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In this article, we discuss top 25 Dividend Kings by yield. You can skip our detailed analysis of dividend stocks and their performance in the past, and go directly to read Dividend Kings List by Yield: Top 10 Stocks.
Dividend Kings are the stocks that have raised their dividends for at least 50 straight years or more. These companies endured periods of economic downturn better than their peers due to consistent cash flows and stable earnings. In times of financial volatility, investors focus on stocks that offer low risk with proven track records of dividend growth. Stocks like Exxon Mobil Corporation (NYSE:XOM), Merck & Co., Inc. (NYSE:MRK), and Chevron Corporation (NYSE:CVX) are gaining ground in this context.
Over the years, dividend growers have taken a significant place in investors’ portfolios. These companies have outperformed other asset classes on various fronts due to their stable fundamentals and solid business plans. In an extended period of higher inflation, like the one we are confronted with today, dividend growth stocks provide a hedge against rising costs with stable income. According to a report by Hartford Funds, dividend growers reported an average annual return of 10.68% from 1973 to 2021, compared with a 4.79% return for non-dividend payers. During the same period, dividend cutters and eliminators fell by 0.46%. This shows that dividend growth stocks offer an excellent way to generate passive income during inflationary periods.
Dividend stocks have remained a significant component of total market returns in the past. In the 1970s, dividend income accounted for 72% of the total returns, as reported by a Chicago-based financial planning company Nuveen. The report also mentioned that dividend stocks represented 8% of the total return in the first two years of this decade.
Stephanie Link, a chief investment strategist at Hightower Advisors, spoke about dividend investments in her recent interview with Barron’s. She asserted that investors should focus on growing payouts instead of high dividends as dividend growth is of utmost importance in an inflationary environment. This report also highlighted that dividend shares in the S&P 500 index reported an 11% decline this year as of October 29, compared with a 23% drop for non-dividend stocks. Further elaborating on dividend growth stocks, we will discuss top dividend kings in this article.
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Our Methodology:
The dividends stocks mentioned below belong to the group of Dividend Kings and have raised their payouts for 50 years or more. We shortlisted stocks with dividend yields above 2%. These companies have strong balance sheets and solid fundamentals to further grow their dividends. The stocks are ranked according to their dividend yields as of November 11.
Dividend Kings List by Yield: Top 25 Stocks
25. Genuine Parts Company (NYSE:GPC)
Dividend Yield as of November 11: 2.01%
Genuine Parts Company (NYSE:GPC) is a Georgia-based industrial supplies company that distributes industrial, and office products and electronic materials. In the first nine months of the year, the company generated $1.2 billion in operating cash flow, up from $1 billion during the same period last year. Its free cash flow for the period came in at $1 billion, compared with $870 million in the prior-year period. Moreover, the company also paid $369 million in dividends to shareholders, which makes it one of the best dividend stocks to buy.
Genuine Parts Company (NYSE:GPC) has been paying consistent dividends for the past 66 years. It currently offers a quarterly dividend of $0.895 per share and has a dividend yield of 2.01%, as of November 11.
In addition to Exxon Mobil Corporation (NYSE:XOM), Merck & Co., Inc. (NYSE:MRK), and Chevron Corporation (NYSE:CVX), investors and analysts are preferring Genuine Parts Company (NYSE:GPC) due to the company's strong dividend history.
At the end of Q2 2022, 32 hedge funds tracked by Insider Monkey owned stakes in Genuine Parts Company (NYSE:GPC), up from 29 in the previous quarter. The collective value of these stakes is over $406 million. Arrowstreet Capital was the company’s leading stakeholder in Q1.
24. Lowe's Companies, Inc. (NYSE:LOW)
Dividend Yield as of November 11: 2.06%
Lowe's Companies, Inc. (NYSE:LOW) is a North Carolina-based American retail company that mainly specializes in home improvement. The company is one of the best dividend stocks on our list as it has been raising its dividends consistently for the past 59 years. Moreover, the company has paid regular dividends to shareholders since its IPO in 1961. It currently pays a quarterly dividend of $1.05 per share and has a dividend yield of 2.06%, as of November 11.
