Get a list of current – and potential future – Dividend Kings and also learn how to leverage these strong companies to build wealth.
What’s the most exclusive group of dividend stocks? It might not be what first comes to mind.
Many investors are familiar with Dividend Aristocrats. These stocks are members of the S&P 500 that have increased their dividends for at least 25 consecutive years.
But there’s an even more elite group of dividend stocks that doesn’t receive as much attention. Dividend Kings don’t have to be members of the S&P 500, but they must reach an ultramarathon-like dividend streak – at least 50 consecutive years of payout growth.
Here’s what you need to know about the current Dividend Kings and how they can fit into your investment portfolio.
2022 Dividend Kings
Here are the 41 stocks that qualified as Dividend Kings as of July 26, 2022
| DIVIDEND KING | SECTOR | DIVIDEND INCREASE STREAK |
|---|---|---|
| American States Water (NYSE:AWR) | Utilities | 68 |
| Genuine Parts (NYSE:GPC) | Consumer Goods | 66 |
| Procter & Gamble (NYSE:PG) | Consumer Goods | 66 |
| Northwest Natural Holding (NYSE:NWN) | Utilities | 66 |
| Dover Corporation (NYSE:DOV) | Industrials | 66 |
| Parker Hannifin (NYSE:PH) | Industrials | 66 |
| Emerson Electric (NYSE:EMR) | Industrials | 65 |
| 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 | 59 |
| Colgate-Palmolive (NYSE:CL) | Consumer Goods | 59 |
| Nordson (NASDAQ:NDSN) | Industrials | 58 |
| Hormel Foods (NYSE:HRL) | Consumer Goods | 56 |
| California Water Service Group (NYSE:CWT) | Utilities | 55 |
| Stanley Black & Decker (NYSE:SWK) | Industrials | 55 |
| ABM Industries (NYSE:ABM) | Industrials | 55 |
| SJW Group (NYSE:SJW) | Utilities | 54 |
| Stepan Company (NYSE:SCL) | Industrials | 54 |
| Federal Realty Investment Trust (NYSE:FRT) | Real Estate | 54 |
| Commerce Bancshares (NASDAQ:CBSH) | Financials | 54 |
| Sysco (NYSE:SYY) | Consumer Goods | 53 |
| MSA Safety (NYSE:MSA) | Industrials | 53 |
| H.B. Fuller (NYSE:FUL) | Materials | 53 |
| National Fuel Gas (NYSE:NFG) | Energy | 52 |
| Universal Corporation (NYSE:UVV) | Consumer Goods | 52 |
| Altria Group (NYSE:MO) | Consumer Goods | 52 |
| W.W. Grainger (NYSE:GWW) | Industrials | 51 |
| Target (NYSE:TGT) | Consumer Goods | 51 |
| Black Hills Corp. (NYSE:BKH) | Utilities | 51 |
| Leggett & Platt (NYSE:LEG) | Industrials | 51 |
| Illinois Tool Works (NYSE:ITW) | Industrials | 51 |
| PPG Industries (NYSE:PPG) | Industrials | 51 |
| Computer Services, Inc. (OTV:CSVI) | Technology | 51 |
| Tennant (NYSE:TNC) | Industrials | 50 |
| PepsiCo (NASDAQ:PEP) | Consumer Goods | 50 |
| Kimberly Clark (NYSE:KMB) | Consumer Goods | 50 |
| Becton, Dickinson & Co. (NYSE:BDX) | Healthcare | 50 |
| AbbVie (NYSE:ABBV) | Healthcare | 50 |
| Abbott Labs (NYSE:ABT) | Healthcare | 50 |
| PepsiCo (NASDAQ:PEP) | Consumer staples | 50 |
Two sectors make up a significant portion of the Dividend Kings list, with 12 consumer goods and 14 industrials companies making up more than half the list. There were also four healthcare stocks and five utility stocks in the group. This shouldn’t be a surprise. Companies in these sectors tend to pay dividends, raise their prices with inflation, and many have also been in operation for a long time.
There aren’t any exchange-traded funds (ETFs) that focus exclusively on Dividend Kings. However, the ProShares S&P 500 Dividend Aristocrats ETF (NYSEMKT: NOBL) owns shares of all Dividend Aristocrats.
