What Are Dividend Kings?

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Dividend kings are a group of stocks that have increased their dividend payout for at least 50 consecutive years. This is a very exclusive group, as there are only 50 dividend kings as of 2023.

Dividend kings are a popular investment for investors who are looking for reliable income and dividend growth. These stocks have a long track record of paying dividends, even through tough economic times. They also tend to have strong balance sheets and cash flow, which makes them less likely to cut their dividends.

Why invest in dividend kings?

There are several reasons why investors might want to consider investing in dividend kings.

  • Reliable income: Dividend kings have a long track record of paying dividends, even through tough economic times. This makes them a good source of reliable income for investors.
  • Dividend growth: Dividend kings tend to increase their dividends over time. This can help investors grow their income over time.
  • Strong balance sheets: Dividend kings typically have strong balance sheets and cash flow. This makes them less likely to cut their dividends, even in tough times.
  • Diversification: Dividend kings are a diverse group of stocks, representing a variety of industries. This can help to reduce risk in a portfolio.

How to choose dividend kings

There are a few things to keep in mind when choosing dividend kings.

  • Dividend history: Look for stocks with a long history of increasing dividends.
  • Dividend yield: Consider the dividend yield, which is the dividend divided by the stock price. A higher dividend yield means that the stock pays out more in dividends each year.
  • Company financials: Look at the company's financials, including its balance sheet, cash flow, and earnings. Make sure the company is financially sound and has the ability to continue paying dividends.
  • Industry: Consider the industry that the company is in. Some industries, such as utilities and consumer staples, are more stable and have a history of paying dividends.

Top dividend kings for 2023

Here are the top 5 dividend kings for 2023, ranked by dividend yield:

  1. Coca-Cola (KO): 3.5% dividend yield
  2. Johnson & Johnson (JNJ): 2.9% dividend yield
  3. Procter & Gamble (PG): 2.7% dividend yield
  4. AT&T (T): 5.2% dividend yield
  5. Verizon (VZ): 4.8% dividend yield

Conclusion

Dividend kings are a great investment for investors who are looking for reliable income and dividend growth. These stocks have a long track record of paying dividends, even through tough economic times. They also tend to have strong balance sheets and cash flow, which makes them less likely to cut their dividends. If you are looking for a reliable source of income, dividend kings should be on your list of investments.

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