S&P adds two new Dividend Aristocrats for 2017
HCP will be replaced by General Dynamics and Federal Realty Trust.
On January 24, 2017 S&P announced its annual rebalancing results for the S&P500 Dividend Aristocrats Index. The rebalance will be effective after the close of business on January 31, 2017.
Two companies will be added: General Dynamics (GD) and Federal Realty Investment Trust (FRT). These two new Dividend Aristocrats will replace HCP Inc (HCP).
The deletion of Real Estate Investment Trust HCP doesn't come as a big surprise. On December 12, 2016 HCP lowered its dividend by 35.7% following the QCP spin-off.
TWO NEW DIVIDEND ARISTOCRATS FOR 2017
Both new Dividend Aristocrats have raised their dividend for at least 25 consecutive years.
Federal Realty Investment Trust (FRT) hiked its dividend by 4.3% in 2016, marking 49 consecutive years of dividend increases. According to the company this is the best track record for all listed Real Estate Investment Trusts.
FRT, a REIT with interests in community and neighborhood shopping centers and mixed-use properties, currently has a $10.1 billion market cap and a dividend yield of 2.8%.
Aerospace and defense company General Dynamics (GD) currently has a 1.7% dividend yield and a $53.7 billion market cap. GD raised its dividend by 10.1% in 2016 and has now increased its annual dividend for 25 consecutive years.