2023 Dividend Kings List | Updated Daily

Up to date on November 1st, 2023 by Bob CiuraSpreadsheet information 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 Record beneath comprises the next for every inventory within the index amongst different necessary investing metrics:

Payout ratio
Dividend yield
Worth-to-earnings ratio

You’ll be able to see the total downloadable spreadsheet of all 51 Dividend Kings (together with necessary monetary metrics reminiscent of dividend yields, payout ratios, and price-to-earnings ratios) by clicking on the hyperlink beneath:

The Dividend Kings listing consists of latest additions reminiscent of RPM Worldwide (RPM), Archer Daniels Midland (ADM), and Walmart (WMT).

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 surprising result’s as a result of the ‘solely’ requirement to be a Dividend Kings is 50+ years of rising dividends.

Then again, Dividend Aristocrats should 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 Record to Discover Dividend Inventory Concepts

The Dividend Kings listing is a good place to seek out dividend inventory concepts. Nevertheless, not all of the shares within the Dividend Kings listing make an ideal funding at any given time.

Some shares could be overvalued. Conversely, some could be undervalued – making nice long-term holdings for dividend development buyers.

For these unfamiliar with Microsoft Excel, the next walk-through exhibits the right way to filter the Dividend Kings listing for the shares with probably the most engaging valuation primarily based on the price-to-earnings ratio.

Step 1: Obtain the Dividend Kings Excel Spreadsheet.

Step 2: Observe the steps within the tutorial video beneath. Notice that we display for price-to-earnings ratios of 15 or beneath within the video. You’ll be able to select any threshold that finest 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.

On the lookout for companies which have a protracted historical past of dividend will increase isn’t an ideal strategy 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 the moment

The next 5 shares are our top-ranked Dividend Kings immediately, primarily based on anticipated annual returns over the subsequent 5 years. Shares are ranked so as of lowest to highest anticipated annual returns.

Whole returns embody a mix of future earnings-per-share development, dividends, and any adjustments within the P/E a number of.

Dividend King #5: Sysco Company (SYY)

5-12 months Annual Anticipated Returns: 14.8%

Sysco Company is the biggest wholesale meals distributor in america. The corporate serves 600,000 places with meals supply, together with eating places, hospitals, faculties, motels, and different services. In response to estimates, the corporate has a 16% market share of complete meals supply inside america.

Supply: Investor Presentation

On August 1st, 2023, Sysco reported fourth-quarter outcomes for Fiscal 12 months (FY) 2023. Within the fourth quarter, Sysco achieved a 4.1% gross sales enhance in comparison with the identical interval within the earlier fiscal yr, with U.S. Foodservice quantity rising by 2.3%. Adjusted EPS rose by 16.5% to $1.34, in comparison with the earlier fiscal yr.

For all the fiscal yr 2023, Sysco grew income by 11% with a 5.2% rise in U.S. Foodservice quantity. Adjusted earnings-per-share elevated 23% to $4.01.

Click on right here to obtain our most up-to-date Positive Evaluation report on SYY (preview of web page 1 of three proven beneath):

Dividend King #4: Goal Company (TGT)

5-12 months Annual Anticipated Returns: 14.9%

Goal is a reduction retail operations solely within the U.S. market. Its enterprise consists of about 2,000 huge field shops providing basic merchandise and meals and serving as distribution factors for its burgeoning e-commerce enterprise.

Goal has invested closely in e-commerce. The rise in e-commerce initially caught many retail corporations flat-footed. Goal has actually revamped its on-line choices and has seen unbelievable development charges.

Supply: Investor Presentation

Goal posted second quarter earnings on August sixteenth, 2023, and outcomes had been considerably blended. Adjusted earnings-per-share got here in nicely forward of estimates at $1.80, which was 38 cents higher than anticipated.

Income was $24.8 billion, down 4.9% year-over-year, and lacking estimates by $460 million. The corporate additionally lowered its full-year gross sales and revenue expectations as a result of weakening gross sales, however rising margins.

Click on right here to obtain our most up-to-date Positive Evaluation report on Goal Company (preview of web page 1 of three proven beneath):

Dividend King #3: Black Hills Company (BKH)

5-12 months Annual Anticipated Returns: 15.0%

Black Hills Company is an electrical utility that gives electrical energy and pure fuel to prospects in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming.

The corporate has 1.33 million utility prospects in eight states. Its pure fuel property embody 47,000 miles of pure fuel traces. Individually, it has ~9,000 miles of electrical traces and 1.4 gigawatts of electrical technology capability.

Supply: Investor Presentation

Within the 2023 second quarter, revenues of $410 million declined 13% year-over-year and missed the consensus estimate by $50 million. Earnings-per-share of $0.35 was barely beneath the consensus analyst estimate. The utility forecasts earnings-per-share of $3.65 to $3.85 for the present fiscal yr.

