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Dividend Aristocrats: Income Growth Over Time + Historical Outperformance

  • As trade tensions continue to plague financial markets, investors are looking for high quality investments that can still deliver.
  • This artlce examines the ways in which holding a diverse portfolio of dividend paying, high quality blue chip stocks can help to provide investors some much needed stability.
  • Contains November Performance Highlights.

In this review, Durig examines the ways in which holding a diverse portfolio of dividend paying, high quality blue chip stocks can help to provide investors some much needed stability.

Performance Highlights

(all performance is reported net of fee, as of 11-15-19)
  • Lifetime Return of 14.06%
  • Average Dividend Yield of 3.34%

Quality Investments That Deliver

As trade tensions between the US and China continue to plague financial markets, investors are looking for high quality investments that can still deliver.

Durig has found the solution; blue chip dividend stocks.

High quality blue chip dividend stocks such as those held in Durig’s Dividend Aristocrats Portfolio can offer a plethora of benefits to investors in tough markets.

Resilient Under Pressure

A recent article on low risk investments discusses the strengths of a Dividend Aristocrats Strategy:

“The classic risk-free investment is Treasury securities, but even they carry some degree of price risk from changes in interest rates. However, among stocks, those that pay consistent dividends tend to be a bit more stable and less volatile than some others.

“There is a group of stocks labeled the Dividend Aristocrats that have increased their dividend payout level for at least the past 10 years. While their yield may or may not rank at the highest level, these companies tend to be strong performers with solid management.

Durig’s Dividend Aristocrats Portfolio encompasses the Dividend Aristocrat approach, opting for stability in tough markets rather than the highest yield. By selecting reputable blue chip companies with long track records of consistent performance and dividend increases, Durig has created a portfolio that can help to produce stability and income growth over time, while still allowing investors to sleep peacefully at night.

Strong Fundamentals & Shareholder Focused

In another recent article, Kieran Kirwan, Director at ProShares, pointed out the erratic nature of volatility and looked to quality dividend strategies as one method to assist portfolios in smoothing out drastic moves :

“There are common traits that define high quality companies that grow their dividends. They tend to have long histories of profit and growth. They typically have strong fundamentals and stable earnings. And their strength comes from the top, from management teams with conviction and a firm commitment to shareholders,” Kirwan explained.

“Dividend-paying companies have exhibited a history of outperforming the markets. Since 1960, dividends have contributed approximately 33% of the S&P 500’s total return.”

Companies that tend to pay out higher dividends from their retained earnings are generally thought to be increasing value to shareholders.  This is a very important element of Durig’s Portfolio, as the dividends captured are expected to increase over time, which in turn should produce growth of income over time.

Performing as Designed

In addition to the Dividend Aristocrats outperforming its peers, to date, it has done an excellent job of accomplishing what it set out to do: income stability and growth over time.

The high level of dividend income (over 3%, and expected to increase over time) in addition to the growth potential from price movement of the blue chip stocks the Dividend Aristocrats holds, has created a total lifetime return of 14.06%, nearly 4% more than the S&P 500 over the same period, and with less historical volatility (meaning a smoother ride for investors).

Another key benefit of the portfolio is portfolio diversification and income diversification. The wide variety of high quality blue chips contained in Durig’s Dividend Aristocrats operate in various, often non-correlated industries so that if any one particular market sector is in turmoil, the remaining portfolio holdings in other sectors should still perform as expected, helping to dampen any sharp blows to the portfolio.  Income diversification is another key merit of this portfolio, as the diversity of high quality dividends that continuously flow into the account can help to supplement and reduce reliance on existing income streams.


Blue chip companies are very large, established firms with a strong track record of consistent growth and stable earnings, and historically, have consistently proven their ability to recover from market downturns.

In essence, Durig’s Dividend Aristocrats Portfolio captures only the higher quality dividends of blue-chip companies with a long history (25 years +) of maintaining consistent dividend growth.  Through this approach, Durig believes it has designed a portfolio that should produce income stability and growth of  income over time.

For those seeking income stability and peace of mind in the midst of today’s uncertainty, Durig’s Dividend Aristocrats Portfolio may be a potential solution with professional management, all at a very low cost.

For More Information

If you have any questions or would like further information Durig’s Dividend Aristocrats Portfolio, please call Durig at (971) 327-8847, or email us at info@durig.com.

Durig Capital has several high yield portfolios available, click below to learn more.

Fixed Income 2 – FX2
Dividend Aristocrats
Income Aristocrats
Dogs of The Dow
Dogs of The S&P 500

Disclaimer: Past performance is no indication of future success. Any performance shown is this publication is as of 11-15-19. * The Primary Benchmark used is S&P 500 TR Idx. The high yield strategies presented in this review by Durig Capital may not be suitable for all investors.  This is not investment advice from Durig Capital, nor a specific recommendation to buy or sell securities. If you have any questions or concerns about its suitability for your personal investment, you should seek specific investment advice from a registered professional before making an investment decision.