2019 Dividend Kings List: See All 27 Now Sure Dividend

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2019 Dividend Kings List: See All 27 Now

Updated November 1st, 2019 by Bob Ciura
Spreadsheet data updated daily

The Dividend Kings are the best-of-the-best in dividend longevity.

What is a Dividend King? A stock with 50 or more consecutive years of dividend increases.

The downloadable Dividend Kings Spreadsheet List below contains the following for each stock in the index, among other important investing metrics:

Click here to download my Dividend Kings Excel Spreadsheet now. Keep reading this article to learn more.

There are currently 27 Dividend Kings, including recent addition Altria Group (MO). Each Dividend King satisfies the primary requirement to be a Dividend Aristocrat (25 years of consecutive dividend increases) twice over.

Note that not all Dividend Kings are Dividend Aristocrats. This unexpected result is because the ‘only’ requirement to be a Dividend Kings is 50+ years of rising dividends, whereas Dividend Aristocrats must have 25+ years of rising dividends, be a member of The S&P 500, and meet certain minimum size and liquidity requirements.

Table of Contents

How To Use The Dividend Kings List to Find Dividend Stock Ideas

The Dividend Kings list is a great place to find dividend stock ideas.

However, not all the stocks in the Dividend Kings list make a great investment at any given time.

Some stocks might be overvalued. Conversely, some might be undervalued – making great long-term holdings for dividend growth investors.

For those unfamiliar with Microsoft Excel, the following walk-through shows how to filter the Dividend Kings list for the stocks with the most attractive valuation based on the price-to-earnings ratio.

Step 1: Download the Dividend Kings Excel Spreadsheet.

Step 2: Follow the steps in the instructional video below. Note that we screen for price-to-earnings ratios of 15 or below in the video. You can choose any threshold that best defines ‘value’ for you.

Dividend Kings PE Screen

Alternatively, following the instructions above and filtering for higher dividend yield Dividend Kings (yields of 2% or 3% or higher) will show stocks with 50+ years of rising dividends and above-average dividend yields.

Looking for businesses that have a long history of dividend increases isn’t a perfect way to identify stocks that will increase their dividends every year in the future, but there is considerable consistency in the Dividend Kings.

You can view a preview of our Dividend Kings spreadsheet in the table below:


The 6 Best Dividend Kings

The following 6 stocks are our top-ranked Dividend Kings today, based on expected annual returns through 2024. Stocks are ranked in order of lowest to highest expected annual returns. Total returns include a combination of future earnings-per-share growth, dividends, and any changes in the P/E multiple.

Dividend King #6: Parker Hannifin (PH)

Parker Hannifin is an industrial giant, specializing in motion and control technologies. The company was founded in 1917 and has grown to an industry leader with a market cap above $20 billion. Parker Hannifin has paid a dividend for 69 years and has increased its dividend for a remarkable 63 consecutive years.

Its impressive dividend history is the result of its strong business model. The company generates strong cash flow and has steadily grown its cash flow generation over the past 18 years.

Source: Investor Presentation

In the most recent fiscal year, Parker-Hannifin posted record sales of $14.3 billion and record adjusted earnings-per-share of $11.85.

Moreover, the company completed the acquisition of LORD in the running quarter and has entered into a definitive agreement to acquire Exotic Metals Forming Company LLC. These two acquisitions are expected to add $1.5 billion in annual revenues. For the upcoming fiscal year, management expects adjusted earnings-per-share in a range of $11.50-$12.30.

Parker-Hannifin still has positive growth prospects ahead. We expect approximately 7.8% annual earnings-per-share growth over the next five years. Parker-Hannifin’s growth will come in part from acquisitions. The $4.3 billion CLARCOR transaction and the aforementioned two acquisitions are examples of this. Parker Hannifin integrates the new products in its system while it achieves significant synergies to expand profits further.

Parker-Hannifin has a number of competitive advantages, including its scale, global distribution network, and technical experience. Parker-Hannifin manufactures components that are relatively obscure yet absolutely critical to the operations of heavy machinery, factory equipment, aircrafts, and other large industrial devices. This is appealing because the company operates in a profitable niche that helps discourage large would-be competitors. These competitive advantages are reflected in its dividend growth record, which is exceptional, particularly given the high cyclicality of the industrial sector

We expect total annual returns of 7.5% per year through 2024, comprised of EPS growth (7.8%) and dividends (1.8%), partially offset by a negative impact of 2.1% per year from a contracting valuation multiple, as we view the stock as slightly overvalued today. Still, we expect a satisfactory rate of return in the high single-digits, and continued dividend growth for many years to come.

