“Buy dividend aristocrats,” shouted the financial preacher from his high pulpit.
“So be it,” we replied and set off in search of the right fund. Why? Because I have lacked a compact list so far. First we look at the regions and finally you will find a complete list of the dividend aristocrats.
One more reminder of what aristocrats are:
Dividend Aristocrats Worldwide as ETF
If you want to invest in an aristocrat ETF worldwide, you can take a look at this fund:
ISIN IE00B9CQXS71, WKN A1T8GD
Total cost ratio (TER): 0.45% p.a.
Replication: Optimized sampling
This ETF provides us with a global basket of 100 securities that have not reduced the dividend for at least 10 years. But what does “worldwide” mean? Canada and the USA fill up the ETF with a share of just under 40%. The annualised performance is 9.53% (comparison: iShares MSCI World: 12.36%), cumulated 55.47% (iShares: 74.17%). The dividend yield was 3.46% in one year, if the price remained constant at €29.17 for one year.
US Dividend Aristocrats ETF
You are looking for a US Aristocrat ETF? Here it is:
ISIN IE00B6YX5D40, WKN A1JKS0
Total cost ratio (TER): 0.35% p.a.
Replication: Physical / Complete
The fund tracks the S&P High Yield Dividend Aristocrats Index. Development? Annualised in 5 years: 13.91%, cumulated: 87.59%. The dividend yield currently stands at just under 2% with the current price of €44.62 unchanged.
European Dividend Aristocrats as ETF
ISIN IE00B5M1WJ87, WKN A1JT1B
Total cost ratio (TER): 0.30% p.a.
Replication: Physical (Complete)
A dividend-paying aristocrat ETF for the Eurozone. The local European is delighted. The index includes 40 companies with a high dividend yield and no dividend reduction for at least 10 years. The performance over 5 years is annualised at 10.12% and cumulated at 62.02%. France and Germany are included with a share of >50% (29.53% and 23.67% respectively). Dividend yield? At 24€ it is 2.25%.
Pacific and Asia Dividend Aristocrats ETF
ISIN IE00B9KNR336, WKN A1T8GC
Total cost ratio (TER): 0.55% p.a.
Replication: Optimized sampling
As the name suggests, the Pan Asia ETF invests in companies from the Asia-Pacific region. The companies involved have increased their dividends for at least seven years. Performance: Annualised over 5 years: 9.85% and cumulated 56.77%. The most important countries are Australia and Japan, but China is also interesting with 13%. Dividend yield at a constant price of €40.54 = just under 2%.
Gesamt: Die ETF Dividenden Aristokraten Liste
Das ist die Konklusio. Hier ist die gesamte Liste:
|ETF||SPDR S&P Global Dividend Aristocrats UCITS ETF||SPDR S&P US Dividend Aristocrats UCITS ETF||SPDR S&P Euro Dividend Aristocrats UCITS ETF||SPDR S&P Pan Asia Dividend Aristocrats UCITS ETF|
|TER||0,45% p.a.||0,35% p.a.||0,30% p.a.||0,55% p.a.|
|Replication||Optimized Sampling||Physical / Complete||Physical / Complete||Optimized Sampling|
|Most important countries in the index||Canada and USA 40%||USA 😉||Germany and France >50%||Australia, Japan and China about 68%|
|Annualised performance 5 years||9,53%||13,91%||10,12%||9,85%|
|Cumulative performance 5 years||55,47%||87,59%||62,02%||56,77%|
|Dividend yield at constant price (16.07.2018)||3,46%||2,00%||2,25%||2,00%|
Were those really all ETFs? Ok, well, I kept one from you. There is also the SPDR S&P UK Dividend Aristocrats UCITS ETF which invests in British companies. In my opinion this is very specific and therefore not on the list.
Why are dividends good for aristocrats and ETFs?
- Dividend growth is considered a “quality factor” and shows how consistently a company has paid out dividends in the past. This is not only an advantage (security), but also a weak point (this supposed security – after all, the future is uncertain).
- Companies tend to be more stable
- As an ETF you achieve a nice diversification
- I think aristocrats are nice because they seem “safe”. However, a higher dividend yield can easily be achieved with other securities. Of course, continuity also counts, although I don’t apply such hard criteria as 25 years of growth. It depends on what goal you are pursuing.