Utilities like Black Hills are proof against recessions as demand for electrical energy and fuel just isn’t very cyclical. Black Hills ought to stay worthwhile underneath most circumstances. The truth that prospects have a tendency to stay with their supplier implies that Black Hills operates a comparatively steady enterprise mannequin.

Click on right here to obtain our most up-to-date Positive Evaluation report on BKH (preview of web page 1 of three proven beneath):

Dividend King #2: Lowe’s Corporations (LOW)

5-12 months Annual Anticipated Returns: 15.6%

Lowe’s Corporations is the second-largest residence enchancment retailer within the US (after House Depot). Lowe’s operates or companies greater than 1,700 residence enchancment and {hardware} shops within the U.S.

Lowe’s reported second quarter 2023 outcomes on August twenty second, 2023. Whole gross sales for the second quarter got here in at $25 billion in comparison with $27.5 billion in the identical quarter a yr in the past. Comparable gross sales decreased 1.6% and internet earnings declined 2.4% year-over-year to $4.56 per share.

The corporate repurchased 10.1 million shares within the second quarter for $2.2 billion. Moreover, it paid out $624 million in dividends. Lowe’s launched same-day supply nationwide, and expanded its rural merchandising framework to 300 shops.

The corporate reaffirmed its fiscal 2023 outlook and believes it will probably obtain adjusted diluted EPS within the vary of $13.20 to $13.60 on complete gross sales of roughly $88 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 beneath):

Dividend King #1: 3M Firm (MMM)

5-12 months Annual Anticipated Returns: 20.2%

3M sells greater than 60,000 merchandise which are used day-after-day in properties, hospitals, workplace buildings and faculties across the world. It has about 95,000 workers and serves prospects in additional than 200 international locations.

3M is now composed of 4 separate divisions: Security & Industrial, Healthcare, Transportation & Electronics, and Client. 

The corporate additionally introduced that it might be spinning off its Well being Care section right into a standalone entity.

The brand new 3M will include the segments which generated $26.8 billion in gross sales in 2021, whereas the healthcare spin-off will retain the product portfolio, which generated $8.6 billion in gross sales in 2021.

Supply: Investor Presentation

On October twenty fifth, 2022, 3M reported third-quarter earnings outcomes. Income decreased by 3.8% to $8.6 billion and was $100 million lower than analyst expectations. Adjusted earnings-per-share of $2.69 in comparison with $2.45 within the prior yr and beat estimates by $0.10.

3M’s innovation is likely one of the firm’s best aggressive benefits. The corporate targets R&D spending equal to six% of gross sales (or roughly $2 billion yearly) with a view to create new merchandise to fulfill client demand.

Click on right here to obtain our most up-to-date Positive Evaluation report on 3M Firm (preview of web page 1 of three proven beneath):

Evaluation Reviews On All 51 Dividend Kings

All 51 Dividend Kings are listed beneath by sector. You’ll be able to 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 nicely.

Primary Supplies

Client Discretionary

Client Staples

Vitality

Monetary Companies

Healthcare

Industrial

Actual Property

Utilities

Efficiency Of The Dividend Kings

The Dividend Kings out-performed the S&P 500 ETF (SPY) in October 2023. Return information for the month is proven beneath:

Dividend Kings October 2023 complete return: -1.5%
SPY October 2023 complete return: -2.2%

Steady 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 usually are not formally regulated and monitored by anyone firm. There’s no Dividend King ETF. Which means monitoring the historic efficiency of the Dividend Kings will be troublesome. Extra particularly, efficiency monitoring of the Dividend Kings usually introduces important survivorship bias.

Survivorship bias happens when one seems to be 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 embody ex-Kings that decreased 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 exhibits that ‘boring’ established blue-chip shares that enhance 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 immediately’s Dividend Kings, rebalanced yearly. On account 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 information for this examine 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.

Client Staples: 14
Industrials: 12
Utilities: 7
Client Discretionary: 3
Well being Care: 4
Financials: 4
Supplies: 5
Actual Property: 1
Vitality: 1

The Dividend Kings are chubby within the Industrials, Client Staples, and Utilities sectors. Apparently, The Dividend Kings have only one inventory from the Info Expertise sector, which is the biggest part of the S&P 500 index.

The Dividend Kings even have some attention-grabbing traits with respect to market capitalization. These traits are illustrated beneath.

5 Mega caps ($200 billion+ market cap; ABBV, JNJ, PEP, PG, KO, WMT)
24 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)

Apparently, 22 out of the 51 Dividend Kings have market capitalizations beneath $10 billion. This exhibits that company longevity doesn’t need to be accompanied by huge dimension.

Remaining Ideas

Screening to seek out the most effective Dividend Kings just isn’t the one strategy to discover high-quality dividend development inventory concepts.

Positive 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 gaggle 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 possible lead to robust long-term funding efficiency.