Updated on November 3rd, 2021 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:
- Payout ratio
- Dividend yield
- Price-to-earnings ratio
You can see the full downloadable spreadsheet of all 33 Dividend Kings (along with important financial metrics such as dividend yields, payout ratios, and price-to-earnings ratios) by clicking on the link below:
Click here to download my Dividend Kings Excel Spreadsheet now. Keep reading this article to learn more.
There are currently 33 Dividend Kings, including recent additions such as Becton, Dickinson & Company (BDX), PPG Industries (PPG), and Black Hills Corp. (BKH).
Each Dividend King satisfies the primary requirement to be a Dividend Aristocrat (25 years of consecutive dividend increases) twice over.
Editor’s Note: After review, Illinois Tool Works (ITW) and Target Corporation (TGT) have been removed from our lists, as they do not qualify as Dividend Kings. You can read more about this here.
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 Index, and meet certain minimum size and liquidity requirements.
Table of Contents
- How To Use The Dividend Kings List To Find Dividend Stock Ideas
- The 5 Best Dividend Kings Today
#5: Johnson & Johnson (JNJ)
#4: Stanley Black & Decker (SWK)
#3: Parker-Hannifin (PH)
#2: Altria Group (MO)
#1: ABM Industries (ABM) - Analysis Reports On All 33 Dividend Kings
- Performance Of The Dividend Kings
- Sector & Market Capitalization Overview
- Final Thoughts
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.
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.
The 5 Best Dividend Kings Today
The following 5 stocks are our top-ranked Dividend Kings today, based on expected annual returns through 2026. 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 #5: Johnson & Johnson (JNJ)
- 5-Year Annual Expected Returns: 8.5%
Johnson & Johnson is a diversified health care company. It is a leader in the area of pharmaceuticals (~49% of sales), medical devices (~34% of sales) and consumer products (~17% of sales).
The company has annual sales in excess of $94 billion. On 10/19/2021, Johnson & Johnson released third quarter earnings results for the period ending 9/30/2021.
Source: Investor Presentation
Revenue grew 10.7% to $23.3 billion, but missed estimates by $380 million. Adjusted earnings–per–share of $2.60 was a $0.40, or 18.2%, improvement from the prior year and $0.25 better than expected.
Based on expected EPS of $9.80 for the current fiscal year, Johnson & Johnson stock trades for a P/E ratio just above 17. Our fair value estimate is a P/E of 17, meaning the stock is just slightly overvalued.
The combination of a very small decline from a contracting P/E multiple, plus 6% expected EPS growth and the 2.6% dividend yield lead to total expected returns of 8.5% per year through 2026.
Click here to download our most recent Sure Analysis report on JNJ (preview of page 1 of 3 shown below):
Dividend King #4: Stanley Black & Decker (SWK)
- 5-Year Annual Expected Returns: 9.5%
Stanley Black & Decker is a world leader in power tools, hand tools, and related items. The company holds the top global position in tools and storage sales. Stanley Black & Decker is second in the world in the areas of commercial electronic security and engineered fastening.
You can seen an overview of the company’s third-quarter performance in the image below:
Source: Investor Presentation
Revenue grew 9.2% to $4.3 billion, matching estimates. Adjusted earnings-per-share of $2.77 compared unfavorably to adjusted earnings-per-share of $2.89 in the prior year, but came in $0.30 above expectations.
The stock has a 1.7% dividend yield, and we expect 8% annual EPS growth. With a small reduction from a declining P/E multiple, total returns are expected to reach 9.5% per year.
Click here to download our most recent Sure Analysis report on SWK (preview of page 1 of 3 shown below):
Dividend King #3: Parker-Hannifin (PH)
- 5-Year Annual Expected Returns: 10.3%
Parker–Hannifin is a diversified industrial manufacturer specializing in motion and control technologies. The company was founded in 1917 and has grown to a market capitalization of $39 billion with annual revenues of over $14 billion.
Parker–Hannifin has paid a dividend for 71 years and has increased that dividend for a remarkable 65 consecutive years.
The company has generated strong growth in the past several years.
Source: Investor Presentation
In early August, Parker–Hannifin reported (8/5/21) financial results for the fourth quarter of fiscal 2021. Sales and organic sales grew 25% and 22%, respectively, over last year’s quarter and adjusted earnings–per–share grew 47% thanks to much higher margins and accelerated synergies from its acquisitions.
Based on expected adjusted EPS of $17.50, PH stock trades for a P/E of 17.2. Our fair value estimate is a P/E of 16.5, implying that the stock is just slightly overvalued.
Still, the stock yields 1.4%, while we also expect 10% annual EPS growth. Total returns are expected to reach 10.3% per year.
Click here to download our most recent Sure Analysis report on PH (preview of page 1 of 3 shown below):
Dividend King #2: Altria Group (MO)
- 5-Year Annual Expected Returns: 11.6%
Altria Group was founded by Philip Morris in 1847. Today, it is a consumer staples giant. It sells the Marlboro cigarette brand in the U.S. and a number of other non–smokeable brands, including Skoal and Copenhagen.
The company is aggressively expanding its IQOS brand of heated tobacco products.
Source: Investor Presentation
Altria also has a 10% ownership stake in global beer giant Anheuser Busch Inbev, in addition to large stakes in Juul, a vaping products manufacturer and distributor, as well as cannabis company Cronos Group (CRON).
