These 2 Dividend Kings Are Great Buys Right Now

If you’re looking for a safe haven as inflation comes roaring back, analysts Jeremy Phillips and Austin Smith recommend two dividend kings that have not only paid, but raised their dividend for over 50 years. Both companies have pricing power, and a long history of returning capital to shareholders.

Transcript: 

Hi, everyone.

We’re back here with Austin Smith on 24-7 Wall Street discussing dividends today.

Austin, a lot of people who are looking to invest in dividend-paying companies end up researching Dividend Kings, which, as the name might imply, stands out from other dividend-paying companies.

Can you talk a little bit about them and whether investors should be looking at Dividend Kings or other dividend-paying stocks?

Yeah, we’re big fans of the Dividend Kings here.

There’s actually two that I like in particular today.

So there are 53 companies.

I mean, this is an incredible cohort of companies.

There’s 53 companies that have raised their dividends for a stunning 50 years or more.

So it’s an unbroken record of returning money to shareholders and increasing it.

It’s just it’s such a illustrious group to be in.

So there’s two in particular that are really interesting that we enjoy today.

One is 3M.

I own this personally.

It pays over 6%.

That’s greater than treasury yields.

Shockingly, it’s only a $50 billion market cap company, and they make so many essential products, everyday products that we’re aware of, and many that are invisible to us, but are in all of the other products that we buy.

And if you look at the current US-based trend towards onshoring and trying to have more production and manufacturing domestically, it’s really hard to find talented companies that are able to produce and manufacture at scale.

3M, of course, is a stalwart American company with incredible facilities, incredible talent.

They’re relatively small.

They’ve got a great yield today, and they’re still relatively affordable.

Another one on the other end of the spectrum, a much larger company is Johnson & Johnson.

This company literally has a higher credit rating than the U.S. government.

It’s hard to find a more stable entity out there.

And after spinning off its consumer product segment, as Kenview, the business is even more focused on its pharmaceutical products, medical devices, and technology, which is where it has a deep bench of expertise, incredible products, really good pipeline.

And here’s a remarkable fact for investors looking for stability out of their dividend stocks and the companies they’re investing in today.

Johnson & Johnson has never seen its sales dip more than 6% from their previous all-time high.

I mean, that’s just an incredible track record of unbroken revenue growth and returning money to shareholders.

So for investors looking at Dividend Kings today, take a look at 3M, take a look at Johnson & Johnson.