Companies that have a 50+ year history of raising their dividend payments each and every year are known as Dividend Kings. This is a remarkable accomplishment because it calls for sustained financial stability and expansion over an extended period of time.
In addition to surviving the eight recessions that took place during that time, those extraordinary enterprises were able to reward shareholders with rising cash distributions every single year. These businesses also withstood the out-ouf-control inflation in the early ’80s and the soaring interest rates that were implemented to combat that.
Dividend Kings are frequently seen as a defensive investing strategy since they have historically offered shareholders a consistent income stream even during market downturns. These businesses are frequently considered a safe haven for risk-averse investors due to their history of steady growth and financial stability.
In the table below you will find all Dividend Kings as of March 2023.
| Company | Sector | Dividend Growth Streak(yrs) |
| American States Water (NYSE:AWR) | Utilities | 68 |
| Dover Corporation (NYSE:DOV) | Industrials | 67 |
| Northwest Natural Holding (NYSE:NWN) | Utilities | 67 |
| Genuine Parts (NYSE:GPC) | Consumer Goods | 66 |
| Procter & Gamble (NYSE:PG) | Consumer Goods | 66 |
| Parker Hannifin (NYSE:PH) | Industrials | 66 |
| Emerson Electric (NYSE:EMR) | Industrials | 66 |
| 3M (NYSE:MMM) | Industrials | 64 |
| Cincinnati Financial (NASDAQ:CINF) | Financials | 61 |
| Johnson & Johnson (NYSE:JNJ) | Healthcare | 60 |
| Coca-Cola (NYSE:KO) | Consumer Goods | 60 |
| Lancaster Colony (NASDAQ:LANC) | Consumer Goods | 60 |
| Colgate-Palmolive (NYSE:CL) | Consumer Goods | 59 |
| Nordson (NASDAQ:NDSN) | Industrials | 59 |
| Farmers & Merchants Bancorp (OTH:FMCB) | Financials | 57 |
| Hormel Foods (NYSE:HRL) | Consumer Goods | 56 |
| ABM Industries (NYSE:ABM) | Industrials | 56 |
| California Water Service Group (NYSE:CWT) | Utilities | 55 |
| Stanley Black & Decker (NYSE:SWK) | Industrials | 55 |
| Stepan Company (NYSE:SCL) | Industrials | 55 |
| Federal Realty Investment Trust (NYSE:FRT) | Real Estate | 55 |
| Commerce Bancshares (NASDAQ:CBSH) | Financials | 54 |
| SJW Group (NYSE:SJW) | Utilities | 54 |
| Sysco (NYSE:SYY) | Consumer Goods | 53 |
| MSA Safety (NYSE:MSA) | Industrials | 53 |
| H.B. Fuller (NYSE:FUL) | Materials | 53 |
| Altria Group (NYSE:MO) | Consumer Goods | 53 |
| National Fuel Gas (NYSE:NFG) | Energy | 52 |
| Universal Corporation (NYSE:UVV) | Consumer Goods | 52 |
| Black Hills Corp. (NYSE:BKH) | Utilities | 52 |
| Illinois Tool Works (NYSE:ITW) | Industrials | 52 |
| W.W. Grainger (NYSE:GWW) | Industrials | 51 |
| Target (NYSE:TGT) | Consumer Goods | 51 |
| Leggett & Platt (NYSE:LEG) | Industrials | 51 |
| PPG Industries (NYSE:PPG) | Industrials | 51 |
| Computer Services, Inc. (OTV:CSVI) | Technology | 51 |
| Becton, Dickinson & Co. (NYSE:BDX) | Healthcare | 51 |
| AbbVie (NYSE:ABBV) | Healthcare | 51 |
| Abbott Labs (NYSE:ABT) | Healthcare | 51 |
| Tennant (NYSE:TNC) | Industrials | 50 |
| Kimberly Clark (NYSE:KMB) | Consumer Goods | 50 |
| PepsiCo (NASDAQ:PEP) | Consumer staples | 50 |
| Nucor (NYSE:NUE) | Industrials | 50 |
A corporation must also satisfy specific size and liquidity standards in order to be considered for the title of Dividend King. In particular, the business must have a market valuation of at least $3 billion and belong to the S&P 500 index.
In conclusion, the following are the requirements for a Dividend King:
- 1)annual dividend payments that have climbed steadily for at least 50 years
- 2)inclusion in the S&P 500 index
- 3) at least $3 billion in market capitalization.
Even though Dividend Kings are typically seen as safe and reliable investments, there are still certain dangers involved.
One of the biggest hazards is that the company may eliminate the dividend payout altogether, or cut it down to a smaller level. Usually this occurs due to the combination of increasing debt levels (which need to be serviced) and declining earnings.
The latest Dividend King to lose its status was V.F Corporation, with management deciding to cut its dividend by -41% in February 2023.
Also, if interest rates rise, dividend stocks can lose some of their appeal to investors looking for greater total returns, which might lead to a decline in stock price.
There is no assurance that these enterprises’ resilience will persist even if it has been displayed during the past 50 years. We don’t invest by gazing in the rearview mirror; instead, we invest in the future potential of the company.
An additional possible problem is valuation risk. Investors increase the price they are ready to pay for ownership of these companies because they have impressively demonstrated their durability. Even purchasing a terrific firm at an overpriced price diminishes future returns and frequently results in below-average performance over time.
Last but not least, it’s critical to keep in mind that no investment is fully risk-free and that there is always a chance of suffering losses. Investors should always carefully examine their investment objectives and risk tolerance before investing in any company or instrument, even though Dividend Kings are typically regarded as stable and reliable investments.
