2021 Dividend Kings List | See All 31 Now

What’s a Dividend King? A inventory with 50 or extra consecutive years of dividend will increase.

The downloadable Dividend Kings Spreadsheet Listing beneath accommodates the next for every inventory within the index, amongst different necessary investing metrics:

• Payout ratio
• Dividend yield
• Worth-to-earnings ratio

You may see the complete downloadable spreadsheet of all 31 Dividend Kings (together with necessary monetary metrics equivalent to dividend yields, payout ratios, and price-to-earnings ratios) by clicking on the hyperlink beneath:

There are presently 31 Dividend Kings, together with latest additions equivalent to Black Hills Corp. (BKH), Sysco (SYY), Common Company (UVV) and Nationwide Gas Fuel (NFG). Every Dividend King satisfies the first requirement to be a Dividend Aristocrat (25 years of consecutive dividend will increase) twice over.

Editor’s Notice: After evaluate, Illinois Instrument Works (ITW) and Goal Company (TGT) have been faraway from our lists, as they don’t qualify as Dividend Kings. You may learn extra about this right here.

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, whereas 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 Listing to Discover Dividend Inventory Concepts

The Dividend Kings listing is a superb place to search out dividend inventory concepts. Nevertheless, not all the shares within the Dividend Kings listing make an amazing funding at any given time.

Some shares is perhaps overvalued. Conversely, some is perhaps undervalued – making nice long-term holdings for dividend progress buyers.

For these unfamiliar with Microsoft Excel, the next walk-through reveals tips on how to filter the Dividend Kings listing for the shares with essentially 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 screen for price-to-earnings ratios of 15 or beneath within the video. You may 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.

Searching for companies which have a protracted historical past of dividend will increase isn’t an ideal approach to determine shares that may enhance their dividends yearly sooner or later, however there’s appreciable consistency within the Dividend Kings.

The 5 Greatest Dividend Kings At this time

The next 5 shares are our top-ranked Dividend Kings right now, primarily based on anticipated annual returns via 2026. 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 adjustments within the P/E a number of.

Dividend King #5: Black Hills Corp. (BKH)

• 5-12 months Annual Anticipated Returns: 8.1%

Black Hills Company is an electrical utility that gives electrical energy and pure gasoline to clients in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. Black Hills was based in 1941, and the corporate is headquartered in Fast Metropolis, South Dakota.

Supply: Investor Presentation

Black Hills Company reported its fourth-quarter earnings outcomes on February 9. The corporate generated revenues of $490 million through the quarter, up 2% year-over-year. Earnings-per-share of $1.23 for the fourth quarter, elevated 8.9% year-over-year, showcasing the resilience of the corporate’s outcomes through the pandemic.

Robust outcomes have been principally because of increased pure gasoline demand for heating, which was once more showcased by the above-average profitability through the fourth quarter. The corporate is forecasting earnings-per-share of $3.80 to $4.00 for the present fiscal yr.

Total, Black Hills Company’s dividend payout ratio declined between 2010 and 2019, because of a modest dividend progress charge. At this time, the corporate pays out roughly 60% of its web earnings within the type of dividends. Subsequently, the dividend payout seems secure, even throughout a recession.

Shares commerce for a 2021 P/E of 17.4, barely beneath our truthful worth P/E of 18. As well as, anticipated annual EPS progress of ~4%, plus the three.4% dividend yield result in anticipated whole annual returns of 8.1% per yr over the subsequent 5 years.

Dividend King #4: Johnson & Johnson (JNJ)

• 5-12 months Annual Anticipated Returns: 8.2%

J&J is a worldwide healthcare large. It has a market capitalization above $400 billion, and generates annual income of greater than $81 billion. At this time, J&J manufactures and sells well being care merchandise via three fundamental segments:

• Prescribed drugs
• Medical Units
• Shopper Well being Merchandise

It has a diversified enterprise mannequin, with sturdy manufacturers throughout its three core working segments. A breakdown of every section’s efficiency may be seen within the picture beneath:

Supply: Investor Presentation

On 1/26/2020, Johnson & Johnson introduced fourth-quarter and full yr earnings outcomes. Income grew 8.3% to $22.5 billion, whereas adjusted earnings-per-share declined 1.1% to $1.86. For the yr, income was increased by 0.6% to $82.6 billion whereas adjusted EPS fell 7.5% to $8.03.

Within the fourth quarter, pharmaceutical gross sales have been up 16.3% year-over-year. Shopper completed the yr with 1.4% gross sales progress. The Medical Units section decreased 0.7%, however that is really an enchancment over prior quarters. Johnson & Johnson expects to launch its single-dose COVID-19 vaccine trial ends in early February.

The corporate expects income of $90.5 billion to $91.7 billion and adjusted EPS of $9.40 to $9.60 for 2021.

