S&P 500 Dividend Aristocrat Index Gets An Important Change; AT&T (T) Gets a Nod
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Price: $16.51 +1.10%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 6.5%
Revenue Growth %: +1.6%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 6.5%
Revenue Growth %: +1.6%
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S&P's popular S&P 500 Dividend Aristocrat index is getting an important makeover with the December 2011 annual re-balancing.
The index which includes S&P 500 companies that have increased their dividends every year for the past 25 years, will change the way its accounts for special dividends.
Now only regular dividend payments will be considered when determining the calendar year total dividend payments of a company. Special cash dividends will not be considered for eligibility purposes on a historical and ongoing basis when determining the S&P 500 Dividend Aristocrat Index universe.
So if a company paid a special dividend last year and not this year, this will not have a negative impact on inclusion in the index.
With the updated methodology, the index is adding AT&T (NYSE: T), HCP (NYSE: HCP), Sysco (NYSE; SYY), Nucor (NYSE: NUE), Illionois Tool Works (NYSE: ITW), Genuine Parts (NYSE: GPC), Medtroics (NYSE: MDT), Colgate-Palmolive (NYSE: CL), T Rowe Price (NYSE: TROW) and Franklin Resources (NYSE: BEN). CenturyLink (NYSE: CTL) is the one deletion.
The changes are effective after the close of business December 16, 2011.
The index which includes S&P 500 companies that have increased their dividends every year for the past 25 years, will change the way its accounts for special dividends.
Now only regular dividend payments will be considered when determining the calendar year total dividend payments of a company. Special cash dividends will not be considered for eligibility purposes on a historical and ongoing basis when determining the S&P 500 Dividend Aristocrat Index universe.
So if a company paid a special dividend last year and not this year, this will not have a negative impact on inclusion in the index.
With the updated methodology, the index is adding AT&T (NYSE: T), HCP (NYSE: HCP), Sysco (NYSE; SYY), Nucor (NYSE: NUE), Illionois Tool Works (NYSE: ITW), Genuine Parts (NYSE: GPC), Medtroics (NYSE: MDT), Colgate-Palmolive (NYSE: CL), T Rowe Price (NYSE: TROW) and Franklin Resources (NYSE: BEN). CenturyLink (NYSE: CTL) is the one deletion.
The changes are effective after the close of business December 16, 2011.
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