In October, Citigroup maintained a Neutral rating on Lowe's Companies, Inc. (NYSE:LOW) with a $215 price target, ahead of the company's Q3 earnings in this current environment. The firm also appreciated the company's strong fundamentals.
In Q2 2022, 53 hedge funds tracked by Insider Monkey owned stakes in Lowe's Companies, Inc. (NYSE:LOW), compared with 65 in the previous quarter. The stakes owned by hedge funds hold a combined value of roughly $5 billion. With over 10.2 million shares, Pershing Square was the company’s leading stakeholder in Q2.
Pershing Square Holdings mentioned Lowe’s Companies, Inc. (NYSE:LOW) in its Q2 2022 investor letter. Here is what the firm has to say:
“Lowe’s Companies, Inc. (NYSE:LOW)’s is a high-quality business with significant long-term earnings growth potential underpinned by a superb management team that is successfully executing a multi-faceted business transformation. (Click here to read the full text)
23. Hormel Foods Corporation (NYSE:HRL)
Dividend Yield as of November 11: 2.19%
Hormel Foods Corporation (NYSE:HRL) specializes in the packaging and selling of a wide range of food products. The company is headquartered in Minnesota, US. In September, Argus maintained a Buy rating on the stock with a $53 price target, acknowledging the company's clean balance sheet and a strong history of raising its dividends.
In fiscal Q3 2022, Hormel Foods Corporation (NYSE:HRL) reported a strong balance sheet. The company's operating cash flow showed a 143% year-over-year growth at $186 million. It ended the quarter with $850.3 million in cash and cash equivalents, up from $613.5 million during the same period last year.
On September 26, Hormel Foods Corporation (NYSE:HRL) declared a quarterly dividend of $0.26 per share, in line with its previous dividend. The company has raised its dividends consistently for the past 56 years, coming through as one of the best dividend stocks on our list. As of November 11, the stock has a dividend yield of 2.19%.
At the end of June 2022, 27 hedge funds tracked by Insider Monkey owned stakes in Hormel Foods Corporation (NYSE:HRL), down from 30 in the previous quarter. These stakes are collectively valued at over $434.5 million.
22. Emerson Electric Co. (NYSE:EMR)
Dividend Yield as of November 11: 2.21%
Emerson Electric Co. (NYSE:EMR) is an American multinational manufacturing company that specializes in industrial, commercial, and consumer markets. On November 2, the company declared a 1% hike in its quarterly dividend to $0.52 per share. This was the company's 66th consecutive year of dividend growth, which makes it one of the best dividend stocks. As of November 11, the stock has a dividend yield of 2.21%.
In fiscal Q3 2022, Emerson Electric Co. (NYSE:EMR) reported an operating cash flow of $740 million, growing from $442 million in the previous quarter. The company generated over $630 million in free cash flow, compared with $333 million in the preceding quarter. Its revenue for the quarter came in at $5 billion, which showed a 7% growth from the same period last year.
In October, Deutsche Bank maintained a Buy rating on Emerson Electric Co. (NYSE:EMR) with a $97 price target. The firm expects growth in the company's sales in the upcoming quarters.
The number of hedge funds tracked by Insider Monkey owning stakes in Emerson Electric Co. (NYSE:EMR) grew to 47 in Q2 2022, from 45 a quarter earlier. These stakes hold a collective value of over $1.25 billion. Citadel Investment Group was the company’s leading stakeholder in Q2.
21. Sysco Corporation (NYSE:SYY)
Dividend Yield as of November 11: 2.33%
Sysco Corporation (NYSE:SYY) is involved in the marketing and distribution of food products, kitchen equipment, and other related items. For the first 13 weeks of FY23, the company's operating cash flow amounted to $158.6 million, showing an increase of $47.8 million from the same period last year. The company's cash flow for the period came in at $13.8 million. It returned roughly $250 million in dividends to shareholders during this period, which makes it one of the best dividend stocks on our list.