J&J has elevated its dividend for 58 consecutive years, making it a Dividend King. The inventory yields 2.5% proper now. As well as, we count on roughly 6% annual earnings-per-share progress over the subsequent 5 years. Lastly, the inventory has a P/E of 17.1, almost in-line with our truthful worth P/E estimate of 17. All collectively, we count on whole returns of 8.2% per yr for J&J inventory.

Dividend King #3: ABM Industries (ABM)

• 5-12 months Annual Anticipated Returns: 8.3%

ABM Industries has elevated its dividend for 53 consecutive years. ABM Industries is a number one supplier of facility options, which incorporates janitorial, electrical & lighting, vitality resolutions, services engineering, HVAC & mechanical, panorama & turf, and parking.

Supply: Investor Presentation

ABM Industries reported its first-quarter earnings outcomes (fiscal 2021) on March ninth. The corporate introduced that its revenues totaled $1.49 billion through the quarter, which was above the analyst estimate, however which was nonetheless down by 8% versus the earlier yr’s quarter. The income decline was primarily attributable to decrease demand from ABM Industries’ clients through the coronavirus disaster, as some clients in the reduction of on orders with a purpose to protect money.

Earnings–per–share of $1.01 for the quarter elevated 160% and exceeded the analyst consensus simply, by $0.42 per share. ABM Industries was in a position to decrease its bills by much more in comparison with the income decline it skilled through the quarter, which allowed for a steep enhance in its revenue margins. Thanks to the sturdy begin to fiscal 2021, it’s anticipated that ABM Industries will probably be extremely worthwhile this yr.

Because of the low dividend payout ratio and its very steady, recession–resilient enterprise mannequin, ABM Industries’ dividend seems very secure. We count on whole annual returns simply above 8% over the subsequent 5 years, pushed by 5% anticipated EPS progress, the 1.5% dividend yield, and a small enhance from a rising P/E a number of.

Dividend King #2: Altria Group (MO)

• 5-12 months Annual Anticipated Returns: 8.7%

Altria Group was based by Philip Morris in 1847. At this time, it’s a shopper staples large. It sells the Marlboro cigarette model within the U.S. and a lot of different non-smokeable manufacturers, together with Skoal, Copenhagen, and the Ste. Michelle model of wine. Altria additionally has a ten% possession stake in world beer large Anheuser Busch InBev (BUD).

On January twenty eighth, Altria reported monetary outcomes for the fourth quarter and full yr. Income (web of excise taxes) of $5.05 billion elevated 5.3% year-over-year. Cigarette volumes surprisingly elevated 3.1% for the quarter, reversing many quarters of quantity declines. Adjusted earnings-per-share declined 2% for the fourth quarter.

For the complete yr, income web of excise taxes elevated 5.3% to $20.84 billion, whereas adjusted earnings-per-share elevated 3.6% to $4.36 for 2020. For 2021, Altria expects adjusted diluted EPS in a spread of $4.49 to $4.62, representing a progress charge of three% to six% from 2020.

The long-term future is cloudy for cigarette producers equivalent to Altria, which is why the corporate has invested closely in adjoining classes to gas its future progress. The corporate bought a 55% fairness stake in Canadian marijuana producer Cronos Group, invested almost $13 billion for a 35% fairness stake in e-vapor producer Juul Labs, and lately acquired an 80% possession stake in Switzerland-based Burger Söhne Group, for its on! oral nicotine pouch model.

It has additionally invested in its personal heated tobacco product line referred to as IQOS and Marlboro HeatSticks, which the corporate continued to develop in 2020.

Supply: Investor Presentation

We count on new merchandise to gas the corporate’s long-term progress. We forecast 3% annual EPS progress going ahead, pushed by income progress in addition to share repurchases. Together with fourth-quarter monetary outcomes, Altria additionally introduced a brand new $2 billion share repurchase authorization.

Within the meantime, Altria’s dividend payout seems safe, as Altria generates enormous money circulate, even throughout recessions. The corporate has elevated its dividend for 51 consecutive years. Altria ranks very extremely by way of security as a result of the corporate has great aggressive benefits.

It operates in a extremely regulated business, which nearly eliminates the specter of new competitors within the tobacco business. Altria enjoys sturdy manufacturers throughout its product portfolio, together with the No. 1 cigarette model. In consequence, it has pricing energy and model loyalty. As well as, tobacco corporations take pleasure in low manufacturing and distribution prices, because of economies of scale.

Based mostly on the midpoint of 2021 adjusted EPS steerage, Altria inventory trades for a P/E ratio of 11.2, barely above our truthful worth estimate of 11. Together with ~2.4% annual EPS progress and the 6.7% dividend yield, whole returns are anticipated at 8.7% per yr over the subsequent 5 years.

