Are you seeking to invest in the top-tier of dividend-paying stocks? Look no further than the elite group known as the Dividend Kings. These distinguished stocks have a track record of increasing their dividends for an impressive 50 years or more. As of now, there are 53 companies that hold this prestigious title, such as Consolidated Edison, Kenvue, and Fortis.
The Dividend Kings offer a rich source of dividend stock ideas for investors, but not all of them may be suitable for your portfolio at any given moment. Some stocks might be priced too high, while others could be undervalued gems waiting to be discovered. To find the most promising candidates, consider using the Dividend Kings Spreadsheet List, which provides critical data like payout ratio, dividend yield, and price-to-earnings ratio for each stock.
In the realm of Dividend Kings, it’s important to note that meeting the 50-year dividend increase rule doesn’t automatically make a company a Dividend Aristocrat. The distinction lies in additional criteria, including membership in the S&P 500 Index and meeting size and liquidity requirements, making Dividend Aristocrats a more exclusive club within the realm of long-term dividend growers.
How To Use The Dividend Kings List to Find Dividend Stock Ideas
When diving into the world of Dividend Kings, it’s crucial to sift through the data to uncover the hidden gems that align with your investment goals. By focusing on key metrics like the price-to-earnings ratio, investors can identify stocks that are not only Dividend Kings but also exhibit attractive valuation. To get started on this journey, follow these steps:
- Download the Dividend Kings Excel Spreadsheet.
- Utilize the instructional video to filter the list based on your preferred price-to-earnings ratio threshold.
- Consider filtering for higher dividend yield Dividend Kings to identify stocks with above-average dividend yields.
By exploring the historical performance of the Dividend Kings, investors can gain valuable insights into the potential benefits of investing in stable, blue-chip stocks that consistently raise their dividends year after year. While survivorship bias may exist in performance tracking, the long-term outperformance of these companies underscores the value of investing in businesses with a strong track record of dividend growth.
The 5 Best Dividend Kings Today
Delving into the current landscape of Dividend Kings, let’s explore the top five stocks that stand out based on their expected annual returns over the next five years:
- Farmers & Merchants Bancorp (FMBC) – 5-Year Annual Expected Returns: 15.4%
- PPG Industries (PPG) – 5-Year Annual Expected Returns: 14.4%
- Target Corporation (TGT) – 5-Year Annual Expected Returns: 13.9%
- SJW Group (SJW) – 5-Year Annual Expected Returns: 13.4%
- Sysco Corporation (SYY) – 5-Year Annual Expected Returns: 11.8%
Each of these companies presents a unique investment opportunity, showcasing their resilience and adaptability in various economic environments. For instance, SJW Group’s strong financial performance and steady growth in revenue and earnings underscore its position as a top-tier Dividend King worth considering.
As an investor looking to navigate the world of Dividend Kings, keep in mind that these stocks may outperform the broader market in bear markets and underperform during bull markets. By analyzing sector and market capitalization trends among the Dividend Kings, investors can gain a better understanding of the diverse composition and characteristics of these elite dividend-paying companies.
In closing, investing in Dividend Kings offers a compelling opportunity to build a robust portfolio of high-quality stocks with a proven track record of dividend growth. By selecting businesses with competitive advantages, shareholder-friendly management, and strong fundamentals, investors can position themselves for long-term success in the world of dividend investing.