Sysco Corporation (NYSE:SYY) currently pays a quarterly dividend of $0.49 per share and has a dividend yield of 2.33%, as of November 11. The company maintains a 53-year streak of consistent dividend growth.
In November, Argus raised its price target on Sysco Corporation (NYSE:SYY) to $96 with a Buy rating on the shares, as the company focuses on cutting costs and its sales to grocery stores.
As of the close of Q2 2022, 32 hedge funds reported owning stakes in Sysco Corporation (NYSE:SYY), up from 31 a quarter earlier, according to Insider Monkey’s data. These stakes hold a consolidated value of over $1.5 billion.
20. Illinois Tool Works Inc. (NYSE:ITW)
Dividend Yield as of November 11: 2.34%
Illinois Tool Works Inc. (NYSE:ITW) is an American manufacturing company that produces engineered and specialty products. Credit Suisse appreciated the strong organic growth of the company and its solid margin performance in recent quarters. In view of this, the firm raised its price target on the stock to $243 with an Outperform rating on the shares.
On October 28, Illinois Tool Works Inc. (NYSE:ITW) declared a quarterly dividend of $1.31 per share, consistent with its previous dividend. The company has been raising its dividends consistently for over 50 years, falling into the category of Dividend Kings. As of November 11, the stock has a dividend yield of 2.34%.
According to Insider Monkey's Q2 2022 database, 34 hedge funds owned investments in Illinois Tool Works Inc. (NYSE:ITW), compared with 36 in the previous quarter. These stakes hold a total value of over $366 million. AQR Capital Management was the company’s leading stakeholder in Q2.
19. The Gorman-Rupp Company (NYSE:GRC)
Dividend Yield as of November 11: 2.45%
The Gorman-Rupp Company (NYSE:GRC) is an Ohio-based pump and pumping equipment company. The company's products are mainly for municipal, water, sewage, and related industries. On October 28, the company declared a 2.9% growth in its quarterly dividend to $0.175 per share. Through this increase, the company has extended its dividend growth streak to 50 years. The stock's dividend yield as of November 11 came in at 2.45%.
In Q3 2022, The Gorman-Rupp Company (NYSE:GRC) reported revenue of $153.8 million, which showed a 52.1% growth from the same period last year. At the end of September, it had over $10.2 million available in cash and cash equivalents and its total assets amounted to over $870.8 million.
As of the close of Q2 2022, 9 hedge funds in Insider Monkey's database reported owning stakes in The Gorman-Rupp Company (NYSE:GRC), compared with 7 a quarter earlier. These stakes hold a collective value of over $27 million. Among these hedge funds, GAMCO Investors was the company's leading stakeholder in Q2.
18. Colgate-Palmolive Company (NYSE:CL)
Dividend Yield as of November 11: 2.51%
Colgate-Palmolive Company (NYSE:CL) is an American multinational consumer products company. Over the years, the company has reported strong cash generation, which has steadily its dividend payments. In the first nine months of 2022, its operating cash flow amounted to $1.88 billion. During Q3, the company paid $1.2 billion to shareholders in dividends, which makes it one of the best dividend stocks to buy.
Appreciating the company's recent quarterly earnings and its overall fundamentals in the current market, Barclays raised its price target on Colgate-Palmolive Company (NYSE:CL) in November to $76 and maintained an Equal Weight rating on the shares.
Colgate-Palmolive Company (NYSE:CL) offers a quarterly payout of $0.47 per share. The company's dividend growth streak currently stands at 60 years with a 5-year dividend CAGR of 3.09%. As of November 11, the stock has a dividend yield of 2.51%.
The number of hedge funds tracked by Insider Monkey owning stakes in Colgate-Palmolive Company (NYSE:CL) stood at 55 in Q2 2022, compared with 50 in the previous quarter. These stakes have a total value of nearly $3 billion.
