Nov. 9, 2025, marks the 20th anniversary of the S&P High Yield Dividend Aristocrats Index, a milestone that highlights both its longevity and its unique methodology. Since its launch, the index has been dedicated to identifying companies in the S&P Composite 1500® with a proven commitment to returning capital to shareholders through steadily rising dividends.
To qualify, each constituent must demonstrate 20 consecutive years of dividend growth—a rigorous requirement that helps ensure resilience, discipline and long-term value creation.
The 20-year anniversary is especially meaningful because it mirrors the very standard at the heart of the index, celebrating two decades of performance built on the strength of companies that thrive through consistency.
1. How does the index’s long-term dividend growth screen help identify higher quality companies?
Long-term dividend growth is often viewed as a key indicator of quality, as it reflects a company’s ability to consistently generate and return excess cash to shareholders across varying economic environments. Companies that increase dividends over decades must navigate recessions, industry disruptions and competitive pressures while continuing to deliver value to shareholders. Sustained dividend growth signifies resilience, prudent management and a durable business model, which is why the S&P High Yield Dividend Aristocrats Index tends to track higher-quality companies and exhibit defensive characteristics.
2. What is the dividend growth profile of the current constituents?
Almost one-half of the constituents have raised their dividends for over 30 years, with around 40% achieving this milestone for 40 years or longer. Furthermore, 38 companies, representing one-quarter of the constituents, have raised their dividends for more than 50 years. These impressive track records highlight these companies’ long-standing commitment and capacity to return increasing amounts of capital to their shareholders over multiple decades.
3. What would USD 100 tracking the index since its inception 20 years ago have grown to today?
Assuming dividends were reinvested, USD 100 tracking the S&P High Yield Dividend Aristocrats Index since Nov. 9, 2005, would have grown to USD 566.75 by Aug. 31, 2025. This represents an impressive growth of 467% over the past 20 years.
