Up to date on April third, 2023 by Bob CiuraSpreadsheet information up to date every day
The Dividend Kings are the best-of-the-best in dividend longevity.
What’s a Dividend King? A inventory with 50 or extra consecutive years of dividend will increase.
The downloadable Dividend Kings Spreadsheet Checklist under incorporates the next for every inventory within the index amongst different essential investing metrics:
Payout ratio
Dividend yield
Worth-to-earnings ratio
You possibly can see the total downloadable spreadsheet of all 48 Dividend Kings (together with essential monetary metrics resembling dividend yields, payout ratios, and price-to-earnings ratios) by clicking on the hyperlink under:
The Dividend Kings checklist contains latest additions resembling Walmart (WMT), Nucor Corp. (NUE), Gorman-Rupp (GRC), Middlesex Water Firm (MSEX), Canadian Utilities (CDUAF), and Tennant Firm (TNC).
Every Dividend King satisfies the first requirement to be a Dividend Aristocrat (25 years of consecutive dividend will increase) twice over.
Not all Dividend Kings are Dividend Aristocrats.
This sudden result’s as a result of the ‘solely’ requirement to be a Dividend Kings is 50+ years of rising dividends.
However, Dividend Aristocrats will need to have 25+ years of rising dividends, be a member of the S&P 500 Index, and meet sure minimal dimension and liquidity necessities.
Desk of Contents
How To Use The Dividend Kings Checklist to Discover Dividend Inventory Concepts
The Dividend Kings checklist is a superb place to seek out dividend inventory concepts. Nonetheless, not all of the shares within the Dividend Kings checklist make an excellent funding at any given time.
Some shares is perhaps overvalued. Conversely, some is perhaps undervalued – making nice long-term holdings for dividend progress traders.
For these unfamiliar with Microsoft Excel, the next walk-through reveals learn how to filter the Dividend Kings checklist for the shares with essentially the most engaging valuation based mostly on the price-to-earnings ratio.
Step 1: Obtain the Dividend Kings Excel Spreadsheet.
Step 2: Comply with the steps within the tutorial video under. Be aware that we display for price-to-earnings ratios of 15 or under within the video. You possibly can select any threshold that greatest defines ‘worth’ for you.
Alternatively, following the directions above and filtering for increased dividend yield Dividend Kings (yields of two% or 3% or increased) will present shares with 50+ years of rising dividends and above-average dividend yields.
In search of companies which have an extended historical past of dividend will increase isn’t an ideal strategy to establish shares that can improve their dividends yearly sooner or later, however there may be appreciable consistency within the Dividend Kings.
The 5 Greatest Dividend Kings In the present day
The next 5 shares are our top-ranked Dividend Kings right now, based mostly on anticipated annual returns over the following 5 years. Shares are ranked so as of lowest to highest anticipated annual returns.
Complete returns embody a mix of future earnings-per-share progress, dividends, and any adjustments within the P/E a number of.
Dividend King #5: ABM Industries (ABM)
5-12 months Annual Anticipated Returns: 11.2%
ABM Industries is a number one supplier of facility options, which incorporates janitorial, electrical & lighting, vitality options, amenities engineering, HVAC & mechanical, panorama & turf, and parking. The corporate employs about 124,000 folks in additional than 350 places of work all through the USA and numerous worldwide places, primarily in Canada. ABM Industries has elevated its dividend for 55 consecutive years.
ABM Industries reported its fourth quarter earnings outcomes (fiscal 2022) in December. Revenues totaled $2.01 billion throughout the quarter, which was above the analyst estimate and up 19% year-over-year. Earnings-per-share of $0.89 beat the analyst consensus by $0.01 and elevated 5% year-over-year.
Supply: Investor Presentation
For 2023, the corporate expects earnings-per-share in a variety of $3.40 to $3.60 on an adjusted foundation, with some synergies of the latest Ready Providers acquisition being constructed into that estimate. That represents a full-year decline of 4% on the midpoint of the steerage vary.
As a result of low dividend payout ratio of 25% anticipated for 2023 and its very secure, recession-resilient enterprise mannequin, ABM Industries’ dividend appears to be like very protected.
Click on right here to obtain our most up-to-date Positive Evaluation report on ABM (preview of web page 1 of three proven under):
Dividend King #4: Johnson & Johnson (JNJ)
5-12 months Annual Anticipated Returns: 11.5%
Johnson & Johnson is a world healthcare big. The corporate at the moment operates three segments: Shopper, Pharmaceutical, and Medical Units & Diagnostics. The company contains some 250 subsidiary firms with operations in 60 international locations and merchandise offered in over 175 international locations.
The corporate’s most up-to-date earnings report was delivered on January twenty fourth, 2023 for the fourth quarter and full yr. For the fourth quarter, adjusted EPS of $2.35 beat by $0.11, whereas income of $23.7 billion missed barely.
