Up to date on June third, 2024 by Bob CiuraSpreadsheet knowledge up to date day by 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 beneath incorporates the next for every inventory within the index amongst different vital investing metrics:
Payout ratio
Dividend yield
Worth-to-earnings ratio
You possibly can see the total downloadable spreadsheet of all 53 Dividend Kings (together with vital monetary metrics similar to dividend yields, payout ratios, and price-to-earnings ratios) by clicking on the hyperlink beneath:
The Dividend Kings record consists of latest additions similar to Consolidated Edison (ED), Kenvue (KVUE), and Fortis (FTS).
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 record is a superb place to search out dividend inventory concepts. Nevertheless, not all of the shares within the Dividend Kings record make an important 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 exhibits filter the Dividend Kings record 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: Observe the steps within the educational video beneath. Notice that we display screen for price-to-earnings ratios of 15 or beneath within the video. You possibly can select any threshold that greatest defines ‘worth’ for you.
Alternatively, following the directions above and filtering for greater dividend yield Dividend Kings (yields of two% or 3% or greater) will present shares with 50+ years of rising dividends and above-average dividend yields.
Searching for companies which have a protracted historical past of dividend will increase isn’t an ideal solution to determine shares that may enhance their dividends yearly sooner or later, however there may be appreciable consistency within the Dividend Kings.
The 5 Greatest Dividend Kings At present
The next 5 shares are our top-ranked Dividend Kings at the moment, based mostly on anticipated annual returns over the following 5 years. Shares are ranked so as of lowest to highest anticipated annual returns.
Whole returns embrace a mix of future earnings-per-share progress, dividends, and any modifications within the P/E a number of.
Dividend King #5: Johnson & Johnson (JNJ)
5-12 months Annual Anticipated Returns: 13.2%
Johnson & Johnson is a diversified well being care firm and a pacesetter within the space of prescribed drugs, and medical units.
The corporate has annual gross sales of roughly $89 billion.On April sixteenth, 2024, Johnson & Johnson reported first quarter outcomes for the interval ending March thirty first, 2024.
Supply: Investor Presentation
For the quarter, income grew 2.3% to $21.4 billion, which was in-line with estimates. Adjusted earnings-per-share of $2.71 in comparison with $2.68 within the prior yr and was $0.06 higher than anticipated.
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 Certain Evaluation report on JNJ (preview of web page 1 of three proven beneath):
Dividend King #4: PPG Industries (PPG)
5-12 months Annual Anticipated Returns: 14.0%
PPG Industries is the world’s largest paints and coatings firm. Its solely opponents of comparable dimension are Sherwin-Williams and Dutch paint firm Akzo Nobel.
On April 18th, 2024, PPG Industries reported first quarter outcomes for the interval ending March thirty first, 2024.
Supply: Investor Presentation
For the quarter, income decreased 1.6% to $4.31 billion, which was $120 million lower than anticipated.
Adjusted web revenue of $441 million, or $1.86 per share, in comparison with adjusted web revenue of $432 million, or $1.82 per share, within the prior yr. Adjusted earnings-per-share have been in-line with consensus estimates.
Click on right here to obtain our most up-to-date Certain Evaluation report on PPG (preview of web page 1 of three proven beneath):
Dividend King #3: Gorman-Rupp Co. (GRC)
5-12 months Annual Anticipated Returns: 14.4%
Gorman-Rupp started manufacturing pumps and pumping methods again in 1933. Since that point, it has grown into an trade chief with annual gross sales of about $685 million and a market capitalization of $915 million. At present, Gorman-Rupp is a centered, area of interest producer of essential methods that many industrial purchasers rely on for their very own success.
Gorman posted first quarter earnings on April twenty fifth, 2024, and outcomes have been considerably weak. Internet gross sales have been $159.3 million, down from $160.5 million a yr in the past. Home gross sales rose 1.1%, whereas worldwide gross sales declined $2.5 million, or 6.2%.
Gross revenue was $48.4 million in Q1, or 30.4% of income. This was in comparison with $45.5 million, and 28.4%, respectively, a yr in the past. The acquire in gross margins was attributable to a 230 foundation level enchancment in price of supplies, together with a 60 foundation level enchancment from stock changes.
Click on right here to obtain our most up-to-date Certain Evaluation report on GRC (preview of web page 1 of three proven beneath):
Dividend King #2: Farmers & Retailers Bancorp (FMCB)
5-12 months Annual Anticipated Returns: 14.5%
Farmers & Retailers Bancorp is a domestically owned and operated neighborhood financial institution with 32 places in California. Because of its small market cap and its low liquidity, it passes beneath the radar of most traders. F&M Financial institution has paid uninterrupted dividends for 88 consecutive years and has raised its dividend for 58 consecutive years.
