Dividend growth investors may be familiar with the Dividend Aristocrats, a group of blue-chip stocks in the S&P 500 Index that has each raised their dividends for at least 25 consecutive years. But there is a lesser-known group of stocks with even more impressive dividend streaks. This exclusive group is known as the Dividend Kings.
To be a dividend king, the companies must have increased their dividends for at least 50 years in a row. And unlike the Dividend Aristocrats, Dividend Kings don’t need to be listed on the S&P 500. Dividend Kings come from a variety of different market sectors. However, the following list of companies all shares a few key qualities: durable competitive advantages, long-term growth potential, and a proven ability to outlast recessions.
While there are currently 65 Dividend Aristocrats, there are just 32 Dividend Kings. And for 2022, it’s expected that there the list will increase to 37.
Complete List of 37 Dividend Kings for 2022
|Ticker||Name||Sector||Years of Dividend Increases|
|ABM||ABM Industries Inc.||Industrials||53|
|MO||Altria Group Inc.||Consumer Defensive||52|
|AWR||American States Water Co.||Utilities||66|
|BDX||Becton, Dickinson And Co.||Healthcare||49|
|BKH||Black Hills Corporation||Utilities||50|
|CWT||California Water Service Group||Utilities||53|
|CINF||Cincinnati Financial Corp.||Financial Services||60|
|KO||Coca-Cola Co||Consumer Defensive||59|
|CL||Colgate-Palmolive Co.||Consumer Defensive||58|
|CBSH||Commerce Bancshares, Inc.||Financial Services||53|
|EMR||Emerson Electric Co.||Industrials||64|
|FMCB||Farmers & Merchants Bancorp||Financial Services||56|
|FRT||Federal Realty Investment Trust||Real Estate||54|
|GPC||Genuine Parts Co.||Consumer Cyclical||65|
|FUL||H.B. Fuller Company||Basic Materials||52|
|HRL||Hormel Foods Corp.||Consumer Defensive||55|
|JNJ||Johnson & Johnson||Healthcare||59|
|KMB||Kimberly-Clark Corp.||Consumer Defensive||49|
|LANC||Lancaster Colony Corp.||Consumer Defensive||58|
|LOW||Lowe`s Cos., Inc.||Consumer Cyclical||59|
|NFG||National Fuel Gas Co.||Energy||51|
|NWN||Northwest Natural Holding Co||Utilities||65|
|PEP||PepsiCo Inc||Consumer Defensive||49|
|PPG||PPG Industries, Inc.||Basic Materials||50|
|PG||Procter & Gamble Co.||Consumer Defensive||65|
|SWK||Stanley Black & Decker Inc||Industrials||54|
|SCL||Stepan Co.||Basic Materials||54|
|SYY||Sysco Corp.||Consumer Defensive||51|
|TR||Tootsie Roll Industries, Inc.||Consumer Defensive||52|
|UVV||Universal Corp.||Consumer Defensive||50|
1. 3M Company (MMM)
3M is a diversified industrial conglomerate. It manufactures a massive number of products (over 60,000) that get used every day in homes, hospitals, office buildings, and schools worldwide. Its business segments include safety and industrial, healthcare, transportation and electronics, and consumer products.
2020 was a difficult year for 3M, as it was hit hard by the economic downturn in the U.S. and international markets. However, the company has durable competitive advantages that have allowed it to navigate many rough periods successfully, and this is no different.
Things are looking up for 3M. In the 2021 first quarter, revenue increased 10% from the same quarter last year. As a result, adjusted earnings-per-share increased by 27%. Organic growth was 8%, with each segment posting at least high single-digit growth.
3M’s Dividend Yield: 3.26%.
2. Abbott Laboratories (ABT)
Abbott Laboratories was founded in 1888. Today, they are one of the largest medical appliances & equipment manufacturers in the world. Their products and services are comprised of four segments: Nutrition, Diagnostics, Established Pharmaceuticals, and Medical Devices.
