2022 Dividend Kings List | Updated Daily | All 44 Analyzed

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2022 Dividend Kings List | Updated Daily | All 44 Analyzed


Updated on May 2nd, 2022 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:

You can see the full downloadable spreadsheet of all 44 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.

The Dividend Kings list includes recent additions such as Tennant Company (TNC), PepsiCo (PEP), Kimberly-Clark (KMB), Abbott Laboratories (ABT), AbbVie (ABBV), Leggett & Platt (LEG), and W.W. Grainger (GWW).

Each Dividend King satisfies the primary requirement to be a Dividend Aristocrat (25 years of consecutive dividend increases) twice over.

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.

On the other hand, 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 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.

The 5 Best Dividend Kings Today

The following 5 stocks are our top-ranked Dividend Kings today, based on expected annual returns over the next 5 years. 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: Parker-Hannifin (PH)

Parker-Hannifin is a diversified industrial manufacturer specializing in motion and control technologies. The company was founded in 1917 and has annual revenues of over $14 billion.

Source: Investor Presentation

Parker-Hannifin has paid a dividend for 71 years and has increased that dividend for a remarkable 65 consecutive years.

Notably Parker-Hannifin has exceeded analysts’ EPS estimates for 26 consecutive quarters. In the most recent quarter, net sales and organic sales grew 12% and 13%, respectively, over the prior year’s quarter and adjusted earnings-per-share grew 29%, thanks to strong demand in nearly all markets.

It also raised its guidance for organic sales growth in fiscal 2022 from 7%-10% to 10%-12% and adjusted earnings-per-share from $16.95-$17.65 to $17.80-$18.30.

We expect total returns of 13% per year, driven by 9% EPS growth, the 2% dividend yield, and a 2% annual boost from a rising P/E ratio.

Click here to download our most recent Sure Analysis report on Parker-Hannifin (preview of page 1 of 3 shown below):

Dividend King #4: Lowe’s Companies (LOW)

Lowe’s Companies is the second-largest home improvement retailer in the US (after Home Depot). Lowe’s operates or services more than 2,200 home improvement and hardware stores in the U.S. and Canada.

Lowe’s reported fourth quarter and full year results on February 23rd . Total sales for the fourth quarter came in at $21.3 billion compared to $20.3 billion in the same quarter a year ago. Comparable sales increased 5%, while U.S. home improvement comparable sales increased 5.1%. Net earnings of $1.2 billion rose from $978 million in 4Q 2020. Diluted earnings per share of $1.78 was a 35% increase from $1.32 a year earlier.

For the full fiscal year, Lowe’s generated diluted EPS of $12.04. The company repurchased 16.3 million shares in 2021 for $13.1 billion. Additionally, they paid out $2 billion in dividends. The company remains in a strong liquidity position with $1.1 billion of cash and cash equivalents.

The company provided a fiscal 2022 outlook and believes they can achieve diluted EPS in the range of $13.10 to $13.60 on total sales of roughly $98 billion. Lowe’s expects to repurchase $12 billion worth of common shares in 2022.

The combination of multiple expansion, 6% expected EPS growth and the 1.5% dividend yield lead to total expected returns of 14.3% per year.

Click here to download our most recent Sure Analysis report on Lowe’s (preview of page 1 of 3 shown below):

Dividend King #3: 3M Company (MMM)

3M sells more than 60,000 products that are used every day in homes, hospitals, office buildings and schools around the world. It has about 95,000 employees and serves customers in more than 200 countries.

3M is now composed of four separate divisions. The Safety & Industrial division produces tapes, abrasives, adhesives, and supply chain management software as well as manufactures personal protective gear and security products.

The Healthcare segment supplies medical and surgical products as well as drug delivery systems. The Transportation & Electronics division produces fibers and circuits with a goal of using renewable energy sources while reducing costs. The Consumer division sells office supplies, home improvement products, protective materials, and stationary supplies.

