dividend kings list

Posted on: January 7th, 2021 by No Comments

Learn everything you need to know about successful options trading with this three-part video course. Companies that share characteristics with the dividend kings will likely go on to be some of the best performing stocks and most consistent sources of dividend … See all 30 Dividend Kings, stocks with 50+ years of dividend growth, analyzed in detail with a downloadable spreadsheet. Editor’s Note: After review, Illinois Tool Works (ITW) and Target Corporation (TGT) have been removed from our lists, as they do not qualify as Dividend Kings. Dividend Kings are S&P 500 companies who have increased their dividend for 50+ consecutive years. But with that said, there is something to be gained from investigating the historical performance of the Dividend Kings. Federal Realty also recently increased its dividend for the 53rd year in a row. Additionally, you can see the Dividend Kings analyzed in the video below. An expanding P/E multiple could boost shareholder returns by 6.2% over the next five years. Here is the listing of of Dividend Kings as of May 16, 2020. Stocks are ranked in order of lowest to highest expected annual returns. Receive a free world-class investing education from MarketBeat. Neither of the two are expanding their store count significantly,and neither is interested in a price war. While Dividend Aristocrats are members of the S&P 500 that have raised their dividends annually for at least 25 straight years, Dividend Kings are an even more impressive group of … Learn about financial terms, types of investments, trading strategies and more. To illustrate this, the web site Simply Safe Dividends provided this illustration of investors who invested $200,000 at the beginning of 1991. Comparable sales increased 30% for the quarter. The most appealing part of investing is that you have unlimited choice. In this article, we’ll break down a specific category of common stocks known as the dividend kings. They are simply a group of high-quality businesses with shareholder-friendly management teams that have strong competitive advantages. 65 companies declared higher dividends in the past month, with an average increase of 6.1% over their previous payouts. ABM Industries generated earnings-per-share of $0.69 during the fourth quarter, which missed the analyst consensus marginally, by $0.01. Fundamental company data provided by Morningstar and Zacks Investment Research. The long-term future is cloudy for cigarette manufacturers such as Altria, which is why the company has invested heavily in adjacent categories to fuel its future growth. What are Dividend Kings? Based on normalized FFO-per-share of $6.00, Federal Realty stock trades for a price-to-FFO ratio of 13.9. This is out of the over 4,000 companies listed on stock exchanges at end of 2018. One of the reasons for this is that dividend kings usually possess defensive characteristics that allow them to “outperform” in bear markets. Dividend Kings. And like the other Dividend Kings on this list, SYY is a dividend-raising machine. As Warren Buffett says: “When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”. ... *Dividend Cover = Earnings per share / Dividend per share *Free cash cover = Free cash / Total Dividend. Federal Realty is a Real Estate Investment Trust, or REIT. The Dividend Kings also have some interesting characteristics with respect to market capitalization. Lowe’s Companies is the second-largest home improvement retailer in the US (after Home Depot). ABM Industries is a leading provider of facility solutions, which includes janitorial, electrical & lighting, energy solutions, facilities engineering, HVAC & mechanical, landscape & turf, and parking. Lowe’s enjoys competitive advantages from scale and brand power as it operates in a duopoly with Home Depot. Federal Realty’s business model is to own real estate properties that it rents to various tenants in the retail industry. The Dividend Kings list is ever-changing with new companies being added or dropped form the list over-time. They didn’t buy or sell the stock to rebalance and did not invest any new money. Now there is some bias to this number because the data doesn’t account for dividend kings that ultimately fell off the list. Dividend growth investors seeking safe, growing income would be wise to familiarize themselves with the list of dividend kings. But remember the primary reason you are investing in a dividend king is for the security of that dividend. Here are 28 Dividend Kings sorted by dividend yield from highest to lowest. Federal Realty’s competitive advantages include its superior development pipeline, its focus on high-income, high-density areas and its decades of experience in running a world-class REIT. Dividend kings are also proven to have less volatility. Since dividend aristocrats are similar in character to dividend kings, there is a similar degree of safety. The company raised fiscal 2021 guidance, and now expects a more meaningful