2022 Dividend Kings List | Updated Daily

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

The downloadable Dividend Kings Spreadsheet Record under comprises the next for every inventory within the index amongst different necessary investing metrics:

• Payout ratio
• Dividend yield
• Worth-to-earnings ratio

You may see the complete downloadable spreadsheet of all 45 Dividend Kings (together with necessary monetary metrics reminiscent of dividend yields, payout ratios, and price-to-earnings ratios) by clicking on the hyperlink under:

The Dividend Kings checklist consists of latest additions reminiscent of Canadian Utilities (CDUAF), Tennant Firm (TNC), PepsiCo (PEP), Kimberly-Clark (KMB), Abbott Laboratories (ABT), AbbVie (ABBV), Leggett & Platt (LEG), and W.W. Grainger (GWW).

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 Record to Discover Dividend Inventory Concepts

The Dividend Kings checklist is a good place to search out dividend inventory concepts. Nonetheless, not all the shares within the Dividend Kings checklist make a fantastic funding at any given time.

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

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

Step 1: Obtain the Dividend Kings Excel Spreadsheet.

Step 2: Observe the steps within the educational video under. Observe that we display screen for price-to-earnings ratios of 15 or under within the video. You may select any threshold that finest defines ‘worth’ for you.

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

On the lookout for companies which have an extended historical past of dividend will increase isn’t an ideal strategy to determine shares that can enhance 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 at this time, based mostly on anticipated annual returns over the following 5 years. Shares are ranked so as of lowest to highest anticipated annual returns.

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

Dividend King #5: Cincinnati Monetary (CINF)

• 5-12 months Annual Anticipated Returns: 12.1%

Cincinnati Monetary is an insurance coverage inventory. It gives enterprise, dwelling, auto insurance coverage, and monetary merchandise, together with life insurance coverage, annuities, property, and casualty insurance coverage.

As an insurance coverage firm, Cincinnati Monetary makes cash in two methods. It earns earnings from premiums on insurance policies written and by investing its float, or the big sum of cash consisting of the time worth between the premium earnings and insurance coverage claims.

On July 28, 2022, Cincinnati Monetary reported second-quarter monetary outcomes. Adjusted earnings-per-share of $0.65 missed analyst estimates by $0.39 per share, whereas earned premiums of $1.77 billion missed analyst estimates by $190 million. Nonetheless, earned premiums rose 11.3% year-over-year. Guide worth of $66.30 at quarter-end declined $15.42 per share for the reason that starting of 2022. The corporate had a adverse worth creation ratio of 17.2% over the primary half, reversing a optimistic 11.6% worth creation ratio over the identical six-month interval final yr.

On January 28, 2022, the corporate elevated its dividend by 9.5% to $0.69 per share per quarter. This was its 62nd yr of dividend will increase.

We anticipate 6% annual EPS progress by means of 2027. As well as, the inventory has a present dividend yield of two.8%. Lastly, the inventory seems to be undervalued. Complete returns are estimated at 12.1% per yr over the following 5 years.

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

Dividend King #4: Parker-Hannifin (PH)

• 5-12 months Annual Anticipated Returns: 12.1%

Parker-Hannifin is a diversified industrial producer specializing in movement and management applied sciences. The corporate was based in 1917 and has annual revenues of over $14 billion.

Supply: Investor Presentation

Parker-Hannifin has paid a dividend for 71 years and has elevated that dividend for a exceptional 65 consecutive years.

In early Could, Parker-Hannifin reported (5/5/21) monetary outcomes for the third quarter of fiscal 2022. Gross sales grew 9% over the prior yr’s quarter and adjusted earnings-per-share grew 17%, from $4.12 to $4.83, because of robust demand in practically all markets, which greater than offset the headwind of price inflation.

Parker-Hannifin exceeded analysts’ consensus by $0.18 and posted report gross sales and earnings-per-share. It additionally narrowed its steering for adjusted earnings-per-share in fiscal 2022 from $17.80-$18.30 to $18.00-$18.30 and raised the dividend by 29%.

We anticipate complete returns of 12.1% per yr, pushed by 9% EPS progress, the 1.6% dividend yield, and a ~1.5% annual enhance from a rising P/E ratio.

