Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Dividend Achievers

What it is:

The term "dividend achievers" is used to describe an elite group of companies that have improved their annual regular dividends for at least 10 consecutive years and meet certain liquidity requirements. 

How it works (Example):

Additional eligibility requirements for dividend achievers include: 1) being listed in the NYSE or Nasdaq and 2) having a minimum average daily cash volume of $500,000 per day for the months of November and December prior to the Index's reconstitution date. 

If a company meets these requirements they qualify for the Broad Dividend Achievers™ Index. They do not have to be on the S&P 500 list to qualify.

The Broad Dividend Achievers™ Index was created by Mergent and is now overseen by its subsidiary Indxis. The index has been published by the American Stock Exchange (ASE) under the ticker symbol DAA since December 5, 2003. (Source: http://www.indxis.com/USBroad.html)

There are now several Dividend Achievers Indices, including:

U.S. Broad Dividend Achievers™ Index -- this index is comprised of U.S.-incorporated companies that have improved their annual regular dividends for at least 10 consecutive years and meet certain liquidity requirements.

Broad Canadian Dividend Achievers™ Index -- this index tracks Canadian companies that trade on a major Canadian exchange and have increased their annual regular dividends for at least five consecutive years.

BuyBack Achievers™ Index -- this index tracks U.S. companies that trade on NYSE or Nasdaq and have bought back 5% or more of its common stock within the last 12 months.

The Dividend Achievers Select™ Index -- this index tracks the performance of U.S. dividend achievers who also meet additional standards of stock liquidity and investibility.

UK Dividend Achievers™ Index -- this index tracks U.K. companies that have improved their annual regular dividends for at least five consecutive years.

The Dividend Achievers 50™ Index -- this index tracks the 50 highest-yielding stocks on the Broad Dividend Achievers Index.

International Dividend Achievers™ Index -- this index tracks companies incorporated outside the U.S. that trade on the NYSE, Nasdaq or London Stock Exchange and that have improved annual regular dividends for at least five consecutive years.

NASDAQ Dividend Achievers™ Index -- this index is designed to track dividend achievers companies who trade on the Nasdaq.

Select Canadian Dividend Index™ -- this index is comprised of companies from the Broad Canadian Dividend Index who also meet additional standards of average daily cash volume, indicated annual dividend (IAD) yield, and market capitalization.

The High Growth Rate Dividend Achievers™ Index -- this index filters the Broad Dividend Achievers Index to the 100 stocks with the fastest-growing dividends -- showing investors a snapshot of the market's most active and aggressive dividend achievers.

Why it Matters:

A recent Ibbotson study reported that reinvested dividends accounted for 40% of total stock returns from 1926 to 2006. Because dividends can be very profitable, it makes sense for individual investors to keep an eye out for companies with sizable, regularly growing dividends. The Dividend Achievers Indices make it easy for investors to identify and track companies that have successful dividend policies.  

Read on to find out: How to Create a Stream of Lasting Dividend Income.

And don't miss these 4 Steps to Finding the S&P 500's Safest Dividend.