Up to date on March eighth, 2025 by Felix Martinez
Annually, we individually evaluate every of the Dividend Aristocrats, a bunch of 69 shares within the S&P 500 Index which have raised their dividends for a minimum of 25 consecutive years.
To make it on the listing of Dividend Aristocrats, an organization should possess a worthwhile enterprise mannequin, a beneficial model, international aggressive benefits, and the flexibility to face up to recessions. Because of this Dividend Aristocrats can proceed to boost their dividends in tough years.
With this in thoughts, we have now created a listing of all 69 Dividend Aristocrats.
You’ll be able to obtain your free copy of the Dividend Aristocrats listing, together with necessary monetary metrics equivalent to price-to-earnings ratios and dividend yields, by clicking on the hyperlink beneath:
Disclaimer: Positive Dividend is just not affiliated with S&P International in any manner. S&P International owns and maintains The Dividend Aristocrats Index. The data on this article and downloadable spreadsheet is predicated on Positive Dividend’s personal evaluate, 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 listing is Nordson Company (NDSN). Nordson has an unimaginable dividend development observe file, with a exceptional 61 years of consecutive will increase.
This text will talk about 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. Automated Firm.
As we speak, the corporate has operations in over 35 international locations and engineers, manufactures, and markets merchandise used for shelling 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 earnings of $95 million ($1.65 per share). Adjusted EPS fell 7% to $2.06, whereas backlog grew 15%, indicating sturdy future demand.
Industrial gross sales dropped 11% as a result of weaker demand, whereas medical gross sales rose 21%, pushed by acquisitions. Superior Know-how 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 bettering order traits and a rising backlog as indicators of restoration. CEO Sundaram Nagarajan stays assured in long-term development, citing sturdy portfolio resilience regardless of market uncertainties.
Progress Prospects
From 2014 via 2024, Nordson grew earnings-per-share by a stable 10% yearly. In its funding thesis, Nordson lists elements equivalent to best-in-class expertise that enhances consumer manufacturing whereas chopping prices, a worldwide service mannequin, a balanced earnings stream, and a profitable observe file.
A rising demand for disposable items, productiveness investments, cellular computing, a rise in using medical units, 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 creating, producing and supplying precision management methods and good fluid elements 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 undertaking 10% EPS development over the following 5 years, pushed by a rise in high line income, modest margin growth, and the favorable results of acquisitions.
Aggressive Benefits & Recession Efficiency
Nordson’s aggressive benefit lies in its proprietary precision applied sciences. The enterprise affords specialised and important elements utilized in varied manufacturing processes.
This has enabled Nordson to muster an unlimited put in base of consumers worldwide. As a consequence of its intensive international presence, Nordson has diversified its income geographically and by business and phase.
Nonetheless, 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 growth, one other recession may cut 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 imagine that 24 occasions earnings is an affordable honest worth estimate for Nordson.
Given shares commerce below our honest worth estimate at the moment, 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 charge, and the potential valuation tailwind, we see Nordson inventory producing whole 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 powerful observe file of earnings and dividends. The corporate is at the moment buying and selling at a decrease stage, which will increase its attractiveness.
The corporate could proceed its unimaginable earnings-per-share development this 12 months or take a breather and stay flat. Nonetheless, we imagine 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 include essentially the most dependable dividend growers in our funding universe:
In the event you’re in search of shares with distinctive dividend traits, take into account 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:
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