5 Next in Line Dividend Aristocrats

Several S&P 500 names will soon qualify for the elite dividend growth club.
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Each year in January, the S&P Dow Jones Indices, which owns the S&P 500 index, updates the Dividend Aristocrats list. For a company to be on this list makes them attractive dividend stocks to own.

To be considered a Dividend Aristocrat, a company needs to be a part of the S&P 500 index and paid and increased its base dividend annually for a minimum of 25 consecutive years. There are currently 65 Dividend Aristocrats, with a few companies next in line to join this elite club.

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Let's look at five companies that are next in line to becoming Dividend Aristocrats.

JM Smucker (SJM)

JM Smucker has been around since 1897, where they started by selling apple butter. They now produce several types of jams, jellies, pet food, etc., with over 40 brands that include household favorites Folgers coffee and Jif peanut butter.

During the COVID-19 pandemic, Smucker's benefited, with households reaching for comfort food while staying at home.

SJM Stock and Dividend News

In 1959, the company went public, and in 1965, it got listed on the New York Stock Exchange. JM Smucker (SJM) stock is trading at $133.10 as of July 16, 2021. SJM has been paying dividends every year since 1972 and began increasing its dividends annually since 2002.

In July 2021, JM Smucker announced a 10% increase in the quarterly dividend, from $0.90 to $0.99 per common share, bringing the dividend yield to just over 3%.

This marks the company's 20th consecutive year of dividend growth. If they continue on this path and remain a component of the S&P 500 index, JM Smucker will become a Dividend Aristocrat by 2026.

Fiscal 2021 Fourth Quarter Results

JM Smucker announced in June 2021 its results for the fourth quarter of the 2021 fiscal year ending April 30, 2021. Here are a few highlights from the report:

  • Net sales for the year totaled $8.0 billion, up 3% over the previous year. Excluding divestitures and foreign currency fluctuation, net sales climbed by 5%.
  • Net income per diluted share for the whole year was $7.79. The adjusted earnings per share increased by 4% to $9.12.
  • For the quarter, net income per diluted share was $1.35. Adjusted earnings per share were $1.89, a decline of 26%.
  • Cash from operations came in at $291.0 million, up from $287.7 million the previous year. For the quarter, free cash flow was $183.0 million, and for the year, it was $1,258.3 million.
  • The total return of capital to shareholders, including cash dividends and share repurchases, was $272.7 million in the quarter and $1.1 billion for the year.

Eversource Energy (ES)

Eversource Energy is a publicly traded Fortune 500 energy corporation with various regulated subsidiaries, serving about 4 million customers in Massachusetts, Connecticut, and New Hampshire with retail electricity, natural gas, and water.

ES Stock and Dividend News

Eversource Energy (SM) stock is trading at $87.36 as of July 16, 2021. ES has been paying dividends every year since 1973 and began increasing dividends annually since 2001.

In May 2021, Eversource Energy announced a 6.35% increase in the quarterly dividend, from $0.567 to $0.603 per common share, bringing the dividend yield to 2.87%.

This marks the company's 20th consecutive year of dividend growth. If they continue on this path and remain a component of the S&P 500 index, Eversource Energy will become a Dividend Aristocrat by 2026.

2021 First Quarter Results

Eversource Energy announced in May 2021 its results for the first quarter of the 2021 fiscal year. Here are a few highlights from the report:

  • Earnings of $366.1 million, or $1.06 per share, were reported for the first quarter of 2021, compared to $334.8 million, or $1.01 per share, in the first quarter of 2020.
  • After-tax costs connected with Eversource's October 2020 acquisition of Columbia Gas of Massachusetts assets are included in the first quarters of both 2021 and 2020. In 2021, the costs were $6.2 million, or $0.02 per share, and in 2020, they were $3.5 million, or $0.01 per share.
  • The Connecticut Light and Power Company's 2021 results include a $30 million charge, or $0.07 per share after taxes, relating to consumer credits and a related assessment made by Connecticut utility regulators on May 6, 2021. (CL&P). The charge is associated with CL&P's performance in restoring power following Tropical Storm Isaias' disastrous impact in August 2020.
  • The electric distribution segment of Eversource Energy earned $93.2 million in the first quarter of 2021, compared to $130.1 million in the first quarter of 2020.
  • The natural gas distribution segment of Eversource Energy earned $147.6 million in the first quarter of 2021, compared to $85.9 million in the first quarter of 2020. Eversource Gas Company of Massachusetts (EGMA), which now owns the natural gas distribution assets acquired from Columbia Gas of Massachusetts, contributed to the improved outcomes.

