Fewer Than 30 Companies in the S&P 500 Have Raised Their Dividend for 50 Straight Years. This Financial Stock Is One of Them.
2026-09-04 16:45
•Courtney Carlsen •The Motley Fool
••••••• •• Axe Cap view
S&P Global’s Rare Dividend Streak and What It Means for SA Investors
S&P Global’s 54-year dividend growth streak signals strength, but South African investors should focus on local financials and rand dynamics.
S&P Global’s record of increasing dividends for 54 consecutive years is a feat few companies pull off. Their dominant grip on credit ratings – controlling about half the market – and their lean asset-light operations delivering over 50% margins explain their enduring strength. For South African investors, this signals the value of stable, cash-generative financial businesses. While SPGI’s 26x earnings valuation looks fair given its track record, SA’s financial giants like Standard Bank and FirstRand offer local exposure to credit cycles and rising interest rates. With the rand a wildcard against the dollar, these banks could benefit if the local currency stabilizes after recent volatility. Still, don’t overlook that global credit rating firms might face tech disruption or regulatory shifts that could upend their moat. Gold miners like AngloGold Ashanti remain hedges should global uncertainty rattle markets or the rand weaken drastically. this is just our opinion and not financial advice
Buy Standard Bank and FirstRand for exposure to rising rates and credit demand, but keep an eye on the rand’s movement against USD. Avoid overpaying for international credit firms via rand-hedged instruments until valuations are more compelling.
- Standard Bank
- FirstRand
- USD/ZAR
- Regulatory changes to credit rating agencies
- Rand depreciation impacting local earnings
7/10
S&P Global is highlighted as one of fewer than 30 S&P 500 companies that have raised dividends for 50+ consecutive years, achieving 54 years of increases. The company has delivered over 15% annualized returns over three decades, outperforming the S&P 500's 10.4%. Despite earlier concerns about AI disruption and disappointing Q4 results, S&P Global's dominant 50% market share in credit ratings, asset-light business model with 54% operating margins, and recent earnings guidance raise make it an attractive buy at current valuations of 26.4x earnings.
Our take is based on reporting first published by The Motley Fool.