Dividend King #5: Lowe’s Companies (LOW)

Lowe’s is the second-largest home improvement retailer in the US (after Home Depot). Lowe’s operates over 2,000 home improvement and hardware stores in the U.S. and Canada. Lowe’s reported second quarter results on August 21st, and recorded net earnings of $1.7 billion, compared to $1.5 billion in the same period a year ago.

Diluted earnings per share also increased year-over-year to $2.14 from $1.86 last year, an increase of 15%. After adjusting for the winding down of their Mexico retail operations this quarter, adjusted earnings per share increased only 3.9% to $2.15 from $2.07 last year.

Source: Earnings Infographic

The company generated revenues of $21.0 billion, up 0.5% from $20.9 billion last year. Total comparable sales increased by 2.3%, while comparable sales in the U.S. increased by 3.2%. Lowe’s continued its generous share buyback program and purchased $1.96 billion worth of stock, as well as paid $382 million in dividends for the quarter. Diluted common shares outstanding are down 4.1% from one year ago.

Lowe’s maintained its guidance provided at the end of the first quarter, where they had previously lowered original earnings per share guidance by 8.3%. Adjusted earnings per share for 2019 is expected at $5.45 to $5.65. Revenue and comparable sales growth are expected to be 2% and 3%, respectively.

Lowe’s has decelerated its new store openings, but the company still managed to grow its earnings-per-share at a very attractive pace in the past. Between 2009 and 2018 Lowe’s grew its earnings-per-share by 17.3% a year.

Earnings-per-share growth is driven by comparable store sales growth, expanding margins, and share repurchases, which have lowered the share count meaningfully. Significant buybacks mean that the company’s net earnings are split over a lower number of shares, which accelerates growth in per-share net income. We expect ~8.2% annual EPS growth over the next five years.

Lowe’s has a current dividend yield of 1.9%. In addition to EPS growth, this is likely to offset a negative return of 2.5% from a lower valuation multiple, as we view Lowe’s stock as slightly overvalued. Still, the stock is expected to generate respectable annual returns of 7.6% over the next five years.

Dividend King #4: Johnson & Johnson (JNJ)

Johnson & Johnson is a diversified health care conglomerate. And, the company has increased its dividend for 57 consecutive years, including a 5.6% increase in April 2019. J&J’s long track record of steady dividend increases is due to the company’s massive global business and consistent growth over the past several decades.

Through 2018, J& J grew its adjusted earnings for 35 consecutive years. This period includes multiple recessions, and yet J&J managed to continue growing its earnings like clockwork. The biggest reason for its steady growth is its large and diversified business model, and its top-tier brands.

Source: Investor Fact Sheet

J&J has large businesses across the full spectrum of health care, including pharmaceuticals, medical devices, and consumer products. In fact, last year J&J had 26 individual platforms or products generate at least $1 billion in annual sales. Of these, 12 generated over $2 billion in revenue for the year.

Pharmaceuticals are J&J’s biggest business, representing $40 billion in 2018 revenue, and it is also the fastest-growing segment for the company. Pharmaceutical sales increased 12% last year on an operational basis, which includes currency impacts and the effects of divestitures. Medical devices represented $27 billion of 2018 sales and grew operational sales by 2.6%. Consumer products, which accounted for $14 billion of sales last year, grew by 3.2%.

J&J has multiple competitive advantages, including its global presence and category-leading brands. Approximately 75% of the company’s sales last year were derived from products which held the #1 or #2 global market share position. This provides steady demand, even during recessions. J&J invested over $10 billion in research and development last year, which will help the company maintain its leadership position.

The short-term environment is challenging for J&J, due to multiple lawsuits involving its talc powder. Johnson & Johnson continues to face more than 12,000 other lawsuits related its talc products. However, we do not see this as a long-term threat.

We expect annual returns of 9.2% per year, consisting of 6% annual earnings-per-share growth, the 2.9% dividend yield, and a small ~0.3% annual boost from a rising P/E multiple.

Dividend King #3: Federal Realty Investment Trust (FRT)

Federal Realty is a Real Estate Investment Trust, or REIT. It concentrates in high-income, densely-populated coastal markets in the US, allowing it to charge more per square foot than its competition. Federal Realty trades with a market capitalization of $9.9 billion today on $950 million in annual revenue.

Federal Realty’s business model is to own real estate properties that it rents to various tenants in the retail industry. This is a difficult time for retailers, as competition is heating up from e-commerce players such as Amazon (AMZN) and many others. Mall traffic is declining, which has put pressure on many brick-and-mortar retailers.

Federal Realty’s competitive advantages include its superior development pipeline, its focus on high-income, high-density areas and its decades of experience in running a world-class REIT. These qualities allow it to perform admirably, and continue growing even in a recession.

