The popular S&P 500 Dividend Aristocrats list makes up companies that have increased their dividends every year for the last 25 consecutive years (i.e., they are the best of the best for dividend investors).
The dividend aristocrat stocks are usually strong growers but did lag the broader S&P 500 over the last year, seeing a total 1-year return of 13.14% as of June 30, 2023, versus a 19.6% total return for the S&P 500. However, over a 3-year timespan, the aristocrats have seen a total annualized return of 14.6%, matching the total annualized return of the S&P 500. In addition to safe passive income growth, investors look to the list for individual stocks that can beat the returns of the group by using dog theory or others. Below we highlight five dividend aristocrat stocks that are expected to raise their dividend again in July 2023:
Clorox (NYSE:CLX) is expected to raise its dividend again mid-month. The company currently pays a quarterly dividend of $1.18/share, yielding 2.9%. Last year’s dividend raise was 2 cents per share, but in years past the company has seen raises of 5 cents, 10 cents, and more. Clorox has increased its dividend for 20 consecutive years and paid an annual dividend for more than 50 consecutive years. The company recently raised its fiscal 2023 financial outlook, which could prove promising for dividend investors. In May, Clorox said fiscal year 2023 net sales are now expected to be between a 1% and 2% increase, compared previously to between a 2% decrease and 1% increase. Adjusted EPS is now expected to be between $4.35 and $4.50, or a 6% to 10% increase, respectively. This compares previously to between $4.05 and $4.30, or a 1% decrease to a 5% increase, respectively. Shares of Clorox are up 14.3% year-to-date.
J.M. Smucker (NYSE:SJM) is seen lifting its dividend again in mid-July. The company currently pays a $1.02 per share quarterly dividend, yielding 2.7% at current prices. Last year, the company raised its dividend by 3 cents but has seen hikes of 10% or more in years past. J.M. Smucker has had 21 consecutive years of dividend growth and said it remains committed to returning value to shareholders. It is one of the newest additions to the S&P 500 Dividend Aristocrats, being added on February 1, 2023. In June, the company provided its fiscal year 2024 outlook, with an expected comparable net sales increase of 8.5 to 9.5 percent, adjusted earnings per share to range from $9.20 to $9.60, and free cash flow of $650 million. The numbers bode well for continued dividend growth. Shares of J.M. Smucker are down 5% year-to-date.
Walgreens Boots Alliance (NASDAQ:WBA) is seen raising its dividend again mid-month. The company currently pays a quarterly dividend of $0.48 per share, yielding an impressive 6.6%. Last year, the company raised its dividend by only 0.5% but has raised it by 10%, 20%, and more in years past. Walgreens Boots Alliance and its predecessor company, Walgreen Co., have raised the dividend for 47 consecutive years. Shares have lagged year-to-date, falling 23%, amid lower EPS guidance. In June, the company cut FY guidance. They revised full-year adjusted EPS guidance to $4.00 to $4.05 from $4.45 to $4.65, to reflect consumer and category conditions, lower COVID-19 contribution, and a more cautious macroeconomic forward view. Still, the expected earnings are more than enough to support the current yearly dividend payout of $1.92. Amid the guidance cut, investors should only expect another minor bump in the dividend this year.
PPG Industries (NYSE:PPG) is expected to raise its dividend again toward the middle to end of the month. The company currently pays a quarterly dividend of $0.62 per share, yielding 1.7%. The company has raised its dividend for 51 consecutive years. Last year, the dividend was raised by 5%, but they have seen a dividend increase of up to 13% in years past. In April, the company posted strong results and guidance. The company sees full-year 2023 Adjusted EPS of $6.95 to $7.25. The mid-point of the full-year guidance projects 10% year-over-year earnings growth in the second half of 2023. The shares of PPG are up 18% year-to-date.
Cintas (NASDAQ:CTAS) is expected to raise its dividend again toward the end of July. The company currently pays a quarterly dividend of $1.15 per share, yielding 1%. Last year the company raised its dividend by 21% but has seen yearly increases in the recent past of up to 27%. Cintas has raised its dividend each year since its initial public offering 39 years ago in 1983. In March, Cintas raised its annual revenue expectations from a range of $8.67 billion to $8.75 billion to a range of $8.74B to $8.80B and diluted EPS from a range of $12.50 to $12.80 to a range of $12.70 to $12.90. Cintas will be reporting its fourth quarter results on July 13, 2023. Shares of Cintas are up 6.6% year-to-date.