In mid-April, F&M Financial institution reported (4/17/24) monetary outcomes for the primary quarter of fiscal 2024. The financial institution grew its adjusted earnings-per-share 4% over the prior yr’s quarter, from $29.44 to $30.56. It posted 8% progress of loans and 9% progress of deposits.
Internet curiosity revenue dipped -7% attributable to a contraction of web curiosity margin amid greater deposit prices. Administration stays optimistic for the foreseeable future, because the 23-year excessive rates of interest are more likely to proceed to assist a large web curiosity margin.
Click on right here to obtain our most up-to-date Certain Evaluation report on FMCB (preview of web page 1 of three proven beneath):
Dividend King #1: SJW Group (SJW)
5-12 months Annual Anticipated Returns: 15.8%
SJW Group is a water utility firm that produces, purchases, shops, purifies and distributes water to customers and companies within the Silicon Valley space of California, the world north of San Antonio, Texas, Connecticut, and Maine.
SJW Group additionally has a small actual property division that owns and develops properties for residential and warehouse clients in California and Tennessee.
On April twenty sixth, 2024, SJW Group reported first quarter outcomes. For the quarter, income grew 8.8% to $149.4 million, beating estimates by $8.9 million. Earnings-per-share of $0.36 in contrast unfavorably to earnings-per-share of $0.37 within the prior yr and this was $0.02 lower than anticipated.
The advance in income was largely attributable to SJW Group’s California enterprise, which resulted from greater water charges. In Connecticut, the corporate benefited from a rise within the infrastructure restoration mechanism. Increased charges total added $10 million to outcomes for the quarter whereas greater buyer utilization added $1.8 million.
Click on right here to obtain our most up-to-date Certain Evaluation report on SJW (preview of web page 1 of three proven beneath):
Evaluation Studies On All 53 Dividend Kings
All of the Dividend Kings are listed beneath by sector. You possibly can entry detailed protection of every by clicking on the identify of every Dividend King.
Moreover, you possibly can obtain our latest Certain Evaluation Analysis Database report for every Dividend King as nicely.
Primary Supplies
Shopper Discretionary
Shopper Staples
Power
Monetary Providers
Healthcare
Industrial
Actual Property
Utilities
Efficiency Of The Dividend Kings
The Dividend Kings under-performed the S&P 500 ETF (SPY) in Might 2024. Return knowledge for the month is proven beneath:
Dividend Kings Might 2024 complete return: -0.3%
SPY Might 2024 complete return: 5.0%
Secure dividend growers just like the Dividend Kings are inclined to underperform in bull markets and outperform on a relative foundation throughout bear markets.
The Dividend Kings should not 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 troublesome.
Extra particularly, efficiency monitoring of the Dividend Kings typically introduces important survivorship bias.
Survivorship bias happens when one appears at solely the businesses that ‘survived’ the time interval in query. Within the case of Dividend Kings, because of this the efficiency examine doesn’t embrace ex-Kings that decreased their dividend, have 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 exhibits that ‘boring’ established blue-chip shares that enhance their dividend year-after-year can considerably outperform over lengthy intervals 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 at the moment’s Dividend Kings, rebalanced yearly. Because of inadequate knowledge, 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 examine is from Ycharts.
Within the subsequent part of this text, we’ll present an outline 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 completely 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: 14
Industrials: 11
Utilities: 9
Shopper Discretionary: 2
Well being Care: 5
Financials: 5
Supplies: 5
Actual Property: 1
Power: 1
Communication Providers: 0
The Dividend Kings are chubby within the Industrials, Shopper Staples, and Utilities sectors. Curiously, The Dividend Kings have zero shares from the Info Know-how sector, which is the most important element of the S&P 500 index.
The Dividend Kings even have some fascinating traits with respect to market capitalization. These traits are illustrated beneath.
6 Mega caps ($200 billion+ market cap; ABBV, JNJ, PEP, PG, KO, WMT)
25 Massive 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, 23 out of the 53 Dividend Kings have market capitalizations beneath $10 billion. This exhibits that company longevity doesn’t must be accompanied by huge dimension.
Closing Ideas
Screening to search out the very best Dividend Kings is just not the one solution to discover high-quality dividend progress inventory concepts.
Certain Dividend maintains related 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 sturdy aggressive benefits.
Buying companies with these traits at truthful or higher costs and holding them for lengthy intervals of time will probably end in sturdy long-term funding efficiency.
Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to assist@suredividend.com.
