Dividend Kings are considered some of the best dividend growth stocks of all-time. It takes significant growth and a defensible business model to be able to increase your dividend for 50 consecutive years. At Millionaire Mob, we’d like to provide you a list of Dividend Kings for consideration to add to your dividend growth portfolio.
List of Dividend Kings for Dividend Growth Investing
Why evaluate a list of Dividend Kings? Well, if you are investing at the right valuation you can reap massive benefits in a reliable company that has a strong track of rewarding shareholders.
What is a Dividend King?
A Dividend King is a dividend growth stock that has increased their dividends for at least 50 consecutive years. Dividend Kings tend to be considered the best dividend growth stocks due to their tremendous track record of success and reputation for rewarding shareholders.
As a result, Dividend Kings tend to trade at premium valuations. There are only a handful of Dividend King stocks available on the stock market. We suggest only investing in Dividend Kings when the stock has recently dipped or is undervalued relative to historical valuations.
I love when I invest in a Dividend King and get to monitor my Personal Capital dividend income and it only goes up over time. If you don’t have a Personal Capital account, you must give it a try. Link all your accounts and monitor your net worth.
Building a dividend growth portfolio should be fun and simple. We’ve built a guide on how to build a successful dividend portfolio. There are a number of guides there that should help you achieve financial success.
I’ve been using Robinhood to build a dividend growth portfolio to show that anyone can do it and be successful. If you sign-up for Robinhood, we both receive a free share of stock.
Our List of Dividend Kings
Here is a list of Dividend Kings trading on the stock market to consider for investment in your dividend growth portfolio. The Dividend Kings list is ever-changing with new companies being added or dropped form the list over-time. These companies are the best-of-breed stocks in the stock market that have a proven track record of success. These are all stocks with increasing dividends for 50 years!
- American States Water
- Parker-Hannifin
- Dover Corporation
- Genuine Parts
- Procter & Gamble
- Northwest Natural Gas
- Emerson Electric
- 3M
- Cincinnati Financial
- Vectren Corporation
- Lowe’s Companies
- Johnson & Johnson
- Coca-Cola
- Lancaster Colony
- Colgate-Palmolive
- Stanley Black & Decker
- SJW Corporation
- Target Corporation
- Stepan Company
- Commerce Bancshares
- Federal Realty Investment Trust
Are you currently investing in any of these Dividend Kings? We own a few of them. However, I will highlight below why you should be careful while investing in Dividend Kings. The Dividend Kings list does have some limitations. These stocks have a track record of prior success, but that is not always predictive of future success. You can use a tool like Motley Fool Stock Advisor to generate new investment ideas.
We’ve created a list of dividend guides to help you become a better dividend growth investor.
Dividend King Investing Guides
Find a Dividend King to invest in over the long-term
At Millionaire Mob, we have built a number of different investment guides on how to invest in Dividend Kings to build an optimal dividend growth portfolio.
We hope that our Dividend King guides will help you become a better dividend growth investor over the long-term. We love dividends more than growth, but what is best is DIVIDEND GROWTH. Dividend growth provides the best opportunity for dividend income and growth.
- Dividend Kings: A List of Stocks Increasing Dividends for 50 Years That Must Be In Your Dividend Growth Portfolio
- Investing in Dividend Kings: High-Quality Dividend Growth Stocks
Our Dividend King investing guides will help you become a better investor. If you truly enjoy investing over the long-term, subscribe to our newsletter for the best advice in investing.
We look forward to growing with you. Hopefully, our list of Dividend Kings is helpful as you consider dividend growth investing.
Be Careful with Investing in Dividend Kings
Yes, Dividend Kings have an outstanding historical track record of increasing dividends. However, historical results are not always an indicator of future success. This is why we suggest that you only invest in Dividend Kings at suppressed valuations. This will allow you to maximize your total return when investing.
Since our list of Dividend Kings have increased their dividend for 50 consecutive years, their future dividend growth rate is expected to be lower than a company that recently started paying dividends.
This can happen as a result of a company increasing their dividend more than the earnings growth of the company. Thus, leading to a higher dividend payout ratio and less ability to increase it further.
Typically, Dividend Kings have a lower anticipated or forecasted dividend growth rate since they are mature companies that may not have much upside for future growth. Profit growth is paramount for investing in Dividend Kings. Make sure they have new avenues for profit growth in the future.
It isn’t easy being a king… Dividend Kings are also often scrutinized and under a close microscope by investors due to their outstanding historical track record of success. If an investor sees any sign of slowing down, these Dividend Kings tend to get punished by Wall Street.