Abbott Laboratories provides products in over 160 countries and employs 109,000 people. Further, the company generated $35 billion in sales and $6.5 billion in profit in 2020.
On December 11th, 2020, Abbott Laboratories declared a $0.45 quarterly dividend, marking a 25.0% year-over-year increase. This was the company’s 388th consecutive payment and 49th straight year of increasing its dividend. And, we see little reason why they won’t increase this for a 50th straight year.
Abbot Labs’s Current Dividend Yield: 1.45%
3. AbbVie Inc. (ABBV)
AbbVie is a biotechnology company focused on developing and commercializing drugs for immunology, oncology, and virology. The company was spun off by Abbott Laboratories in 2013.
AbbVie has become one of the largest players in the biotechnology industry, especially following the closing of its acquisition of formerly independent pharma company Allergan.
Its most important product is Humira. Humira is a multi-purpose pharmaceutical product and was the top-selling drug in the world. Humira is now facing biosimilar competition in Europe, which has had a noticeable impact on the company. It will lose patent protection in the U.S. in 2023.
With 49 years of consecutive dividend increases, AbbVie is not currently a dividend king. However, there’s no reason to believe they won’t increase it again in late 2021 or 2022.
Abbvie’s Current Dividend Yield: 4.81%
4. ABM Industries (ABM)
ABM Industries is a leading provider of facility solutions, which includes janitorial, electrical & lighting, energy solutions, facilities engineering, HVAC & mechanical, landscape & turf, and parking.
The company has announced that it will acquire janitorial services and engineering company Able Services in a deal that values the target at $900 million. This should be a primary growth catalyst for ABM moving forward.
ABM Industries has increased its dividend for 53 consecutive years, which makes the company a Dividend King.
ABM’s Current Dividend Yield: 1.58%
5. Altria Group (MO)
Altria Group is a tobacco giant with its flagship Marlboro brand. But the company has increasingly expanded its product portfolio in recent years due to the long-running trend of falling smoking rates. Altria owns multiple smokeless tobacco brands. It also has a wine business under the Ste. Michelle brand and owns 10% of global beer giant Anheuser-Busch InBev (BUD).
More recently, Altria has targeted two additional product categories for growth, vaping and cannabis. Further, Altria owns a 35% stake in e-cigarette maker Juul and a 45% stake in cannabis producer Cronos Group (CRON).
The company is also rolling out its own heated and vapor products such as Marlboro HeatSticks and IQOS. Both of which are slowly gaining expansion across the U.S.
Related read: 19 Blue Chip Stocks for Incredibly Reliable Dividends
6. American States Water (AWR)
American States Water is a water utility, with two business units: Utilities (primarily water, some electricity) and Services (wastewater services on several US military bases). The company’s services unit spans several US states.
Water is arguably the most recession-resistant industry in the entire economy. Indeed, this is because water is a basic necessity of life, and this simple fact provides the company with steady demand from year to year. So, even in the worst economic recession, everyone would still need water.
The certainty of demand and the company’s ability to pass along periodic rate increases has enabled a long history of dividend increases to shareholders. For example, it has increased dividends for 66 consecutive years.
American States Water reported its second-quarter earnings results on August 2nd, 2021. Fully diluted earnings-per-share increased from $0.69 in Q2 2020 to $0.72 in Q2 2021. Further, while revenue for the second quarter grew by 5.9% to $128.41 million year-over-year.
The company’s current policy is to achieve a compound annual dividend growth rate of more than 7% over the long term, just as the company announced a 9% increase in quarterly dividend for September 1 dividend payment.
American States Water Current Dividend Yield: 1.55%
7. Becton, Dickinson & Company (BDX)
Becton, Dickinson & Co., or BD, is a global leader in the medical supply industry. The company was founded in 1897 and has 72,000 employees across 190 countries. The company generates about $20 billion in annual revenue, with approximately 43% of revenues coming from outside of the U.S. BD is composed of three segments.
