Over the last year and a half, interest rates have jumped from historical lows of literally 0% to the highest level since 2007 at 5.5%. 30-year FHA Mortgages have jumped from 2.65% in January 2021 to the current 7.76% rate. During that period, any stock that was the least bit interest rate sensitive got hammered, and the damage trail covered several sectors.
While it was a tough stretch for shareholders, 2024 could be the year many interest rate-sensitive stocks bounce back with a vengeance. While the possibility of one final interest rate hike still looms, many across Wall Street feel that the Federal Reserve will start to lower rates by this time next year.
We decided to screen the Dividend Kings, looking for companies that got hit over the last 18 months that could be prominent bounce-back candidates in 2024. For those seeking dividend dependability, investors should look to the Dividend Kings. These are the 50 companies that have raised the dividends they pay shareholders a stunning 50 consecutive years in a row or longer. Steady dividend payers tend to be exceptionally well-established and profitable companies.
We found 5 Dividend Kings that Wall Street analysts love that look like incredible 2024 stock ideas.
American States Water
Everybody needs water, and this company has raised the current 2.20% dividend for a stunning 68 years. American States Water Company (NYSE: AWR), through its subsidiaries, provides water and electric services to residential, commercial, industrial, and other customers in the United States.
It operates through three segments:
- Water
- Electric
- Contracted Services
As of December 31, 2022, American States Water Company provided water service to 263,265 customers in ten counties in California and distributed electricity to 24,705 customers in San Bernardino County mountain communities in California.
The company also provides water and wastewater services, including the operation, maintenance, and construction of facilities at the water and wastewater systems at various military installations.
Black Hills Corporation
This Dividend King is way off the radar for many but is among the safest plays now and pays a massive 5.02% dividend. Through its subsidiaries, Black Hills Corporation (NYSE: BKH | BKH Price Prediction) operates as an electric and natural gas utility company in the United States.
The company operates in two segments:
- Electric Utilities
- Gas Utilities
The Electric Utilities segment generates, transmits, and distributes electricity to approximately 218,000 electric utility customers in Colorado, Montana, South Dakota, and Wyoming and owns and operates 1,481.5 megawatts of generation capacity and 8,892 miles of electric transmission and distribution lines.
The Gas Utilities segment distributes natural gas to approximately 1,094,000 natural gas utility customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming; owns and operates 4,732 miles of intrastate gas transmission pipelines; 41,644 miles of gas distribution mains and service lines; six natural gas storage sites; and approximately 50,000 horsepower of compression and 515 miles of gathering lines.
Black Hills Corporation also constructs and maintains gas infrastructure facilities for gas transportation customers and provides appliance repair services to residential utility customers and electrical system construction services to large industrial customers. In addition, it produces electric power through wind, natural gas, and coal-fired generating plants and coal at its coal mine located near Gillette, Wyoming.
Federal Realty Investment Trust
While real estate has been hit strongly, demand still grows, and hard assets are good in inflationary times. Federal Realty Investment Trust (NYSE: FRT) is a recognized leader in the ownership, operation, and redevelopment of high-quality retail-based properties in major coastal markets from Washington, D.C., to Boston, San Francisco, and Los Angeles.
Federal Realty’s corporate mission is to deliver long-term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply.
Its expertise includes creating urban, mixed-use neighborhoods
- Santana Row in San Jose, California,
- Pike & Rose in North Bethesda, Maryland
- Assembly Row in Somerville, Massachusetts.
Federal Realty’s 105 properties include approximately 3,000 tenants in 24 million square feet and over 2,600 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 52 consecutive years, the longest record in the REIT industry. The current dividend is a strong 4.67%.
Northwest Natural Holding
This off-the-radar utility stock is a good choice for worried conservative investors looking for income and safety that pays a hefty 5.31% dividend. Northwest Natural Holding Company (NYSE: NWN), through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, industrial, and transportation customers in Oregon and Southwest Washington.
The company also operates 5.7 billion cubic feet of the Mist gas storage facility contracted to other utilities and third-party marketers, offers natural gas asset management services, and operates an appliance retail center. In addition, it engages in gas storage, water, non-regulated renewable natural gas, and other investments and activities.
The company provides natural gas service through approximately 786,000 meters in Oregon and southwest Washington and water services to about 80,000 people through about 33,000 water and wastewater connections in the Pacific Northwest and Texas.
SJW Group
This very off-the-radar utility pays a solid 2.43% dividend and has increased the payout to shareholders for the last 56 years. SJW Group (NYSE: SJW) provides water utility services in the United States through its subsidiaries.
SJW Group operates in two segments:
- Water Utility Services
- Real Estate Services
It engages in the production, purchase, storage, purification, distribution, wholesale, and retail sale of water and wastewater services. The company also provides non-tariffed services, including water system operations, maintenance agreements, and antenna site leases; contracted services and sewer operations to water utilities; and a Linebacker protection plan for public drinking water customers in Connecticut and Maine.
SJW Group provides water service to approximately 141,000 service connections, which serve about 459,000 people in 81 municipalities with a service area of roughly 270 square miles throughout Connecticut and Maine, as well as approximately 26,000 service connections that serve approximately 77,000 people in a service area comprising approximately 268 square miles in the region between San Antonio and Austin, Texas; and about 3,000 wastewater connections in Southbury, Connecticut.
In addition, the company owns undeveloped land in California and Tennessee and owns and operates commercial buildings and warehouse properties in Tennessee.
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