Dividend Aristocrats vs Dividend Kings: What’s the Difference?

If you’re serious about dividend investing, you’ve probably heard the terms Dividend Aristocrats and Dividend Kings thrown around. Both groups represent companies with long histories of increasing dividends—but they’re not the same.

So what’s the difference between a Dividend Aristocrat and a Dividend King? And which one is better for your portfolio?

Let’s break it down in simple terms so you can invest with clarity and confidence.

What Are Dividend Aristocrats?

Dividend Aristocrats are companies in the S&P 500 index that have increased their dividend payouts for at least 25 consecutive years. To qualify, a company must also meet a few other criteria:

• Be part of the S&P 500
• Have a market capitalization of at least $3 billion
• Maintain a minimum average daily trading volume

These stocks are often found in stable sectors like consumer staples, healthcare, and industrials. They’re considered reliable and disciplined in returning capital to shareholders.

What Are Dividend Kings?

Dividend Kings go even further. These are companies that have raised their dividends for 50 or more consecutive years—regardless of whether they’re in the S&P 500.

That means some Dividend Kings are large-cap blue chips, while others might be smaller companies that fly under the radar but have an exceptional dividend track record.

To recap:

• Dividend Aristocrats: 25+ years of increases, must be in the S&P 500
• Dividend Kings: 50+ years of increases, no index requirement

Key Differences at a Glance

Feature	Dividend Aristocrats	Dividend Kings
Years of Dividend Growth	25+ years	50+ years
S&P 500 Membership Required?	Yes	No
Minimum Market Cap	~$3 billion	No strict minimum
Number of Companies (approx.)	65+	40+
Sector Focus	Large-cap, defensive sectors	Wide range, some lesser-known firms
Prestige	High	Even higher

Examples of Dividend Aristocrats

• Procter & Gamble (PG)
• Coca-Cola (KO)
• Johnson & Johnson (JNJ)
• PepsiCo (PEP)
• McDonald’s (MCD)
• 3M (MMM)

These companies are known for stable earnings, global presence, and strong cash flow.

Examples of Dividend Kings

• Lowe’s (LOW) – 60+ years of dividend increases
• Colgate-Palmolive (CL) – Over 60 years of growth
• Hormel Foods (HRL) – Dividend raised every year since the 1960s
• American States Water (AWR) – One of the longest dividend growth streaks at 70+ years

Some companies, like Procter & Gamble, are both Dividend Kings and Dividend Aristocrats, making them ideal for ultra-conservative income investors.

Which One Should You Choose?

It depends on your goals and risk tolerance. Here’s how to decide:

Choose Dividend Aristocrats if you want:

• Stocks that are well-known and widely covered
• Consistent income from large-cap S&P 500 companies
• Lower volatility during downturns
• A diverse selection across multiple sectors

Choose Dividend Kings if you want:

• A longer track record of dividend growth
• Exposure to lesser-known but reliable companies
• A chance to mix in mid-cap or niche leaders
• Ultra-conservative income strategies focused on safety

Can a Stock Be Both?

Yes. Many Dividend Kings are also Dividend Aristocrats. But not all Dividend Kings qualify as Aristocrats, especially if they’re not part of the S&P 500.

How to Invest in Them

You can buy individual stocks or use ETFs to get exposure to these dividend legends. Here are a few options:

• NOBL – ProShares S&P 500 Dividend Aristocrats ETF
• VIG – Vanguard Dividend Appreciation ETF (includes many Kings and Aristocrats)
• SCHD – Schwab U.S. Dividend Equity ETF (less strict but solid dividend focus)

Look into each ETF’s holdings and strategy to match your goals.

Frequently Asked Questions (FAQs)

Is one group safer than the other?
Both are considered safe, but Dividend Kings have a longer track record. However, Aristocrats may offer more diversification due to their size and sector spread.

Are Dividend Kings harder to find?
Yes. Fewer companies make it to 50+ years of growth. But that exclusivity can mean higher reliability.

Do Dividend Kings always outperform?
Not always. They tend to be steady, not flashy, and may underperform in bull markets but shine during volatility.

Do these stocks still grow in value?
Yes. Many offer long-term capital appreciation in addition to dividend income. Think of them as wealth builders with a cushion.

Are ETFs better than picking individual stocks?
ETFs offer diversification and simplicity. If you prefer to avoid researching every company, an ETF is a great choice.

Final Thoughts

When it comes to Dividend Aristocrats vs Dividend Kings, there’s no wrong answer—just different strategies. Dividend Aristocrats give you broad exposure to large-cap dividend growers, while Dividend Kings bring an elite level of long-term consistency.

Both are pillars of income-focused investing, and either one can help you build a strong, stable portfolio over time. Whether you lean toward safety, reputation, or diversification, there’s a place for these dividend giants in your plan.