When we think of Dividend Aristocrats, companies in the S&P 500 Index ($SPX) that have increased their dividends for at least 25 years, food and beverage companies might come to mind first. This is not without reason, as these companies tend to have stable businesses with predictable and linear earnings. In turn, this allows them to pay fat dividends. Moreover, these companies are typically cash-flow powerhouses. Given their mature business, they don’t have many avenues for investment, so they use the free cash flows for dividends or share repurchases.
