Given that the S&P 500 moved into correction territory this past week, it’s not surprising that every other article or podcast subject matter focuses on defensive stocks. A correction is a 10% decline from the previous peak. The growth oriented Nasdaq 100 was down about 14%. One article that caught my eye focuses on the U.S. Dividend Aristocrats index, and potentially the highest quality companies within that defensive index. The S&P 500 Dividend Aristocrats index tracks S&P 500 companies that have increased dividends every year for the last 25 consecutive years. The index has 69 constituents. Seeking Alpha indentified 10 stocks for consideration. Let’s check in on the Dividend Aristocrats on the Sunday Reads.
The S&P 500 Dividend Aristocrats index is up 1.05% year to date, outperforming the benchmark S&P 500’s 4.13% retreat. The U.S. market slipped into correction territory.
Dividend Aristocrats “Top Ten”
Here are the index’s top 10 constituents, ranked by their Seeking Alpha Quant rating:
10. Nucor (NYSE:NUE), Quant rating 2.92, market cap $30.45B, stock +13.2% YTD.
9. Essex Property Trust (NYSE:ESS), Quant rating 3.06, market cap $19.66B, stock +3.4% YTD.
8. Eversource Energy (NYSE:ES), Quant rating 3.14, market cap $22.52B, stock +6.9% YTD.
7. Kenvue (NYSE:KVUE), Quant rating 3.17, market cap $43.60B, stock +6.8% YTD.
6. Coca-Cola (NYSE:KO), Quant rating 3.37, market cap $297.46B, stock +11.1% YTD.
5. IBM (NYSE:IBM), Quant rating 3.37, market cap $230.29B, stock +13% YTD.
4. Brown & Brown (NYSE:BRO), Quant rating 3.39, market cap $33.80B, stock +15.9% YTD.
3. Johnson & Johnson (NYSE:JNJ), Quant rating 3.41, market cap $391.98B, stock +12.6% YTD.
2. AbbVie (NYSE:ABBV), Quant rating 3.44, market cap $373.85B, stock +19.2% YTD.
1. Consolidated Edison (NYSE:ED), Quant rating 4.15, market cap $36.89B, stock +19.3% YTD.
Seeking Alpha’s Quant system consistently outperforms the S&P 500 (SP500), driven by powerful computer processing and SA’s special ‘Quantamental’ analysis. It awards grades to stocks based on collective value, growth, profitability, earnings per share revisions, and price momentum metrics.
That’s an interesting list that is concentrated in the most defensive sectors for retirement – consumer staples, healthcare and utilities. From the beginning of this blog I have been writing about the defensive sectors and defensive stocks. Dividend Aristocrats are part of the mix in our U.S. stock portfolio.
Canadian utility stocks and ETFs.
In last week’s post the Dividend Aristocrats (NOBL) earned a mention by way of this Tweet …
Of course, you can buy the index ETF (NOBL) or you can select from the individual holdings. Keep in mind that NOBL is a U.S. Dollar ETF. The Aristocrats were a wonderful hedge through the dot com crash and during the finanical crisis.
I would certainly consider some of these Aristocrats, but I’m also very happy with our defensive stocks’ performance so far in 2025. There are 5 Aristocrats in the mix.
Also, I shared this Tweet looking at Berkshire …
Berkshire Hathaway is over 40% of my wife’s spousal RRSP. It’s had this effect. The purple line is the spousal account the red line is the S&P 500.
The Sunday Reads
Banker on Wheels offers a few posts, and podcasts trying to make sense of Trump’s global tariff war ‘strategy’. Like many I’ve done too much reading on the subject. I’d sum up my take and findings as …
The bad news is the tariff war will unleash economic destruction.
The good news is the tariff war will unleash economic destruction.
Because it’s bad economic policy the markets will push back and so will voters. We’re seeing the markets take the lead on that front. But of course, we don’t know how long this will take to play out. We don’t know what will be the extent of the damage and disruption as the global economy and trade alliances get a rewrite.
As always be prepared. Awareness is preparedness. A sensible balanced portfolio should be up for the job.
If you’re up for more reading here’s – Fifty days of grey from J.P. Morgan.
Banker also offers a review of Your money or your life. It’s one of the most well-known and well-read books on financial freedom.
And have a read of Guide to retirement, 2025 from J.P. Morgan.
The unretirement movement
More than one if four near-retirees plan to work in retirement to make ends meet writes Jonathan Chevreau. That’s the latest in Jon’s Retired Money series for MoneySense.
Here’s the link to the MoneySense article.
The MoneySense column also looks at more recent Retirement surveys that also reveal anxiety about rising costs of living. One is from Bloom Finance Co. Ltd., conducted by founder Ben McCabe after Trump’s Tariffs started to kick in this year.
A Bloom study conducted with Angus Reid found 46% of Canadians thinking of working part-time in Retirement. That’s in line with a Fidelity survey in 2024 that found half of Canadians plan to delay Retirement.
There’s a lot of anxiety when it comes to retirement and being retirement ready. That’s why it was a natural to create Retirement Club for Canadians. It’s a series of monthly Zoom Calls and newsletters. We also have our private and secure online community space where we learn, connect, share and chat – it’s our private island.
The mantra is Retirement Done Right.
We’re a few months into the journey and the second group of retirement clubbers is getting ready to set sail in April. It has been such an enjoyable experience so far. Use ‘Contact Dale’ on this page if you want more information.
And Friday was a good day for markets. A sign for the times …
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OUR SAVINGS ACCOUNTS
Make your cash work a lot harder at EQ Bank. RRSP and TFSA account rates are at 2.0%, other savings rates up to 3.05%. You’ll find some higher rates on GICs up to 3.65%. They also offer U.S. dollar accounts. We use EQ Bank, they have been awesome.
OUR CASHBACK CREDIT CARD
We make between $40 to $70 every month! And that’s on everyday spending. There are no fees with …
The Tangerine Cash Back Credit Card
For February we received $43.89 in cash. You can select 3 categories for 2% cash back. The rest pays at 0.50%. That’s one of our lowest spending levels of the last several years. Our fuel bill is way down and so is our grocery bill.
That cash went into my TFSA account to buy some CBIL.TO and VDY.TO.
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I’d like to join your Retirement Club. Love your blog and follow it regularly.
Thanks so much Kim. I will send you an email with some details.
Dale
Hey dale have a look at CMPV & SMVP from Hamilton ETf’s there like all star dividend growers for Canada and US , let me know what you think.
Thanks, I have had a look previously, and they do look good.
Dale
Would love some info on your Retirement Club
I have sent that info your way. Thanks for the interest, and hope to see you in Retirement Club.
Dale