Third Point mentioned Colgate-Palmolive Company (NYSE:CL) in its recently-published Q3 2022 investor letter. Here is what the firm has to say:
“Third Point recently acquired a significant position in Colgate-Palmolive Company (NYSE:CL). The investment fits several important criteria in the current investment environment. First, the business is defensive and has significant pricing power in inflationary conditions. Second, there is meaningful hidden value in the company’s Hill’s Pet Nutrition business, which we believe would command a premium multiple if separated from Colgate’s consumer assets. Third, there is a favorable industry backdrop in consumer health, with new entrants via spin-offs and potential for consolidation. Finally, the current valuation is attractive both because earnings growth is poised to inflect higher, and because shareholders are paying very little for the optionality around Hill’s or Colgate’s ability to participate in further consolidation in the consumer health sector.
Colgate has a strong portfolio of brands and operates across four categories that should perform well across most economic conditions: oral care, home care, personal care, and pet nutrition. Although Colgate has delivered organic sales growth of 5-6% over the past few years, earnings growth has been disappointing, and the stock has become a perennial underperformer. Foreign exchange headwinds have pressured reported results. Business reinvestment, supply chain disruption, and inflationary pressures have weighed heavily on margins; those headwinds are now reversing. Stepped up investments in demand generation, product innovation, and digital capabilities are starting to pay off. Global supply chain bottlenecks are easing and product availability on the shelf is improving. And, most importantly, raw material, transportation, and wage pressures are stabilizing, and even reversing in some areas, at the same time additional pricing takes effect. Taken together, the stage is set for Colgate to deliver several years of outsized earnings growth, as sales continue to increase, foreign exchange movements are annualized, and margins finally recover…” (Click here to view the full text)
17. PepsiCo, Inc. (NASDAQ:PEP)
Dividend Yield as of November 11: 2.53%
Another best dividend stock on our list is PepsiCo, Inc. (NASDAQ:PEP). The multinational food and beverage company has raised its dividends consistently for the past 50 years. It currently pays a quarterly dividend of $1.15 per share for a dividend yield of 2.53%, as of November 11.
As of the end of September, PepsiCo, Inc. (NASDAQ:PEP) generated over $6.3 billion in operating cash flow. In Q3 2022, the company's revenue amounted to roughly $22 billion, which showed an 8.8% growth from the same period last year. For FY22, it expects to pay nearly $7.7 billion in shareholder returns, $6.2 billion of which would represent dividend payments.
Street analysts appreciated PepsiCo, Inc. (NASDAQ:PEP)'s performance in its recent quarter and its solid pricing over the years. Both Barclays and RBC Capital lifted their price targets on the stock in October to $185 and $170, respectively.
The number of hedge funds tracked by Insider Monkey owning stakes in PepsiCo, Inc. (NASDAQ:PEP) stood at 65 in Q2 2022, growing from 62 in the previous quarter. The collective value of these stakes is over $5.28 billion. Among these hedge funds, Fundsmith LLP was the company’s largest stakeholder in Q2.
16. Cincinnati Financial Corporation (NASDAQ:CINF)
Dividend Yield as of November 11: 2.57%
Cincinnati Financial Corporation (NASDAQ:CINF) is an Ohio-based insurance company that offers property and casualty insurance services to its consumers. In September, BofA initiated its coverage of the stock with a Neutral rating, highlighting the company's commercial business and its dividend growth streak.
In Q3 2022, Cincinnati Financial Corporation (NASDAQ:CINF) reported an operating cash flow of $666 million, compared with $601 million during the same period last year. The company's free cash flow for the quarter came in at $662 million, up from $598 million in the prior-year period. It also earned premiums worth $1.88 billion, which showed a 12.6% year-over-year growth.
