Up to date on March eighth, 2025 by Felix Martinez
Annually, we individually evaluation every of the Dividend Aristocrats, a bunch of 69 shares within the S&P 500 Index which have raised their dividends for at the very least 25 consecutive years.
To make it on the record of Dividend Aristocrats, an organization should possess a worthwhile enterprise mannequin, a helpful model, international aggressive benefits, and the flexibility to face up to recessions. That is why Dividend Aristocrats can proceed to boost their dividends in troublesome years.
With this in thoughts, we have now created a listing of all 69 Dividend Aristocrats.
You may obtain your free copy of the Dividend Aristocrats record, together with necessary monetary metrics reminiscent of price-to-earnings ratios and dividend yields, by clicking on the hyperlink beneath:
Disclaimer: Positive Dividend shouldn’t be affiliated with S&P International in any means. S&P International owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet is predicated on Positive Dividend’s personal evaluation, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person traders higher perceive this ETF and the index upon which it’s based mostly. Not one of the data on this article or spreadsheet is official knowledge from S&P International. Seek the advice of S&P International for official data.
One of many three latest members to affix this record is Nordson Company (NDSN). Nordson has an unimaginable dividend development observe document, with a exceptional 61 years of consecutive will increase.
This text will focus on the corporate’s enterprise overview, development prospects, aggressive benefits, and anticipated returns.
Enterprise Overview
Nordson was based in 1954 in Amherst, Ohio, by brothers Eric and Evan Nord, however the firm’s roots return to 1909 with the U.S. Computerized Firm.
At present, the corporate has operations in over 35 nations and engineers, manufactures, and markets merchandise used for meting out adhesives, coatings, sealants, biomaterials, plastics, and different supplies. These merchandise have functions starting from diapers and straws to cell telephones and aerospace.
Supply: Investor Presentation
On February nineteenth, 2025, Nordson reported first quarter outcomes for January thirty first, 2025. (Nordson’s fiscal 12 months ends October thirty first.) The corporate reported that gross sales declined 2.8% to $615 million, with web revenue of $95 million ($1.65 per share). Adjusted EPS fell 7% to $2.06, whereas backlog grew 15%, indicating robust future demand.
Industrial gross sales dropped 11% on account of weaker demand, whereas medical gross sales rose 21%, pushed by acquisitions. Superior Expertise Options declined 11%. EBITDA was $188 million (31% of gross sales), down 4%, although profitability remained stable regardless of decrease gross sales.
For Q2, Nordson expects gross sales between $650 million and $690 million, with adjusted EPS of $2.30–$2.50. The corporate sees enhancing order traits and a rising backlog as indicators of restoration. CEO Sundaram Nagarajan stays assured in long-term development, citing robust portfolio resilience regardless of market uncertainties.
Development Prospects
From 2014 via 2024, Nordson grew earnings-per-share by a stable 10% yearly. In its funding thesis, Nordson lists components reminiscent of best-in-class expertise that reinforces consumer manufacturing whereas chopping prices, a worldwide service mannequin, a balanced revenue stream, and a profitable observe document.
A rising demand for disposable items, productiveness investments, cellular computing, a rise in using medical gadgets, and the manufacturing of light-weight/lean autos are all areas of development for the corporate’s adhesive and coating sectors, and would add to the corporate’s high line.
Nordson will maintain making acquisitions to realize entry to distinctive precision applied sciences and strengthen its aggressive benefit.
For instance, in 2023 Nordson accomplished its acquisition of the ARAG Group. ARAG is a world market and innovation chief in growing, producing and supplying precision management programs and good fluid parts for agricultural spraying.
Supply: Investor Presentation
Our projection for 2025 earnings, based mostly on administration’s steerage midpoint, is for $9.90 per share.
We additionally venture 10% EPS development over the following 5 years, pushed by a rise in high line income, modest margin enlargement, and the favorable results of acquisitions.
Aggressive Benefits & Recession Efficiency
Nordson’s aggressive benefit lies in its proprietary precision applied sciences. The enterprise presents specialised and important parts utilized in varied manufacturing processes.
This has enabled Nordson to muster an infinite put in base of consumers worldwide. As a result of its intensive international presence, Nordson has diversified its income geographically and by business and phase.
Nevertheless, this doesn’t suggest that Nordson is resistant to financial downturns. Earnings decreased by -32% for the 12 months in the course of the Nice Monetary Disaster earlier than quickly rising. Given the corporate’s reliance on international enlargement, one other recession may scale back its projections for near-term development.
Valuation & Anticipated Returns
Nordson’s present price-to-earnings ratio is 21.7 based mostly on our 2025 forecasted earnings-per-share of $9.90. This valuation is decrease than the corporate’s trailing decade common P/E ratio of about 23.0. Given its stable prospects, we consider that 24 instances earnings is an inexpensive truthful worth estimate for Nordson.
Given shares commerce below our truthful worth estimate at this time, Nordson inventory may expertise a constructive return of roughly 2.3% per 12 months over the following 5 years from an increasing a number of.
Nordson additionally has a 1.5% dividend yield, which has elevated yearly for 61 years. Moreover, we forecast a payout ratio of solely 32% for 2025, leaving ample room for continued will increase within the years forward.
Combining the corporate’s 1.5% dividend yield with the ten% forecasted EPS development fee, and the potential valuation tailwind, we see Nordson inventory producing complete returns of 13.8% per 12 months within the intermediate time period. In consequence, Nordson receives a purchase score at the moment.
Ultimate Ideas
The corporate’s development prospects appear promising, and Nordson has a formidable observe document of earnings and dividends. The corporate is at the moment buying and selling at a decrease degree, which will increase its attractiveness.
The corporate might proceed its unimaginable earnings-per-share development this 12 months or take a breather and stay flat. Nevertheless, we consider Nordson will proceed rising over the long run. This long-term earnings development and the very conservative dividend payout ratio ought to see the corporate rising its dividend for a lot of extra years forward.
Moreover, the next Positive Dividend databases comprise essentially the most dependable dividend growers in our funding universe:
For those who’re on the lookout for shares with distinctive dividend traits, contemplate the next Positive Dividend databases:
The most important home inventory market indices are one other stable useful resource for locating funding concepts. Positive Dividend compiles the next inventory market databases and updates them month-to-month:
Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to assist@suredividend.com.
