2024 Dividend Kings Checklist | Up to date Each day

Up to date on September third, 2024 by Bob CiuraSpreadsheet knowledge up to date every day

The Dividend Kings are the best-of-the-best in dividend longevity.

What’s a Dividend King? A inventory with 50 or extra consecutive years of dividend will increase.

The downloadable Dividend Kings Spreadsheet Checklist under incorporates the next for every inventory within the index amongst different vital investing metrics:

Payout ratio
Dividend yield
Value-to-earnings ratio

You may see the complete downloadable spreadsheet of all 53 Dividend Kings (together with vital monetary metrics resembling dividend yields, payout ratios, and price-to-earnings ratios) by clicking on the hyperlink under:

The Dividend Kings checklist contains latest additions resembling Consolidated Edison (ED), Kenvue (KVUE), and Fortis (FTS).

Every Dividend King satisfies the first requirement to be a Dividend Aristocrat (25 years of consecutive dividend will increase) twice over.

Not all Dividend Kings are Dividend Aristocrats.

This sudden result’s as a result of the ‘solely’ requirement to be a Dividend Kings is 50+ years of rising dividends.

Then again, Dividend Aristocrats will need to have 25+ years of rising dividends, be a member of the S&P 500 Index, and meet sure minimal dimension and liquidity necessities.

Desk of Contents

How To Use The Dividend Kings Checklist to Discover Dividend Inventory Concepts

The Dividend Kings checklist is a good place to seek out dividend inventory concepts. Nevertheless, not all of the shares within the Dividend Kings checklist make an excellent funding at any given time.

Some shares could be overvalued. Conversely, some could be undervalued – making nice long-term holdings for dividend progress traders.

For these unfamiliar with Microsoft Excel, the next walk-through exhibits easy methods to filter the Dividend Kings checklist for the shares with probably the most engaging valuation primarily based on the price-to-earnings ratio.

Step 1: Obtain the Dividend Kings Excel Spreadsheet.

Step 2: Comply with the steps within the tutorial video under. Be aware that we display screen for price-to-earnings ratios of 15 or under within the video. You may select any threshold that greatest defines ‘worth’ for you.

Alternatively, following the directions above and filtering for larger dividend yield Dividend Kings (yields of two% or 3% or larger) will present shares with 50+ years of rising dividends and above-average dividend yields.

Searching for companies which have an extended historical past of dividend will increase isn’t an ideal solution to determine shares that can improve their dividends yearly sooner or later, however there’s appreciable consistency within the Dividend Kings.

The 5 Finest Dividend Kings At present

The next 5 shares are our top-ranked Dividend Kings in the present day, primarily based on anticipated annual returns over the subsequent 5 years. Shares are ranked so as of lowest to highest anticipated annual returns.

Complete returns embrace a mixture of future earnings-per-share progress, dividends, and any modifications within the P/E a number of.

Dividend King #5: Goal Company (TGT)

5-Yr Annual Anticipated Returns: 12.4%

Goal was based in 1902 and now operates about 1,850 large field shops, which supply common merchandise and meals, in addition to serving as distribution factors for the corporate’s e-commerce enterprise.

Goal posted second quarter earnings on August twenty first, 2024, and outcomes have been fairly sturdy, sending the inventory leaping after the report. Adjusted earnings-per-share got here to $2.57, which was 39 cents forward of estimates. Income was up 2.7% year-over-year to $25.45 billion, which beat by $240 million.

Comparable gross sales have been up 2% year-over-year, making up many of the complete gross sales acquire. Consensus was for a acquire of 1.1%. Visitors was up 3% year-over-year with all six core merchandising classes seeing constructive progress. Digital comparable gross sales have been up 8.7%, as soon as once more driving progress.

Goal has grown its dividend for greater than 5 a long time, making it a Dividend King. The corporate is investing closely in its enterprise with the intention to navigate via the altering panorama within the retail sector. The payout is now 47% of earnings for this 12 months,

Click on right here to obtain our most up-to-date Positive Evaluation report on TGT (preview of web page 1 of three proven under):

Dividend King #4: Sysco Company (SYY)

5-Yr Annual Anticipated Returns: 12.7%

Sysco Company is the biggest wholesale meals distributor in america. The corporate serves 600,000 places with meals supply, together with eating places, hospitals, colleges, inns, and different amenities.

