The Dividend Kings are U.S. stocks that that have grown their dividend for 50+ years in a row. This is a fairly select list as only 29 companies have successfully done so. This is out of the approximately 4,300 companies listed on stock exchanges at end of 2018. These companies have survived periods of inflation, stock market crashes, global crisis and deep recessions. They may not have grown revenue and earnings per share every year, but they annually raised the dividend without fail. This length of time points to the durability of their businesses.
The company with the longest track record is American States Water (AWR) with 65 years of straight increases. There were four water utilities on this list at the start of 2019. But Connecticut Water Service (CTWS) was acquired by SJW Corp (SJW) in 2019. The other company that left the list due to an acquisition was Vectron Corp (VVC), which was acquired by CenterPoint Energy Inc (CNP). There were three new entries to the list in 2019: Altria Group Inc (MO), Sysco Corp (SYY), and H.B. Fuller Company (FUL).
There are currently no master limited partnerships (MLPs) on the list. There is only one real estate investment trust (REIT) on the list, Federal Realty Investment Trust (FRT).
Despite the length of time for dividend increases five companies have a 10-year double-digit rate of increase for the dividend. The median payout ratio is about 55% but there are a few companies that have high payout ratios over 65%. Interestingly, the list is not dominated by large cap companies but includes quite a few mid-cap ($2B – $10B) and small cap companies ($300M – $2B). The largest Dividend King by market capitalization is Johnson & Johnson (JNJ).
The Dividend King list serves as a screen for further investigating as stock for a dividend growth portfolio. It is a list of companies with stable business that have competitive advantages and have returned cash to shareowners consistently through dividends.
List of Dividend King Stocks
|Company Name||Ticker||Industry||No. Years||Dividend Yield (%)||Payout Ratio (%)||10-yr Dividend Growth Rate (%)||Market Cap|
|American States Water||AWR||Water Utilities||65||1.4||55.7||7.8||$ 3,190|
|Dover Corp.||DOV||Machinery||64||1.8||43.5||9.7||$ 16,120|
|Northwest Natural Gas||NWN||Gas Utilities||64||2.8||85.7||2.2||$ 2,090|
|Emerson Electric||EMR||Electrical Equipment||63||2.7||56.2||4.7||$ 45,250|
|Genuine Parts Co.||GPC||Distributors||63||2.9||56.0||6.3||$ 15,280|
|Procter & Gamble Co.||PG||Household Products||63||2.4||184.2||6.2||$ 309,330|
|Parker-Hannifin Corp.||PH||Machinery||63||1.8||30.9||12.3||$ 25,540|
|3M Company||MMM||Industrial Conglomerates||61||3.4||68.9||10.5||$ 99,180|
|Cincinnati Financial||CINF||Insurance||59||2.1||40.4||3.2||$ 17,790|
|Farmers & Merchants Bancorp||FMCB||Banks||57||1.8||20.5||3.1||$ 609|
|Johnson & Johnson||JNJ||Pharmaceuticals||57||2.8||72.4||7.0||$ 362,310|
|Coca-Cola Company||KO||Beverages||57||3.0||90.4||7.5||$ 229,910|
|Lancaster Colony Corp.||LANC||Food Products||57||1.8||50.7||8.1||$ 4,350|
|Lowe’s Companies||LOW||Specialty Retail||57||1.9||68.8||18.4||$ 91,170|
|Colgate-Palmolive Co.||CL||Household Products||56||2.5||61.6||7.8||$ 58,530|
|Nordson Corp.||NDSN||Machinery||56||0.9||27.6||13.1||$ 9,570|
|Hormel Foods Corp.||HRL||Food Products||53||2.1||51.1||15.0||$ 23,850|
|ABM Industries Inc.||ABM||Commercial Services & Supplies||52||1.9||56.7||3.4||$ 2,570|
|California Water Service||CWT||Water Utilities||52||1.5||33.2||2.5||$ 2,520|
|Federal Realty Inv. Trust||FRT||Equity Real Estate Investment Trusts (REITs)||52||3.2||125.0||4.9||$ 10,040|
|Stepan Company||SCL||Chemicals||52||1.1||22.5||8.1||$ 2,220|
|SJW Corp.||SJW||Water Utilities||52||1.7||86.3||5.7||$ 2,030|
|Stanley Black & Decker||SWK||Machinery||52||1.7||50.1||7.4||$ 23,760|
|Target Corp.||TGT||Multiline Retail||52||2.1||44.3||15.4||$ 64,020|
|Tootsie Roll Industries||TR||Food Products||52||1.0||37.9||4.5||$ 2,280|
|Commerce Bancshares||CBSH||Banks||51||1.6||27.7||4.9||$ 7,160|
|H.B. Fuller Company||FUL||Chemicals||50||1.3||24.1||8.9||$ 2,550|
|Altria Group Inc.||MO||Tobacco||50||6.8||357.4||9.5||$ 92,840|
|Sysco Corp.||SYY||Food & Staples Retailing||50||2.2||54.7||5.0||$ 41,410|
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