Source: Investor Presentation

In the most recent quarter, adjusted FFO-per-share increased 0.6% year-over-year excluding a charge related to the buyout of a Kmart lease. Federal Realty’s portfolio was 94.2% leased at the end of the quarter. During the third quarter 2019, Federal Realty signed 103 leases for 491,414 square feet of retail space.

Federal Realty’s FFO did not decline on a year-over-year basis at any point in the past decade, a tremendously impressive feat given that the U.S. economy dealt with the Great Recession. And it should also be noted that the company operates in the highly cyclical real estate sector. The simple fact that it has such a consistent track record of steady FFO growth makes it one of the most desirable REITs in the market. We are forecasting 5.5% annualized FFO growth for the next five years.

Federal Realty stock has a 3.2% dividend yield. In addition to a small ~1% annualized boost from an expanding P/FFO multiple, and 5.5% annual FFO growth, we expect 9.7% annualized returns over the next five years.

Dividend King #2: Farmers & Merchants Bancorp (FMCB)

Famers & Merchants Bancorp is a small regional bank, with 32 locations in California. Due to its small market cap ($610 million) and its low liquidity, it passes under the radar of most investors. Nevertheless, F&M Bank has raised its dividend for 56 consecutive years and thus it is a Dividend King.

The company is conservatively managed and, until three years ago, had not made an acquisition since 1985. However, in the last three years, it has begun to pursue growth more aggressively. It acquired Delta National Bancorp in 2016 and increased its locations by 4. Moreover, in October-2018, it completed its acquisition of Bank of Rio Vista, which has helped F&M Bank to further expand in the San Francisco East Bay Area.

F&M recently reported a very strong quarter. For the period, net income increased to $22.8 million, or $172.51 per diluted share, an increase of 9.3% from $157.82 per diluted share in the year ago period. Net interest income for the 2019 third quarter rose 3.6% to $63.1 million, from $60.9 million in the 2018 third quarter. This was a highly impressive performance as many banks are reporting flat or declining net interest income, due to the unfavorable environment of falling interest rates.

F&M Bank is a prudently managed bank, which has always targeted a conservative capital ratio. The bank currently qualifies as the highest regulatory classification of “well capitalized” due to its strong capital ratios. Moreover, its credit quality remains exceptionally strong, as there are no non-performing loans and leases in its portfolio. The conservative management results in lower leverage and thus slower growth than leveraged banks during boom times. On the other hand, this strategy protects the company from economic downturns.

The merits of this strategy were on display during the Great Recession. While most banks saw their earnings collapse, F&M Bank incurred a modest 9% decrease in its earnings-per-share, from $28.69 in 2008 to $25.57 in 2009, and kept raising its dividend while so many large financial institutions cut their dividends. F&M Bank currently pays a semi-annual dividend. Its last two installments equal $14.05 per share, good for a 1.8% yield based on its recent share price.

We expect total annual returns of 12.7% per year through 2024, through EPS growth (5%), dividends (1.8%), and expansion of the P/E ratio to fair value (6%).

Dividend King #1: Altria Group (MO)

Altria Group is a consumer staples manufacturer. Its core tobacco business holds the flagship Marlboro cigarette brand. Altria also has non-smokable brands Skoal and Copenhagen chewing tobacco, Ste. Michelle wine, and owns a 10% investment stake in global beer giant Anheuser Busch Inbev (BUD).

Related: The Best Tobacco Stocks Now, Ranked In Order

In late October, Altria reported strong third-quarter earnings. Revenue (net of excise taxes) increased 2.3% year-over-year to $5.4 billion. Adjusted earnings-per-share came in at $1.19 increased 10% over the year-ago period. Revenue and earnings-per-share both beat analyst expectations.

Altria said it was on track to achieve $575 million in annual cost savings this year as it combats lower smoking rates in its markets.

Separately, Altria took a non-cash impairment charge of $4.5 billion related to its investment in Juul.

Fortunately, Altria has a plan to continue generating growth over the long term, even in an environment of declining smoking rates. Altria recently announced a $1.8 billion investment in Canadian marijuana producer Cronos Group, in which it purchased a 45% equity stake in the company, as well as a warrant to acquire an additional 10% ownership interest in Cronos Group at a price of C$19.00 per share, exercisable over four years from the closing date.

Source: Investor Presentation

Separately, Altria invested nearly $13 billion in e-vapor manufacturer JUUL Labs for a 35% equity stake in the company, valuing JUUL at $38 billion. These two investments give Altria access to two huge growth opportunities, marijuana and vaping.

Altria reaffirmed its guidance for 2019 full-year adjusted diluted EPS to be in a range of $4.19 to $4.27, which would be 5% to 7% growth from 2018. The company also expects 5%-8% adjusted EPS growth from 2020-2022.