Dividend King #1: Farmers & Retailers Bancorp (FMCB)

• 5-12 months Annual Anticipated Returns: 10.2%

Based in 1916, Farmers & Retailers Bancorp is a regionally owned and operated group financial institution with 32 areas in California. Resulting from its small market cap (~$600 million) and its low liquidity, it passes underneath the radar of most buyers. Nonetheless, F&M Financial institution has paid uninterrupted dividends for 86 consecutive years and has raised its dividend for 56 consecutive years.

The corporate is conservatively managed and, till 4 years in the past, had not made an acquisition since 1985. Nevertheless, within the final 4 years, it has begun to pursue progress extra aggressively. It acquired Delta Nationwide Bancorp in 2016 and elevated its areas by 4. Furthermore, in October-2018, it accomplished its acquisition of Financial institution of Rio Vista, which has helped F&M Financial institution to additional develop within the San Francisco East Bay Space.

In early February, F&M Financial institution reported (2/4/21) monetary outcomes for 2020. Regardless of the pandemic and the suppressed rates of interest, the financial institution grew its earnings-per-share 4.8% over the prior yr, and thus achieved report earnings-per-share of $74.03 for the complete yr. Internet curiosity revenue grew 6.2% in 2020, because of 16.1% progress in loans, whereas deposits grew 24%.

In contrast to most banks, which recorded vital mortgage loss provisions as a result of pandemic, F&M Financial institution has booked provisions for mortgage losses equal to only one.9% of its whole portfolio. It was additionally in a position to improve its web curiosity margin from 3.80% within the third quarter to three.86% within the fourth quarter. Regardless of the impression of the pandemic on the economic system, administration is optimistic for this yr because of the sustained enterprise momentum.

Shares commerce for a P/E ratio of ~10, in contrast with our truthful worth estimate of 12. An increasing valuation a number of may enhance annual returns modestly annually. Mixed with 5% anticipated EPS progress and the 1.9% dividend yield, whole returns are anticipated to succeed in 10.2% per yr over the subsequent 5 years.

Evaluation Reviews On All 31 Dividend Kings

All 31 Dividend Kings are listed beneath by sector. You may entry detailed protection of every by clicking on the title of every Dividend King. Moreover, you possibly can obtain our latest Certain Evaluation Analysis Database report for every Dividend King as effectively.

Primary Supplies

Shopper Cyclical

Shopper Defensive

Vitality

Monetary Providers

Healthcare

Industrial

Actual Property

Utilities

Moreover, you possibly can see the Dividend Kings analyzed within the video beneath.

Efficiency Of The Dividend Kings

The Dividend Kings outperformed versus the S&P 500 ETF (SPY) in March 2021. Return knowledge for the month is proven beneath:

• Dividend Kings March 2021 whole return: 6.8%
• SPY March 2021 whole return: 4.5%

Steady dividend growers just like the Dividend Kings are likely to under-perform in bull markets, and outperform on a relative foundation throughout bear markets.

The Dividend Kings aren’t formally regulated and monitored by anyone firm. There’s no Dividend King ETF. Because of this monitoring the historic efficiency of the Dividend Kings may be tough. Extra particularly, efficiency monitoring of the Dividend Kings usually introduces vital survivorship bias.

Survivorship bias happens when one seems 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 on.

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 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 right now’s Dividend Kings, rebalanced yearly. Resulting from 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 information 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 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.

• Industrial: 7
• Shopper Defensive: 9
• Utilities: 5
• Shopper Cyclical: 2
• Monetary Providers: 3
• Primary Supplies: 2
• Actual Property: 1
• Healthcare: 1
• Vitality: 1

The Dividend Kings are chubby within the Industrials, Shopper Defensive, and Utilities sectors. Apparently, The Dividend Kings have no publicity to the 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 developments are illustrated beneath.

• 3 Mega caps ($200 billion+ market cap; JNJ, PG, and KO)
• 13 Massive caps ($10 billion to $200 billion market cap)
• 11 Midcaps ($2 billion to $10 billion)
• 4 Small caps ($300 million to $2 billion)

Apparently, 19 out of the 31 Dividend Kings have market capitalizations beneath $20 billion. This reveals that company longevity doesn’t must be accompanied by huge dimension.

Closing Ideas

Screening to search out one of the best Dividend Kings is just not the one approach to discover top quality dividend progress inventory concepts.

Certain Dividend maintains related databases on the next helpful universes of shares:

There may be nothing magical about investing within the Dividend Kings. They’re merely a gaggle 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 doubtless lead to sturdy long-term funding efficiency.

Probably the most interesting a part of investing is that you’ve limitless selection. You should purchase into mediocre companies, or simply the wonderful corporations. As Warren Buffett says:

“Once we personal parts of excellent companies with excellent managements, our favourite holding interval is perpetually.”

– Warren Buffett