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Announcer: 00:00 You’re
tuned in to the Investing for Beginners podcast. Finally, step-by-step premium
investment guidance for beginners led by Andrew Sather and Dave Ahern, to
decode industry jargon, silence crippling confusion and help you overcome
emotions by looking at the numbers, your path to financial freedom starts now.
Dave: 00:37 All
right folks, well welcome to Investing for Beginners podcast. This is episode
120 tonight Andrew and I are going to talk about about the dividend aristocrat
list, and there were four new companies added in 2019, and we wanted to take a
little brief overview of those four companies to kind of fill you in on some of
the companies are added to that list. So for those of you who are not familiar
with what a dividend aristocrat is, a dividend aristocrat is a company that has
been paying a growing very key growing dividend for 25 years is listed in the s
and p 500 and has met certain liquidity and market cap restrictions. And there
are 57 companies I believe, that are considered dividend aristocrats right now.
And there are also dividend kings, but where those are 50 years or more. But
tonight we’re going to talk about dividend aristocrats. These are the more
popular ones, and these include companies like Disney, Hormel, things of that
Dave: 01:36 So
these are great companies that have been paying a dividend and growing dividend
for 25 years. And these are some companies that could be fantastic investments
for you if you know when to get into them and what to look for in the
companies. Now keep in mind, these are, some of these companies are not always
going to be great investments. They could be overvalued at a particular time.
So they may not be the right thing for you to invest in, but they certainly
would be worthy of putting on a waitlist or a watch list to keep your eye on in
case the market takes a downturn, and you would have an opportunity to buy into
some of these when they would be cheaper for you. So without any further ado,
why don’t we go ahead and chat. Andrew, why don’t you talk about one of the
Andrew: 02:21 Yeah.
So what, so first of all, what I find interesting about like the dividend
aristocrats lists in general, you mentioned there’s 57 of them. So if we do
some quick back of the Napkin math on that, there’s what, 500 companies in the
s and p 500 now? I don’t know if all of the dividend aristocrats. Oh, they are.
Okay. So first off, dividend, the rest of [inaudible]. That term itself is kind
of, and there’s no like official thing behind it. It’s just something that kind
of got popular. Secondly, I believe that the definition based on what my
sources here say they are s and p 500 companies. So if you kind of think about
that, that math 50 out of 500 we’re talking about 10% of the s and p 500 give
or take is a dividend aristocrat. So I find that to be very inspiring because
it kind of shows that it’s not this mythical creature.
Andrew: 03:18 It’s
not like a year Unicorn. The these are though it’s not every company like Dave
said, and though, you know, some of this, yeah, we’re looking at it with
hindsight, and so it might’ve been better to buy these earlier than later. The
fact that such a large portion of it, relatively of stocks we’re able to do
this I think is very, very encouraging. I think it’s very reasonable to think
that as an investor and the average investor who, who’s looking at stocks, that
you could have a couple of these in your portfolio. You could maybe pick one
that continues to be on that list 10, 20, 30 years from now and pick stocks
that haven’t made it yet. But we’ll make it Disney is one of those or they;
they’re, they’re not on the list, just so we’re clear. But a Hormel Coca-Cola,
Proctor, and Gamble, the kind of stocks we do talk about all the time, those
are on the list and have crane of fantastic rewards for shareholders.