Track market-moving stories before they get noisy

When a stock is removed from the S&P 500, the immediate reaction is mechanical: Every index fund and exchange-traded fund (ETF) tracking the benchmark must sell it. That creates a short window of artificial selling pressure, pressure that has nothing to do with the underlying business.

For dividend investors willing to look past the noise, that moment can be worth a close look.

On June 22, two companies were shown the door by S&P Dow Jones Indices: The Campbell's Company (CPB +1.04%) and Pool Corporation (POOL +1.75%). Both were replaced by semiconductor and electronics names -- a signal of how far the S&P 500 has tilted toward tech. Both Campbell's and Pool Corp. are in the S&P SmallCap 600 now, which means they're not disappearing from the market. They're just less visible.

Image source: Getty Images.

1. Campbell's: The 7% yield story Campbell's carries a dividend yield north of 7% right now. The stock has been under pressure for over a year, plagued by weaker volumes, lingering costs from its 2024 Sovos Brands acquisition, and an ERP system conversion that created operational headwinds. Markets punished the stock, and the yield climbed as the share price fell.

The dividend itself has been in place for 51 years. The payout ratio sits at roughly 76% of earnings -- not lean, but covered. Cash-flow coverage is even healthier. When a 51-year dividend streak is backed by both earnings and cash flow, it carries weight.

What Campbell's has going for it beyond the math is Rao's. The brand crossed $1 billion in trailing-12-month net sales, and in May 2026, Campbell's deepened its commitment by acquiring a 49% stake in La Regina, the Italian producer behind Rao's sauces. The partnership keeps production rooted in Scafati, Italy -- the artisanal identity that made Rao's a premium brand worth paying for. That kind of brand equity is hard to manufacture.

The honest caveat: Campbell's dividend growth has been slow. The payout has grown barely 1.26% over five years. For investors who care about income keeping pace with inflation, that matters. Campbell's today is a high-yield, low-growth dividend story, not a compounding machine. Whether that suits you depends on your investment strategy.

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2. Pool Corp.: The dividend growth machine Pool Corp.'s yield looks modest compared to Campbell's -- around 2.4% today. But the story isn't the yield, it's the trajectory.

Pool has raised its dividend every year for 22 consecutive years. Over the past decade, the dividend has grown at roughly 17% per year. That's the compounding engine the user manual talks about.

When a company grows its earnings consistently, it can raise its dividend consistently. Every raise on a growing base means the investor who bought earlier is now collecting a much higher yield on their original cost. That's the whole idea behind dividend growth investing, and Pool has executed it as well as almost any company in the market.

The business itself distributes pool supplies, equipment, and chemicals to wholesale buyers and professional contractors. About 60% of revenue comes from maintenance and repair -- people have to keep pools clean and running, whether the housing market is hot or cold. First-quarter 2026 net sales were up 6%, with operating income up 7%. The recovery in discretionary pool spending, which stalled after the pandemic boom, is grinding forward.

The digital side is also quietly gaining ground. Pool's proprietary platform, Pool360, now accounts for 13% of net sales and is growing. That's operational efficiency the company is building into the business for the long haul.

The risk worth noting: Pool Corp. is tied to housing market activity and consumer confidence in a way Campbell's simply isn't. If interest rates remain elevated and homeowners continue deferring big-ticket outdoor projects, discretionary sales will remain soft.

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The takeaway Both stocks were pushed out by mechanical index rebalancing, not deteriorating businesses. Campbell's offers an income-heavy position at a rare yield for a consumer staples name, with Rao's as a legitimate long-term growth driver. Pool Corp. is the dividend growth story -- a company that has earned its raises over 22 years and has the business model to keep earning them. Neither is a sure thing, but both deserve a look that goes beyond what the index removal implies.