- Dividend Aristocrats are companies that have increased their dividend yield for at least 25 consecutive years.
- Three new companies joined the group yesterday.
- Let’s take a look at these stocks and see why they make a great addition to your portfolio.
First, let’s take a look at the characteristics of dividend aristocrats and the three stocks that entered the group yesterday. These are his three stocks on the uptrend, with 25 to 42 consecutive years of dividend growth.
The nature of dividend aristocrats
These are companies that pay dividends to shareholders and must meet several requirements, such as:
- Over 25 consecutive years of dividend increases.
- included in the index.
- Must have a market capitalization of $3 billion or more.
- At least $5 million in average daily trading volume.
The main Dividend Aristocrats Index is the S&P 500 Dividend Aristocrats Index, launched in 2005. Dividend Aristocrats are solid, reliable and liquid companies with a long track record of continuous dividend payments and growth.
Three new stocks were added to the index yesterday
A company does not have to pay large dividends to its shareholders to become a Dividend Aristocrat. Still, it has to pay a dividend that has steadily increased for at least 25 consecutive years. Looking at some of the companies in this index that have raised their respective dividends for 60 years, that’s not very long.
These include 3M Company (NYSE:), Coca-Cola (NYSE:), Colgate-Palmolive (NYSE:), Dover (NYSE:), Emerson (NYSE:), Genuine Parts Co. (NYSE:), Johnson & Co. Includes Johnson (NYSE:). NYSE:), and Procter & Gamble (NYSE:).
Using information from our Investing Pro tool, let’s take a look at the three stocks added to the nobility yesterday.
1. CH Robinson Worldwide
CH Robinson Worldwide (NASDAQ:) provides transportation, management, brokerage and warehousing services.
Headquartered in Eden Prairie, Minnesota, the company has over 300 offices, over 15,000 employees, and over 66,000 carrier contracts in North America, Europe, Asia and South America.
The company has increased its dividend for 25 consecutive years, yielding +2.2%. The last price increase was in November last year. Earnings per share (EPS) is expected to be $1.34 in the next earnings call.
From a technical point of view, the support formed in February 2022 works well. November 2022 and he prevented a fall and caused a backlash when he touched in January 2023.
It is trying to break out of the $100.74 resistance, which will continue the rally.
Nordson (NASDAQ:) is a manufacturer of chemical processing equipment. We manufacture equipment used for testing and inspection of electronic components and medical equipment. Headquartered in Westlake, Ohio, the company has operations in 30 countries.
The dividend yield is +1.1% and has been rising for 42 years. The last price increase was in August last year. On Feb. 21, the company will release its last quarter results, and earnings per share (EPS) is expected to be $1.98 per share for him.
From a technical perspective, the stock is trending upwards and trading within a bullish channel.
It is trying to break out of the resistance at $245.08. When that happens, we should see a continuation of the uptrend. So far December 2022 and he hasn’t been able to in January 2023.
3. JM Smucker Company
JM Smucker Company (NYSE:) manufactures peanut butter and jelly, beverages and other products. The company is headquartered in Ohio, USA.
The dividend yield is +2.7%. The company has been increasing its dividend for his 25 years, most recently in July last year. His next dividend payment date is March 1st, and he must own shares by February 9th to be eligible.
On February 28, the company will release its last quarter results. Earnings per share (EPS) he is expected to be $2.13.
From a technical standpoint, the stock has been rising in a bullish channel since hitting annual lows last June. It has always respected the base under this channel.
Disclosure: The author does not own any securities mentioned.