Investing term

What is Dividend aristocrat?

An S&P 500 company that has raised its dividend for at least 25 consecutive years.

The long streak is evidence of durable cash flow through recessions, which is why aristocrats are prized by income investors (companies with 50+ straight years of raises are nicknamed 'Dividend Kings'). But the status is a track record, not a guarantee — AT&T lost its aristocrat standing in 2022 when a 36-year streak ended in a cut. Always confirm this year's cash still covers this year's payout.

Dividend aristocrat is taught hands-on in Stage 8 — Corporate Actions: What Lands in Your Account.

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Related terms

AcquisitionOne company buys another. The bought company's shares are converted to cash, acquirer stock, or a mix at the closing price.Carve-outA parent company sells part of a subsidiary in an IPO, keeping a stake.Corporate actionAny event initiated by a company that changes its securities or distributes value to holders.Cost basisWhat you originally paid for a holding, used to calculate gains and losses when you eventually sell.
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