As a global company, ADP is uniquely positioned to help companies with employees on multiple continents. Measuring the Dividend Payout Ratio of ADP Stock, Stock’s Valuation versus S&P 500 Technology (XLK), Investing in Emerson Stock, a 64 Year Dividend Aristocrat, General Dynamics Stock, a 28 Year Dividend Aristocrat, Kimberly Clark Stock, a 47 Year Dividend Aristocrat, McDonald’s Stock, a 40 Year Dividend Aristocrat, Best Dividend Stocks in S&P 500 Industrials (XLI) – Download Excel Spreadsheet. The copmany’s long-term earnings per share are shown in the image below: Source: Ycharts. ADP: Growth-Minded Dividend Aristocrat; ADP stock might not appeal to value investors, but the company’s strong growth helps offset a high valuation. Automatic Data Processing (ADP) belongs in the S&P 500 Dividend Aristocrats group. Automatic Data Processing (ADP) is a dividend aristocrat that has increased its dividend for 41 straight years. Updated on November 22nd, 2019 by Josh Arnold. It is a list of companies with stable businesses that have competitive advantages and have returned cash to shareowners consistently through dividends. Its reshaped business model will place greater emphasis on helping clients streamline their business functions, by investing in cloud-based software as a growth initiative. ADP provides a screenshot of compounded annual growth rate (CAGR) for its revenues over the last 10 years. Automatic Data Processing (ADP) might not be a household name, but it should be for dividend growth investors. Next, the increasingly complex regulatory environment creates significant compliance costs for businesses; this also helps provide ADP with steady growth. They are very popular amongst dividend investors as they have historically outperformed the S&P500 index and are less volatile than average. ADP has an above-average dividend yield and the company raises its dividend at a high rate. The S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years in a row. Rarely do investors find a combination of strong growth prospects and recession resilience, along with a world-class dividend increase streak. There are many other reasons why my filtering start with dividend companies, see my post on why I chose dividend investing. ADP has increased its dividend payments for 41 consecutive years, making the company a Dividend Aristocrat.The image below shows the company’s quarterly dividend history … This rise is at a compounded annual growth rate (CAGR) of almost 13% which is just spectacular! Rock-solid dividend aristocrats you can bank on. To be included in the Dividend Achievers Index, a stock must be a member of the S&P 500 and meet certain size and liquidity requirements. Its most recent increase came in November 2019, when the company implemented another very strong 15% raise. ADP has produced strong growth in recent years and we expect that will continue. Revenue grew 6% year over year from 2018’s total of $13.35 billion. ADP has produced strong growth in recent years and we expect that will continue. In the 70 years since, ADP has grown into the leading payroll and human resource outsourcing company. Its most recent increase was on November 8 th, 2016, when the company announced a solid 7.5% raise.. ADP is a member of the Dividend Aristocrats, a group of 51 stocks in the S&P 500 Index, with 25+ years of consecutive dividend increases. To qualify for membership in the S&P 500 Dividend Aristocrats index, a stock must satisfy the following criteria: Find the latest dividend history for Automatic Data Processing, Inc. Common Stock (ADP) at Nasdaq.com. Automatic Data Processing, or ADP for short, has raised its dividend each year for 42 years in a row. These ... McDonald’s Stock is a member of the elite S&P 500 Dividend Aristocrats index. Details . Automatic Data Processing (NASDAQ:ADP) Dividend Information Automatic Data Processing pays an annual dividend of $3.72 per share, with a dividend yield of 2.20%. Dividend Aristocrat #7: Federal Realty Investment Trust (FRT) 5-year Expected Annual Returns: 10.4% Regulations continue to increase and become more complex. The company recently reported fiscal 2020 first-quarter earnings, which was another terrific quarter. ADP Dividend History. In addition, the stock has a current dividend yield of 2.1%. This is about 20 basis points higher than the dividend yield paid by the S&P 500 index. Indeed, ADP’s moat keeps competitors at bay, and leads to high levels of profitability. In fact, ADP is the only Dividend Aristocrat in the information technology sector. Below chart shows year over year growth in ADP’s dividend since 1990. The company has grown its diluted earnings per share from $2.4 in 2010 to $5.24 in 2019, representing a compounded annual growth rate (CAGR) of 8.1%. Hikes have averaged a modest 5.2% over the … The company has undergone a significant restructuring in recent years. Each stock has increased its annual dividend 25 or more consecutive years. ADP has been paying dividends since 1974, and has been increasing them annually since 1975. ADP has one of the longest streaks of dividend increases in the stock market. For full year 2019, ADP generated $14.2 billion in revenues and earned a net income of $2.3 billion, implying a 16.2% net profit margin. In its Investor Presentation, the company gives a top line overview of its operations. ADP stock is … Rapidly advancing technology makes building a durable competitive advantage in the IT sector difficult. The S&P 500 Dividend Aristocrats Index, ... the individual stocks in the Aristocrats Index that have outperformed the S&P 500 by wide margins so far in 2018 are ADP and Sysco. For 2020, we had seven additions and no deletions. Over the last decade, ADP Stock has gained 509% handily beating the performance of the S&P 500 which has gained 198%. The strongest gains continue to accrue from the PEO Services segment, and we believe ADP will produce 8% earnings-per-share growth annually in the coming years. The company is the dominant player in the payroll and human resources industry and offers shareholders safety due to its competitive advantages and conservative balance sheet. This number sits at a healthy 7% clip. The S&P Dividend Aristocrats Stocks List is a group of companies that have paid and increased dividends for 25 years or more. So they have both a reliable history of paying a dividend (25 years uninterrupted!) There are 64 Dividend Aristocrats. According to its Investor Relations site, the company has grown its dividend from 8 cents per share in 1990 to $3.28 in 2019. There are 60 symbols in this channel. ADP is a member of the S&P 500 Dividend Aristocrats index since it has raised its dividends for 45 years in a row, without missing a single year. Automatic Data Processing has a long history of paying and raising its dividend. The Canadian Dividend Aristocrat list serves as a screen for further investigating a stock for a dividend growth portfolio. ADP is a member of the Dividend Aristocrats, a group of 57 stocks in the S&P 500 Index, with 25+ years of consecutive dividend increases. These 7 stocks represent attractive long-term buys for dividend growth investors. ADP enjoys tremendous scale that its competitors cannot match. Earnings-per-share came in at $1.34 on an adjusted basis, which represented a 12% gain against the comparable period last year. But ADP stock would be an attractive buy on any meaningful pullback in the share price, which would result in a lower valuation and higher dividend yield. We forecast adjusted earnings-per-share of approximately $6.16 for fiscal 2020. ADP has raised its dividend each year for 45 years in a row. The new quarterly dividend rate of $0.93 per share will be distributed on January 1, 2021 to shareholders of record on December 11, 2020. It is rare to find a company that has a mix of growth and dividends, but Automatic Data Processing (ADP) is a growth-oriented Dividend Aristocrat. The S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years in a row. This streak qualifies ADP as a Dividend Aristocrat. According to its Investor Relations site, the company has grown its dividend from 8 cents per share in 1990 to $3.28 in 2019. Automatic Data Processing pays an annual dividend of $3.72 per share, with a dividend yield of 2.20%. The most recent price for ADP’s stock can be accessed by going to the company’s Investor Relations website and clicking on “Stock Information.”, “The philosophy of the rich and the poor is this: the rich invest their money and spend what is left. ADP pays its dividends quarterly. ADP has raised its dividend each year for 45 years in a row. Its most recent increase came in November 2019, when the company implemented another very strong 15% raise. This indicates the stock looks reasonably valued today. Dividend Aristocrats are S&P 500 stocks that have increased their dividend payouts for 25 consecutive years or more. ADP Stock has consistently grown its dividend for 45 years in a row, which is nothing short of spectacular. Pillar #3: Global Solutions is expanding ADP’s operations globally and currently operats in 140 countries. Click here to download your Dividend Aristocrats Excel Spreadsheet List now, 2008 earnings-per-share of $2.20 (20% increase), 2009 earnings-per-share of $2.39 (8.6% increase). In 2014, ADP spun off its human capital management business, which now trades as CDK Global (CDK). The company processed $2.1 trillion of payroll and taxes for its clients in 2019, which is a massive number. I'm an administrator that manages payroll, benefits or HR Online access, questions, about paystubs, W2, … Management has