Altria’s dividend is highly secure. The company has a target payout ratio of 80% of annual adjusted EPS. This provides a compelling shareholder payout while leaving sufficient room to invest in growth.

Altria is also highly resistant to recessions. Cigarette and alcohol sales fare very well during recessions, which keeps Altria’s strong profitability and dividend growth intact. With a target dividend payout of 80%, Altria’s dividend is secure.

Through a combination of EPS growth (4%), dividends (7.2%), and an expanding P/E multiple (4.1%), we expect total annual returns of 15.3% through 2024.

Analysis Reports On All 27 Dividend Kings

All 27 Dividend Kings are listed below by sector. You can access detailed coverage of each by clicking on the name of each Dividend King. Additionally, you can download our newest Sure Analysis Research Database report for each Dividend King as well.

Basic Materials

Consumer Cyclical

Consumer Defensive

Financial Services



Real Estate


Additionally, you can see the Dividend Kings analyzed in the video below.

Performance Of The Dividend Kings

The Dividend Kings underperformed the S&P 500 ETF (SPY) in October 2019 on a relative basis. Return data for October 2019 is shown below:

Total return performance year-to-date through October 2019 is below:

Through the first nine months of this year, the Dividend Kings as a basket have underperformed the S&P 500 ETF SPY by 7.1 percentage points. Stable dividend growers like the Dividend Kings tend to underperform in bull markets, and outperform on a relative basis during bear markets, which helps explain its 2019 year-to-date underperformance.

The Dividend Kings are not officially regulated and monitored by any one company. There’s no Dividend King ETF.

This means that tracking the historical performance of the Dividend Kings can be difficult. More specifically, performance tracking of the Dividend Kings often introduces significant survivorship bias. Survivorship bias occurs when one looks at only the companies that ‘survived’ the time period in question. In the case of Dividend Kings, this means that the performance study does not include ex-Kings that reduced their dividend, were acquired, etc.

But with that said, there is something to be gained from investigating the historical performance of the Dividend Kings. Specifically, the performance of the Dividend Kings shows that ‘boring’ established blue-chip stocks that increase their dividend year-after-year can significantly outperform over long periods of time.

The image below shows the long-term performance of $1 invested in an equal-weight portfolio of today’s Dividend Kings is versus The S&P 500 through 2018.

SPY Vs Dividend Kings

Notes: S&P 500 performance is measured using the S&P 500 ETF (SPY). The Dividend Kings performance is calculated using an equal weighted portfolio of today’s Dividend Kings, rebalanced annually. Due to insufficient data, Farmers & Merchants Bancorp (FMCB) returns are from 2000 onwards. Performance excludes previous Dividend Kings that ended their streak of dividend increases which creates notable lookback/survivorship bias. The data for this study is from Ycharts.

The table below shows the performance of The Dividend Kings by year versus The S&P 500 by year through 2018.

SPY Vs Dividend Kings By Year

Notes: S&P 500 performance is measured using the S&P 500 ETF (SPY). The Dividend Kings performance is calculated using an equal weighted portfolio of today’s Dividend Kings, rebalanced annually. Due to insufficient data, Farmers & Merchants Bancorp (FMCB) returns are from 2000 onwards. Performance excludes previous Dividend Kings that ended their streak of dividend increases which creates notable lookback/survivorship bias. The data for this study is from Ycharts.

In the next section of this article, we will provide an overview of the sector and market capitalization characteristics of the Dividend Kings.

Sector & Market Capitalization Overview

The sector and market capitalization characteristics of the Dividend Kings are very different from the characteristics of the broader stock market. The following bullet points show the number of Dividend Kings in each sector of the stock market.

The Dividend Kings are overweight in the Industrials, Consumer Defensive, and Utilities sectors. Interestingly, The Dividend Kings have no exposure to the Technology sector, which is the largest component of the S&P 500 index.

The Dividend Kings also have some interesting characteristics with respect to market capitalization. These trends are illustrated below.

Interestingly, 15 out of 27 Dividend Kings have market capitalizations below $20 billion. This shows that corporate longevity doesn’t have to be accompanied by massive corporate size.

Final Thoughts

Screening to find the best Dividend Kings is not the only way to find high quality dividend growth stock ideas.

Sure Dividend maintains similar databases on the following useful universes of stocks:

There is nothing magical about investing in the Dividend Kings. They are simply a group of high-quality businesses with shareholder-friendly management teams that have strong competitive advantages.

Purchasing businesses with these characteristics at fair or better prices and holding them for long periods of time will likely result in strong long-term investment performance.

The most appealing part of investing is that you have unlimited choice. You can buy into mediocre businesses, or just the excellent companies. As Warren Buffett says:

“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

– Warren Buffett

Thanks for reading this article. Please send any feedback, corrections, or questions to support@suredividend.com.

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