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- Dividend King shareholders could see some big upside as rates are lowered over the next two years.
- Most of the S&P 500 has traded sideways over the last year.
- Also: 2 Dividend Legends to Hold Forever
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.
A study from the Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past half-century (1973-2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Investors seeking passive income dividend dependability may be drawn to the Dividend Kings. These 53 companies have raised their dividends for 50 consecutive years or more. We screened the current list and found six top stocks every passive income investor should own now. All are rated Buy at top Wall Street firms.
Why do we cover the Dividend Kings?
The fact that these companies have raised their dividends for 50 years is a testament to their dependability and reliability. Those are two “must-have” items for investors who rely on passive income to boost their overall revenue.
Altria
Altria is one of the world’s largest producers and marketers of cigarettes and other tobacco-related products.
This tobacco company offers value investors a great entry point and a rich 8.50% dividend. Altria Group Inc. (NYSE: MO | MO Price Prediction) 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 S.A. (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 its holdings but still leaves a hefty 8% of the outstanding shares in its back pocket. The company also announced a $2.4 billion stock repurchase plan, partially funded by the sale.
Canadian Utilities
An energy infrastructure corporation that provides electricity and natural gas services worldwide.
With a strong 6.03% dividend and residing in a highly safe sector, this company is a steal of current trading levels. Canadian Utilities Ltd. (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 provides whole-home solutions.
Coca-Cola
Coke products are sold in over 200 countries worldwide, with consumers drinking more than 1.8 billion company beverage servings each day.
This Dividend King remains a top Warren Buffet holding. He owns a massive 400 million shares, 9.3% of the float, and 6.4% of the portfolio, which pay a solid 3.04% dividend. Coca-Cola Co. (NYSE: KO) is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands.
Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, including:
- Diet Coke
- Fanta
- Sprite
- Coca-Cola Zero
- Vitamin water
- Powerade
- Minute Maid
- Simply
- Georgia
- Del Valle
Globally, it is the number one provider of sparkling beverages, ready-to-drink coffees, and juice drinks. Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of more than 1.9 billion servings a day.
It is also important to remember that the company owns almost 20% of Monster Beverage Corp. (NASDAQ; MNST), which continues to deliver big numbers.
Hormel Foods
Hormel Foods is an American food processing company founded in 1891 in Austin, Minnesota.
With a dependable 3.73% dividend and a host of well-known products, this Dividend King is a very safe idea for investors now. Hormel Foods Corp. (NYSE: HRL) develops, processes, and distributes various meat, nuts, and other food products to retail, food service, deli, and commercial customers in the United States and internationally.
It operates through three segments:
- Retail
- Foodservice
- International segments
The company provides various perishable products, including fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacon; and shelf-stable products comprising canned luncheon meats, nut butter, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, nutritional food supplements, and others.
It sells its products under these brand names:
- Hormel
- Always Tender
- Applegate
- Austin Blues
- Bacon 1
- Black Label
- Bread Ready
- Burke
- Café H
- Ceratti
- Chi-Chi’s
- Columbus
- Compleats
- Corn Nuts
- Cure 81
- Dan’s Prize
- Di Lusso
- Dinty Moore
- Don Miguel
- Doña Maria
- Embasa
- Fast N Easy
- Fire Braised
- Fontanini
- Happy Little Plants
- Herdez
- Hormel Gatherings
- Hormel Square Table
- Hormel Vital Cuisine
- House Of Tsang
- Jennie-O
- Justin’s
- La Victoria
- Layout
- Lloyd’s
- Mary Kitchen
- Mr. Peanut
- Natural Choice
- Nut-rition
- Old Smokehouse
- Oven Ready
- Pillow Pack
- Planters
- Rosa Grande
- Sadler’s Smokehouse
- Skippy
- Spam
- Special Recipe
- Thick & Easy
- Valley Fresh
- Wholly
Target
This Dividend King and American mass-market retail company sells a wide variety of general merchandise and food.
Offering shareholders a solid 3.08% dividend, this retailer makes sense for cost-conscious consumers. Target Corp. (NYSE: TGT) operates as a general merchandise retailer in the United States.
The company offers apparel for women, men, boys, girls, toddlers, and infants and newborns, as well as jewelry, accessories, and shoes; and beauty and personal care, baby gear, cleaning, paper products, and pet supplies.
It also provides:
- Dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, and food service
- Electronics, which includes video game hardware and software
- Toys, entertainment, sporting goods, and luggage
- Furniture, lighting, storage, kitchenware, small appliances
- Home decor, bed and bath, home improvement
- School/office supplies
- Greeting cards and party supplies, and other seasonal merchandise
In addition, the company sells merchandise through periodic design and creative partnerships, and shop-in-shop experience; and in-store amenities. Further, it sells its products through its stores; and digital channels, including Target.com.
United Bancshares
United Bancshares is a bank holding company dual-headquartered in Charleston, West Virginia, and Fairfax, Virginia.
Yielding a solid 4.69%, this mid-cap financial offers solid total return potential now. United Bancshares Inc. (NASDAQ: UBSI) primarily provides commercial and retail banking products and services in the United States through its subsidiaries.
It operates through two segments:
- Community Banking
- Mortgage Banking
The company accepts:
- Checking, savings, and time and money market accounts
- Individual retirement accounts and demand deposits
- Statement and special savings
- NOW accounts
Its products include:
- Commercial loans and leases to small to mid-size industrial and commercial companies
- Construction and real estate loans, such as commercial and residential mortgages
- Loans secured by owner-occupied real estate
- Personal, student, and credit card receivables
- Personal, commercial, and floor plan loans
- Home equity loans.
In addition, the company provides:
- Credit cards, safe deposit boxes, wire transfers, and other banking products and services
- Investment and security services; services to correspondent banks, including buying and selling federal funds
- Automated teller machine services
- Internet and telephone banking services
Further, it offers community banking services, such as asset management, real property title insurance, financial planning, mortgage banking, brokerage services, and investment management and retirement planning services.
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