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If you're looking for high-yield investment options, the Dividend Kings list is a great place to start. These companies have a proven track record of consistently paying out high dividends.
One of the top dividend kings is Johnson & Johnson, with a yield of 2.7%. This is due in part to its stable cash flow and long history of paying out dividends.
Johnson & Johnson has paid out dividends for over 50 years, making it one of the most reliable dividend-paying stocks on the market.
Procter & Gamble is another dividend king with a yield of 2.5%. Its stable cash flow and brand portfolio have allowed it to consistently pay out high dividends.
The company has paid out dividends for over 60 years, making it a great option for long-term investors.
Dividend Kings List by Yield
National Fuel Gas Company (NFG) is a rare example of a stable and consistent energy stock, with a 2.61% current yield. It operates across the entire natural gas value chain, making it a distinctive option for investors seeking exposure exclusively to natural gas.
The company has delivered a 23.4% return to shareholders year-to-date, and its quarterly dividend of $0.515 per share has a dividend yield of 3.29%. In FY24, National Fuel Gas generated over $1 billion in operating cash flow, and in June, it raised its dividend for the 54th consecutive year.
Here is a list of the top 5 Dividend Kings by yield:
These companies have a proven track record of consistently paying dividends, making them attractive options for income-seeking investors.
What are Dividend Kings?
Dividend Kings are a group of elite stocks that have increased their dividend payouts for 50 or more consecutive years. These stocks are considered a safe bet for investors looking for stable returns.
The record holder for the most consecutive years of dividend increases is American States Water Co. (AWR) with an impressive 67 years. This shows their commitment to returning value to their shareholders.
To give you an idea of the diversity of Dividend Kings, here's a list of some of the stocks mentioned in the article:
These stocks have consistently demonstrated their ability to reward their shareholders with steady dividend payments.
National Fuel Gas (NFG)
National Fuel Gas (NFG) is a New York-based natural gas distribution company that operates across the entire natural gas value chain, encompassing upstream, midstream, and downstream activities.
The company has delivered a 23.4% return to shareholders year-to-date, making it a strong investment option for those seeking exposure exclusively to natural gas. Its comprehensive approach to the natural gas industry is a key differentiator.
National Fuel Gas reported revenue of $372 million in fiscal Q4 2024, which showed a slight growth of 0.85% from the same period last year. The company successfully negotiated a multi-year settlement for its New York rate case, with approval anticipated in the near future.
In the Exploration and Production (E&P) segment, capital efficiency showed notable improvement as non-acquisition capital expenditures dropped by $58 million, or 10%, compared to the previous year, while production rose by approximately 5% to reach 392.0 Bcf.
National Fuel Gas generated over $1 billion in operating cash flow in FY24, and raised its dividend for the 54th consecutive year. The current dividend yield is 3.29%.
21 hedge funds held stakes in National Fuel Gas Company (NYSE:NFG) as of Q3 2024, with a total value of nearly $214 million. GAMCO Investors was the company’s leading stakeholder in Q3.
Top Dividend Kings Stocks
Johnson & Johnson has been raising its dividends consistently for the past 60 years, making it one of the best dividend stocks.
The company's dividend yield as of November 11 came in at 2.59%, with a quarterly dividend of $1.13 per share. This impressive track record of steady dividend growth has earned Johnson & Johnson a Buy rating from Citigroup, with a $198 price target.
Emerson Electric has increased its dividend for 63 consecutive years, a highly impressive track record of steady dividend growth, even in the industrial sector which is more cyclical and prone to downturns.
The company's sales are split among two operating segments: Automation Solutions and Residential and Commercial & Residential Solutions. Emerson Electric generated operating cash flow of $588 million, up 10% year-over-year, and free cash flow of $477 million increased 15% versus the same quarter last year.
Consolidated Edison, Inc. has never missed a dividend since 1885 and has raised its payouts for 50 years in a row. The company's quarterly dividend of $0.83 per share fell in line with its previous dividend.
Lowe's Companies, Inc. has been raising its dividends consistently for the past 59 years, paying regular dividends to shareholders since its IPO in 1961. The company currently pays a quarterly dividend of $1.05 per share.
PepsiCo, Inc. has raised its dividends consistently for the past 50 years, paying a quarterly dividend of $1.15 per share for a dividend yield of 2.53% as of November 11.
American States Water has increased its annual dividends for 67 consecutive years, with a long history of dividend increases to shareholders. The company's current policy is to achieve a compound annual dividend growth rate of more than 7% over the long term.
Investing in Dividend Kings
Investing in Dividend Kings can be a smart move for your retirement, especially if you're reaching that age and looking for a steady income stream.
Dividend stocks have been shown to earn more than annuities for your retirement, providing a potentially more lucrative option.
If you're new to investing in dividend stocks, consider starting with Dividend Kings, a group of established companies with a history of consistent dividend payments.
Benefits of Investing in Dividend Kings
Investing in Dividend Kings can be a great way to earn more in your retirement than with annuities. In fact, if you're reaching retirement age, you may be surprised to learn that dividend stocks can provide a higher return on investment.
Dividend Kings are a special group of stocks that have consistently raised their dividend payouts for at least 25 years. This means they have a proven track record of delivering steady income to their shareholders.
One of the biggest benefits of investing in Dividend Kings is their ability to provide a relatively stable source of income in retirement. If you're relying on annuities for your retirement income, you may be limited to a fixed payout that can't keep up with inflation.
Dividend Kings, on the other hand, can continue to increase their payouts over time, helping to keep pace with inflation and ensuring that your retirement income grows with your expenses.
Risks and Considerations
Investing in dividend kings can be a low-risk strategy, but it's not without its risks. The main consideration is that these companies have a long history of paying consistent dividends, but they can still be vulnerable to economic downturns.
A key risk is that the dividend yield, which is the ratio of the annual dividend payment to the stock's price, can be misleading. If the stock price drops significantly, the dividend yield may increase, but this can be a sign of trouble.
The dividend payout ratio is another important consideration. Companies with a high dividend payout ratio may struggle to maintain their dividend payments during times of economic stress. For example, Procter & Gamble's dividend payout ratio is around 50%, which is relatively high.
Investors should also be aware that dividend kings can be slow growers. Companies like Coca-Cola and Johnson & Johnson have a history of steady dividend growth, but their stock prices can be relatively stable, which may not be ideal for investors seeking rapid growth.
It's essential to diversify your portfolio when investing in dividend kings to minimize risk. By spreading your investments across multiple companies, you can reduce your exposure to any one company's potential pitfalls.
Frequently Asked Questions
Is Altria still a dividend king?
Altria Group, Inc. has a long history of increasing its dividend payouts, with 59 raises in the past 55 years. This consistent track record demonstrates the company's commitment to its investors.
Which dividend king has the highest dividend?
Altria Group (MO) is considered the High Yield Dividend King with a notable dividend payout. Its dividend yield is a key factor in its "king" status among dividend-paying stocks.
Sources
- https://www.dividend.com/high-yield-dividend-stocks-etfs-and-funds/
- https://www.insidermonkey.com/blog/dividend-kings-list-top-15-1401675/
- https://www.forbes.com/sites/moneyshow/2020/05/28/dividend-kings-5-top-dividend-stocks-for-2020/
- https://rickorford.com/dividend-kings/
- https://www.insidermonkey.com/blog/dividend-kings-list-by-yield-top-25-stocks-1085990/
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