrats, removed duplicates and narrowed the list down to the 75 that have current dividend yields of at least 2%. Here are the 10 that are expected to raise their payouts the most through 2024.

Stocks with attractive dividend yields have received a lot of coverage this year, because many have held up well when compared with the performance of the broad stock market.

The S&P 500 Dividend Aristocrats Index SP50DIV, -0.08% is made up of 63 companies in the S&P 500 SPX, -0.25% that have raised their regular dividends for at least 25 consecutive years. It makes no difference how high the current dividend yield is. The index is equally weighed and rebalanced quarterly. The current dividend yields for the index components range from 0.23% to 4.95%.

Don’t fall for Dividend Aristocrats with the highest current yields For those looking to pick among the Dividend Aristocrats, one option is to focus on those with the highest current dividend yields, especially if you are looking for income right now. If you are looking for high current income, here’s a list of dividend stocks with yields of 5% and whose payouts are well supported by companies’ expected cash flow.

Nine of the 10 stocks beat the five-year total return of 72% for SPY — seven of them more than doubled the S&P 500’s return. How about a look ahead? The problem with this list, of course, is that it looks back. So let’s look for those that are expected to increase their dividends most rapidly from here.

 

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