S&P Dow Jones Indices removed The Campbell's Company and Pool Corporation from the S&P 500 on June 22, replacing them with semiconductor and electronics names. Both stocks now reside in the S&P SmallCap 600, triggering mechanical selling by index funds that has pressured their share prices. Campbell's offers a dividend yield above 7%, supported by a 51-year payout streak and the Rao's brand, which surpassed $1 billion in trailing-12-month net sales, though its dividend growth has been minimal. Pool Corp. yields around 2.4% but has raised its dividend for 22 consecutive years, with a decade-long annual growth rate of roughly 17%, driven by a business model where about 60% of revenue comes from maintenance and repair. The removals reflect index rebalancing rather than business deterioration, potentially creating opportunities for patient dividend investors.
Campbell’s CoRemoved from S&P 500, triggering mechanical selling by index funds that pressured share price.
Pool CorporationRemoved from S&P 500, triggering mechanical selling by index funds that pressured share price.