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The S&P 500 Dividend Aristocrats Could Eventually Add These Stocks

Nike has increased its dividend for 21 consecutive years.

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David Paul Morris/Bloomberg

Past actions are not always a prologue when it comes to increasing a dividend every year.

Still, it’s not a bad place to start.

Being a member of the
S&P 500 Dividend Aristocrats Index
confers a sign of dividend strength and long-term consistency. Its 67 members have paid out a higher dividend for at least 25 straight years. Last year, the Aristocrats returned minus 6%, including dividends, compared with minus 18% for the
S&P 500.

S&P Dow Jones Indices, which oversees the Aristocrats, recently added three new constituents to the index:
J.M. Smucker
(ticker: SJM),
C.H. Robinson Worldwide
(CHRW) and

That raises the question of who’s in the pipeline to join the group in the next several years?

For some clues, Barron’s looked at the
S&P High Yield Dividend Aristocrats Index,
which requires 20 straight years of dividend hikes. Some of these companies end up in the S&P 500 Dividend Aristocrats.

Barron’s selected the 10 companies in the high-yield index that are also members of the S&P 500.

Company / Ticker Recent Price Dividend Yield 1-Year Return Market Value (bil)
Eversource Energy / ES $81.31 3.3% -4.5% $28.0
FactSet Research System / FDS 426.88 0.8 2.4 16.4
Fastenal / FAST 53.22 2.6 -0.7 31.0
Intl Flavors & Fragrances / IFF 112.76 2.9 -8.7 28.9
L3Harris Technologies / LHX 212.33 2.1 1.5 40.2
Lockheed Martin / LMT 469.10 2.6 23.6 117.2
Microchip Technology / MCHP 84.47 1.7 17.3 46.7
NIKE / NKE 125.73 1.1 -12.6 199.2
Southern / SO 67.90 4.0 2.7 73.2
W.R. Berkley / WRB 68.31 0.6 16.5 17.8

Data as of Feb. 6

Source: S&P Dow Jones Indices and FactSet.

The list of companies includes
Eversource Energy
(ES), which generates natural gas and electricity. The stock yields 3.4%, one of the highest on the accompanying table. Eversource has increased its dividend every year since 2001.

(SO), a utility holding company based in Atlanta, last April announced it was raising the dividend for the 21st straight year. The stock yields 4%.
pays a quarterly dividend of 68 cents a share, for an annualized distribution of $2.72.

(NKE) also has had 21 straight years of boosting its dividend, most recently to 34 cents on a quarterly basis—an 11% increase. The apparel giant’s annualized dividend is $1.36 a share, and the stock was recently yielding 1.1%—below the 1.65% average for the S&P 500.

In another sector,
Microchip Technology
(MCHP), which yields 1.7%, has boosted its dividend every year for about two decades. The chip company recently announced that it will raise the quarterly dividend to 35.8 cents a share, an increase of 9%. That puts the annualized dividend at $1.43 a share.

Defense and aerospace company
Lockheed Martin
(LMT) has increased its quarterly cash dividend for 20 straight years. The quarterly payout is at $3 a share, up from $2.80 previously, for an annualized disbursement of $12.

Other S&P 500 companies that have increased dividends for at least 20 straight years but shy of 25 years are
FactSet Research
International Flavors & Fragrances
L3Harris Technologies
(LHX), and
W.R. Berkley

Fastenal’s large product portfolio includes fasteners along with tools and equipment. The stock yields 2.6%. It pays an annualized dividend of $1.40 a share, having recently announced an increase of 13% from $1.24.

For FactSet Research, which supplies financial data to customers, its 2022 fiscal year marked its 23rd year of dividend growth. It’s currently at 89 cents on a quarterly basis or $3.56 annualized. The stock yields 0.8%.

L3Harris Technologies
boosted its quarterly dividend nearly a year ago to $1.12 a share from $1.02, it marked the 21st annual dividend increase for the company. The stock yields 2.1%.

Insurer W.R. Berkley has raised its dividend every year for about two decades. Its quarterly dividend is 10 cents a share, and the stock yields 0.6%.

There are no guarantees that these companies will become full-fledged S&P 500 Dividend Aristocrats, but they are well on their way.

Write to Lawrence C. Strauss at


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