<p>The <strong>S&P 500 Dividend Aristocrats Index</strong> is a sub-index of the broader S&P 500, comprising companies that have consistently increased their dividends for at least 25 consecutive years.</p>

<h2>How It Works</h2>
<p>The index is constructed and maintained by S&P Dow Jones Indices. To qualify, a company must:</p>
<ul>
  <li>Be a member of the S&P 500</li>
  <li>Have increased its annual dividend for at least 25 consecutive years</li>
  <li>Meet specific liquidity and market capitalization requirements</li>
</ul>
<p>The index is market-capitalization-weighted, with each component's weight determined by its float-adjusted market capitalization relative to the total float-adjusted market capitalization of the index.</p>

<h2>Why It Matters</h2>
<p>The S&P 500 Dividend Aristocrats Index is a popular benchmark for income-oriented investors. Its components, often referred to as "Dividend Aristocrats," are known for their strong financial health and consistent profitability, as indicated by their long histories of dividend increases. For instance, as of 2021, the index has outperformed the S&P 500 in terms of total return over the past 10 and 20-year periods, demonstrating the potential benefits of investing in companies with a track record of dividend growth.</p>