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How to Play Apple and Amazon Heading in 2023
Low Beta, High Yield Campbell Soup Company Is Mmm Mmm Good
Why Your IRA Could Crash on January 16th? (Ad)
Microsoft strikes 10-year deal with Nintendo on Call of Duty
Could trawler cams help save world's dwindling fish stocks?
Why Your IRA Could Crash on January 16th? (Ad)
Southwest Airlines brings back dividend as travel rebounds
Closing prices for crude oil, gold and other commodities
S&P 500   3,933.92
DOW   33,597.92
QQQ   280.53
How To Be Persuasive With Your Body Language
The single greatest medical breakthrough of all time? (Ad)
How to Play Apple and Amazon Heading in 2023
Low Beta, High Yield Campbell Soup Company Is Mmm Mmm Good
Why Your IRA Could Crash on January 16th? (Ad)
Microsoft strikes 10-year deal with Nintendo on Call of Duty
Could trawler cams help save world's dwindling fish stocks?
Why Your IRA Could Crash on January 16th? (Ad)
Southwest Airlines brings back dividend as travel rebounds
Closing prices for crude oil, gold and other commodities
S&P 500   3,933.92
DOW   33,597.92
QQQ   280.53
How To Be Persuasive With Your Body Language
The single greatest medical breakthrough of all time? (Ad)
How to Play Apple and Amazon Heading in 2023
Low Beta, High Yield Campbell Soup Company Is Mmm Mmm Good
Why Your IRA Could Crash on January 16th? (Ad)
Microsoft strikes 10-year deal with Nintendo on Call of Duty
Could trawler cams help save world's dwindling fish stocks?
Why Your IRA Could Crash on January 16th? (Ad)
Southwest Airlines brings back dividend as travel rebounds
Closing prices for crude oil, gold and other commodities
S&P 500   3,933.92
DOW   33,597.92
QQQ   280.53
How To Be Persuasive With Your Body Language
The single greatest medical breakthrough of all time? (Ad)
How to Play Apple and Amazon Heading in 2023
Low Beta, High Yield Campbell Soup Company Is Mmm Mmm Good
Why Your IRA Could Crash on January 16th? (Ad)
Microsoft strikes 10-year deal with Nintendo on Call of Duty
Could trawler cams help save world's dwindling fish stocks?
Why Your IRA Could Crash on January 16th? (Ad)
Southwest Airlines brings back dividend as travel rebounds
Closing prices for crude oil, gold and other commodities

Dividend Kings

The Dividend Kings Index is a list of stocks that have consecutively increased their dividend payments for at least 50 years. Learn more about dividend kings.

