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Why Dividend Aristocrats Are Your Best Hedge Against Volatility

The case for dividend aristocrats as a core portfolio allocation in volatile markets.

Paul Price·FEB 5, 2026, 10:00 AM UTC
dividend aristocrats

In an environment of elevated volatility and uncertain monetary policy, dividend aristocrats — companies that have raised their dividends for at least 25 consecutive years — offer a compelling combination of income, quality, and downside protection.

History shows that during market corrections of 10% or more, the S&P Dividend Aristocrats Index has consistently outperformed the broader market, losing less on the downside while participating in recoveries.

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