Products sold by the Medical Division include needles for drug delivery systems and surgical blades. The Life Sciences division provides products for the collection and transportation of diagnostic specimens. The Intervention segment includes several of the products produced by what used to be Bard.
With a current dividend yield of 1.43% and 49 years of consecutive dividend growth, BDX is expected to become a dividend king in 2022.
8. Black Hills Corp. (BKH)
Black Hills is an integrated and regulated electric and gas utility that operates in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. Furthermore, it provides service to about 1.3 million utility customers. Its assets include generation, transmission, and distribution.
Because of the regulated industry, Black Hills management expects long-term earnings per share growth of 5% to 7% annually, along with at least 5% annual dividend growth. The company is also in a strong financial position, with a BBB+ credit rating from Standard & Poor’s. Indeed, it has helped Black Hills reach 50 years of annual dividend increases, while the stock has an attractive 3.3% dividend yield.
Black Hills Corporation reported its second-quarter earnings results on August 3. The company generated revenues of $370 million during the quarter, which was 14% more than the revenues that Black Hills Corporation was able to generate during the previous year’s quarter.
Black Hills stock currently yields 3.6%, making it one of the highest-yielding Dividend Kings right now.
9. California Water Service (CWT)
California Water Service is the 3rd largest publicly-owned water utility in the United States. The company has six subsidiaries that provide water to about two million people, mainly in California, with some additional operations in Washington, New Mexico, and Hawaii.
California Water Service reported its second-quarter earnings results on July 29. The company reported that its revenues totaled $213 million during the quarter, which was 21% more than the revenues that California Water Service generated during the previous year’s quarter.
California Water Service beat the analyst consensus easily. Revenues were up because the company benefited from rate increases that were negotiated throughout the last year.
California Water Service Current Dividend Yield: 1.44%
10. Cincinnati Financial (CINF)
Cincinnati Financial is an insurance company founded in 1950. It offers business, home, auto insurance, and financial products, including life insurance, annuities, property, and casualty insurance.
As an insurance company, Cincinnati Financial makes money in two ways. It earns income from premiums on policies written and by investing its float, or the large sum of money consisting of the time value between the premium income and insurance claims.
In the most recent quarter, earned premiums were up 10% year over year. For the first nine months, total revenue was up 30% compared to the first nine months of 2020. Company book value increased 6.45% since year-end, to $73.49 per share.
Cincinnati Financial Current Dividend Yield: 2%
11. The Coca-Cola Company (KO)
Coca-Cola is the largest non-alcoholic beverage company in the world. But the declining rate of soda consumption in mature markets like the U.S. poses a challenge.
In response, Coca-Cola has invested heavily in juice and tea. The nearly $5 billion purchase of Costa gave it instant exposure to coffee. At the time of the acquisition, Coca-Cola stated that the global coffee market was growing at 6% per year.
Coca-Cola’s higher-growth categories leave it with favorable long-term prospects. As a result, company management expects long-term organic sales growth of 4%-6% per year, leading to earnings-per-share growth of 7%-9% annually.
And, this is more than enough growth for Coca-Cola to continue increasing its dividend each year, as it has done for 59 years in a row.
Coca-Cola Current Dividend Yield: 2.96%
12. Colgate-Palmolive (CL)
Colgate-Palmolive is a consumer staples company with an extensive portfolio of famous brands, including Colgate, Palmolive, Tom’s of Maine, Ajax, and Hill’s.
The company has a unique advantage, which is its elevated level of exposure to emerging markets. Indeed, these are under-developed nations that broadly have higher rates of economic growth than more developed markets. Colgate-Palmolive generated 44% of its 2020 revenue from emerging markets in such markets as Latin America and Asia-Pacific.
As a result, Colgate-Palmolive could have better long-term growth prospects than the typical Dividend King. In the meantime, the company continues to reward shareholders with rock-solid dividends. Colgate-Palmolive has paid uninterrupted dividends on its common stock since 1895. While CL shares have a current dividend yield of 2.31%, Colgate-Palmolive has also increased its dividend for 58 consecutive years.
