Dividend Aristocrats gain 8.4% in 2016
Steel manufacturer Nucor (NUE) was the best performing stock, ending the year almost 50 percent higher.
We all know that 2016 was a difficult year for most dividend stocks, with the important health care and consumer staples sectors lagging, resulting in an underformance for many Dividend Aristocrats.
With an average gain of 8.4% (dividends excluded) the currently 51 Aristocrats posted a positive return for 2016, following a 1.2% loss in 2015.
The average dividend yield for the 51 aristocrats is 2.6% as of December 30, 2016, resulting in a double digit return with dividends included.
GAINERS AND LOSERS
The big outperformer in 2016 was steelmaker Nucor, with a stock price gain of 47.7% and a current dividend yield of 2.5%. Nucor raised its dividend for the 44th consecutive year in 2016. The quarterly dividend was lifted by just 0.7% to $0.3775 per share, being the smallest dividend hike of all aristocrats in 2016.
|Cintas raised its annual dividend by 26.9% in 2016|
Check out the top gainers and losers (without dividends) below.
The top-10 of best performing Aristocrats in 2016
- Nucor (+47.7%)
- Sysco (+35.0%)
- Illinois Tool Works (+32.1%)
- Chevron (+30.9%)
- Cincinnati Financial (+28.0%)
- Cintas (+26.9%)
- ADM (+24.5%)
- AT&T (+23.6%)
- Dover (+22.2%)
- ADP (+21.3%)
Top-10 wost performing Aristocrats in 2016
- HCP -22.3%
- Cardinal Health -19.4%
- Abbott Labs -14.5%
- VF Corp -14.3%
- Hormel Foods -12.0%
- Kimberly-Clark -10.4%
- Brown-Forman -9.5%
- Medtronic -7.4%
- Lowe's -6.5%
- Clorox -5.4%
The biggest dividend hike in 2016 came from work uniforms maker Cintas, upping its annual payment by 26.7%.
Two more companies raised their dividend by more than 25% last year, being Sherwin-Williams (+25.4%) and Lowe's (+25%). The slowest dividend growth in 2016 came from Nucor, Chevron, Procter & Gamble and Emerson Electric, with dividend hikes of 0.7% to 1.1%.
If you are looking for yield, as always AT&T tops the list with a 4.6% yield as of December 30, 2016, followed by AbbVie (4.1%), Chevron (3.7%) and Consolidated Edison (3.6%).
Looking at the dividend track records, industrial company Dover is still leading all Aristocrats with a dividend raised for 61 consecutive years. In August Dover increased its quarterly dividend by 4.8%.