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. At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the stock market’s ups and downs, many people need reliable passive income streams to supplement their income from employment or other sources such as Social Security and pensions.
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. The more passive income helps cover rising costs—such as mortgages, insurance, and taxes—the easier it is for investors to set aside money for retirement. Dependable recurring dividends from quality, high-yield stocks are a recipe for success, and the Dividend Kings are the perfect group of stocks to achieve it.
Companies that have raised dividends for shareholders for 50 years or more are the kinds of investments 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 the 56 companies that have raised their dividends for at least 50 years, a testament to their dependability and reliability. These are two essential qualities for investors who rely on passive income to boost their overall income. Unlike the Dividend Aristocrats, the Dividend Kings do not have to be members of the S&P 500.
We put together a growth-and-income portfolio with five of the highest-yielding Dividend Kings. Investing $20,000 in each will generate $5,400 in safe, predictable passive income. Investors could increase that amount by selling covered call options on their holdings. Plus, since these companies raise their dividends every year, the income is likely to increase slightly each year. The purchase amounts and dividend income totals are based on the time this post was written.
Universal
This somewhat off-the-radar company is one of the world’s leading tobacco merchants, and it operates as a global tobacco leaf supplier rather than a cigarette manufacturer. Universal (NYSE: UVV) has reported strong demand and has been in business for almost 150 years, and it pays a 6.07% dividend.
The company operates through two segments: Tobacco Operations and Ingredients Operations. It procures, finances, processes, packs, stores, and ships leaf tobacco for sale to manufacturers of consumer tobacco products.
The company also:
- Contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes
- Dark air-cured tobaccos manufacture naturally wrapped cigars, cigarillos, and smokeless and pipe tobacco products
Universal provides such value-added services as:
- Blending, chemical, and physical tobacco testing
- Service cutting for various manufacturers
- Manufacturing reconstituted leaf tobacco
- Just-in-time inventory management services
- Electronic nicotine delivery systems
- Customer smoke testing services
$20,000 would purchase 370 shares, which pay $3.28 per year for a total of $1,213 per year.
Altria
Altria Group (NYSE: MO | MO Price Prediction) is one of the world’s largest producers and marketers of cigarettes and other tobacco-related products. This stock offers value investors a solid entry point and a 5.72% dividend. Altria increased its quarterly dividend in the fall of 2025 by 3.9%, from $1.02 to $1.06 per share, marking its 57th consecutive dividend increase.
Altria manufactures and sells smokable and oral tobacco products in the United States. It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores. The company primarily sells cigarettes under the Marlboro brand, as well as:
- Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands
- Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
- on! Oral nicotine pouches
- e-vapor products under the NJOY ACE brand
Altria used to own over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer. In March of 2024, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves Altria with 8% of the outstanding shares. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.
$20,000 would buy 280 shares, paying $4.24 per year, for a total of $1,187.
Hormel Foods
This American food processing company was founded in 1891 in Austin, Minnesota. Hormel Foods (NYSE: HRL) offers dual pricing power through both branded products and private-label manufacturing. Its yield is historically high, and the Hormel Foundation’s oversight ensures dividend reliability. The company is restructuring its portfolio and cutting costs to improve performance.
Hormel develops, processes, and distributes a range of meat, nuts, and other food products to retail, foodservice, deli, and commercial customers in the United States and internationally. It operates through three segments:
- Retail
- Food Service
- International
The company provides various perishable products, including fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacon, and shelf-stable products, including 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 brands:
- 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
$20,000 will purchase 956 shares at $1.17 apiece, paying $1,118 per year.
Kimberly-Clark
This American multinational personal care company primarily produces paper-based consumer products. Kimberly-Clark (NYSE: KMB) stock declined 23% in 2025, pushing it close to a 12-year low. The company has raised its dividend for 53 consecutive years, and the current yield is a rich 5.29%.
It operates through three segments. The Personal Care segment offers a diverse range of products, including:
- Disposable diapers
- Swim pants, training and youth pants, baby wipes
- Feminine and incontinence care products, as well as related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Depends, Plenitud, Softex, Poise, and other brand names
The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under the brand names:
- Kleenex
- Scott
- Cottonelle
- Viva
- Andrex
- Scottex
- Neve
The K-C Professional segment offers wipers, tissues, towels, apparel, soaps, and sanitizers under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands.
In 2025, Kimberly-Clark announced it would acquire Kenvue (NYSE: KVUE) in a $48.7 billion deal, with the transaction expected to close in the second half of 2026. The acquisition will create a combined consumer health and wellness company, with Kenvue shareholders receiving $3.50 in cash plus 0.14625 shares of Kimberly-Clark.
Piper Sandler has an Overweight rating with a $114 target price.
$20,000 will buy 205 shares, which pay $512 per year for a total of $1,044.
Sonoco Products
While very off the radar of most investors, this company makes products that are constantly in demand, and it pays a solid 4.27% dividend. Sonoco Products (NYSE: SON) is a global designer, developer, and manufacturer of a variety of highly engineered and sustainable packaging serving multiple end markets. Its segments include:
- Consumer Packaging
- Industrial Paper Packaging
Products in the Consumer Packaging segment consist of rigid packaging (paper, metal, and plastic) and primarily serve the consumer staples market, focusing on food, beverage, household, personal, and pharmaceutical products. The company’s rigid paper containers are manufactured from 100% recycled paperboard provided primarily from Sonoco’s global paper operations. These paper products are primarily used in the food and beverage markets.
Products within the Industrial Paper Packaging segment consist primarily of goods produced from recycled fiber, including:
- Paperboard tubes
- Cores
- Cones and cans
- Partitions
- Paper-based protective materials
- Uncoated recycled paperboard for high-end applications, such as folding cartons, can board, and laminated structures
$20,000 will buy 387 shares, which pay $2.16 per year for a total of $835 per year.
Top Gaining Stocks
Top Losing Stocks