Related read: How To Invest In Dividend Stocks For Income
13. Commerce Bancshares (CBSH)
Commerce Bancshares was founded in 1865 and is a bank holding for Commerce Bank. It offers general banking services to its customers. Further, it operates branches in Colorado, Kansas, Missouri, Illinois, and Oklahoma. Its services include retail and corporate banking, as well as asset management, investment banking, and other offerings.
Commerce Bancshares reported its third-quarter earnings results on October 19. The company generated revenues of $352 million during the quarter, which was up 2% from the previous year’s quarter.
At the end of the quarter, Commerce Bancshares’ loan portfolio totaled $15.1 billion, while deposits stood at $28.1 billion at the same time. Commerce Bancshares’ provisions for loan losses declined versus previous quarters.
Commerce Bancshares Current Dividend Yield: 1.42%
14. Dover Corporation (DOV)
Dover Corporation is a diversified global industrial manufacturer with annual revenues of approximately $7 billion. The company comprises five reporting segments: Engineered Systems, Fueling Solutions, Pumps & Process Solutions, Imaging & Identification, and Refrigeration & Food Equipment.
More than half of the revenues come from the U.S., with the remainder coming from international markets.
Dover has now increased its dividend for 66 consecutive years. The stock has rewarded investors with annual returns above 13% in the past ten years. Shares have a current dividend yield of 1.17%.
15. Emerson Electric (EMR)
Emerson Electric has raised its dividend for 64 consecutive years.
It is a global leader with a presence in more than 150 countries and operates in two segments: Automation Solutions and Commercial & Residential Solutions.
The Automation Solutions segment, which generates ~63% of the total revenue, offers industrial equipment and software to the oil and gas industry, refining, power generation as well as other industries.
The Commercial & Residential Solutions segment, which generates the remaining 37% of the total revenue, offers residential and commercial heating and air conditioning products.
Emmerson Electric Current Dividend Yield: 2.1%
16. Farmers & Merchants Bancorp (FMAO)
Founded in 1916, Farmers & Merchants Bancorp is a locally owned and operated community bank with 32 locations in California. It is a small-cap stock with a market cap below $1 billion.
Nevertheless, F&M Bank has paid uninterrupted dividends for 86 consecutive years and has raised its dividend for 56 consecutive years.
The company is conservatively managed and, until five years ago, had not made an acquisition since 1985.
In late October, F&M Bank reported (10/26/21) financial results for the third quarter of fiscal 2021. Despite the suppressed prevailing interest rates, the bank grew its earnings-per-share 19% over last year’s quarter and offers shareholders a current dividend of 1.61%.
17. Federal Realty Investment Trust (FRT)
Federal Realty is the only Real Estate Investment Trust, or REIT, on the list of Dividend Kings.
As a REIT, its business model is to own real estate properties and lease them to various retail tenants. Federal Realty concentrates in high-income, densely populated coastal markets in the US, allowing it to charge more per square foot than its competition.
Federal Realty reported Q2 earnings on 08/04/21. FFO per share came in at $1.41, up from $0.77 in the year-ago quarter. Total revenue came in at $231.6M, up 31.4% from $176.2M in the year-ago quarter.
The company acquired 4 assets totaling 1.76 million square feet on 125 acres of land at a gross value of $407 million. During the second quarter, they also signed leases for 558,490 square feet of comparable space.
Federal Realty Investment Trust’s Current Dividend Yield: 3.23%
18. Genuine Parts Company (GPC)
Genuine Parts Company got founded in 1928, and since that time, it has grown into a sprawling conglomerate that sells automotive and industrial parts, electrical materials, and general business products. Further, Genuine Parts’ flagship business is its NAPA automotive parts stores.
The company has a long history of steady growth. In its 93 years as a company, sales and profits have increased in 87 and 76 years, respectively.
