If you have been looking at dividend investing as an income generating option you have probably run across the term “dividend aristocrat“.
The stocks carry a unique title, but often it is not explained as to what exactly a dividend aristocrat is.
Should this be a type of stock that a dividend investor should target? Or do you want to avoid Dividend Aristocrats?
What is a Dividend Aristocrat Stock?
A dividend aristocrat stock is a stock that has raised its dividend to shareholders for a minimum of 25 years straight. There are a limited number of stocks that make this achievement over a long period of time.
To consistently raise your dividend to investors every year for decades is a solid commitment to returning value to your shareholders.
Why Invest in Dividend Aristocrats?
It is great to get higher dividends as an investor, but is that the only reason to invest in these special stocks?