MarketRank evaluates a company based on community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.
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Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.
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Analyst consensus is the average investment recommendation among Wall Street research analysts.
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Analyst ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyCurrent PriceDividend YieldAnnual PayoutPayout Ratio3-Year Dividend GrowthYears of Dividend GrowthEx-Dividend DateIndicator(s)
3M stock logo
MMM
3M
$126.35
+1.4%
4.72%$5.9651.92% 2.86% 64N/A
ABM Industries Incorporated stock logo
ABM
ABM Industries
$45.46
-0.5%
1.72%$0.7824.53% 2.76% 541/4/2023Dividend Increase
Positive News
Altria Group, Inc. stock logo
MO
Altria Group
$46.37
+0.3%
8.11%$3.76146.30% 5.47% 12N/ANews Coverage
Positive News
American States Water stock logo
AWR
American States Water
$96.42
+0.1%
1.65%$1.5973.61% 9.72% 67N/A
California Water Service Group stock logo
CWT
California Water Service Group
$62.78
+0.3%
1.59%$1.0067.57% 7.05% 54N/ANews Coverage
Cincinnati Financial Co. stock logo
CINF
Cincinnati Financial
$104.80
-2.0%
2.63%$2.76-766.67% 5.93% 6112/15/2022Analyst Report
Colgate-Palmolive stock logo
CL
Colgate-Palmolive
$77.55
+0.4%
2.42%$1.8881.74% 2.55% 59N/AAnalyst Report
News Coverage
Commerce Bancshares, Inc. stock logo
CBSH
Commerce Bancshares
$67.08
-1.0%
1.58%$1.0628.61% 7.19% 53N/AAnalyst Report
Insider Selling
Dover Co. stock logo
DOV
Dover
$138.35
-1.0%
1.46%$2.0225.09% 1.55% 66N/AAnalyst Report
Emerson Electric Co. stock logo
EMR
Emerson Electric
$94.71
+0.4%
2.20%$2.0838.45% 1.44% 65N/A
Federal Realty Investment Trust stock logo
FRT
Federal Realty Investment Trust
$107.19
+0.4%
4.03%$4.3291.72% 1.78% 5412/30/2022Analyst Report
Genuine Parts stock logo
GPC
Genuine Parts
$182.86
+0.1%
1.96%$3.5842.98% 4.22% 66N/ANews Coverage
H.B. Fuller stock logo
FUL
H.B. Fuller
$77.02
-0.6%
0.99%$0.7621.29% 25.39% 52N/A
Hormel Foods Co. stock logo
HRL
Hormel Foods
$47.62
+1.7%
2.18%$1.0456.83% 8.80% 561/13/2023Analyst Revision
Johnson & Johnson stock logo
JNJ
Johnson & Johnson
$177.17
+0.6%
2.55%$4.5262.95% 5.78% 60N/AAnalyst Report
Lancaster Colony Co. stock logo
LANC
Lancaster Colony
$202.12
-0.4%
1.68%$3.4097.14% 7.57% 59N/A
Lowe's Companies, Inc. stock logo
LOW
Lowe's Companies
$206.89
+2.5%
2.03%$4.2041.14% 17.49% 481/24/2023Analyst Report
Nordson Co. stock logo
NDSN
Nordson
$235.14
+0.7%
1.11%$2.6031.48% 11.46% 58N/A
Northwest Natural Holding stock logo
NWN
Northwest Natural
$48.21
+1.4%
4.02%$1.9474.62% 0.53% 65N/APositive News
Parker-Hannifin Co. stock logo
PH
Parker-Hannifin
$292.06
+0.7%
1.82%$5.3255.36% 10.53% 2N/ANews Coverage
SJW Group stock logo
SJW
SJW Group
$77.98
-0.2%
1.85%$1.4475.00% 6.69% 54N/AHigh Trading Volume
Stanley Black & Decker, Inc. stock logo
SWK
Stanley Black & Decker
$77.25
-0.6%
4.14%$3.2035.09%N/A 54N/APositive News
Stepan stock logo
SCL
Stepan
$111.35
+0.6%
1.31%$1.4622.02% 10.56% 27N/AAnalyst Upgrade
Sysco Co. stock logo
SYY
Sysco
$84.19
-0.1%
2.33%$1.9669.50% 8.16% 531/5/2023
Target Co. stock logo
TGT
Target
$153.76
-0.8%
2.81%$4.3259.18% 7.84% 50N/AAnalyst Report
The Coca-Cola Company stock logo
KO
Coca-Cola
$63.54
+0.2%
2.77%$1.7676.86% 2.50% 60N/AAnalyst Report
Short Interest ↓
The Procter & Gamble Company stock logo
PG
Procter & Gamble
$150.24
+0.6%
2.43%$3.6563.26% 6.17% 66N/AAnalyst Upgrade
Tootsie Roll Industries, Inc. stock logo
TR
Tootsie Roll Industries
$45.22
-0.6%
0.80%$0.3635.25% 1.99% 52N/A
Why Invest in Dividend Kings

Dividend Kings are companies who have increased their dividend payout for at least 50 consecutive years. The list is mostly informal but it is one tracked by a large portion of the market because these stocks have stood the test of time and paid out consistently through thick and thin.

There are many metrics that investors can use to evaluate a company, but for income investors, the ability to pay and increase its dividend is a key indicator of financial strength. A dividend is a percentage of a company’s profit, so when a company issues a dividend it indicates they have enough profits to meet short-term liabilities and want to reward shareholders.

When it comes to dividend stocks, the stocks with consistent dividends are in demand, stocks with consistently growing stocks are in even higher demand, and the Dividend Kings are in the highest demand.

The most attractive feature of dividend kings is they are mature companies in mature industries. For example, you won’t find any of the FAANG stocks in the list of dividend kings because they haven’t been around long enough to have paid 50 years of dividends.