Genuine Parts expects to pay a cash dividend of $3.26 per share for 2021, representing a 3% increase from 2020. Further, it means 2021 will be the company’s 65 consecutive years of paying increased dividends, which gives it one of the longest streaks among the Dividend Kings. Shares currently yield 2.39%.
Related read: 19 Ways to Use Your Tax Refund to Build Wealth
19. H.B. Fuller (FUL)
H.B. Fuller is a leading global manufacturer of adhesives, sealants, and other specialty chemical products. The category of industrial adhesives is the core product offering of the company.
In late September, H.B. Fuller reported (9/22/21) financial results for the third quarter of fiscal 2021. Despite some shortages in raw material and packaging, organic revenue grew 16%, with 10% from volume growth and 6% from price hikes, thanks to strong demand and market share gains.
Organic revenue grew 13% over the non-COVID-impacted third quarter of 2019. Due to high material costs, adjusted earnings-per-share grew only 4% over last year’s quarter, from $0.76 to $0.79.
H.B. Fuller has increased their dividend for 52 consecutive years, and shares currently yield 0.9%.
20. Hormel Foods (HRL)
Hormel is a large food products company that generates annual sales of approximately $10 billion. Some of its core brands include Skippy, SPAM, Applegate, Justin’s, Jennie-O, and more than 30 others.
These brands have led to steady growth for years. Since 2010, Hormel’s diluted earnings-per-share grew at an 8.6% annual rate through 2020. This type of consistent growth has allowed Hormel to increase its dividend for 55 consecutive years. Shares currently yield 2.27%
Hormel’s impressive history of growth is due to its brand strength and the defensive nature of its products. Hormel products are either #1 or #2 in over 40 categories. These brands also hold up exceptionally well during economic downturns.
21. Johnson & Johnson (JNJ)
Johnson & Johnson is the largest U.S. healthcare company, with a market cap above $400 billion and over $80 billion in annual sales. J&J has a diversified business model across pharmaceuticals, medical devices, and consumer health products. The company has 28 individual platforms or products that each generate over $1 billion in annual revenue.
Holding leadership positions across the healthcare spectrum has enabled strong growth over many years. J&J has averaged 6% operational sales growth and 8% adjusted EPS growth per year over the past 20 years. In 2020, the company generated over $20 billion of free cash flow.
Such a strong level of cash generation means the company can reward shareholders. Indeed, J&J has increased its dividend payout for 59 consecutive years, and the stock currently yields 2.59%.
22. Kimberly-Clark (KMB)
The Kimberly-Clark Corporation is a global consumer products company that operates in 175 countries and sells disposable consumer goods, including paper towels, diapers, and tissues.
It operates through two segments that each house many popular brands: Personal Care Segment (Huggies, Pull-Ups, Kotex, Depend, Poise) and the Consumer Tissue segment (Kleenex, Scott, Cottonelle, and Viva), generating nearly $20 billion in annual revenue.
Kimberly-Clark reported third-quarter earnings on October 25th, 2021, and the results were quite weak once again. Total revenue was $5 billion in Q3, up 7% year-over-year.
Changes in forex added 1% to the company’s top line and the net impact of the Softex Indonesia acquisition, as well as exited businesses, added a further 2%. Organic sales were up 4% in total, with 3% of that coming from net selling prices that were higher, and the final 1% from product mix.
However, with 49 years of growing the dividend, each and every year, you can bet they will be a dividend king in 2022.
Kimberly-Clark’s Current Dividend Yield: 3.45%
23. Lancaster Colony (LANC)
Lancaster Colony has been making food products since 1969, after shifting away from housewares. The move has afforded the company some meaningful growth in the past five decades. The company generates $1.6 billion in annual revenue.
Lancaster Colony makes various meal accessories like croutons and bread products in frozen and non-frozen categories.
