{"id":1816721,"date":"2019-03-19T10:28:16","date_gmt":"2019-03-19T09:28:16","guid":{"rendered":"https:\/\/www.newzyexecutive.fr\/dividend-aristocrats-achieving-long-term-stock-market-gains\/"},"modified":"2026-05-05T08:44:13","modified_gmt":"2026-05-05T07:44:13","slug":"dividend-aristocrats-achieving-long-term-stock-market-gains","status":"publish","type":"post","link":"https:\/\/www.newzyexecutive.fr\/en\/dividend-aristocrats-achieving-long-term-stock-market-gains\/","title":{"rendered":"Dividend Aristocrats: Achieving Long-Term Stock Market Gains"},"content":{"rendered":"

When I speak with those uninitiated in stock market investing, they do not always grasp the value of dividends, focusing instead immediately on growth stocks. I then attempt to explain that investing solely in growth stocks is a short-to-medium-term strategy that is generally risky. This allows me to introduce them to my own investment strategy: dividend aristocrats.<\/p>\n

Dividends and their significance<\/h2>\n

The first question that will likely come to mind is: what is a dividend? Simply put, a dividend is like a rental payment that a company pays you every year because you hold shares in that company. The dividend amount is determined by the Board of Directors.<\/p>\n

Example:<\/em><\/p>\n

If you hold a share in company “X”, the dividend is set at \u20ac1. Therefore, you will receive \u20ac1 per share held each year; if you own 20 shares, you will receive \u20ac20.<\/p>\n

It is important to note that when a dividend is distributed, a portion of your share value is consumed. In effect, the dividend is not paid as an additional amount, but is instead deducted from the share price.<\/p>\n

Example:<\/em><\/p>\n

You still hold your shares in Company X. On January 1, the share price is \u20ac10; on January 5, the dividend goes ex-dividend, meaning your share value is now \u20ac9, and \u20ac1 has been credited to your brokerage account.<\/p>\n

And you might be thinking, “But then there’s no point!” On the contrary, there is! History has shown that high-dividend stocks tend to be more resilient than those that do not pay them. Furthermore, dividend-paying stocks are generally less volatile, as investors typically select them for long-term holdings… But there is even better! There are the dividend aristocrats!<\/p>\n

Who are the dividend aristocrats?<\/h2>\n

For a stock to be classified as a dividend aristocrat, it must meet three simple and clear criteria:<\/p>\n

    \n
  1. An annual and continuous increase in annual dividends for at least 10 years (while 25 years is the standard for U.S. equities, 10 years already provides a solid foundation)<\/li>\n
  2. A daily trading volume of at least $5 million<\/li>\n
  3. A market capitalization of at least $3 million<\/li>\n<\/ol>\n

    I will focus exclusively on the French stock market here, specifically the CAC 40, as it is my primary area of expertise. Below is the list of French companies recognized as dividend aristocrats. If you believe another company deserves a spot on this list, please feel free to suggest it in the comments, and I will update the article accordingly:<\/p>\n