Dividend Kings
Dividend Kings are the gold standard of dividend investing, representing companies that have increased their dividend payouts for 50 consecutive years or more. These rare income stalwarts showcase exceptional financial strength, resilience, and disciplined capital management, maintaining steady growth through recessions, inflationary periods, and volatile market cycles. For dividend investors, Dividend Kings are considered among the safest dividend stocks to hold for the long term, as they provide both reliable passive income and a proven track record of market-beating returns. Unlike many high-yield stocks that may reduce payouts during economic downturns, Dividend Kings continue to protect and grow investor income, making them a cornerstone for financial independence, retirement income, and long-term wealth building. As of 2024, there were 53 Dividend Kings spanning industries such as consumer staples, industrials, healthcare, utilities, and financial services, highlighting that dividend growth investing can be achieved across multiple sectors of the economy.
ABOUT DIVIDEND KINGS
Dividend Kings are an elite group of stocks that have increased their dividend payouts every year for at least 50 consecutive years.
Unlike other dividend-growth categories, Dividend Kings do not need to be members of the S&P 500 index, but they must achieve this rare milestone of half a century of uninterrupted payout growth.
As publicly traded companies, Dividend Kings can be bought and sold just like any other stock through an online broker, robo-advisor, or financial advisor.
For long-term investors, they provide a dependable stream of passive income and can serve as a cornerstone of a well-diversified portfolio.
DIVIDEND ARISTOCRATS VS. DIVIDEND KINGS
Dividend Kings and Dividend Aristocrats are two of the most respected groups in dividend investing, but they have different requirements.
Dividend Aristocrats are companies in the S&P 500 that have increased their dividends for at least 25 consecutive years.
Dividend Kings, on the other hand, have achieved 50 or more years of uninterrupted dividend growth, without any requirement to be part of the S&P 500 or to meet a minimum market capitalization.
Not all Dividend Kings are Dividend Aristocrats, but both groups are highly regarded for their ability to deliver steady income and long-term reliability.
For many investors, Dividend Kings offer an added layer of stability and prestige, given their unmatched track record of navigating multiple economic cycles while still rewarding shareholders with growing payouts.
NOTABLE DIVIDEND KINGS
Coca-Cola (KO): Known for its global beverage dominance and steady cash flow, Coca-Cola has raised its dividend for more than 60 years.
Johnson & Johnson (JNJ): A healthcare giant with a diversified business spanning pharmaceuticals, medical devices, and consumer products, J&J has over 60 years of dividend growth.
Procter & Gamble (PG): The consumer goods leader behind brands like Tide, Gillette, and Pampers, with a dividend growth streak of more than 65 years.
3M (MMM): An industrial powerhouse with products in healthcare, electronics, and safety, maintaining over six decades of payout growth.
Lowe’s (LOW): A home improvement retailer that has increased its dividends for over 50 years while benefitting from long-term housing and renovation trends.