Lancaster reported fourth-quarter and full-year earnings on August 26th, 2021, and results were mixed against expectations. Total net sales were up 20% to a fourth-quarter record of $386 million. Excluding Omni Baking sales, consolidated net sales were up 21%. Retail net sales were up 11% to $214 million, while Foodservice revenue soared 33% given the strength of quick-service restaurants and pizza chain sales.
Lancaster Colony Current Dividend Yield: 1.87%
24. Lowe’s Companies (LOW)
Lowe’s is a home improvement retailer, operating more than 2,200 home improvement and hardware stores in the U.S. and Canada. And, Lowe’s is simply firing on all cylinders right now. It has benefited from multiple growth tailwinds, including low-interest rates, as well as the robust housing and construction markets over the past decade.
In fiscal 2020, Lowe’s grew its net sales 25% to $89 billion. As a result, adjusted earnings per share soared 54% from $5.74 to $8.86.
The company’s impressive financial results allow it to return lots of cash to shareholders. Lowe’s expects to spend $9 billion on share repurchases during fiscal 2021. In addition, Lowe’s has raised its dividend for each of the past 59 years, and by 13% a year over the last five years.
Lowe’s Current Dividend Yield: 1.36%
25. National Fuel Gas (NFG)
National Fuel Gas is a diversified energy company. Its largest segment is Exploration & Production, which includes over 800 million cubic feet per day of natural gas production. The company also operates midstream infrastructure such as pipelines and storage facilities. National Fuel Gas also has a downstream business with over 700,000 utility customers.
National Fuel Gas is a rare example of a stable and consistent energy stock. The energy industry is notoriously cyclical, particularly when it comes to exploration and production activities that rely on the underlying commodity price. As a result, National Fuel Gas is the only energy stock on the list of Dividend Kings. It is also among the highest-yielding Dividend Kings, with a solid 3.07% current yield.
Related read: How to Start Investing Online in 2021 – A Complete Guide
26. Nordson (NDSN)
Nordson has increased its cash dividend for 58 consecutive years. While Nordson was founded in 1954, but the company can trace its roots much further back to 1909 as the U.S. Automatic Company. And since, Nordson has grown to $2B+ in annual revenue.
Nordson engineers manufacture and market unique products used to dispense, apply and control adhesives, sealants, polymers, coatings, and other fluids to test for quality as well as to treat and cure surfaces.
The company is split into two business segments: Industrial Precision Solutions and Advanced Technology Solutions. The first segment is made up of Adhesives, Polymer Processing Solutions, and Industrial Coatings Solutions.
The Advanced Technology Solutions segment is comprised of Medical, Electronic Processing Systems, Test and Inspection, and Fluid Management.
Nordson’s Current Dividend Yield: 0.78%
27. Northwest Natural Holding (NWN)
NW Natural Holding is a utility company that was founded in 1859 and now serves more than 760,000 today. It delivers natural gas to its customers in the Pacific Northwest and the company has increased its dividend for 65 consecutive years.
NW Natural reported Q2 results on August 5th. Revenue grew by 10.3% year-over-year to $148.92M. Net income grew to $1.92 per share for the first six months of 2021. The company also added nearly 12,000 natural gas meters over the past 12 months, equating to a 1.6% growth rate.
Meanwhile, the management team reaffirmed its guidance for 2021 with earnings-per-share expected to come in at between $2.40 and $2.60. Shares currently yield 4.1%.
28. Parker-Hannifin (PH)
Parker-Hannifin is a diversified industrial manufacturer specializing in motion and control technologies. The company was founded in 1917 and has grown to a market capitalization of $39 billion with annual revenues of over $14 billion.
Parker-Hannifin has paid a dividend for 71 years and has increased that dividend for a remarkable 65 consecutive years.
In early August, Parker–Hannifin reported (8/5/21) financial results for the fourth quarter of fiscal 2021. Sales and organic sales grew 25% and 22%, respectively, over last year’s quarter.
Parker-Hannifin Current Dividend Yield: 1.26%
29. PepsiCo (PEP)
PepsiCo is a global food and beverage company that generates $75 billion in annual sales. The company’s products include Pepsi, Mountain Dew, Frito-Lay chips, Gatorade, Tropicana orange juice, and Quaker foods.