Cincinnati Financial Corporation (NASDAQ:CINF) currently pays a quarterly dividend of $0.69 per share for a dividend yield of 2.57%, as of November 11. The company has been raising its dividends consistently for the past 61 years, which makes it one of the best dividend stocks on our list.
As of the end of Q2 2022, 22 hedge funds were bullish on Cincinnati Financial Corporation (NASDAQ:CINF), up from 21 in the previous quarter. The stakes owned by these hedge funds have a total value of over $91.2 million.
15. Johnson & Johnson (NYSE:JNJ)
Dividend Yield as of November 11: 2.59%
An American multinational pharmaceutical industry company, Johnson & Johnson (NYSE:JNJ) pays a quarterly dividend of $1.13 per share. The company has been raising its dividends consistently for the past 60 years, coming through as one of the best dividend stocks. The stock's dividend yield as of November 11 came in at 2.59%.
Citigroup presented a positive stance on the medical device sector and in view of this, the firm maintained a Buy rating on Johnson & Johnson (NYSE:JNJ) with a $198 price target.
At the end of the second quarter of 2022, 83 hedge funds tracked by Insider Monkey owned stakes in Johnson & Johnson (NYSE:JNJ), with a total value of over $6.7 billion. In the previous quarter, 83 hedge funds owned stakes in the pharmaceutical company as well, worth over $7.4 billion.
Distillate Capital Partners LLC mentioned Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter. Here is what the firm has to say:
“Johnson & Johnson was among the 2 largest trims at around 1% each. Each stock was up 1% in the quarter compared to the 16% price decline for the S&P 500 and the positions were reduced as the valuations became somewhat less appealing, though still attractive enough to warrant inclusion.”
14. The Procter & Gamble Company (NYSE:PG)
Dividend Yield as of November 11: 2.59%
The Procter & Gamble Company (NYSE:PG) is an American manufacturing company that specializes in consumer goods. The company recently presented its Partner of the Year award to companies that have delivered exceptional and sustained value in service to its consumers and stakeholders.
On October 11, The Procter & Gamble Company (NYSE:PG) declared a quarterly dividend of $0.9133 per share, in line with its previous dividend. The company has been making regular dividend payments to shareholders for the past 132 years and has raised its payouts every year for the past 66 years. As of November 11, the stock's dividend yield came in at 2.59%. During fiscal Q1 2023, the company's free cash flow productivity stood at 86%, which makes it one of the best dividend stocks on our list.
In October, Barclays appreciated the quarterly results of The Procter & Gamble Company (NYSE:PG) and its overall fundamentals. Given this, the firm lifted its price target on the stock to $145 with an Overweight rating on the shares.
As of the close of Q2 2022, 71 hedge funds owned stakes in The Procter & Gamble Company (NYSE:PG), compared with 72 a quarter earlier, as per Insider Monkey's database. These stakes hold a consolidated value of over $5.5 billion. Ray Dalio’s Bridgewater Associates was the company’s leading stakeholder in Q2.
13. Target Corporation (NYSE:TGT)
Dividend Yield as of November 11: 2.63%
Target Corporation (NYSE:TGT) is an American multinational big box department store chain. In November, JPMorgan raised its price target on the stock to $217 with an Overweight rating on the shares. The firm presented a positive stance on the company ahead of its Q3 results and appreciated its solid fundamentals.
Target Corporation (NYSE:TGT) is one of the best dividend stocks on our list as it has been raising its dividends consistently for the past 51 years. Moreover, the company has paid regular dividends to shareholders since it went public in 1967. Its current quarterly payout stands at $1.08 per share and has a dividend yield of 2.63%, as of November 11.
As per Insider Monkey’s Q2 2022 database, 46 hedge funds reported owning stakes in Target Corporation (NYSE:TGT), compared with 50 in the previous quarter. These stakes hold a combined value of over $1.2 billion. Ray Dalio, Ken Griffin, and Jim Simons were some of the company's leading stakeholders in Q2.
