By Brian Nelson, CFA
At Valuentum, we know that forward-looking dividend analysis and opinion is all that matters for most income investors. That’s why we’ve provided the following screen of key constituents in the SPDR S&P Dividend ETF (SDY) and their forward-looking Dividend Cushion ratio. After all, the past is just the past. The future is what counts.
The SPDR S&P Dividend ETF is a fund that tracks the the S&P High Yield Dividend Aristocrats Index, which is “designed to measure the performance of the highest dividend-yielding S&P Composite 1500 Index constituents that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 consecutive years.”
To access either the 16-page stock report or the dividend report of each firm in the following modified ‘Aristocrats’ screen, please select the word ‘Download’ in the desired column in the table below. Generally, there are two distinct reports for each company in the screen. You can also access both reports for each company by using the ‘Symbol’ search box in the website header to arrive at the desired company’s landing page.
Importantly, please don’t forget to monitor the forward-looking Dividend Cushion ratio for each company over time. Just having access to this measure alone could save your income portfolio thousands of dollars.
Remember: A Dividend Cushion ratio comfortably above 1 indicates that we think the firm can pay out its expected future dividends with future free cash flow after considering its capital structure over the measurement period, while a Dividend Cushion ratio significantly below 1 signals that we think there may be abnormal risks on the horizon. We update the Dividend Cushion ratio on firms frequently, so please be sure to check the ratio on companies in your portfolio periodically (at least on a quarterly basis).
<< More on the Dividend Cushion Ratio
Important Note: The data and rankings below are updated frequently and are current as of the date of this article. Valuentum may have updated the stock and dividend reports of companies after the published date of this article. Members should view the rankings in this article as a starting point for further research and always access the individual stock page of each desired company on our website for its most recent ratings, metrics, and valuation information. If you have any questions about our services, please contact us at info@valuentum.com.
| Company Name | Symbol | Industry | Div Cushion | Stock Report | Dividend Report |
| 3M | MMM | Conglomerates | 1.8 | ||
| Abbott | ABT | Pharmaceuticals – Big | 2.7 | ||
| AbbVie | ABBV | Pharmaceuticals – Big | 1.0 | ||
| ACE Limited (bought out) | ACE | Insurance – Property & Casualty | NA | acquired | |
| Aflac | AFL | Insurance – Accident & Health | NA | ||
| Air Products & Chemicals | APD | Chemicals – broad | 1.7 | ||
| Albemarle | ALB | Chemicals – mid/small | 3.8 | ||
| AO Smith Corp | AOS | Electrical Equipment – industrial | NA | ||
| Aptar | ATR | Containers & Packaging | 2.7 | ||
| Archer-Daniels-Midland | ADM | Food Products – Large | 1.9 | ||
| AT&T | T | Telecom Services – diversified | 0.0 | ||
| Automatic Data Processing | ADP | Staffing Services | 7.0 | ||
| Becton, Dickinson | BDX | Medical Instruments | 1.8 | ||
| Bemis | BMS | Containers & Packaging | 0.0 | ||
| Brown-Forman | BF.B | Beverages – alcoholic | 1.5 | ||
| C. R. Bard (bought out) | BCR | Medical Instruments | NA | acquired | |
| Cardinal Health | CAH | Wholesale Drug Providers | 2.8 | ||
| Caterpillar | CAT | Machinery – agriculture | 1.5 | ||
| Chevron | CVX | Major Oil & Gas | 0.9 | ||
| Cincinnati Financial |