The company has 23 separate brands in its portfolio that each generates at least $1 billion in annual sales.
PepsiCo reported earnings results for the third quarter on 10/5/2021. Revenue grew 11.6% to $20.2 billion, which was $800 million above expectations. Adjusted earnings-per-share of $1.79 was a 7.8% improvement year-over-year and $0.06 ahead of estimates.
Organic sales were higher by 9%. Beverages overall had an 8% increase in volumes while food and snack were up 4%.
With 49 consecutive years of dividend increases, PepsiCo is expected to become a Dividend King in 2022. Shares currently yield 2.59%.
30. PPG Industries (PPG)
PPG Industries is the world’s largest paints and coatings company. Its only competitors of similar size are Sherwin-Williams and Dutch paint company Akzo Nobel.
PPG Industries was founded in 1883 as a manufacturer and distributor of glass (its name stands for Pittsburgh Plate Glass) and today has approximately 3,500 technical employees located in more than 70 countries at 100 locations.
The company generates annual revenues of about $17 billion. PPG Industries announced third-quarter results on 10/20/2021. Revenue grew 18.8% to $4.37 billion, beating expectations by $120 million.
Adjusted net income of $406 million, or $1.69 per share, compared to adjusted net income of $481 million, or $1.93 per share, in the prior year.
With 50 consecutive years of dividend increases, PPG is a newcomer to the list of Dividend Kings.
PPG Industries Current Dividend Yield: 1.45%
31. Procter & Gamble (PG)
Procter & Gamble is a consumer products giant. Notable brands include Pampers, Tide, Bounty, Charmin, Gillette, Crest, and more. Moreover, the company generated $71 billion in sales in fiscal 2020.
Such an extensive portfolio of top brands has allowed P&G to reward its shareholders for decades. P&G has paid a dividend for 131 years and has increased its dividend for 65 consecutive years.
P&G’s dividend growth rate has accelerated in recent years thanks to its renewed focus on efficiency. In addition, P&G divested multiple slow-growth brands over the past five years. Significant divestments include the sale of Duracell to Warren Buffett’s Berkshire Hathaway (BRK.B) and a collection of over 40 beauty brands to Coty (COTY).
These efforts unlocked higher profit margins and, therefore, higher dividend increases. For example, the most recent annual raise was a 10% hike. Shares currently yield 2.38%.
32. SJW Group (SJW)
SJW Group is a water utility company that produces, purchases, stores, purifies, and distributes water to consumers and businesses in the Silicon Valley area of California, and the area north of San Antonio, Texas.
The company has a small real estate division that owns and develops properties for residential and warehouse customers in California and Tennessee.
The company generates about $570 million in annual revenues. SJW Group completed its acquisition of Connecticut Water, formerly known as CTWS, on 10/9/2019.
SJW Group reported earnings results for the second quarter on 7/29/2021. Revenue improved 4.3% to $152.2 million but missed estimates by $12 million. Earnings-per-share of $0.60 matched last year’s result.
SJW Group Current Dividend Yield: 1.87%
33. Stanley Black & Decker (SWK)
Stanley Black & Decker is the result of Stanley Works’ $3.5 billion acquisition of Black & Decker in 2009. Today, it ranks as one of the world’s largest industrial products manufacturers, generating over $14 billion in annual sales.
Its main products include hand tools, power tools, and related accessories. It also produces electronic security solutions, healthcare solutions, engineered fastening systems, and more.
Despite the weak global economy, Stanley Black & Decker continues to generate solid profits and steady growth. Stanley Black & Decker believes each of its business segments will produce organic growth in 2021, with total company organic growth expected in a range of 4% to 8%.
Stanley Black & Decker has a fantastic track record of dividend payments. The company has paid dividends for 144 years and has increased its dividend each year for 54 consecutive years.
Shares currently yield 1.72%.
