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Who is the Dividend Achievers?

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Following the introduction of Dividend Kings (companies that have increased dividends for over 50 consecutive years) and Dividend Aristocrats (companies that have increased dividends for over 25 consecutive years), today we will delve into the Dividend Achievers—U.S. companies that have consecutively increased dividends for 10 to 24 years.

Similar to Dividend Kings and Aristocrats, the consistent history of dividend growth indicates exceptional management stability, cash flow generation, and market competitiveness in these companies.

1. What Are Dividend Achievers?

1. Definition and Background

Dividend Achievers are U.S.-listed companies that have consecutively increased their dividends for 10 to 24 years.
They form a tier below Dividend Aristocrats (25+ years) and Dividend Kings (50+ years) in terms of long-term dividend growth history.

2. Importance

The achievement of raising dividends for over 10 years reflects a company’s commitment to a stable and shareholder-friendly dividend policy.
While they may not yet meet the 25-year threshold of Aristocrats, these companies are often considered to have stable business models and solid financial structures.

3. Investment Benefits

  • Entry into Long-Term Dividend Growth: Although their track record is shorter than Dividend Aristocrats or Kings, Dividend Achievers could evolve into long-term dividend-growth stocks.
  • Dividend Yield vs. Growth Potential: Compared to Aristocrats, their stock prices may be less fully priced, providing opportunities for both dividend yield and price growth.

2. Characteristics of Dividend Achievers

1. Consistent Dividend Growth Over 10–24 Years

Maintaining dividend increases for 10–24 years, without a single cut, signifies the ability to sustain stable cash flows and financial stability despite economic recessions or industry shifts.

2. Companies in Growth + Maturity Stages

Some Achievers, like established giants, have a strong foothold, while others, relatively younger, are rapidly increasing dividends due to technological innovation and market expansion.
This offers a balanced mix of stability and growth potential.

3. Sector Distribution

Dividend Achievers span across various sectors, including consumer staples, industrials, financials, healthcare, and technology. Unlike Dividend Kings or Aristocrats, heavily concentrated in staples and healthcare, Achievers may also include tech or emerging industry companies.

3. Representative Companies

1. Microsoft (MSFT)

  • Years of Consecutive Dividend Growth: 20+
  • Core Business: Operating systems (Windows), cloud services (Azure), Office 365, etc.
  • Highlights:
    • Initially recognized as a growth stock, Microsoft introduced dividends in the late 2000s.
    • With steady performance in the booming cloud sector, dividend increases have been consistent.

2. Goldman Sachs (GS)

  • Years of Consecutive Dividend Growth: 13+
  • Core Business: Investment banking, asset management, and trading.
  • Highlights:
    • Strong performance across financial services has enabled consistent dividend increases.
    • A leader in adapting to shifts in global financial markets.

3. The Home Depot (HD)

  • Years of Consecutive Dividend Growth: 14+
  • Core Business: The largest home improvement and building materials retailer in the U.S.
  • Highlights:
    • Performance varies with housing market trends, but Home Depot retains a dominant market share.
    • Consistent dividend growth for over a decade.

4. Avery Dennison (AVY)

  • Years of Consecutive Dividend Growth: 10+
  • Core Business: Labeling, packaging materials, and barcode solutions.
  • Highlights:
    • Generates steady cash flow from global dominance in labeling and stickers.
    • Reliable dividend increases make it a noteworthy Achiever.

5. Lam Research (LRCX)

  • Years of Consecutive Dividend Growth: 11+
  • Core Business: Semiconductor equipment manufacturing.
  • Highlights:
    • A leader in semiconductor equipment, introduced dividend policies in the 2010s.
    • Though volatile due to industry cycles, it has sustained annual dividend growth.

6. American Electric Power (AEP)

  • Years of Consecutive Dividend Growth: 15+
  • Core Business: Electricity generation and utilities (serving the U.S. Midwest and South).
  • Highlights:
    • As a defensive utility sector company, AEP maintains stable cash flows and consistent dividend payouts.
    • Attractive for mid- to long-term investors.

7. BlackRock (BLK)

  • Years of Consecutive Dividend Growth: 15+
  • Core Business: Asset management, ETFs (iShares), and institutional investment services.
  • Highlights:
    • As the largest asset manager globally, BlackRock dominates the ETF market.
    • Consistently generates profits through fee-based business models, allowing reliable dividend increases.

4. Investment Advantages and Considerations

1. Advantages

  • Consistent Dividend Growth: A positive signal of financial stability and future growth potential.
  • Long-Term Growth Potential: Achievers are younger than Aristocrats or Kings but have the potential to reach those tiers, evolving into long-term dividend-growth stocks.
  • Dividend + Price Appreciation: Stock prices may not yet fully reflect the growth potential, offering both yield and price growth opportunities.

2. Considerations

  • Shorter Dividend History: Compared to Aristocrats (25+ years), Achievers have a shorter record and a higher risk of halting dividend growth.
  • Sector-Specific Risks: Many Achievers operate in cyclical industries like tech or semiconductors, posing risks during downturns.
  • Dividend Yield Volatility: Dividend yield may fluctuate due to stock price movements or smaller increases in payout.
  • Diversification: Over-concentration in a single stock or sector should be avoided, with investments spread across multiple industries.

Conclusion

Today, we explored Dividend Achievers—companies with a record of increasing dividends for 10 to 24 years. While not as historically trusted as Dividend Kings or Aristocrats, they have shown stable dividend growth over a decade or more. This makes them promising dividend stocks with significant growth potential.

Among these, some will eventually rise to become Dividend Aristocrats or even Kings. Tracking their journey offers valuable investment opportunities for those seeking both stability and growth.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments carry risks, and readers should conduct their own research or consult a financial advisor before making any investment decisions.