Click here to download our most recent Sure Analysis report on Altria Group (preview of page 1 of 3 shown below):
Dividend King #1: ABM Industries (ABM)
- 5-Year Annual Expected Returns: 12.6%
ABM Industries has increased its dividend for 53 consecutive years.
ABM Industries is a leading provider of facility solutions, which includes janitorial, electrical & lighting, energy solutions, facilities engineering, HVAC & mechanical, landscape & turf, and parking.
Source: Investor Presentation
Shares also look significantly undervalued, with a fiscal 2021 price-to-earnings ratio of 13, which is well below our fair value estimate of 17.5.
We expect total annual returns of 12.6% over the next five years, driven by 5% expected EPS growth, the 1.7% dividend yield, and a ~5.9% annual boost from a rising P/E multiple.
Click here to download our most recent Sure Analysis report on ABM (preview of page 1 of 3 shown below):
Analysis Reports On All 33 Dividend Kings
All 33 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
- Stepan (SCL) – [10/30/21 Sure Analysis report]
- H.B. Fuller (FUL) – [9/24/21 Sure Analysis report]
- PPG Industries (PPG) – [10/21/21 Sure Analysis report]
Consumer Cyclical
- Genuine Parts Company (GPC) – [10/30/21 Sure Analysis report]
- Lowe’s Companies (LOW) – [8/26/21 Sure Analysis report]
Consumer Defensive
- The Colgate-Palmolive Company (CL) – [8/7/21 Sure Analysis report]
- Hormel Foods Corporation (HRL) – [9/5/21 Sure Analysis report]
- The Coca-Cola Company (KO) – [7/23/21 Sure Analysis report]
- Lancaster Colony (LANC) – [9/5/21 Sure Analysis report]
- Altria Group (MO) – [8/12/21 Sure Analysis report]
- Procter & Gamble (PG) – [8/4/21 Sure Analysis report]
- Sysco Corporation (SYY) – [9/6/21 Sure Analysis report]
- Tootsie Roll Industries (TR) – [8/22/21 Sure Analysis report]
- Universal Corporation (UVV) – [9/1/21 Sure Analysis report]
Energy
Financial Services
- Cincinnati Financial (CINF) – [8/1/21 Sure Analysis report]
- Farmers & Merchants Bancorp (FMCB) – [8/16/21 Sure Analysis report]
- Commerce Bancshares (CBSH) – [10/30/21 Sure Analysis report]
Healthcare
- Becton, Dickinson & Company (BDX) | [11/7/21]
- Johnson & Johnson (JNJ) – [10/20/21 Sure Analysis report]
Industrial
- ABM Industries (ABM) – [9/14/21 Sure Analysis report]
- Dover Corporation (DOV) – [10/19/21 Sure Analysis report]
- Emerson Electric (EMR) – [8/19/21 Sure Analysis report]
- 3M Company (MMM) – [10/27/21 Sure Analysis report]
- Nordson (NDSN) – [8/31/21 Sure Analysis report]
- Parker Hannifin (PH) – [9/8/21 Sure Analysis report]
- Stanley Black & Decker (SWK) – [10/31/21 Sure Analysis report]
Real Estate
Utilities
- American States Water (AWR) – [8/13/21 Sure Analysis report]
- Black Hills Corp. (BKH) – [8/10/21 Sure Analysis report]
- California Water Service (CWT) – [7/31/21 Sure Analysis report]
- Northwest Natural Gas (NWN) – [8/13/21 Sure Analysis report]
- SJW Group (SJW) – [8/9/21 Sure Analysis report]
Performance Of The Dividend Kings
The Dividend Kings under-performed versus the S&P 500 ETF (SPY) in October 2021. Return data for the month is shown below:
- Dividend Kings October 2021 total return: 4.5%
- SPY October 2021 total return: 5.7%
Stable dividend growers like the Dividend Kings tend to under-perform in bull markets, and outperform on a relative basis during bear markets.
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.
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 onward. 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.
- Industrial: 7
- Consumer Defensive: 9
- Utilities: 5
- Consumer Cyclical: 2
- Financial Services: 3
- Basic Materials: 3
- Real Estate: 1
- Healthcare: 2
- Energy: 1
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.
- 3 Mega caps ($200 billion+ market cap; JNJ, PG, and KO)
- 15 Large caps ($10 billion to $200 billion market cap)
- 11 Midcaps ($2 billion to $10 billion)
- 4 Small caps ($300 million to $2 billion)
Interestingly, 15 out of the 33 Dividend Kings have market capitalizations below $10 billion. This shows that corporate longevity doesn’t have to be accompanied by massive 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:
- The Dividend Aristocrats: S&P 500 stocks with 25+ years of consecutive dividend increases.
- The Dividend Champions: stocks with 25+ years of dividend increases, including stocks that may not otherwise qualify as Dividend Aristocrats.
- The Dividend Contenders: 10-24 consecutive years of dividend increases.
- The Dividend Challengers: 5-9 consecutive years of dividend increases.
- The Dividend Achievers: dividend stocks with 10+ years of consecutive dividend increases.
- The Complete List of High Dividend Stocks: Stocks with 5%+ dividend yields.
- The Complete List of Monthly Dividend Stocks: our database currently contains more than 30 stocks that pay dividends every month.
- The Blue Chip Stocks List: our list of “blue chip stocks” is a combination of our Dividend Kings, Dividend Aristocrats, and Dividend Achievers lists.
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
Click here to download my Dividend Kings Excel Spreadsheet now. Keep reading this article to learn more.