Are you on the hunt for reliable stocks that offer stability and consistent income? Look no further than the exclusive group of Dividend Kings. These are companies that have increased their dividends for at least 50 consecutive years, making them a symbol of staying power in the stock market. In this article, we’ll dive into what makes these dividend kings so special and provide you with the updated list for 2023.
The Power of Dividend Kings
A dividend stock is a publicly traded company that shares its profits with shareholders through regular dividend payments. Dividend-paying stocks are a popular choice for investors seeking steady income or a long-term wealth-growing strategy, even in a bear market. Steady dividend payers are typically well-established and consistently profitable companies. But among them, the dividend kings stand out.
Dividend kings have a remarkable track record. They have increased their dividends for at least 50 consecutive years, weathering various economic downturns, recessions, and crises. From the oil embargo in the 1970s to the dot-com bubble burst in the early 2000s, these companies have proven their resilience time and time again.
The Dividend Kings List for 2023
Out of over 4,000 public companies in the U.S., only 50 made the cut as dividend kings for 2023. These companies have demonstrated unwavering commitment to their shareholders by consistently raising dividends for half a century or more. Let’s take a look at some of the newly minted dividend kings this year:
- Archer Daniels Midland (ADM)
- Fortis (FTS)
- Kenvue (KVUE)
- RPM International (RPM)
- United Bankshares (UBSI)
For a complete list of dividend kings for 2023, including their name, ticker symbol, dividend yield, market capitalization, and “winning” streak in years, head over to our website.
The Returns of Dividend Kings
Investing in dividend kings can be a lucrative strategy. A report from RMB Capital shows that dividend kings delivered an average annual return of 9.62% from 1972 to 2018. In comparison, non-dividend payers only achieved a 2.40% return during the same period, and the equal-weighted S&P 500 index had an average return of 7.30%.
However, it’s essential to note that not all dividend kings are created equal. Some may be overvalued, while others may be undervalued. Before investing in a dividend king, make sure to evaluate the company based on various metrics such as market capitalization, price-to-earnings ratio, earnings per share, and dividend yield.
How to Invest in Dividend Kings
Investing in dividend kings is just like buying any other stock. You can do so through online brokers, robo-advisors, or financial advisors. Here are some options:
- Online brokers: TradeStation, J.P. Morgan, Axos
- Robo-advisors: M1 Finance
- Financial advisors: SmartAdvisor by SmartAsset
If you prefer a self-directed approach, online brokers are an excellent choice. They offer a broad selection of investments, low fees, and user-friendly interfaces. On the other hand, robo-advisors automate the investment process based on your goals and preferences, while financial advisors provide personalized guidance.
Sector and Market Capitalization Distribution
Dividend kings represent various sectors, with consumer goods and industrials dominating the list. However, there are also dividend kings in utilities, financials, healthcare, energy, materials, and real estate. In terms of market capitalization, over half of the dividend kings are large-cap companies. There are also mid-cap and small-cap companies on the list, offering a well-rounded selection for investors.
Survivorship Bias and Realistic Evaluation
When evaluating portfolios, it’s crucial to consider survivorship bias. This bias occurs when only the successful assets are included, giving an overly optimistic view of the portfolio’s performance. To avoid this bias, it’s essential to include both winners and losers.
Dividend Aristocrats vs. Dividend Kings
Dividend aristocrats are another group of stocks worth mentioning. To be an aristocrat, a company must have increased dividends for at least 25 consecutive years and be a member of the S&P 500. While dividend aristocrats are impressive, dividend kings have an even more exclusive status. Dividend aristocrats can eventually become dividend kings if they reach 50 years of consecutive dividend raises.
Top Ranking Dividend Kings
Here are seven dividend kings recommended by industry experts:
- AbbVie (ABBV)
- Colgate-Palmolive (CL)
- Johnson & Johnson (JNJ)
- PepsiCo (PEP)
- S&P Global (SPGI)
- Stanley Black & Decker (SWK)
- Walmart (WMT)
For further information on these top-ranking dividend kings, head over to our website.
Conclusion
Investing in dividend kings can be a wise decision for long-term investors seeking stability and consistent income. These companies have proven their worth over time by increasing dividends for at least 50 consecutive years. However, it’s crucial to conduct thorough research and evaluation before investing. Consider your criteria and consult with professionals if needed. To stay updated on the latest information and expert advice, visit our website.
- This article was written for Personal Finances Blog.