Updated on January 26th, 2026 by Bob Ciura
Each year, we individually review each of the Dividend Aristocrats, a group of 69 stocks in the S&P 500 Index that has raised their dividends for at least 25 consecutive years.
To make it on the list of Dividend Aristocrats, a company must possess a profitable business model with a valuable brand, global competitive advantages, and the ability to withstand recessions.
This is why Dividend Aristocrats can continue raising dividends in difficult years.
With this in mind, we have created a list of all 69 Dividend Aristocrats.
You can download your free copy of the Dividend Aristocrats list, along with important financial metrics such as price-to-earnings ratios and dividend yields, by clicking on the link below:
Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.
Erie Indemnity Company (ERIE) was among the new additions to the Dividend Aristocrats list last year.
This article will examine Erie’s business model, growth prospects, and whether we are currently rating the stock as a buy, sell, or hold.
Business Overview
Erie Indemnity is an Erie, Pennsylvania-based insurance company. It has established itself in life insurance, auto, home, and commercial insurance. The company’s history dates to the 1920s.
Erie Indemnity reported that its revenues totaled $1.06 billion during the third quarter, which was 6.0% more than the revenues that Erie Indemnity was able to generate during the previous year’s quarter.
Erie Indemnity’s revenue growth was driven by higher management fee revenues (for policy issuance and renewal services) to a large degree, which rose by 7.3% year over year. Administrative services fee revenue was up by 9.8%, but from a much smaller base.
Erie Indemnity’s investment income was up substantially on a year-over-year basis during the quarter, rising from $19.5 million one year ago to $21.6 million during the most recent quarter.
Erie Indemnity generated GAAP earnings-per-share of $3.50 during the third quarter, which was up by 14% from the previous year’s quarter’s earnings-per-share. Earnings-per-share growth was thus considerable better than the company’s revenue growth, which is a good sign.
Earnings-per-share soared in 2023 on the back of revenue growth and higher net investment income, and they rose at a hefty pace in 2024 as well, mainly thanks to the same tailwinds as in the previous year.
For the current year, earnings-per-share are forecasted to grow as well, with the consensus estimate implying growth of around 10% in fiscal 2025.
Growth Prospects
Erie increased its earnings-per-share by ~15% annually between 2015 and 2024, but that growth was easy to achieve thanks to a relatively low profit base around one decade ago.
Back then, interest rates were pretty low, which is why Erie Indemnity’s investment income was low as well.
Like other insurance companies, Erie Indemnity has a sizable float – cash that it has received through premiums and that it needs to invest, thus the company’s results are dependent on market rates, e.g. for treasuries.
With interest rates rising in the recent past, Erie Indemnity experienced a big profit increase in 2023 and 2024, but earnings will most likely not continue to grow at that pace.
Recently, Erie Indemnity has achieved appealing revenue growth, and we believe that revenues should grow in the foreseeable future.
We believe that Erie Indemnity should be able to grow its profits at a mid-single-digit pace throughout the coming years, with growing revenues being a growth driver, while investment income could, dependent on the market environment, either be a growth driver or a bit of a headwind relative to the recent past.
We expect Erie to grow its earnings-per-share by 6% per year over the next five years.
Competitive Advantages & Recession Performance
Erie Indemnity is not a huge insurance company, in relation to its peers. Therefore, it does not have any major scale advantages over its competitors.
But it was, compared to many other insurance companies and financial corporations, relatively stable during the Great Recession, which is a positive from a risk perspective.
Its earnings took a hit, but the company managed to remain profitable and was able to raise its dividend.
Erie’s earnings-per-share during the Great Recession are below:
- 2007 earnings-per-share of $3.43
- 2008 earnings-per-share of $1.19 (65% decline)
- 2009 earnings-per-share of $1.89 (59% growth)
- 2010 earnings-per-share of $2.85 (51% growth)
While Erie certainly felt the pain from the Great Recession, its earnings rebounded fairly quickly and the company remained profitable throughout.
Unlike many other financial companies, Erie Indemnity did not cut its dividend during the Great Recession. Instead, the company continued to raise its payout even during those troubled years, keeping its dividend growth track record intact.
Therefore, it is clear that Erie is exposed to recessions due to operating in the financial sector. But it also has a history of recovering from downturns well.
Valuation & Expected Returns
Based on expected 2025 earnings-per-share of $12.60, ERIE shares are currently trading for a P/E ratio of 22.
Based on Erie Indemnity’s past record and the forecasted earnings-per-share growth rate, we believe that the company’s shares should be valued at around 22 times net earnings.
As a result, ERIE stock looks fairly valued today. At the current valuation level, shareholder returns would not be affected much by changes in the multiple.
Shareholder returns would be positively boosted by earnings-per-share growth and dividends. We expect Erie to generate earnings-per-share growth of 6% per year.
Next, shares are currently yielding 2.1%. Putting it all together, total returns are expected at 8.0% per year. With negative expected returns, we rate Erie stock a sell.
Final Thoughts
Erie Indemnity has grown its earnings-per-share consistently over its history. The company is likely to set a record for its earnings-per-share in 2025. The long-term growth outlook is solid.
Following a recent share price pullback, Erie Indemnity now trades close to our fair value estimate. Erie Indemnity looks like a relatively stable insurance company with good fundamentals, thanks to a solid but not great total return outlook we rate it a hold for now.
Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:
- The Dividend Champions: Dividend stocks with 25+ years of dividend increases, including those that may not qualify as Dividend Aristocrats.
- The Dividend Kings: considered to be the ultimate dividend growth stocks, the Dividend Kings list is comprised of stocks with 50+ years of consecutive dividend increases
If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:
- The Complete List of Monthly Dividend Stocks: stocks that pay dividends each month, for 12 payments over the year.
- The Blue Chip Stocks List: this database contains stocks that qualify as either Dividend Achievers, Dividend Aristocrats, or Dividend Kings.