provided outlook for 2020 fiscal year where revenues are expected to grow between 6% to 7% led by PEO Services which is expected to grow 9% to 11%. ADP's most recent quarterly dividend payment was made to shareholders of record on Friday, January 1. Free cash flow is the cash a company generates from its daily operating activities minus capital expenditures like investing in new plants or equipment. ADP provides services including payroll, benefits administration, and human resources management, to companies of all sizes. Buying shares of a dividend aristocrat ETF can help you invest in dividend aristocrat stocks more easily and cheaply. Information Technology. Lets calculate the the dividend payout ratio for ADP Stock. The list includes the US Dividend Aristocrats and Kings. ADP Stock has grown from $5 in January 1990 to $178 as of January 2020. The good news is that the company is growing at a high enough rate that it could help justify something close its current valuation. This number of annual dividend increases makes ADP a Dividend Aristocrat. The annual forward dividend is the most recent quarterly dividend approved by ADP’s board of directors. A Dividend Aristocrat is a company in the S&P 500 index that has paid increasing dividends for at least 25 years. ADP started paying a recurring cash dividend in 1974. This article is broken down in to sections, feel free to jump to the area that interests you. Since the 2008 financial crisis, the S&P 500 Dividend Aristocrat list has evolved as follows: . This is a fairly rich valuation by most standards, and it is high by ADP’s own historical norms as well. The company’s excellent dividend growth track record is the result of its reliable business model. A dividend payout ratio of 69% is neutral; we would consider this dividend easy to maintain and safe for investors to trust. Dividend Aristocrats are some of the best dividend growth stocks you will find in any stock market. ADP Is A Dividend Aristocrat. ADP is a member of the Dividend Aristocrats, a group of 57 stocks in the S&P 500 Index, with 25+ years of consecutive dividend increases. Also worth noting is that Automatic Data Processing is a “Dividend Aristocrat,” which is a title held by companies with at least 25 consecutive years of annual dividend increases. The Dividend Aristocrats Index is a list of 50 stocks that have consecutively increased their dividend payments for at least 25 years. The payout for fiscal 2019 is $3.64 per share after the November 2019 increase. The company has increased its shareholder payout each year for the past 41 years. Wal-Mart Stores WMT 145.92 0.49 (0.3%) Market Cap: 412.1 Billion. Review the Chowder Rule along with the 3, 5, and 10 year ratios for dividend growth, EPS growth and the payout ratio to pick a solid investment for your portfolio. Multiplied by the number of times a year the company pays its dividend. ADP will almost certainly continue to increase its dividend for many years to come given that its fundamentals are so strong. For 2020, we had seven additions and no deletions. And, the company has continued to increase its dividend annually every year since. This represents a compounded annual growth rate (CAGR) of 13.2% which is truly stunning. PEO is the fastest growing segment growing revenues at a compounded annual growth rate (CAGR) of 14% while ES is at 5%. With robust forecast earnings-per-share growth, ADP should have ample room to continue to raise the payout for many years to come. Income investors favor Dividend Aristocrats because the companies are solid long-term holdings with predictable, safe, and growing dividend payments. Dividend Aristocrat Automatic Data Processing (ADP) will increase its quarterly payment by by 2.2 percent to $0.93 per share in 2020.This marks the 46th consecutive year of annual dividend increases. Dividend Aristocrats. This list of stocks is officially tracked by the ratings company. Sizable 11% annual dividend growth rate over last 5 years. The index is equally weighted, and rebalanced every quarter. There are many other reasons why my filtering start with dividend companies, see my post on why I chose dividend investing. ADP’s long history of dividend growth is the result of a strong business model and huge competitive advantages. Earnings-per-share came in at $1.34 on an adjuste… Companies in XLK usually command a higher valuation than the broader market and this is also true for ADP. Revenue should be up 6% to 7%, while EBIT margin should rise 100bps to 125bps, and adjusted earnings-per-share should rise 12% to 14%. That means ADP stock is an S&P 500 Dividend Aristocrat, which is an elite title reserved for S&P 500 companies with at least 25 consecutive years of annual dividend increases. Human Resources Outsourcing is the fastest growing segment growing