Before you invest in a Dividend King, try running through the forecasted dividend growth rate through our free dividend discount model. This should help you determine a rough valuation of the stock to determine if the price is right for you.
Optimal Dividend Growth Portfolio Construction with Dividend Kings
As a result of Dividend Kings lower anticipated future dividend growth rate, we suggest that you invest in a couple (2-3) of Dividend Kings in your portfolio to maintain exposure to these excellent dividend growth stocks.
Then, depending on how long of an investment horizon you have left, invest in 4-5 dividend growth stocks that you believe can become the future Dividend Kings.
I like using compound interest and fractional share investing to continue reinvesting dividend income from these kings of the stock market. Compound interest works best when you increase the frequency of the reinvestment over time. That is the true power of compound interest. This is why I love compound interest. Here are several other benefits of compound interest.
The benefit of finding the next Dividend King stock of the future
If you can find a Dividend King before they become a ‘Dividend King’ you can be very successful in the stock market. Historically, dividend investing has been viewed as a risk-averse way for retired investors to be involved in the stock market. Not anymore…. With the speed of news and information, dividend investing is by far the easiest, most-efficient way to make additional income from the stock market.
By finding the next Dividend King stock, you are setting up yourself for the following financial freedom benefits:
- The ability to hit your income goals while saving for retirement
- Unlimited residual value potential
- Dividend growth investing offers the best time-adjusted way to increase your income. Dividend investing takes very little time.
- Compound interest is the 8th wonder of the world according to Albert Einstein… Yeah, he was pretty smart. Find a Dividend King that offers a no-fee dividend reinvestment plan to ensure that you reinvest all dividends back into your investments. Here’s how to attain wealth with a dividend reinvestment plan.
- Let’s take a look at a case study about Dividend Kings and a company currently on the list of Dividend Kings… This is a great way to show the benefits of increasing dividends and compound interest.
Coca-Cola Dividend Growth Investment Case Study
Everyone by now should know that Warren Buffett loves his investment in Coca-Cola. He enjoys talking about it during every interview and rightfully so. I doubt Warren Buffet (and potentially Berkshire Hathaway) will ever sell a single share of Coca-Cola. You will see why in our Coca-Cola dividend growth investment case study…
Coca-Cola has been a fantastic investment since Warren Buffett invested in the stock around 1988 / 1989. Coca-Cola’s stock appreciation was 1595.58% (WITHOUT DIVIDENDS) from 1988 – 2014 while the S&P 500 (WITH DIVIDENDS) was 1425.38% over the same time frame. What about Coca-Cola’s dividends?
Well, during that same time period the dividend payout increased nearly as much as the stock price. Coca-Cola’s dividends increased 1526.67%!
By 2014, the increased dividend payout would have made your dividend yield 49%. That is truly phenomenal. If that was your current yield, why would you ever sell? This investment makes a lot sense for Warren Buffett. Coca-Cola has a significant moat with their soda and Warren likes the product! I believe he drinks at least 1 Coca-Cola (original formula) per day.
According to Coca-Cola’s website, if you invested $10,000 in Coca-Cola in 1990 at approximately $4.88 per share, you would have $89,579.49 as of 2018. This would have resulted in a compound annual growth rate of approximately 8% per year. Not too shabby.
Forecast your own case studies with our dividend calculator, which enables you to sensitize your contributions, returns and more. We also have a stock calculator that will help you determine your investing profits.
Can you find the next Dividend King?
Can you find the next Dividend King of the stock market? We are on a mission to find the Dividend Kings of the future by setting out distinct criteria and variables found within existing Dividend Kings.
Our Robinhood dividend income portfolio updates will highlight stocks on a quarterly basis to show what stocks I am investing in. You can follow along with our Robinhood dividend portfolio to see that anyone can do it with success.
Compound interest and long-term total return is the best way to build wealth. Through building wealth, you can achieve financial freedom and enjoy life….
Achieving financial freedom should be the top priority for every person. We work too hard in our existing day jobs to not reap the benefits at some point in life. There is a lot out there in life to explore. Life gives you a number of different opportunities to learn. Go out there and enjoy it.
What will you do to secure a financially free future? Accumulated wealth is easy if you stay focus on your action plan. Do you know the personal financial ratios that will help you secure your financial future?
Related Investing Resources:
- How to Invest Money: 13+ Investment Tips to Get Started
- Our guide to the best robo-advisors
- How to use these different 401(k) fee calculators
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