Growth stocks like the FAANG names are high on the risk/reward scale but low on the capital return scale. Investors can get a significantly higher total return when the stock is performing well but, on the other hand, these stocks can also deliver a big downside and lots of volatility.

Dividend kings, on the other hand, can provide capital growth and frequently do, but they usually have a far lower growth rate than a pure growth stock. The upshot is the dividend which usually adds another few percentage points to the total return that can be compounded over time, in good time and bad.

Dividend stocks have a place in any investor’s portfolio but not all dividend stocks are the same. Like any retail purchase, investors frequently get what they pay for and this could be for better or for worse. Caveat emptor. Let the buyer beware.

In this article, we’re breaking down a specific category of common stocks known as the dividend kings that have a proven track record of success. Their success is measured by 5 decades of dividend growth that proves sound management and long-term thinking. Investors looking for safe, steady dividend returns, reinvestment, and a growing yield-to-investment profile the Dividend Kings are a good group of stocks to pick from.

A company’s willingness to issue dividends is an indication of financial health and stability. The commitment to increase that dividend every year is even more so. The added attraction is that annual dividend growth encourages long-term investors to “buy and hold” which helps reduce volatility and gives some protection from downturns.

Dividends, unlike other metrics (like free cash flow and even revenue), are difficult to manipulate. Issuing a dividend means the company has enough cash left over after they have covered its short-term liabilities. More importantly, for investors, it signifies a belief from management that the company will continue to have excess cash into the future.

This highlights another benefit of dividend stocks – once a company begins to issue a dividend, it will generally prioritize it in the future. Dividend kings take that commitment to the next level by increasing the payout to shareholders every year and doing so for longer than many investors have been alive.

First and foremost, dividend kings are dividend stocks and, while dividend stocks can play a role in any investor’s portfolio, it’s important to understand that stocks of dividend kings put value and payouts well above growth.

Dividend kings have historically higher overall returns over extended periods because of their dividend payments. Dividend kings are also proven to have less volatility which is good for most portfolios.

But how do you know a dividend king’s dividend is stable? To do that you should pay attention to the dividend payout ratio. The dividend payout ratio is the amount of a company’s earnings that they pay in dividends. Some sectors, like utilities, are known to pay a high percentage of their earnings as a dividend and many Dividend Kings do too, generally speaking..

Among current dividend kings, the lowest dividend payout ratios are running in the high 20%-range and the highest is in the low 80%s with the average near 55%.

Another important benefit to investing in dividend kings (as well as any dividend stock) is the opportunity to have income gains achieved taxed at a lower rate that is similar to the long-term capital gains rate. If investors hold the stock for a specified length of time prior to the ex-dividend date, their dividends will be considered to be qualified dividends which means that instead of the gains being taxed as ordinary income, they will be taxed at a lower rate.

Due to the small sample size there is no index specifically for dividend kings. However, investors can invest in a number of ETFs that follow dividend aristocrats which is the next best thing. Since dividend aristocrats are similar in character to dividend kings, there is a similar degree of safety plus these stocks are well on their way to becoming Dividend Kings.

There are hundreds of U.S.-listed ETFs that invest in dividend stocks. Investors can sort these funds by category and style ranging from market cap to emerging markets.

History favors investors who invest in dividend kings. To illustrate this, the website Simply Safe Dividends provided this illustration of investors who invested $200,000 at the beginning of 1991.

In the illustration, the investors put one half (or $100,000) in the S&P 500 Index and the other half equally across each of the dividend kings that trade on the major stock exchanges. In this example, investors did nothing more than reinvest their dividends. They didn’t buy or sell the stock to rebalance and did not invest any new money. The example spans 27 years.

The money that was invested in the S&P 500 Index compounded at an annual rate of 10.2% giving investors almost $1.4 million by the end of 2017. That’s impressive.

By contrast, the dividend kings portfolio compounded at a 13.8% annual rate, giving investors nearly $3.2 million over the same time. Now there is some bias to this number because the data doesn’t account for dividend kings that ultimately fell off the list. But it’s still a powerful example of the importance of reinvesting dividends.