Changes in 2022
It’s likely that most of these Dividend Kings will remain on the list throughout 2022. Why? There’s a tremendous amount of pressure on companies that have increased their dividends for 50-plus years to keep their streak going. No CEO wants to be known as the leader who messed up an impressive dividend track record. Of course, there’s no guarantee that these companies will join the ranks of the Dividend Kings. However, the same factors incentivizing the current Dividend Kings to continue increasing their dividends are incentivizing the companies close to making the cut.
Likely winners in 2022
There are two key factors that should affect many stocks in 2022, including several of the Dividend Kings:
- Turning the corner on the COVID-19 pandemic
- Interest rates
These factors could benefit some stocks but hurt others. Here are five Dividend Kings that should be winners in 2022:
Johnson & Johnson
Johnson & Johnson might not just benefit from the world turning the corner on the COVID-19 pandemic; the healthcare giant could be key to making it happen. J&J ranks among the leaders in the coronavirus vaccine market and is the biggest of all of the vaccine stocks .
The company committed to selling its COVID-19 vaccine at cost during the pandemic. However, J&J has several other pharmaceutical products on the market that are driving its profits higher. Autoimmune disease drugs Stelara and Tremfya, as well as blood cancer drugs Darzalex and Imbruvica continue to be especially big winners.
Johnson & Johnson plans to spin off its consumer health unit in 2023. This move will leave the company with its faster-growing medical device and pharmaceutical businesses.
Federal Realty Investment Trust
Federal Realty Investment Trust seems like a surefire winner if COVID-19 cases significantly fall in 2022. The real estate investment trust ( REIT ) owns more than 100 retail properties.
The company’s tenants should be stronger financially when coronavirus concerns fade. That will improve the prospects for Federal Realty to collect a higher percentage of the recurring rents that it’s owed.
Federal Realty should also benefit if interest rates remain relatively low. REITs usually have to borrow money to pay for new properties. When interest rates are low, it reduces the interest expenses these companies must pay. Even with anticipated rate hikes, levels should still remain relatively low.
Sysco
Sysco was the kind of stock many investors wanted to avoid during the worst part of the COVID-19 pandemic. Many of Sysco’s restaurant customers have been hit hard by the pandemic, resulting in the company’s sales declining in 2020 and 2021.
However, a stock to avoid during a pandemic could be a stock that soars when the coronavirus crisis subsides. Sysco should be poised for a solid recovery if Americans return to previous levels of dining out in 2022.
The company just might find that its customer base is more loyal than ever before when the pandemic is over. Sysco has worked hard to help its restaurant customers navigate the coronavirus challenge, including helping them to extend their outdoor dining season and revise their menus to boost profitability.
Stanley Black & Decker
The same trends that are helping Lowe’s are also working to the advantage of Stanley Black & Decker. The company’s sales of tools used in do-it-yourself (DIY) projects skyrocketed during the pandemic.
Also like Lowe’s, Stanley Black & Decker’s tool sales for the DIY market should continue to grow as long as interest rates remain low. Many people who start to make repairs to their existing homes in anticipation of buying new ones will need tools for these efforts.
Stanley Black & Decker’s other businesses have also bounced back after being hit hard by lockdowns during the pandemic. The company should experience increased growth with its acquisition of MTD Holdings, which makes outdoor power equipment.
Future Dividend Kings
The following well-known companies are very close to joining this august group of stocks:
- Nucor Corp (NYSE:NUE) : 49 years of dividend growth
- S&P Global (NYSE:SPGI) : 49 years of dividend growth
- Lowe’s (NYSE:LOW) : 48 years of dividend growth
Why invest in Dividend Kings?
Dividend Kings aren’t necessarily a good fit for every investor. Many of these stocks frequently deliver relatively low growth. For example, four of the five Dividend Kings with the longest records of dividend increases have underperformed the S&P 500 over the past 10 years.
However, Dividend Kings can be a great component of retirement portfolios, or for investors looking for reliable income. Most of these stocks offer dividend yields that are higher than the average dividend yield of S&P 500 members. Their consistency in paying and increasing dividend payouts also can provide a measure of confidence for anyone depending on income generated by the dividend stocks they own.