What Is A Dividend King?
All hail the king. A Dividend King is to be respected. While the USA does not have royalty like the UK does, they do however have dividend kings.
They don’t have castles, or grand palaces, or even have nice old ladies waving at everybody in shockingly bright coloured clothes.
What they do have are dividend kings though. A Dividend King in the US is company that has raised their dividend each and every year for 50 years. Yes, 50 years. To say this is impressive is somewhat of an understatement.
Firstly, when you factor in all the major events over the last 50 years that have significantly affected the economy then it is even more mind-blowing. A testament to the strength of these companies.
Several recessions, housing market crashes, 9/11 the list goes on. Some truly devastating events our the last 50 years.
Worthy of the name Dividend King, only 28 companies currently wear the crown.
List Of Dividend Kings 2020
Here are all the current dividend kings broken down by sector. Source.
- Stepan – SCL
- Genuine Parts Company – GPC
- Lowe’s Companies – LOW
- Target Corporation – TGT
- The Colgate-Palmolive Company – CL
- Hormel Foods Corporation – HRL
- The Coca-Cola Company – KO
- Lancaster Colony – LANC
- Procter & Gamble – PG
- Tootsie Roll Industries – TR
- Cincinnati Financial – CINF
- Farmers & Merchants Bancorp – FMCB
- Commerce Bancshares Inc. – CBSH
- Johnson & Johnson – JNJ
- ABM Industries – ABM
- Dover Corporation – DOV
- Emerson Electric – EMR
- 3M Company – MMM
- Nordson – NDSN
- Parker Hannifin – PH
- Stanley Black & Decker – SWK
- Federal Realty Investment Trust – FRT
- American States Water – AWR
- California Water Service – CWT
- Northwest Natural Gas – NWN
- SJW Group – SJW
- Vectren -VVC
Furthermore, new additions not yet added to the source above include.
Altria Group – MO, H.B. Fuller Company (FUL), Sysco (SYY) with a few more set to join next year as long as they raise the dividend.
So if we include Altria Group then personally I hold. Coca – Cola, Altria Group, Johnson & Johnson and 3M.
With Pepsi Co – PEP just 3 years away from picking up the crown. I am sure they will rightly wear soon enough, I hope so as I personally hold them!
Proctor and Gamble is one stock I plan on adding into my portfolio when I see a buying opportunity.
Are Dividend Kings Worth Investing In
So, now you know what a dividend king is you may be asking yourself. Should I be holding mostly dividend kings in my portfolio?
This is a valid question. Dividend kings will offer some stability and structure to your portfolio. Often the dividend yield of kings is pretty low in the range of 2-3.5% mostly around 2.5%.
While not the highest yielders to start with, they do offer the stability in that you have a pretty high likelihood that the yield will keep on going up year after year.
Capital gains on dividend kings will also often be pretty conservative too. Remember though, consistent dividend increases year on year and small to medium capital gains is not a bad thing.
Moreover, our risk is minimized by opting to select a few dividend kings in our portfolio. Boring as most of them are – I believe along with dividend aristocrats they should hold the top 5 positions in your portfolio at least, if not 10.
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None of the above should be used as financial advice, I am not a professional. Always do your own research.