Volatility often reminds us why consistency is important. One day the market drops on the news, only to rise the next and bargain hunters call the day after that. When markets are unpredictable, companies with decades of consistent performance tend to stand out.
Dividend Kings represent some of the most durable businesses on the market. These companies have increased their dividends for at least 50 consecutive years, demonstrating their ability to operate successfully during recessions, market downturns, and changing economic conditions. Sure, they don’t always make the headlines, but their reliability makes them a cornerstone for many long-term investors.
In these uncertain times, consistency goes a long way. So here are three Dividend Kings that have strong historical returns and are recognized by Wall Street.
Using the bar chart’s stock screener, I selected the following filters to get my list:
Annual Dividend Yield (FWD): Leave it blank so I can sort it from highest to lowest later.
5-year percentage change: 10% or more. I’m looking for companies with positive stock performance.
Current analyst ratings: Wall Street’s top stock with a “Strong Buy” rating.
Number of analysts: 12 or more. The higher the number, the stronger the consensus.
Dividend investing philosophy: Dividend King
I ran the screen and got three results, I would cover all companies based on the highest forward annual dividend yield.
this The Coca-Cola Company is a global beverage giant best known for its flagship Coca-Cola soft drink. The company manufactures and sells a variety of beverages, including sparkling beverages, juices, bottled water, coffee and sports drinks. Its products are sold to more than 200 countries through its extensive distribution system.
In its most recent quarterly financial report, the company reported sales rising 2.4% year over year to $11.8 billion. Net profit also increased 3.5% to $2.3 billion.
Dividend Growth Investors will note that Coca-Cola has increased its dividend payments for 64 consecutive years. The company currently pays a forward annual dividend of $2.04 per share, which equates to a yield of around 2.5%. Meanwhile, the stock is up 55% (not including dividends) over the past five years, proving that “boring” stocks like KO can still make excellent investments, especially in uncertain times.
Additionally, 24 analysts rate the stock a “Strong Buy” consensus, suggesting upside potential of up to 14% if the stock reaches its high price target of $89.
The second Dividend King on my list is S&P Globalis a financial services company known for its credit ratings, market benchmarks and data analytics used by investors and institutions around the world. Its notable divisions include S&P Global Ratings and S&P Dow Jones Indices, which manage major indices such as the S&P 500.
In its latest financial report, S&P Global reported that sales increased 9% year-over-year to $3.9 billion, and net profit also increased 29% to $1.3 billion.
The company has also raised its dividend for more than 50 consecutive years. The company currently pays a forward annual dividend of $3.88, which equates to a yield of just under 1%. While it may seem uninteresting, the stock has gained 29% over the past five years.
Meanwhile, 26 analysts give the stock a consensus rating of “Strong Buy.” The high price target of $640 implies potential upside of up to 44% if reached.
The last Dividend King on my list is Walmartthe world’s largest retailer by revenue, operates discount stores, supermarkets and warehouse clubs. The company offers a broad range of products, including groceries, household essentials, electronics, apparel and general merchandise, through thousands of stores and its growing e-commerce platform.
According to reports, in the most recent quarterly financial report, sales increased by 6% year-on-year to US$179 billion, and net profit increased by 34% to US$6.1 billion.
Walmart has also continued to increase its dividend for 53 consecutive years. Today, it pays a forward annual dividend of $0.94, which equates to a yield of about 0.74%. While it looks relatively low, the stock has seen strong price growth, rising 186% over the past five years.
Even so, 38 analysts rate the stock a “Strong Buy” consensus with a $150 price target, suggesting the stock still has upside potential of up to 17%.
These Three Dividend Kings Prove That ““Slow” and”boring” Investments don’t mean they don’t make sense in the long run, especially in uncertain times. When markets are in turmoil, companies with decades of consistency and resilience tend to continue doing what they’ve always done: delivering steady results to investors.
While there’s no guarantee that their performance will remain the same, these companies’ long histories and established fundamentals suggest they can withstand changing market conditions.
On the date of publication, Rick Orford did not hold (either directly or indirectly) any securities mentioned in this article. All information and data in this article are for reference only. This article was originally published on Barchart.com