Fastenal (FAST)

Fastenal's service approach is based on over 3,200 in-market facilities, each of which offers customized inventory and a specialized sales team to help local businesses. Fastenal provides supply chain solutions to companies that help them reduce inventory touchpoints and waste in the supply chain.

Fastenal has been a sponsor of NASCAR since 2006, and in 2020, it became the NHL's official MRO partner.

FAST Stock and Dividend News

Fastenal (FAST) stock is trading at $53.59 as of July 16, 2021. FAST has been paying dividends in 1988 and began increasing its dividends annually since 2002.

FAST declared a $0.28 per share dividend, which will be paid to stockholders in August 2021, bringing the dividend yield to 2.1%.

In 1991, Fastenal started paying annual dividends, semi-annual dividends in 2003, and quarterly dividends in 2011. Fastenal has already paid special one-time dividends in December 2008, December 2012, and December 2020, in addition to its regular dividend payments.

2021 Second Quarter Results

Fastenal announced its results for the second quarter of 2021 (ending June 30, 2021). Here are a few highlights from the report:

  • In quarter 2 of 2021, net sales fell $1.3, or 0.1%, compared to the second quarter of 2020. As a result of steps made by governments and enterprises around the world to confront the emergence of the COVID-19 pandemic, they sold considerable quantities of personal protective equipment (PPE) and sanitation goods in the second quarter of 2020. The ability of governments and businesses to control the pandemic has improved in the second quarter of 2021, as evidenced by lower infection and increased vaccination rates. As a result, the "surge" volumes they saw in the second quarter of 2020 did not repeat themselves in the second quarter of 2021.
  • In the second quarter of 2021, daily sales to their national account clients (defined as customer accounts with a multi-site contract) climbed 1.4% over the second quarter of 2020.
  • In quarter 2 of 2021, gross profit as a percentage of net sales grew 200 basis points to 46.5%, up from 44.5% in the second quarter of 2020.
  • In quarter 2 of 2021, operating income as a percentage of net sales grew to 21.1%, up from 20.9% in the second quarter of 2020.

CH Robinson Worldwide (CHRW)

CH Robinson Worldwide is a Fortune 500 company that tackles logistical issues for businesses worldwide and in a variety of industries. They are one of the world's largest logistics systems, with $21 billion in freight under management and 19 million shipments every year. Their global portfolio of services helps to speed up trade and deliver the commodities and services that fuel the global economy

CHRW Stock and Dividend News

CH Robinson Worldwide (CHRW) stock is trading at $91.32 as of July 28, 2021. CHRW has been increasing dividends for 22 years consecutively.

They declared a quarterly dividend of $0.51 per share in May 2021. CHRW's current dividend yield is 2.19%.

2021 Second Quarter Results

CH Robinson Worldwide announced in July 2021 its results for the second quarter of 2021, ending June 30, 2021. Here are a few highlights from the report:

  • Gross profits increased 21.9% to $744.4 million
  • Total revenues increased 52.5% to $5.5 billion
  • Operating income increased by 38.0 percent to $260.6 million
  • The adjusted operating margin grew to 34.8 percent, up 410 basis points
  • Earnings per share (EPS) diluted increased 35.8% to $1.44
  • Operating cash flow declined by $297.8 million to $149.3 million
  • Net income was $193.8 million, up 34.6% over the previous year. $1.44 in diluted EPS was up 35.8%.

PPL Corporation (PPL)

PPL Corporation is an energy company with operations in Kentucky and Pennsylvania. As a FORTUNE 500 company and one of the major utility companies in the United States, PPL Corporation is dedicated to providing critical energy in innovative ways.

PPL has invested more than $20 billion in energy infrastructure enhancements in its U.S. operations over the last decade to construct a smarter, more secure energy system and achieve a cleaner energy future. As a result, a considerable rate base increase is occurring.

PPL Stock and Dividend News

PPL (PPL) stock is trading at $28.59 as of July 16, 2021. PPL Corporation declared a $0.4150 per share quarterly common stock dividend in May 2021, which will get paid to stockholders in July 2021. The dividend yield will be 5.7% due to this payout.

The initial yearly payment was US$1.40 in 2011, compared to US$1.66 for the most current full-year payout. This means that the company's dividends increased at an annual rate of around 1.7% over that period.

2021 First Quarter Results

PPL announced its first-quarter results for 2021 in May 2021. Here are a few of the highlights:

  • PPL declared a net loss (GAAP) of $1.84 billion, or $2.39 per share, in the first quarter of 2021, compared to $554 million, or $0.72 per share, in the first quarter of 2020.
  • After adjusting for special items, earnings from ongoing operations (non-GAAP) in the first quarter of 2021 were $219 million, or $0.28 per share, compared to $206 million, or $0.27 per share a year ago.

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