Full-year outcomes may be seen within the picture under:
Supply: Investor Presentation
For 2023, the corporate expects 4% adjusted operational gross sales progress (excluding the COVID-19 vaccine) and three.5% adjusted earnings-per-share progress.
Johnson & Johnson’s key aggressive benefit is the dimensions and scale of its enterprise. The corporate is a worldwide chief in a number of healthcare classes. Johnson & Johnson’s diversification permits it to proceed to develop even when one of many segments is underperforming.
The corporate has elevated its dividend for 60 consecutive years, making it a Dividend King. The inventory is owned by many well-known cash managers. For instance, J&J is a Kevin O’Leary dividend inventory.
Click on right here to obtain our most up-to-date Positive Evaluation report on JNJ (preview of web page 1 of three proven under):
Dividend King #3: Altria Group (MO)
5-12 months Annual Anticipated Returns: 12.6%
Altria Group was based by Philip Morris in 1847. In the present day, it’s a shopper staples big. It sells the Marlboro cigarette model within the U.S. and a variety of different non-smokeable manufacturers, together with Skoal, Copenhagen, and extra.
Altria additionally has a ten% possession stake in world beer big Anheuser Busch InBev, along with giant stakes in Juul, a vaping merchandise producer and distributor, in addition to hashish firm Cronos Group (CRON).
The Marlboro model holds over 42% retail market share within the U.S.
On February 1st, 2023, Altria reported third-quarter outcomes. Its This autumn Non-GAAP EPS of $1.18 beat analyst estimates by $0.02 whereas its income of $5.08B (-0.2% Y/Y) missed analyst estimates by $70M. Administration’s plans for 2023 embody a continuation of their technique to steadiness earnings progress and shareholder returns with strategic investments.
The corporate expects to ship 2023 full-year adjusted diluted EPS in a variety of $4.98 to $5.13, representing a progress price of three% to six% from a base of $4.84 in 2022. It expects its full-year adjusted efficient tax price shall be in a variety of 24.5% to 25.5% and capital expenditures to be between $175M and $225M. The corporate approved a brand new $1 billion share repurchase program, which it expects to finish by December 31, 2023.
Click on right here to obtain our most up-to-date Positive Evaluation report on Altria (preview of web page 1 of three proven under):
Dividend King #2: Lowe’s Firms (LOW)
5-12 months Annual Anticipated Returns: 15.5%
Lowe’s Firms is the second-largest residence enchancment retailer within the US (after House Depot). Lowe’s operates or services greater than 2,200 residence enchancment and {hardware} shops within the U.S. and Canada.
Lowe’s reported fourth quarter and full yr 2022 outcomes on March 1st, 2023. Complete gross sales for the fourth quarter got here in at $22.4 billion in comparison with$21.3 billion in the identical quarter a yr in the past. Comparable gross sales decreased 1.5%, whereas the U.S. residence enchancment comparable gross sales declined 0.7%. Adjusted internet earnings, which excludes the pre-tax transaction prices related to the sale of the Canadian retail enterprise, rose 28% year-over-year to $2.28 per share.
For the total yr, Lowe’s generated diluted EPS of $10.17, a 15% lower in comparison with $12.04 in 2021. The corporate repurchased 10 million shares within the fourth quarter for $2.0 billion. Moreover, they paid out $643 million in dividends. For the total yr, Lowe’s repurchased 71 million shares for $14.1 billion and paid $2.4 billion in dividends.
The corporate initiated their fiscal 2023 outlook and consider they’ll obtain diluted EPS within the vary of $13.60 to $14.00 on complete gross sales of roughly $89 billion.
Click on right here to obtain our most up-to-date Positive Evaluation report on Lowe’s (preview of web page 1 of three proven under):
Dividend King #1: 3M Firm (MMM)
5-12 months Annual Anticipated Returns: 15.5%
3M sells greater than 60,000 merchandise which are used each day in houses, hospitals, workplace buildings and faculties across the world. It has about 95,000 workers and serves clients in additional than 200 international locations.
3M is now composed of 4 separate divisions. The Security & Industrial division produces tapes, abrasives, adhesives and provide chain administration software program in addition to manufactures private protecting gear and safety merchandise.
The Healthcare section provides medical and surgical merchandise in addition to drug supply methods. Transportation & Digitals division produces fibers and circuits with a aim of utilizing renewable vitality sources whereas decreasing prices. The Shopper division sells workplace provides, residence enchancment merchandise, protecting supplies and stationary provides.
Supply: Investor Presentation
The corporate additionally introduced that it might be spinning off its Well being Care section right into a standalone entity, which might have had $8.6 billion of income in 2021. The transaction is anticipated to shut by the tip of 2023.
On January twenty fourth, 2023, 3M reported introduced earnings outcomes for the fourth quarter and full yr for the interval ending December thirty first, 2022. For the quarter, income declined 5.9% to $8.1 billion, however was $10 million greater than anticipated. Adjusted earnings-per-share of $2.28 in comparison with $2.31 within the prior yr and was $0.11 lower than projected.
