Investing

5 Dividend Kings to Buy Now for Dependable Retirement Passive Income

Lee Jackson

Published: June 19, 2024 8:12 am

While getting to retirement age can be a blessing and a curse, the reality of counting on the U.S. government to provide for your needs is not the best idea. The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67. For anyone born in 1960 or later, full retirement benefits are payable at age 67.

With the youngest Baby Boomers (Americans born between 1946 and 1964) approaching retirement age, it’s becoming increasingly important to focus on magnificent dividend stocks that will supply big passive income either in or out of designated retirement accounts like IRAs. 

According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade or business in which the individual does not materially participate. It can also include income from limited partnerships and other similar enterprises where the individual is not actively involved.

Investors seeking dividend dependability for retirement may be drawn to the Dividend Kings. These 53 companies have raised their dividends for 50 consecutive years or more. We found five perfect passive income ideas for investors now, and all are rated Buy at top Wall Street firms. 

Altria

This tobacco company offers value investors a great entry point now and a rich 8.40% dividend. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.

The company provides cigarettes primarily under the Marlboro brand, as well as:

• Cigars and pipe tobacco, principally under the Black & Mild brand
• Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! Oral nicotine pouches

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria used to own over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer. The company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of their holdings, but still leaves a hefty 8% of the outstanding shares in their back pocket. They also announced a $2.4 billion stock repurchase plan funded in part by the sale. 

Canadian Utilities Limited

With a strong 5.76% dividend and residing in a highly safe sector, this company is a steal are current trading levels. Canadian Utilities Limited (OTC: CDUAF) together with its subsidiaries, engages in the electricity, natural gas, renewables, pipelines, liquids, and retail energy businesses in Canada, Australia, and internationally.

It operates through three segments:

• ATCO Energy Systems
• ATCO EnPower
• Corporate & Other segments

The ATCO Energy Systems segment provides regulated electricity transmission and distribution services in:

• Northern and central east Alberta
• The Yukon
• The Northwest Territories
• The Lloydminster area of Saskatchewan

This segment also provides integrated natural gas transmission and distribution services in Alberta, the Lloydminster area of Saskatchewan, and Western Australia. It owns and operates approximately 9,100 kilometers of natural gas pipelines, 11 compressor sites, approximately 3,600 receipt and delivery points, and a salt cavern natural gas storage peaking facility near Fort Saskatchewan, Alberta in Canada.

The ATCO EnPower segment provides:

• Hydro
• Solar,
• Wind
• Natural gas electricity generation
• Natural gas storage
• Industrial water solutions
• Clean fuels, including hydrogen, carbon capture, and underground storage projects; and related infrastructure development in Alberta, the Yukon; the Northwest Territories, Australia, Ontario, Mexico, and Chile

The Corporate & Other segment retails electricity and natural gas, and it provides whole-home solutions.

Federal Realty Investment Trust

While real estate has slowly come back, demand is still growing, 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 the District of Columbia to Boston, San Francisco, and Los Angeles.

Federal Realty’s 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 like:

• Santana Row in San Jose, California
• Pike & Rose in North Bethesda, Maryland
• Assembly Row in Somerville, Massachusetts

Federal Realty’s 102 properties include approximately 3,300 tenants in 26 million square feet and 3,100 residential units. Federal Realty has increased its quarterly dividends to its shareholders, which is currently 4.29% for 56 consecutive years, the longest record in the REIT industry.

Kenvue

Spun off from Johnson & Johnson Inc. (NYSE: JNJ) last year, this potential total return home run pays a solid 4.21% dividend. Kenvue Inc. (NYSE: KVUE) is a global consumer health company.

The company operates through three segments:

• Self Care
• Skin Health and Beauty
• Essential Health

The self-care segment offers cough, cold, and allergy pain care, digestive health, smoking cessation, and other products under these brands:

• Tylenol
• Nicorette
• Zyrtec

The Skin Health and Beauty segment provides face and body care, hair care, sun care, and other products under these brands:

• Neutrogena
• Aveeno
• OGX

The Essential Health segment offers oral and baby, women’s health, and wound care products under these brands:

• Listerine
• Johnson’s
• Band-Aid
• Stayfree

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Stanley Black & Decker

When the economy is struggling, the do-it-yourself legions repair instead of replace, and this tool giant is a very solid idea with a big 3.85% dividend. Stanley Black & Decker Inc. (NYSE: SWK) engages in tools, storage, and industrial businesses in the United States, Canada, the rest of the Americas, France, the rest of Europe, and Asia.

The company’s Tools & Storage segment offers professional products, including:

• Professional grade corded and cordless electric power tools and equipment
• Pneumatic tools and fasteners
• Consumer products, such as corded and cordless electric power tools primarily under the BLACK+DECKER brand
• Corded and cordless lawn and garden products and related accessories
• Home products; and hand tools, power tool accessories, and storage products

This segment sells its products through retailers, distributors, dealers, and a direct sales force to professional end users, dealers, dealers, retail consumers, and industrial customers.

Stanley Black & Decker’s industrial segment is a key player in several industries, including:

• Automotive
• Manufacturing
• Electronics
• Construction
• Aerospace

It provides engineered fastening systems and products; sells and rents custom pipe handling, joint welding, and coating equipment; and offers pipeline inspection services.

Additionally, it sells hydraulic tools and performance-driven heavy equipment attachment tools.

This segment’s clientele includes the oil and natural gas pipeline industry and other industrial customers, further solidifying the company’s market position and potential for future growth. It also caters to commercial customers with its automatic doors.

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