On April 26th, 2022, 3M reported first quarter earnings results for the period ending March 31st, 2022. Revenue fell 0.3% to $8.8 billion, but was $50 million better than expected. Adjusted earnings-per-share of $2.65 compared to $2.77 in the prior year, but was $0.34 above estimates. Organic growth for the quarter was 2%.

Safety & Industrial grew 0.5% due to strength in industrial adhesives and tapes, abrasives, and masking systems, though personal safety declined. Transportation & Electronics decreased by 0.3%. Commercial solutions growth was offset by a decline in transportation and safety. Health Care grew 4.7%. Consumer was higher by 3.4% as demand for home care, stationery and office and home improvement products continues to be strong.

3M provided an updated outlook for 2022, with the company now expecting adjusted earnings-per-share of $10.75 to $11.25. Total returns are expected to reach 15.7% per year over the next five years.

Click here to download our most recent Sure Analysis report on 3M (preview of page 1 of 3 shown below):

Dividend King #2: Tennant Company (TNC)

Tennant Company is a machinery company that produces cleaning products and that offers cleaning solutions to its
customers. In the US, the company holds the market leadership position in its industry, but the company also sells its products in more than 100 additional countries around the globe. Tennant was founded in 1870.

Tennant Company reported its fourth quarter earnings results on February 24. The company announced that it generated revenues of $280 million during the quarter, which was 1% more than the top line number from the previous year’s quarter. Revenues continued to recover from the previous year, which was still feeling some lingering effects of the pandemic. Revenues also were up slightly on a sequential basis.

Source: Investor Presentation

Tennant Company generated earnings-per-share of $0.71 during the fourth quarter, which was more than what the analyst community had forecasted, as the consensus estimate was beaten by $0.08. The company hit the high-end of its earnings-per-share guidance for 2021, with earnings-per-share coming in at $4.39, up strongly versus 2021.

Management is forecasting that adjusted earnings-per-share will fall into a range of $4.40 to $5.00 in 2022, which would be a strong improvement versus 2021, and which means new record profits for the current year

Through an expanding valuation multiple, 4% expected growth and dividends, we expect total returns of 16.2% per year over the next five years.

Click here to download our most recent Sure Analysis report on Tennant (preview of page 1 of 3 shown below):

Dividend King #1: Stanley Black & Decker (SWK)

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 see an overview of the company’s 2022 first-quarter performance in the image below:

Source: Investor Presentation

On April 28th, 2022, Stanley Black & Decker announced first quarter results. Revenue grew 20% to $4.4 billion, but was $220 million lower than expected. Adjusted earnings-per-share of $2.10 compared unfavorably to $3.13 in the prior year, but was $0.40 ahead of estimates. Organic growth fell 1%.

Stanley Black & Decker offered revised guidance for 2022. Due to inflationary pressures, the company now expects adjusted earnings-per-share in a range of $9.50 to $10.50, down from $12.00 to $12.50 previously. Organic revenue is projected in a range of 7% to 8%.

The stock has a 2.6% dividend yield, and we expect 8% annual EPS growth. With a ~6.3% annual boost from an expanding P/E multiple, total returns are expected to reach 16.9% per year.

Click here to download our most recent Sure Analysis report on SWK (preview of page 1 of 3 shown below):

Analysis Reports On All 44 Dividend Kings

All 44 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 Staples

Energy

Financial Services

Healthcare

Industrial

Real Estate

Technology

Utilities

Performance Of The Dividend Kings

The Dividend Kings outperformed versus the S&P 500 ETF (SPY) in April 2022. Return data for the month is shown below:

Stable dividend growers like the Dividend Kings tend to underperform 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.

The Dividend Kings are overweight in the Industrials, Consumer Staples, and Utilities sectors. Interestingly, The Dividend Kings have just one stock from the Information 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, 19 out of the 44 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:

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.

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