Dividend Aristocrats, sometimes referred to as just “Aristocrats”, are stocks that have raised their dividend for consecutive years for 25 or more years. To qualify for this title, the securities must be a member of the S&P 500. Although dividend Aristocrats tend to be old, established companies, they can also include some relatively young stocks.

Investors seeking stocks with a long track record of dividend growth often turn to dividend Aristocrats as the go-to source of income. Aristocrats have by definition been able to maintain steady profits in good times and bad, providing safety for the shareholders and total return potential for long-term investors. These dividend paying stocks provide a share of the profits to their shareholders in the form of a dividend. Generally, dividend Aristocrats are seen as strong investments as they provide more income than bonds, and also have more of a total return potential.

A dividend Aristocrat is well-suited to buy-and-hold investors, as it requires very little work to maintain and no rebalancing is often required. This is a great benefit that investors in mutual funds and ETFs don’t get. Investing in dividend Aristocrats also helps the investor avoid chasing performance by putting the focus on long-term reinvestment of dividends.

To be chosen as an Aristocrat stock, a company must have a long history of increasing dividends for at least 25 consecutive years. While most companies focus on growing their business in the short-term, Dividend Aristocrats are companies with a long-term focus. They are often considered some of the best companies in their industries, with a long track record of consistent profits and dividend growth. These stocks can provide steady income with minimal effort for investors of all kinds, from long-term growth investors to those seeking steady income.

Dividend Aristocrats are often some of the most stable stocks in the S&P 500 that are largely recession-proof and can continue to pay dividends without fail even during harsh economic times. Aristocrats typically offer stocks with low volatility, comparatively predictable dividends and low risk of dividend cuts. This type of stock is ideal for investors who are looking for steady income and a reliable source of capital appreciation.

Thus, if you're looking for a safe and steady source of income with little effort on your part, investing in Dividend Aristocrats can be a smart choice. With the right research, you can find the right aristocrats that may provide steady income that is reliable and relatively low in volatility.