at 8% annually, while HR in the US is expected to grow by 4% annually and HR international at 6%. This helps insulate ADP from the effects of a recession. ADP has compounded its payout at an average rate of 7.6% over the last 5 years and 9.4% over the last 10 years. Database of Dividend Aristocrats stocks comes from ProShares S&P 500® Dividend Aristocrats. ADP is a business outsourcing services company. Trades at 29 times forward earnings while the S&P 500 trades at 18.5 times. ADP Stock is in red line versus the S&P 500 which is in blue. ADP Stock last raised its annual dividend by 15% on November 12th, 2019 to $3.64 per share. Dividend.com: The #1 Source For Dividend Investing. Learn more about this quality dividend stock ADP is a high-quality dividend aristocrat that has solid historical growth and good future growth prospects. Employing 58,000 people, ADP’s business strategy is based on 3 key pillars. In addition, ADP benefits from a recession-resistant business model. ADP is a member of the Dividend Aristocrats, a group of 57 stocks in the S&P 500 Index, with 25+ years of consecutive dividend increases. Two key growth catalysts for ADP are continued increases in payrolls, and regulation. In fact, ADP is the only Dividend Aristocrat in the information technology sector. We expect ADP to grow earnings-per-share by 8% annually over the next five years. ADP has created value for shareholders with annual dividend increases for the past 44 years, as well as high returns from share price appreciation. Over the last decade, ADP has grown its revenues from $8.93 billion in 2009 to $14.2 billion in 2019. We see fair value for ADP at 22 times earnings, which is a meaningful discount to the current valuation. By geography, approximately 86% of ADP’s sales are generated in the U.S., 9% in Europe, 2% in Canada, and 2% in other countries. Given ADP’s size and scale, we believe it will perform well during the next recession, which increases the attractiveness of the stock. ADP’s Dividend and Stock Split History. Which Companies are Aristocrats? Not surprisingly, ADP scores extremely well for Dividend Safety and Dividend Growth and is the type of business I like to own in our Top 20 Dividend Stocks portfolio. There are 64 Dividend Aristocrats. Consistent dividend growth for 45 years, making this a Dividend Aristocrat. The 5-year average dividend yield is 2.10% (see red-line in chart). Please send any feedback, corrections, or questions to support@suredividend.com. For example, buying one share … The new quarterly dividend rate of $0.93 per share will be distributed on January 1, 2021 to shareholders of record on December 11, 2020. To qualify for membership in the S&P 500 Dividend Aristocrats index, a stock must satisfy the following criteria: These are elite blue chip dividend paying stocks that have raised their cash dividends for at least 25 years, without missing a single payment. The company has divided its financial reporting in to 2 segments, 2) Professional Employer Organization (PEO). We think the stock is too expensive given this valuation and investors should not chase it up here. Its most recent increase was on November 8 th, 2016, when the company announced a solid 7.5% raise.. ADP is a member of the Dividend Aristocrats, a group of 51 stocks in the S&P 500 Index, with 25+ years of consecutive dividend increases. The S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years in a row. Stay on top of your next investment decision with the Dividend Snapshot US Aristocrats List. Automatic Data Processing (ADP) Valuation Automatic Data Processing’s current dividend yield of 2.06% is -2% below its 5-year average. Find the latest dividend history for Automatic Data Processing, Inc. Common Stock (ADP) at Nasdaq.com. A Dividend Aristocrat is a company in the S&P 500 that has paid and increased its base dividend every year for at least 25 consecutive years. The index is equally weighted, and rebalanced every quarter. In its 2019 annual report, the company states cash from operations equals $923 million while capital expenses totaled $290 million. During the great financial crisis of 2009, ADP slowed its dividend raises to low single digits. A Dividend Aristocrat is a company in the S&P 500 that has paid and increased its base dividend every year for at least 25 consecutive years. ADP’s growth is fueled by many competitive advantages. ADP pays an annual forward dividend of $3.72 per share. 21 of the Dividend Aristocrats pay their dividends usually following the pattern: March, June, September, and December. ADP's fundamentals are reasonably priced at a 23 forward P/E, a 1.89 PEG, a very low debt-to-equity ratio of 0.37 and a highly sustainable payout ratio of 58% to accompany its 1.93% dividend yield. Then for the first time increased the dividend in 1975. The poor spend their money and invest what is left.”