Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate. It can also include income from limited partnerships, stocks, bonds, and other similar enterprises in which the investor is not actively involved.
Companies that have raised their dividends for shareholders for 50 years or longer are the kind of investments that passive income investors need to own. Dependability is crucial for individuals seeking to increase their annual income through dividend stock investments. The Dividend Kings are 55 companies that have raised their dividends for at least 50 years, 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.
We screened the list looking for companies that have raised their dividend the longest among the group. Four stocks that most investors are very familiar with are among the longevity champions and pay among the highest dividends. All are rated Buy by top Wall Street firms, and all have increased their dividend payments to shareholders for 60 years or more.
Why we recommend the Dividend Kings
Companies that have paid and raised their dividends for 50 years or more are the kind that growth and income investors want to buy and hold in their stock portfolios for the long term. These stocks are mostly conservative, and should we see a dramatic market correction, they will likely hold their ground much better than volatile technology names.
Emerson Electric
This technology/industrial giant has raised its dividend for 67 years. Emerson Electric Inc. (NYSE: EMR | EMR Price Prediction) is a global technology and software company that provides solutions for customers in a wide range of end markets around the world.
The company operates through seven segments under two business groups. The Intelligent Devices business includes:
- Final Control
- Measurement & Analytical
- Discrete Automation
- Safety & Productivity
The Software and Control business encompasses:
- Control Systems & Software
- Test & Measurement
- AspenTech
The Final Control segment is a global provider of:
- Control valves
- Isolation valves
- Shutoff valves
- Pressure relief valves
- Pressure safety valves
- Actuators
- Regulators for process and hybrid industries
Its Measurement & Analytical segment is a supplier of intelligent instrumentation measuring the physical properties of liquids or gases. The AspenTech segment provides asset optimization software that enables industrial manufacturers to design, operate, and maintain their operations.
Citigroup has a Buy rating and a $127 price target.
Genuine Parts
Investors looking for a solid retail play should buy this company, as its products never go out of favor. Genuine Parts Inc. (NYSE: GPC) is a global service provider of automotive and industrial replacement parts and value-added solutions.
The company’s segments include:
- Automotive Parts Group (Automotive)
- Industrial Parts Group (Industrial)
The Automotive segment distributes replacement parts (other than collision parts) for all makes and models of automobiles, trucks, and other vehicles in North America, Europe, and Australasia.
Its main automotive customers are repair and maintenance shops, and its main industrial customers are businesses operating distribution, manufacturing and production equipment.
The Industrial segment distributes a wide variety of industrial bearings, mechanical and fluid power transmission equipment, including:
- Hydraulic and pneumatic products
- Material handling components
- Related parts and supplies
Genuine Parts industrial business offers replacement parts and solutions to maintenance, repair and operation customers and original equipment manufacturer customers.
Truist Financial has a Buy rating on the shares with a $137 target.
Northwest Natural Holding
This small-cap company provides natural gas service to approximately 2.0 million people in more than 140 communities. This off-the-radar utility stock suits concerned conservative investors, pays a dependable dividend, and has risen by over 9% this year. Additionally, the company has increased its dividend for a remarkable 68 years. Northwest Natural Holding Co. (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
- 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
- Water services to about 80,000 people through about 33,000 water and wastewater connections in the Pacific Northwest and Texas
Stifel has a Buy rating and a $44 target price.
Procter & Gamble
Procter & Gamble Co. (NYSE: PG) was founded over 185 years ago as a soap and candle manufacturer. Now it is one of the world’s largest consumer products companies. It offers substantial dividends, has very recognizable products, and has raised its dividend for an amazing 67 years.
The company operates under five segments:
- Beauty
- Grooming
- Health Care
- Fabric & Home Care
- Baby & Family Care
Procter & Gamble brands include:
- Pampers
- Tide
- Bounty
- Charmin
- Gillette
- Oral-B
- Crest
- Olay
- Pantene
- Head & Shoulders
- Ariel
- Gain
- Always
- Tampax
- Downy
- Dawn
P&G sells its products through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, high-frequency stores, and pharmacies.
The company has been innovative in its product development process, utilizing this approach to help ensure future growth and cash flow. This should provide investors with years of steady growth and dividends.
Morgan Stanley has an Overweight rating with a $180 price objective.
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