Just about any "reasonable size" dividing head should fit on your Sheldon horizontal mill. I have a smaller US Machine Tools #1 horizontal mill from the 1940's. One of the accessories that could be purchased for it is a 6" dividing head. I have placed my 11" dividing head on the table, and it seems there is sufficient room to make up to a 6" diameter gear.
The main difference between the Sheldon and the US Machine Tools mill is the fact that the US Machine Tools machine has a rise and fall head. The head itself has a 4 1/2" vertical range along with the table having a 15 3/4" vertical range.
Here's a brochure outlining the features of the US Machine Tools #1 mill.