. In its 1st Quarter,  2020 earnings results, ADP reported a 6% growth in revenues coming in at $3.5 billion. Charts; Tables; NAME SYMBOL PRICE PRICE % MARKET CAP . ADP has raised its dividend each year for 45 years in a row. ADP is a strong business. Dividend Aristocrat Automatic Data Processing (ADP) will increase its quarterly payment by by 2.2 percent to $0.93 per share in 2020.This marks the 46th consecutive year of annual dividend increases. Still, the recent rally in the stock has made ADP less attractive from a valuation perspective. The index is equally weighted, and rebalanced every quarter. It has approximately 800,000 clients, in more than 140 countries worldwide. ADP has one of the most reliable dividend payments in the market thanks to the company's high recurring revenue, strong client retention rates, low capital intensity, and mission-critical solutions. Thanks for reading this article. That's roughly a third of what its peers are priced at, and a 25% discount to CAH's own historical forward P/E. ADP stock trades at 29 times forward estimated earnings of full year 2020 while the broader market as measured by the S&P 500 trades at 18.5 times. These 57 are large, US companies that have historically provided (slightly) better performance and (slightly) lower volatility than the S&P 500 as a whole. This includes the following 7 new additions. Emerson Stock is a member of the prestigious S&P 500 Dividend Aristocrats. S&P Dow Jones Indices published the most recent dividend aristocrat list on … ADM has a laudable dividend growth streak as far as Dividend Aristocrats go, at 46 consecutive years. Based on the current share price, the stock has a price-to-earnings ratio of 27.7. ADP has a leading position across its strategic pillars, as well as a highly diversified client list; no single customer represents more than 2% of annual revenue. Here is what we like and don’t like about Automatic Data Processing (ADP) Stock. The Dividend Aristocrats is S&P500 list of stocks that have increased their dividend payouts for at least 25 consecutive years. Dividend Payout Ratio measures how much of a company’s free cash flow is paid out in the form of dividends. ADP's most recent quarterly dividend payment was made to shareholders of record on Friday, January 1. Its most recent increase came in November 2019, when the company implemented another very strong 15% raise. 2020 - Total number of Aristocrats: 65. Employer Services segment grew revenues 4% while PEO grew revenues at 8%. This article will review ADP’s fundamentals and discuss whether the stock is trading at an attractive enough valuation to buy now. Also to note, Sherwin-Williams’ second-quarter payment (June) sometimes pays at the end of May. ... My ADP holding is quite small at only 0.18% of portfolio value. The company announces annual dividend increases in November, with the stock going ex-dividend in December. The combination of a contracting P/E multiple, earnings growth, and dividends yields a total expected return of 5.4% per year through fiscal 2025. ADP: One of the Fastest-Growing Dividend Aristocrats April 19, 2019 Automatic Data Processing (ADP) was founded in 1949 and is one of the largest providers … Both segments produced gains as Employer Services saw its top line increase 4% and PEO Services’ revenue rose 8%. ADP stock is overqualified for that title. 2020 - Total number of Aristocrats: 65. This week saw two Dividend Aristocrats declare regular quarterly dividends: Automatic Data Processing declared a quarterly dividend of 48 cents payable April 1st to shareholders of record on March 14th. Automatic Data Processing Dividend Aristocrat in Focus: Automatic Data Processing (ADP) The Dividend Aristocrats are a select group of currently 57 S&P 500 stocks with 25+ years of consecutive dividend increases. Final thoughts. It significantly out performed the drop experienced by the S&P 500 which was 56%. Today, the company is one of the top cloud-based human capital management companies with 810,000 customers in 140 countries. ADP processes payroll for 26 million workers in the United States and 15 million internationally, as well is in partnership with over 7,100 tax agencies in the US. The following section ranks our top 7 Dividend Aristocrats to buy today, based on expected annual returns through 2025. A valuation premium to the S&P 500. ADP which is now branded as “Always Designing for People” was founded in 1949 with one mission in mind; to free businesses from non-core tasks such as processing payroll and human resources management. Automatic Data has raised its dividend 44 consecutive years, making it a dividend aristocrat and putting it on track to become a dividend king in 2025. Quite interestingly, ADP Stock is a