Key Points

S&P 500 removals often spark index fund selling that creates short-term price dips dividend investors can use to their advantage.
Campbell's delivers a rare 7% yield backed by 51 years of payouts and Rao's brand growth even as dividend increases stay modest.
Pool Corp. pairs modest current income with strong dividend growth supported by steady maintenance revenue and long-term earnings gains.

When a stock exits the S&P 500 index funds and ETFs must sell automatically. This produces brief artificial pressure unrelated to company fundamentals. Dividend investors who ignore the short-term noise may find value in that window.

On June 22 S&P Dow Jones Indices removed The Campbell's Company (NASDAQ: CPB) and Pool Corporation (NASDAQ: POOL). Semiconductor and electronics firms took their places reflecting the index's tech tilt. Both companies moved to the S&P SmallCap 600 so they remain publicly traded though less prominent.

1. Campbell's: The 7% yield story

Campbell's now yields above 7%. The share price has fallen over the past year amid softer volumes costs tied to the 2024 Sovos Brands deal and an ERP rollout that hurt operations. The lower price lifted the yield. The dividend has lasted 51 years and the payout ratio is about 76% of earnings with stronger cash-flow coverage. Rao's crossed 1 billion dollars in trailing twelve-month sales and Campbell's took a 49% stake in its Italian producer to secure supply while preserving the premium identity. Dividend growth has been slow at just 1.26% over five years so this is a high-yield low-growth holding best suited for income-focused strategies.

2. Pool Corp.: The dividend growth machine

Pool Corp. yields about 2.4% today. The appeal lies in its record of 22 straight annual increases and roughly 17% average annual growth over the past decade. Consistent earnings growth has allowed reliable raises that compound for long-term holders. Roughly 60% of revenue comes from recurring pool maintenance and repair which holds up regardless of housing cycles. First-quarter 2026 sales rose 6% and operating income rose 7%. The Pool360 platform now drives 13% of sales and continues to expand. The main risk is exposure to housing activity and consumer spending on larger projects which can soften when rates stay high.

The takeaway

Both companies left the S&P 500 because of mechanical rebalancing not business decline. Campbell's offers high current income plus a premium brand with growth potential. Pool Corp. provides a proven dividend-growth track record and a resilient service model. Neither is guaranteed but each merits review beyond the index change itself.