Investment strategy focused on stocks paying regular dividends (quarterly cash distributions), appealing to income-seekers and retirees. Dividend Aristocrats (S&P 500 companies with 25+ years of dividend increases) became quality benchmark.
Popular Dividend Stocks
- Coca-Cola (KO): 60-year dividend growth streak, 3% yield
- Johnson & Johnson (JNJ): 60-year streak, healthcare stability
- Procter & Gamble (PG): 65+ years, consumer staples
- Realty Income (O): “The Monthly Dividend Company,” REIT paying monthly
- AT&T (T): 7-8% yield (pre-2022 cut), telecom dividend darling turned cautionary tale
Dividend Growth Investing (DGI)
r/dividends community (300K+ members) focused on companies raising dividends annually. Strategy: reinvest dividends (DRIP) to compound holdings. Portfolio tracking became ritualistic—spreadsheets showing projected annual income growth.
2020-2022 Dividend Cuts
Pandemic forced dividend suspensions:
- Boeing: Suspended after 737 MAX + COVID
- Disney: First cut since 1930s
- AT&T: Slashed 47% in Warner Media spinoff (2022)
Reminded investors dividends aren’t guaranteed; total return (price appreciation + dividends) matters more than yield chasing.
Sources:
- Dividend Aristocrats list (S&P)
- r/dividends community case studies
- Seeking Alpha dividend analysis