But the other thing the study showed was that investing in dividend kings results in lower volatility. A lower volatility means the value of an investor’s portfolio will fluctuate less. Specifically, the dividend kings portfolio had annual volatility of 12.5% as opposed to the S&P 500 Index portfolio which had a 17.3% annual volatility. It doesn’t mean that the dividend kings portfolio never suffered a correction. But over time, it had lower highs but higher lows as well.

For example, in 2008, an absolutely brutal year for the market, the dividend kings portfolio returned a negative 14% while the S&P 500s total return was down 37%. One of the reasons for this is that dividend kings usually possess defensive characteristics that allow them to “outperform” in bear markets.

The only difference between the two is in the number of years of dividend growth, and the fact the Dividend Aristocrats are an official S&P index tracking S&P 500 stocks.

Dividend aristocrats have the distinction of being S&P 500 stocks increasing dividends for over 25 years. The easy way to think about the two groups is that every dividend king is a dividend aristocrat, but not every dividend aristocrat has risen to the level of dividend king. Either way, these companies are regarded as some of the most sought-after stocks by income-oriented investors.

Ticker

Name

Sector

Years of Dividend Increases

MMM

3M Co.

Industrials

63

ABT

Abbott Laboratories

Healthcare

50

ABBV

Abbvie Inc

Healthcare

50

ABM

ABM Industries Inc.

Industrials

55

MO

Altria Group Inc.

Consumer Defensive

52

AWR

American States Water Co.

Utilities

67

BDX

Becton, Dickinson, And Co.

Healthcare

49

BKH

Black Hills Corporation

Utilities

50

CWT

California Water Service Group

Utilities

53

CINF

Cincinnati Financial Corp.

Financial Services

61

KO

Coca-Cola Co

Consumer Defensive

59

CL

Colgate-Palmolive Co.

Consumer Defensive

58

CBSH

Commerce Bancshares, Inc.

Financial Services

53

DOV

Dover Corp.

Industrials

66

EMR

Emerson Electric Co.

Industrials

64

FMCB

Farmers & Merchants Bancorp

Financial Services

56

FRT

Federal Realty Investment Trust

Real Estate

54

GPC

Genuine Parts Co.

Consumer Cyclical

65

FUL

H.B. Fuller Company

Basic Materials

52

HRL

Hormel Foods Corp.

Consumer Defensive

56

JNJ

Johnson & Johnson

Healthcare

59

KMB

Kimberly-Clark Corp.

Consumer Defensive

50

LANC

Lancaster Colony Corp.

Consumer Defensive

58

LOW

Lowe’s Companies, Inc.

Consumer Cyclical

59

NFG

National Fuel Gas Co.

Energy

51

NDSN

Nordson Corp.

Industrials

58

NWN

Northwest Natural Holding Co

Utilities

65

PH

Parker-Hannifin Corp.

Industrials

65

PEP

PepsiCo Inc

Consumer Defensive

49

PPG

PPG Industries, Inc.

Basic Materials

50

PG

Procter & Gamble Co.

Consumer Defensive

65

SJW

SJW Group

Utilities

55

SWK

Stanley Black & Decker Inc

Industrials

54

SCL

Stepan Co.

Basic Materials

54

SYY

Sysco Corp.

Consumer Defensive

51

TR

Tootsie Roll Industries, Inc.

Consumer Defensive

52

UVV

Universal Corp.

Consumer Defensive

50

 

While no investment is ever without any risk, dividend kings are about as risk-free as you can get in the stock market. These companies have a history of solid business performance and of increasing their dividend every year for more than half a century. Think about everything our economy has gone through in that amount of time. These are not fly-by-night companies. They are companies that have shown they are well run.

But remember the primary reason you are investing in a dividend king is for the security of that dividend. These stocks are not known for spectacular growth, although any individual stock may outperform the market at any given time.

Dividend investors know the one thing that truly matters when evaluating a company’s dividend is stability and growth. Dividend yields go up and down and frequently a high dividend yield is a signal of a company that is having financial problems, not financial strength.

Companies that not only pay out a dividend on a regular basis but also increase their dividend show a commitment to building shareholder value. And while there is no direct correlation, dividend kings typically show healthy balance sheets as well. They have to in order to sustain their long history of dividend increases.

 

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