member of the S&P 500 Technology Sector (XLK). We expect ADP to produce $6.16 in earnings-per-share for fiscal 2020. Since the 2008 financial crisis, the S&P 500 Dividend Aristocrat list has evolved as follows: . EBIT margin rose 60bps to 21.3% of revenue. What’s also interesting is interest earned on clients’ cash held with ADP grew 13% to $134 million. List of Canadian Dividend Aristocrats in 2020 – Updated 10/30/20 Although ADP is a highly consistent dividend growth stock, its mid-single-digit expected total returns make the stock a hold. S&P500 US Dividend Aristocrats Requirements. According to ADP’s 2019 Investor Presentation, Human Capital Management is a $125 billion global market, of which it has only captured $14.2 billion, which works out to 11.4%. S&P … ADP – Automatic Data Processing T – AT&T. Automatic Data Processing, or ADP for short, has raised its dividend each year for 42 years in a row. ADP has built its success on attracting small and large businesses alike, and we see its years-long transformation to this portfolio as a competitive advantage. ADP has grown its dividend each year since 1976 and became a Dividend Aristocrat in 2000. Automatic Data Processing has a long history of paying and raising its dividend. Attached chart shows ADP’s dividend growth history showing a nice steep uptrend and the power of compounding in play. dividends, but the amount has increased each year. This includes the following 7 new additions. Free Cash Flow = Cash from Operations – Capital Expenditures, Dividend Payout Ratio = Total Dividends Paid / Free Cash Flow. ADP enjoys high demand for these services, as companies would prefer to outsource these functions in order to better focus on their core business activities. Having said that, let’s review ADP Stock for its latest 3rd Quarter 2019 financial results, revenue and dividend growth history, valuation and performance to the S&P 500. This represents a compounded annual growth rate (CAGR) of 4.75%. The number of employees on ADP clients’ payrolls continues to grow, and we believe this will continue for the foreseeable future. Total revenue gained 6% to $3.5 billion while adjusted earnings before interest and taxes, or EBIT, increased 8% to $745 million. A Dividend Aristocrat is a stock with 25 years or more of consecutive dividend increases and is part of the S&P 500. I'm an employee of a company that uses ADP Forms W2, 1099, etc., Payroll, Passwords and more. In fact, ADP is the only Dividend Aristocrat in the information technology sector. ADP’s earnings-per-share during the Great Recession are shown below: ADP increased earnings-per-share in 2008 and 2009, which is a rare accomplishment. EBIT margin rose 60bps to 21.3% of revenue. Industrials. ADP has a deep connection with its customers, and enjoys a strong reputation for customer service, which helps keep customer retention very high. Net income grew 15% coming in at $582 million implying a net profit margin of 16.6%. Likewise, similar pattern emerged during the commodity price crash of 2016. A dividend aristocrat is a company that not only pays a dividend consistently but continuously increases the size of its payouts to shareholders. DIV RATE YTD PRICE % 1Y PRICE % 5Y PRICE % 1 of 60. During the great financial crisis of 2008, the stock dropped 35% from peak of $44 to trough of $29. Think of this as free money the company makes while paying its clients’ employees. With more than four consecutive decades of dividend increases, Automatic Data Processing (ADP) is one of my favorite dividend aristocrats. This Dividend Aristocrat is a steal, too, at just 9 times forward earnings estimates. As we can see above, ADP has built its business in such a way that it can offer a variety of solutions to businesses of any size, making it a true leader in the field. Dividend articles featuring Adp (ADP): 2020-06-06 Dividend Champion And Contender Highlights: Week Of June 7 2020-06-06 5 Safe And Cheap Dividend Stocks To Invest In (June 2020) 2020-06-01 3 Best Dividend Aristocrats And Kings, And 3 To Avoid 2020-05-29 10 Dividend Growth Stocks For May 2020 2020-04-16 The 13 Best Dividend Aristocrats To Buy In This Uncertain Economy For the Dividend Aristocrats, they need to participate in the economy of the United States, but not be headquartered here. Although ADP’s stock has nearly doubled the market’s performance over the last decade, the company has plenty of room for continued growth. The company maintains a large list of customers, and holds a top position in the industry. 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Overall earnings per share are shown in the information technology sector you May be wondering which these actually. Least 25 years buying one share … Rock-solid dividend Aristocrats increase came in November 2019, when the has!