34. Stepan Co. (SCL)
Stepan Co. was founded in 1932 and at the outset, it sold only one product; a chemical to keep the dust down on Illinois’ country roads. Since that time, it has grown to manufacture basic and intermediate chemicals, with surfactants making up most of its revenue.
The company generates approximately $2.3 billion in revenue per year and has increased its dividend for 54 consecutive years.
Stepan reported third-quarter earnings on October 20th, 2021, and results were well ahead of estimates for both revenue and adjusted earnings. Total revenue soared 30% year-over-year to $603 million. Total net income was $37 million, or $1.59 per share, both of which were higher year-over-year from $33 million and $1.43 per share, respectively.
Stepan Co. Current Dividend Yield: 1.04%
35. Sysco Corporation (SYY)
Sysco is the largest wholesale food distributor in the United States. It now serves approximately 600,000 locations with food delivery, including restaurants, hospitals, schools, hotels, and other facilities.
Sysco has been adversely impacted by the coronavirus pandemic, which caused the closures of restaurants, schools, and other dining venues. As a result, the company’s sales and profits have fallen significantly. Over the first half of its current fiscal year, Sysco’s sales fell by 23% compared with the same six-month period the year before.
While Sysco has been hit hard by the pandemic, it also stands to benefit from the recovery significantly. Investors expect a quick snap-back once restaurants and other dining locations are fully open. To be sure, this explains why Sysco stock is near all-time highs. Shares currently yield 2.31%.
36. Tootsie Roll Industries (TR)
Tootsie Roll traces its roots back to 1896 when Leo Hirschfield began selling his candy from a family recipe in his shop in Brooklyn. He then went to work for The Stern & Saalberg Company, which later became The Sweets Company of America, and eventually morphed into the enterprise we know today.
The company produces around $500 million in revenue in normal years.
The vast majority of sales are made in the US but it does sell in Canada and Mexico as well. Tootsie Roll sells its products through a network of ~4,000 customers that include wholesalers, discount chains, dollar stores, supermarkets, the US military, and others.
Tootsie Roll Industries Current Dividend Yield: 1.08%
37. Universal Corporation (UVV)
Universal Corporation is the world’s largest leaf tobacco exporter and importer. The company is the wholesale purchaser and processor of tobacco that operates between farms and the companies that manufacture cigarettes, pipe tobacco, and cigars. Universal Corporation was founded in 1886.
Universal Corporation reported its first quarter (fiscal 2022) earnings results on August 11. The company generated revenues of $350 million during the quarter, which was 11% more than the revenues that Universal Corporation generated during the previous year’s quarter.
Revenue growth was due to higher carryover tobacco shipments and due to the impact of an improving product mix.
Universal Corporation Current Dividend Yield: 6.18%.
Final Thoughts about the 2022 Dividend Kings
32 out of the 37 companies listed above are already dividend kings. No doubt, these are solid companies, and leaders in their respective industries. And, due to the companies’ fundamentals, and dividend-friendly management, I fully expect the remainder to be on the 2022 dividend kings list.
*Data Accurate as of the close of business, Nov 5, 2021.
Dividend Kings FAQ
What are the Dividend Kings?
The Dividend Kings are a group of just over 30 stocks that have each increased their dividends for 50 consecutive years.
Why Should Investors Consider Buying Dividend Kings?
Dividend Kings pay shareholders dividends and can raise them each year, even when the U.S. economy is in recession. This steady dividend income provides shareholders with added returns when stock prices rise and a buffer against falling stock prices when markets are in decline.
Are All Dividend Kings Buys Right Now?
Not necessarily. In addition to their dividend yields, investors should also assess each company’s individual growth prospects and stock valuations.
Are There Any ETFs That Exclusively Hold Dividend Kings?
No, there are no ETFs that exclusively invest in Dividend Kings. However, some ETFs track the Dividend Aristocrats Index, such as the ProShares S&P 500 Dividend Aristocrats ETF (NOBL).