S&P Dow Jones Indices dropped Campbell's and Pool Corporation from the S&P 500 on June 22, replacing both with semiconductor and electronics names. The forced index-fund selling around a removal can open a short window for dividend investors, and these two arrive with very different income profiles.
When S&P Dow Jones Indices removed Campbell's and Pool Corporation from the S&P 500 on June 22, every index fund and ETF tracking the benchmark had to sell them. That creates a short stretch of mechanical selling pressure unrelated to either underlying business. Both names now sit in the S&P SmallCap 600, so they remain listed — just less visible.
Campbell's carries a yield above 7%
Campbell's now yields north of 7%, a level reached because the share price fell as the stock struggled for over a year. The company faced weaker volumes, lingering costs from its 2024 Sovos Brands acquisition, and an ERP system conversion that created operational headwinds.
The dividend itself has been in place for 51 years, with a payout ratio of roughly 76% of earnings and healthier cash-flow coverage. Growth, however, has been slow — the payout has grown barely 1.26% over five years, which matters for investors who want income to keep pace with inflation.
Beyond the math, Campbell's leans on Rao's. The brand crossed $1 billion in trailing-12-month net sales, and in May 2026 the company acquired a 49% stake in La Regina, the Italian producer behind Rao's sauces, keeping production in Scafati, Italy.
Pool Corp. offers dividend growth instead
Pool Corp. tells the opposite story. Its yield sits at around 2.4% today, but it has raised its dividend every year for 22 consecutive years, growing the payout at roughly 17% per year over the past decade.
The business distributes pool supplies, equipment, and chemicals, and about 60% of revenue comes from maintenance and repair. First-quarter 2026 net sales were up 6%, with operating income up 7%, while its Pool360 platform now accounts for 13% of net sales. The risk is tighter linkage to housing activity and consumer confidence: if interest rates stay elevated and homeowners defer big outdoor projects, discretionary sales may remain soft.
The source frames the removals as mechanical index rebalancing rather than a verdict on either business — leaving investors to weigh a rare high yield against a long record of dividend growth.
Source: The Motley Fool
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