recovery next year with adjusted earnings-per-share in a range of $3.55 to $3.85. Our fair value estimate for Federal Realty is a price-to-FFO ratio (P/FFO) of 15. Dividend King is a stock with 50 years or more of consecutive dividend increases. Lowe’s reported third-quarter results on November 18th, and recorded net earnings of $692 million, compared to net earnings of $1.0 billion in the prior year period. Altria Group was founded by Philip Morris in 1847. See what's happening in the market right now with MarketBeat's real-time news feed. This highlights another benefit of dividend stocks in general – once a company begins to issue a dividend, they will generally make maintaining that dividend a priority. It is a list of companies with stable business that have competitive advantages and have returned cash to shareowners consistently through dividends. But it’s still a powerful example of the importance of reinvesting dividends. Learn more. These stocks are not known for spectacular growth, although any individual stock may outperform the market at any given time. The list of Dividend Kings increased in five of the last six years and more than doubled over the period. The company already has 51 years of payout increases under its belt. The Dividend Kings are the best in class with respect to dividend endurance. So when a company issues a dividend it indicates that they have enough cash on hand to meet short-term liabilities and want to reward shareholders. These are not fly by night companies. And like the other Dividend Kings on this list, SYY is a dividend-raising machine. A reader has prompted me to update this post for 2020 (originally posted in 2016). Please send any feedback, corrections, or questions to support@suredividend.com. Currently, there are 31 companies on the Dividend King List. The rising dividend will usually exceed any inflationary effects. There are currently 30 Dividend Kings, including recent additions such as Sysco (SYY), Universal Corporation (UVV) and National Fuel Gas (NFG). This is important because some financial professionals are still in disagreement over the significance of dividend distributions to the company’s long-term total returns. Survivorship bias occurs when one looks at only the companies that ‘survived’ the time period in question. Summary. Based on expected EPS of $4.31 for 2020, Altria stock trades for a P/E ratio of 9.5, below our fair value estimate of 11. Lowe’s operates nearly 2,000 home improvement and hardware stores in the U.S. and Canada. And while there is no direct correlation, dividend kings typically show healthy balance sheets. Not all Dividend Kings are Dividend Aristocrats. Another important benefit to investing in dividend kings (as well as any dividend stock) is the opportunity to have income gains achieved taxed at a lower rate that is similar to the long-term capital gains rate. The company already has 51 years of payout increases under its belt. However, no financial professional would quarrel with the fact that reinvesting a steady stream of rising dividend income will produce a steady cash flow for investors. That said, Federal Realty continues to generate positive FFO and pay dividends to shareholders, thanks to a high-quality and diversified property portfolio. How To Use The Dividend Kings List To Find Dividend Stock Ideas 2. Performance excludes previous Dividend Kings that ended their streak of dividend increases which creates notable lookback/survivorship bias. The Dividend Kings are the best-of-the-best in dividend longevity. The Dividend King list for 2019 serves as a screen for further investigating as stock for a dividend growth portfolio. The company already has 51 years of payout increases under its belt. This is a difficult time for retailers, as competition is heating up from e-commerce players such as Amazon (AMZN) and many others. National Fuel Gas Co. is a diversified energy company that operates in five business segments: Exploration & Production, Pipeline & Storage, Gathering, Utility, and Energy Marketing. It concentrates in high-income, densely-populated coastal markets in the US, allowing it to charge more per square foot than its competition. When I first came up with the idea for the list of dividend kings in 2010, there were only eleven companies on it. These trends are illustrated below. To date, the list shows a little bit more than 50 businesses. In November, National Fuel Gas reported financial results for the fourth fiscal quarter, and full fiscal year. For those unfamiliar with Microsoft Excel, the following walk-through shows how to filter the Dividend Kings list for the stocks with the most attractive valuation based on the price-to-earnings ratio. Dividend Kings List – Companies with Annual Dividend Increases for Over 50 Years! The Dividend Kings List is even more exclusive than the Dividend Aristocrats. Dividend growth investing may not be for everyone, but I am a fan. Strategy outperformed the group of 26 Dividend Kings by 10.22%. Which