Created A Spreadsheet Of Early 1990s Dividend Aristocrats. What Happened To Them?


#1

Okay, I don’t want to write a lecture so I will keep it brief. I was nerding out a few weeks ago looking at the old Dividend Aristocrats list from 1992.

The myth about these stocks is that they’re guaranteed wins over time. I wanted to put this idea to the test…

But when I looked a little closer, it seems that these stocks didn’t hold out as well as you would think…

The list is below on a Google sheets spreadsheet, but here are a few things I noted:

• 23/47 were still in the S&P 500 since 1992 - nearly half…

• 17/47 beat the S&P 500 since 1992, the rest underperformed…

• 5/18 companies which beat the market were in consumer staples…

But the biggest revelation was that only 5 / 47 companies were still on the dividend aristocrats list in 2017! Most companies were either acquired, or just collapsed. Most of the companies which were acquired didn’t last too long… the takeover companies struggled to digest their latest victim and fell apart.

This disproves the myth that dividend aristocrats are guaranteed wins…

All thoughts welcome!

Didn’t include any graphs but should have - the post looks kind of bare!

Link:


#2

Shouts to Van Damme!