What do trucks, industrial machines, and jam have in common?
They all helped turn ordinary businesses into dividend powerhouses.
Recently, three new companies were added to the Dividend Aristocrats. That’s a list of the most elite dividend-growing companies in the market.
To become a Dividend Aristocrat, a company has to raise its dividend for at least 25 consecutive years and be a part of the S&P 500, along with meeting several other requirements for market capitalization and trading volume.
Only 68 companies hold this coveted status.
They include legendary blue-chip dividend companies like Proctor and Gamble (PG), Coca-Cola (KO), and Johnson & Johnson (JNJ) – which by the way have dividend growth streaks of over 60 years!
Several weeks ago, I told you why these long-lived dividend growers deserve a spot in your portfolio:
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They have the knowledge and experience to survive recessions
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They have diversified businesses with strong moats
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They have disciplined management that keeps their company financials and dividend payments at healthy levels
It all adds up to make these companies five times less likely to cut their dividends compared to younger dividend growers.
Here at the Intelligent Income Daily, we’re focused on finding the safest, most reliable income investments possible in order to build portfolios that can weather any storm.
Today, I’ll tell you about the three new companies added to the Dividend Aristocrats list and show you how to quickly add Dividend Aristocrat companies to your portfolio.
Dividend Aristocrats Change the Game
The first company added to the Dividend Aristocrats is C.H. Robinson Worldwide (CHRW). It was founded in 1905 by a traveling salesman who wanted to deliver fruits and vegetables to settlers in the Dakotas.
Back then, the best form of transportation was horse and buggy, and most perishable goods would spoil before they could get to their destination.
Well, he managed to figure it out by building a distribution network that could quickly get produce to grocers. Today C.H. Robinson Worldwide is one of the world’s largest freight and logistics platforms, making over 20 million shipments each year for more than 100,000 customers.
The company made its 25th consecutive dividend increase last year, and it’s all thanks to a giant fleet of trucks.
Next up is Nordson (NDSN). This company got started in 1954 by making machines that could perform “airless” spray painting. It quickly became a leader in the paint finishing industry as its technology allowed more precise and even coatings while using less paint.
Today, Nordson makes highly specialized machines for precision manufacturing. Its equipment is used to produce everything from semiconductors and printed circuit boards to diapers, food and beverage containers and even medical devices.
Nordson has a 59-year dividend growth streak, but it only just got added to the Dividend Aristocrats because it grew large enough to be included in the S&P 500 last year.
Last but not least: J.M. Smucker (SJM). You may recognize the name behind the popular Smuckers brand of jams and jellies. But the company makes a lot more than just fruit preserves.
The company traces its roots back to an entrepreneur selling homemade cider and apple butter in 1897. It later started selling toppings for ice cream and grew into a nationwide distributor for all sorts of products.
Today, J.M. Smucker owns a number of major brands of coffee including Folgers, Dunkin’ and Café Bustelo. It also makes popular pet food brands like Meow Mix, Milk Bone, and Rachel Ray Nutrish. And of course, it still makes the iconic Smuckers jams as well as Jif peanut butter and Uncrustables sandwiches.
The company made its 25th dividend increase last year, marking an important milestone in its tasty history.
Adding the Elite to Your Portfolio
So how can you capitalize on these coveted status Dividend Aristocrats?
One quick way to add Dividend Aristocrats like these to your portfolio is through the ProShares S&P 500 Dividend Aristocrats ETF (NOBL). This ETF tracks the Dividend Aristocrats list, so you’ll quickly be invested in companies as they make it onto the list.
Remember these are the most elite dividend-growing companies in the market. And once they make the list, they will do everything in their power to remain in their elite circle, growing their dividend for the next 25 years to come.
Happy SWAN (sleep well at night) investing,
Brad Thomas
Editor, Intelligent Income Daily
P.S. If you are looking for individual Dividend Aristocrat recommendations, check out my Intelligent Income Investor portfolio. My team and I pick the best dividend-growth stocks to provide you a safe, reliable, and durable income stream… So you can sleep well at night in all market conditions.