Carillon Tower Advisers mentioned Target Corporation (NYSE:TGT) in its Q2 2022 investor letter. Here is what the firm has to say:
“Target Corporation (NYSE:TGT) faced its worst day in decades after trimming its profit forecast for the year due to higher costs. While many of the cost pressures are likely to persist in the near term, the company also struggled with a shift in consumer spending, which resulted in inventory write-downs."
12. The Coca-Cola Company (NYSE:KO)
Dividend Yield as of November 11: 2.89%
The Coca-Cola Company (NYSE:KO) is a Georgia-based multinational beverage company. It currently pays a quarterly dividend of $0.44 per share for a dividend yield of 2.89%, as of November 11. In February 2022, it achieved a 60-year mark of consecutive dividend growth, coming through as one of the best dividend stocks on our list.
In the third quarter of 2023, The Coca-Cola Company (NYSE:KO) reported revenue of $11.1 billion, which showed an 11% growth from the same period last year. Year-to-date, its operating cash flow came in at $8.1 billion and it generated over $7.3 billion in free cash flow during this period. This shows that the company has sufficient cash to fulfill its shareholder return.
In October, UBS raised its price target on The Coca-Cola Company (NYSE:KO) to $68 with a Buy rating on the shares, appreciating the company's earnings in the third quarter. The firm also highlighted the company's potential for strong revenue growth in the upcoming quarters.
At the end of the June quarter, 60 hedge funds in Insider Monkey’s database owned stakes in The Coca-Cola Company (NYSE:KO), down from 64 in the previous quarter. These stakes have a total value of over $28.3 billion.
Aristotle Capital Management, LLC mentioned The Coca-Cola Company (NYSE:KO) in its Q2 2022 investor letter. Here is what the firm has to say:
“The Coca-Cola Company (NYSE:KO), the global beverage business, was a leading contributor for the period. Coca-Cola continues to benefit from the refranchising of its bottling operations and realignment of incentives, catalysts we previously identified. These initiatives are demonstrating their strength in an inflationary and supply-chain-challenged environment. Additionally, the company has focused on evolving its customer engagement practices by leveraging digital and social medias for targeted campaigns, such as the design and launch of Coke Byte in the metaverse. Lastly, Coca-Cola has furthered its transformation into a total beverage company, as it debuted its new Jack Daniel’s Tennessee Whiskey and Coca-Cola ready-to-drink premixed cocktail. Although uncertainties surrounding cost pressures, lockdowns and geopolitical conflicts remain, we believe Coca-Cola is uniquely positioned to successfully continue its transition toward a total beverage business.”
11. National Fuel Gas Company (NYSE:NFG)
Dividend Yield as of November 11: 2.91%
National Fuel Gas Company (NYSE:NFG) is an American diversified energy company that specializes in gas distribution and exploration and production of natural gas. In its recent fiscal Q4 2022 earnings, the company missed Street estimates on various accounts. However, its revenue of $435 million saw 22.2% growth from the same period last year. For FY22, its operating cash flow came in at $812.5 million, up from $791.5 million in 2021.
National Fuel Gas Company (NYSE:NFG) currently pays a quarterly dividend of $0.475 per share, growing it by 4% in June this year. The company has paid uninterrupted dividends to shareholders for the past 120 years. Moreover, it has raised its payouts for 52 years in a row, which places it as one of the best dividend stocks to buy now. The company's dividend growth makes it a reliable option for dividend portfolios alongside Exxon Mobil Corporation (NYSE:XOM), Merck & Co., Inc. (NYSE:MRK), and Chevron Corporation (NYSE:CVX).
As of the end of the June quarter, 23 hedge funds in Insider Monkey’s database reported owning stakes in National Fuel Gas Company (NYSE:NFG), up from 21 in the previous quarter. The collective value of these stakes is over $180.6 million. With stakes worth over $78.7 million, GAMCO Investors held the largest position in the company in Q2.
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Disclosure. None. Dividend Kings List by Yield: Top 25 Stocks is originally published on Insider Monkey.
