Dividend Aristocrats have paid out increasing dividends for 25 years or more - and you don’t earn that distinction by simply being a run-of-the-mill company. No, Dividend Aristocrats are the poster child for financial strength, solid foundations, shareholder-centric policy, and, of course, consistent income.
Of course, there’s a tradeoff. To maintain that streak of increases, the company must balance earnings with payouts. You can’t pay out too much and leave nothing for the company to grow further. On the other hand, a company paying too little may not be noticed by most dividend investors.