Supply: Investor Presentation

On July thirtieth, 2024, Sysco reported fourth-quarter outcomes for Fiscal Yr (FY) 2024. For the fourth quarter, the corporate noticed a 4.2% improve in gross sales and a 3.5% rise in U.S. Foodservice quantity.

Gross revenue grew by 4.2% to $3.8 billion, and working earnings elevated by 1.2% to $977 million, with adjusted working earnings climbing 6.4% to $1.1 billion.

Nevertheless, EBITDA decreased by 7.7% to $1.2 billion, whereas adjusted EBITDA went up by 5.4% to $1.3 billion. Earnings per share (EPS) fell by 14.6% to $1.23, whereas adjusted EPS rose by 3.7% to $1.39.

Click on right here to obtain our most up-to-date Positive Evaluation report on SYY (preview of web page 1 of three proven under):

Dividend King #3: PPG Industries (PPG)

5-Yr Annual Anticipated Returns: 13.7%

PPG Industries is the world’s largest paints and coatings firm. Its solely opponents of comparable dimension are Sherwin-Williams and Dutch paint firm Akzo Nobel.

PPG Industries was based in 1883 as a producer and distributor of glass (its identify stands for Pittsburgh Plate Glass) and in the present day has roughly 3,500 technical staff positioned in additional than 70 nations at 100 places.

On July 18th, 2024, PPG Industries introduced second quarter outcomes for the interval ending June thirtieth, 2024. For the quarter, income decreased 1.6% to $4.79 billion, which was $130 million lower than anticipated.

Supply: Investor Presentation

Adjusted internet earnings of $590 million, or $2.50 per share, in contrast favorably to adjusted internet earnings of $534 million, or $2.25 per share, within the prior 12 months. Adjusted earnings-per-share was $0.02 above estimates.

Second quarter natural income progress was flat in comparison with the prior 12 months. Efficiency Coatings income of $3.048 billion was basically unchanged from final 12 months.

Click on right here to obtain our most up-to-date Positive Evaluation report on PPG (preview of web page 1 of three proven under):

Dividend King #2: SJW Group (SJW)

5-Yr Annual Anticipated Returns: 14.1%

SJW Group is a water utility firm that produces, purchases, shops, purifies and distributes water to customers and companies within the Silicon Valley space of California, the realm north of San Antonio, Texas, Connecticut, and Maine.

SJW Group has a small actual property division that owns and develops properties for residential and warehouse prospects in California and Tennessee. The corporate generates about $670 million in annual revenues.

Supply: Investor Presentation

On July twenty fifth, 2024, SJW Group introduced second quarter outcomes for the interval ending June thirtieth, 2024. For the quarter, income grew 12.3% to $176.2 million, beating estimates by $10.2 million. Earnings-per-share of $0.66 in contrast favorably to earnings-per-share of $0.58 within the prior 12 months and was $0.08 greater than anticipated.

As with prior intervals, the advance in income was principally attributable to SJW Group’s California enterprise, which benefited from larger water charges whereas a rise in prospects aided the Texas enterprise. Increased charges general added $13 million to outcomes for the quarter whereas larger buyer utilization added $3.8 million.

Click on right here to obtain our most up-to-date Positive Evaluation report on SJW (preview of web page 1 of three proven under):

Dividend King #1: Farmers & Retailers Bancorp (FMCB)

5-Yr Annual Anticipated Returns: 15.5%

Farmers & Retailers Bancorp is a regionally owned and operated neighborhood financial institution with 32 places in California. As a result of its small market cap and its low liquidity, it passes beneath the radar of most traders. F&M Financial institution has paid uninterrupted dividends for 88 consecutive years and has raised its dividend for 58 consecutive years.

