posted on 06-06-2019

Dividend Achievers

Updated August 21, 2019

What are Dividend Achievers?

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 Do Dividend Achievers Work?

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 has been published by the American Stock Exchange since December 5, 2003.

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 Do Dividend Achievers Matter?

An 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.