Key Takeaways
- What are they?: Companies in the S&P 500 that have increased dividends for 25+ years straight.
- The Vibe: Boring, reliable, un-sexy wealth.
- The Power: Reinvesting dividends (DRIP) is the engine of compound interest.
Introduction
Tech stocks get the headlines. Boring stocks build the retirement.
While everyone is gambling on the next AI chipmaker, the Dividend Aristocrats are quietly selling toothpaste, soda, and bandages. And they are getting richer every year.
Deep Dive: The Royal Court of Cash Flow
Examples
- Coca-Cola (KO): Paying dividends since 1920. Increased for 60+ years.
- Johnson & Johnson (JNJ): Healthcare giant.
- Procter & Gamble (PG): They own Tide, Gillette, Pampers. People wash their clothes even in a recession.
Why It Works
It is a quality filter. You cannot fake cash. To raise a dividend for 25 years, a company must have a massive "moat" and excellent management.
- Resilience: In 2008, when the market crashed 50%, these companies increased their payout.
- Psychology: Getting paid cash every quarter helps you not panic-sell when the stock price drops.
The Strategy
Buy an ETF like NOBL (ProShares S&P 500 Dividend Aristocrats). It gives you all of them in one basket. Turn on "Dividend Reinvestment." Go to sleep for 20 years.
Summary
Slow money is better than no money. Be the tortoise.