In mid-July, F&M Financial institution reported (7/17/24) monetary outcomes for the second quarter of fiscal 2024. The financial institution grew its adjusted earnings-per-share 5% over the prior 12 months’s quarter, from $28.03 to $29.39. It posted 5% progress of loans and flat deposits.

Internet curiosity earnings dipped -3% attributable to a contraction of internet curiosity margin from 4.28% to three.91% amid larger deposit prices. Administration stays optimistic for the foreseeable future, because the financial institution enjoys one of many widest internet curiosity margins in its sector.

Click on right here to obtain our most up-to-date Positive Evaluation report on FMCB (preview of web page 1 of three proven under):

Efficiency Of The Dividend Kings

The Dividend Kings under-performed the S&P 500 ETF (SPY) in August 2024. Return knowledge for the month is proven under:

Dividend Kings August 2024 complete return: 1.4%
SPY August 2024 complete return: 2.3%

Secure dividend growers just like the Dividend Kings are likely to underperform in bull markets and outperform on a relative foundation throughout bear markets.

The Dividend Kings will not be formally regulated and monitored by anyone firm. There’s no Dividend King ETF. Because of this monitoring the historic efficiency of the Dividend Kings may be tough.

Extra particularly, efficiency monitoring of the Dividend Kings usually introduces vital survivorship bias.

Survivorship bias happens when one appears to be like at solely the businesses that ‘survived’ the time interval in query. Within the case of Dividend Kings, which means that the efficiency research doesn’t embrace ex-Kings that lowered their dividend, have been acquired, and so forth.

However with that mentioned, there’s something to be gained from investigating the historic efficiency of the Dividend Kings. Particularly, the efficiency of the Dividend Kings exhibits that ‘boring’ established blue-chip shares that improve their dividend year-after-year can considerably outperform over lengthy intervals of time.

Notes: S&P 500 efficiency is measured utilizing the S&P 500 ETF (SPY). The Dividend Kings efficiency is calculated utilizing an equal weighted portfolio of in the present day’s Dividend Kings, rebalanced yearly. As a result of inadequate knowledge, Farmers & Retailers Bancorp (FMCB) returns are from 2000 onward. Efficiency excludes earlier Dividend Kings that ended their streak of dividend will increase which creates notable lookback/survivorship bias. The information for this research is from Ycharts.

Within the subsequent part of this text, we’ll present an outline of the sector and market capitalization traits of the Dividend Kings.

Sector & Market Capitalization Overview

The sector and market capitalization traits of the Dividend Kings are very completely different from the traits of the broader inventory market.

The next bullet factors present the variety of Dividend Kings in every sector of the inventory market.

Client Staples: 14
Industrials: 11
Utilities: 9
Client Discretionary: 2
Well being Care: 5
Financials: 5
Supplies: 5
Actual Property: 1
Power: 1
Communication Providers: 0

The Dividend Kings are chubby within the Industrials, Client Staples, and Utilities sectors. Apparently, The Dividend Kings have zero shares from the Info Know-how sector, which is the biggest element of the S&P 500 index.

The Dividend Kings even have some attention-grabbing traits with respect to market capitalization. These tendencies are illustrated under.

6 Mega caps ($200 billion+ market cap; ABBV, JNJ, PEP, PG, KO, WMT)
25 Massive caps ($10 billion to $200 billion market cap)
14 Mid caps ($2 billion to $10 billion)
8 Small caps ($300 million to $2 billion)

Apparently, 23 out of the 53 Dividend Kings have market capitalizations under $10 billion. This exhibits that company longevity doesn’t should be accompanied by huge dimension.

Remaining Ideas

Screening to seek out the most effective Dividend Kings will not be the one solution to discover high-quality dividend progress inventory concepts.

Positive Dividend maintains comparable databases on the next helpful universes of shares:

There’s nothing magical about investing within the Dividend Kings. They’re merely a gaggle of high-quality companies with shareholder-friendly administration groups which have sturdy aggressive benefits.

Buying companies with these traits at truthful or higher costs and holding them for lengthy intervals of time will probably lead to sturdy long-term funding efficiency.