stocks are in the Dividend Kings? Conversely, some might be undervalued – making great long-term holdings for dividend growth investors. These companies are the best-of-breed stocks in the … When I first came up with the idea for the list of dividend kings in … If the first quarter is any indication, Altria may get through the coronavirus relatively well. ABM Industries reported its fourth-quarter earnings results (fiscal 2020) on December 16. And while dividend stocks can play a role in any investor’s portfolio, it’s important to understand that stocks of dividend kings put value above growth. Dividend Kings: A List of Stocks Increasing Dividends for 50 Years. To be part of this list, the Dividend Kings must show an incredible ability to adapt their business model and constantly innovate to stay relevant and in the game. Thanks for reading this article. oral nicotine pouch brand. Plus, like any index fund, investing in a dividend aristocrat mutual fund or ETF can help boost overall return while reducing risk. Analysis Reports On All 27 Dividend Kings 3. On October 30th, Altria reported financial results for the 2020 third quarter. Looking for new stock ideas? Dividend Kings List A dividend king is a company that has managed to increase dividends to shareholders for at least 50 years in a row. Nevertheless, ABM Industries’ earnings-per-share grew by 4.5% versus the previous year’s quarter, a very solid growth rate when we account for the negative coronavirus impact on the company’s top line. Screening to find the best Dividend Kings is not the only way to find high quality dividend growth stock ideas. Top 10 Dividend Kings: Dividend Kings are dividend paying stocks that have increased dividend payments for 50+ consecutive years. Adjusted EBITDA increased 1.5% year-over-year. Excluding a negative $1.05 impact from extinguishing debt, adjusted earnings per share increased 40% to $1.98 from $1.41 in the third quarter of 2019. In this example, investors did nothing more than reinvest their dividends. Some companies that are financially troubled will have an enticing dividend yield. This unexpected result is because the ‘only’ requirement to be a Dividend Kings is 50+ years of rising dividends, whereas Dividend Aristocrats must have 25+ years of rising dividends, be a member of the S&P 500 Index, and meet certain minimum size and liquidity requirements. Canadian Dividend Aristocrats List. H.B. Sector & Market Capitalization Overview 5. Dividend kings have historically higher overall returns over extended periods. Growth stocks are high on the risk/reward scale. There’s no Dividend King ETF. This shouldn't be a surprise. Dividend kings are companies who have increased their dividend payout for at least 50 consecutive years. You do not get crowned king for no reason. The Dividend Aristocrats list is not the only way to quickly screen for stocks that regularly pay rising dividends. 326 E 8th St #105, Sioux Falls, SD 57103 | [email protected] | (844) 978-6257 But for income investors, the ability of a company to pay, and in many cases, to increase its dividend is a key indicator of financial strength. We also expect Altria to grow adjusted EPS by approximately 3% per year over the next five years. Among current dividend kings, the lowest dividend payout ratio is 28% and the highest is 80% with the average being 54%. Dividend Kings List – Companies with Annual Dividend Increases for Over 50 Years! In the meantime, Altria has a very high dividend yield of 8.6%. There are many metrics that investors can use to evaluate a company. There were no companies that left the list. New to the dividend aristocrats list in 2020, specialty chemicals company Albemarle Corp. is one of the smaller companies on the list, with a market cap around $8 billion. This is a record since we started tracking the list of dividend kings in 2010. The combination of an expanding valuation, EPS growth and dividends lead to total expected returns of nearly 10% per year over the next five years. Dividend stocks have a place in any investor’s portfolio. To see all exchange delays and terms of use please see disclaimer. Get daily stock ideas top-performing Wall Street analysts. Also, last year’s was the largest yearly increase with six new entries. A company’s willingness to issue dividends is an indication of financial health and stability. On the other hand, these stocks can also go down further than other stocks during a market correction. That is why there are only 29 companies that qualify for the Dividend Kings List.. MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. The company purchased a 55% equity stake in Canadian marijuana producer Cronos Group, invested nearly $13 billion for a 35% equity stake in e-vapor manufacturer Juul Labs, and recently acquired an 80% ownership stake in Switzerland-based Burger Söhne Group, for its on! There are currently approximately 70 U.S.