For 2022, income decreased 3% to $34.2 billion. Adjusted earnings-per-share for the interval totaled $10.10, which in contrast unfavorably to $10.12 within the earlier yr and was on the low finish of the corporate’s steerage.
Natural progress for the quarter was 1.2%. Well being Care, Transportation & Electronics, and Security & Industrial grew 1.9%, 1.4%, and 1.3%, respectively. Shopper fell 5.7%. The corporate will minimize 2,500 manufacturing jobs. 3M supplied an outlook for 2023, with the corporate anticipating adjusted earnings-per-share in a variety of $8.50 to $9.00.
Click on right here to obtain our most up-to-date Positive Evaluation report on 3M (preview of web page 1 of three proven under):
Evaluation Experiences On All 48 Dividend Kings
All 48 Dividend Kings are listed under by sector. You possibly can entry detailed protection of every by clicking on the title of every Dividend King.
Moreover, you possibly can obtain our latest Positive Evaluation Analysis Database report for every Dividend King as effectively.
Fundamental Supplies
Shopper Discretionary
Shopper Staples
Vitality
Monetary Providers
Healthcare
Industrial
Actual Property
Utilities
Efficiency Of The Dividend Kings
The Dividend Kings under-performed the S&P 500 ETF (SPY) in March 2023. Return information for the month is proven under:
Dividend Kings March 2023 complete return: 0.79%
SPY March 2023 complete return: 3.7%
Steady dividend growers just like the Dividend Kings are likely to underperform in bull markets and outperform on a relative foundation throughout bear markets.
The Dividend Kings will not be formally regulated and monitored by anyone firm. There’s no Dividend King ETF. Which means monitoring the historic efficiency of the Dividend Kings may be tough. Extra particularly, efficiency monitoring of the Dividend Kings usually introduces important survivorship bias.
Survivorship bias happens when one appears to be like at solely the businesses that ‘survived’ the time interval in query. Within the case of Dividend Kings, which means the efficiency research doesn’t embody ex-Kings that diminished their dividend, had been acquired, and so forth.
However with that stated, there’s something to be gained from investigating the historic efficiency of the Dividend Kings. Particularly, the efficiency of the Dividend Kings reveals that ‘boring’ established blue-chip shares that improve their dividend year-after-year can considerably outperform over lengthy durations of time.
Notes: S&P 500 efficiency is measured utilizing the S&P 500 ETF (SPY). The Dividend Kings efficiency is calculated utilizing an equal weighted portfolio of right now’s Dividend Kings, rebalanced yearly. As a result of inadequate information, Farmers & Retailers Bancorp (FMCB) returns are from 2000 onward. Efficiency excludes earlier Dividend Kings that ended their streak of dividend will increase which creates notable lookback/survivorship bias. The info for this research is from Ycharts.
Within the subsequent part of this text, we are going to present an summary of the sector and market capitalization traits of the Dividend Kings.
Sector & Market Capitalization Overview
The sector and market capitalization traits of the Dividend Kings are very totally different from the traits of the broader inventory market.
The next bullet factors present the variety of Dividend Kings in every sector of the inventory market.
Shopper Staples: 13
Industrials: 12
Utilities: 7
Shopper Discretionary: 3
Well being Care: 4
Financials: 4
Supplies: 4
Actual Property: 1
Vitality: 1
The Dividend Kings are obese within the Industrials, Shopper Staples, and Utilities sectors. Curiously, The Dividend Kings have only one inventory from the Info Know-how sector, which is the biggest element of the S&P 500 index.
The Dividend Kings even have some attention-grabbing traits with respect to market capitalization. These developments are illustrated under.
5 Mega caps ($200 billion+ market cap; ABBV, JNJ, PEP, PG, KO, WMT)
21 Giant caps ($10 billion to $200 billion market cap)
14 Mid caps ($2 billion to $10 billion)
8 Small caps ($300 million to $2 billion)
Curiously, 22 out of the 48 Dividend Kings have market capitalizations under $10 billion. This reveals that company longevity doesn’t must be accompanied by large dimension.
Remaining Ideas
Screening to seek out the perfect Dividend Kings isn’t the one strategy to discover high-quality dividend progress inventory concepts.
Positive Dividend maintains comparable databases on the next helpful universes of shares:
There’s nothing magical about investing within the Dividend Kings. They’re merely a bunch of high-quality companies with shareholder-friendly administration groups which have robust aggressive benefits.
Buying companies with these traits at truthful or higher costs and holding them for lengthy durations of time will seemingly end in robust long-term funding efficiency.
Essentially the most interesting a part of investing is that you’ve got limitless selection. You should buy into mediocre companies, or simply the superb firms.
As Warren Buffett says:
“After we personal parts of excellent companies with excellent managements, our favourite holding interval is ceaselessly.”
– Warren Buffett
Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to [email protected].