-listed ETFs that invest in dividend stocks. The Dividend Kings performance is calculated using an equal weighted portfolio of today’s Dividend Kings, rebalanced annually. But the other thing the study showed was that investing in dividend kings results in lower volatility. And furthermore, with specific regard to the dividend growth space, this idea that stock selection and portfolio management should be business like is paramount to our success. We had three new additions to the list in 2019, and one company that left the list. Note that we screen for price-to-earnings ratios of 15 or below in the video. Sure Dividend maintains similar databases on the following useful universes of stocks: There is nothing magical about investing in the Dividend Kings. Lowe’s reinstated the repurchase program and bought back 3.6 million shares for $621 million. Dividend King is a stock with 50 years or more of consecutive dividend increases. Based on expected EPS of $8.60 for the current fiscal year, Lowe’s stock trades for a P/E ratio of 18.7. Management is forecasting adjusted diluted earnings per share of $1.10 to $1.20 for the fourth quarter. Dividend Kings List For 2019 A dividend king is a company that has managed to increase dividends to shareholders for at least 50 years in a row. How To Use The Dividend Kings List To Find Dividend Stock Ideas, #3: Federal Realty Investment Trust (FRT), Analysis Reports On All 30 Dividend Kings, Download the Dividend Kings Excel Spreadsheet. We are forecasting 5.9% annualized FFO growth for the next five years. A dividend is a percentage of a company’s profit. The company employs about 140,000 people in more than 350 offices throughout the United States and various international locations, primarily in Canada. Unlike the S&P 500 Dividend Aristocrats, this list of companies is not officially tracked by a ratings companies. Federal Realty reported Q3 earnings on 11/5/20. These qualities allow it to perform admirably, and continue growing even in a recession. The Dividend Kings List of 2019 are U.S. stocks that that have grown their dividend for 50+ years in a row. You can read more about this here. History favors investors who invest in dividend kings. With AT&T an already entrenched player in … What is a Dividend King? Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter. This includes the following 7 new additions. Total returns include a combination of future earnings-per-share growth, dividends, and any changes in the P/E multiple. Dividend Kings are companies that have increased their dividend payouts for at least 50 consecutive years. A dividend king is a company that has managed to increase dividends to shareholders for at least 50 years in a row. Is The Coca-Cola Company (NYSE:KO) Losing Its Fizz? While no investment is ever without any risk, dividend kings are about as risk-free as you can get. Dividends unlike other metrics (like free cash flow and even revenue) are difficult to manipulate. The revenue decline was primarily caused by lower demand from ABM Industries’ customers during the coronavirus crisis. Interestingly, 18 out of the 30 Dividend Kings have market capitalizations below $20 billion. At the very least it suggests analysts and institutional investors may have concerns about the stock. Kings of the castle. The Dividend Aristocrats list is not the only way to quickly screen for businesses that regularly pay rising dividends. 15 Dividend Kings for Decades of Dividend Growth | Kiplinger For example, you won’t find any of the FAANG stocks in the list of dividend kings. Some stocks might be overvalued. Our fair value estimate is a P/E of 20. From Sure Dividend Dividend Aristocrats 2020 Dividend Kings 2020 Create your own Dividend Collection Machine Shares trade for a P/E ratio of 15.8, compared with our fair value estimate of 17.5. But over time, it had lower highs but higher lows. This points out the fundamental trade-off between growth stocks and dividend kings. 15 Dividend Aristocrats You Can Buy at a Discount | Kiplinger Each stock has increased its annual dividend 50 or more consecutive years. © 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. During 2019, The Top 10 Dividend Kings strategy returned 37.22%. Notes: S&P 500 performance is measured using the S&P 500 ETF (SPY). The latest companies to join the dividend kings list in 2017 were Stepan Company (SCL), Stanley Black & Decker (SWK), SJW Group (SJW), California Water Service (CWT), and Federal Realty Investment Trust (FRT). Could return 3.0 % per year at only the companies that ‘ survived ’ the time in! Highest expected annual returns that have shown they are well run you must have a history of increasing dividend! That becoming a dividend Aristocrat list has evolved as follows: is stability and.... View our full suite of financial calendars and market capitalization characteristics of importance! Securities listed in the past month, with an average increase of 6.1 % over previous. Are currently approximately 70 U.S.-listed ETFs that invest in dividend stocks, last ’! 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