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

Dividend King #3: Pc Providers (CSVI)

• 5-12 months Annual Anticipated Returns: 12.5%

Pc Providers gives regional banks with a variety of companies, reminiscent of core processing, digital banking, funds processing, and regulatory compliance options. It has a market cap of $1.4 billion, making it a small-cap inventory.

The corporate operates two main segments, Enterprise Banking and Enterprise Options. The Enterprise Banking Group is the bigger section, comprising roughly 62% of complete firm income.

Pc Providers has grown its gross sales, earnings, and its dividend for 22, 25, and 50 consecutive years, respectively. Because of robust enterprise momentum, administration expects to put up new all-time highs within the above metrics this yr.

Pc Providers has grown its earnings-per-share at a ten.2% common annual price over the past decade. The pandemic has not affected the efficiency of Pc Providers in any respect.

The spectacular progress report of Pc Providers is a testomony to the energy of its enterprise mannequin. The corporate indicators multi-year contracts with its clients and gives them a variety of companies. It’s thus very expensive and inefficient for these clients to cease working with the corporate, notably provided that they pay considerable early termination charges.

The inventory has a 2.8% dividend yield, and we anticipate 8% annual EPS progress. With a ~1.7% annual enhance from an increasing P/E a number of, complete returns are anticipated to achieve 12.5% per yr.

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

Dividend King #2: Lowe’s Firms (LOW)

• 5-12 months Annual Anticipated Returns: 14.5%

Lowe’s Firms is the second-largest dwelling enchancment retailer within the US (after House Depot). Lowe’s operates or services greater than 2,200 dwelling enchancment and {hardware} shops within the U.S. and Canada.

Lowe’s reported first quarter 2022 outcomes on Could 18th. Complete gross sales for the primary quarter got here in at $23.7 billion in comparison with $24.4 billion in the identical quarter a yr in the past. Comparable gross sales decreased 4%, whereas U.S. dwelling enchancment comparable gross sales decreased 3.8%.

Of observe, professional buyer gross sales rose 20% year-over-year. Internet earnings of $2.3 billion was in-line with outcomes from Q1 2021. Diluted earnings per share of $3.51 was a 9.3% enhance from $3.21 a yr earlier.

The corporate repurchased 19 million shares within the first quarter for $4.1 billion. Moreover, they paid out $537 million in dividends. The corporate stays in a powerful liquidity place with $3.4 billion of money and money equivalents.

The corporate offered a fiscal 2022 outlook and believes they will obtain diluted EPS within the vary of $13.10 to $13.60 on complete gross sales of roughly $98 billion. Lowe’s expects to repurchase $12 billion price of frequent shares in 2022.

The mixture of a number of growth, 6% anticipated EPS progress and the 1.8% dividend yield result in complete anticipated returns of 14.5% per yr.

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

Dividend King #1: 3M Firm (MMM)

• 5-12 months Annual Anticipated Returns: 15.1%

3M sells greater than 60,000 merchandise which might be used on daily basis in properties, hospitals, workplace buildings and faculties across the world. It has about 95,000 staff and serves clients in additional than 200 international locations.

3M is now composed of 4 separate divisions. The Security & Industrial division produces tapes, abrasives, adhesives, and provide chain administration software program in addition to manufactures private protecting gear and safety merchandise.

The Healthcare section provides medical and surgical merchandise in addition to drug supply methods. The Transportation & Digitals division produces fibers and circuits with a purpose of utilizing renewable power sources whereas decreasing prices. The Client division sells workplace provides, dwelling enchancment merchandise, protecting supplies, and stationary provides.

Supply: Investor Presentation

On July twenty sixth, 2022, 3M reported second quarter earnings outcomes for the interval ending June thirtieth, 2022. Income decreased 2.8% to $8.7 billion, however was in-line with expectations. Adjusted earnings-per-share of $2.48 in comparison with $2.59 within the prior yr, however was $0.04 above estimates. Natural progress for the quarter was 1% as a stronger U.S. greenback weighed.

The corporate additionally introduced that it will be spinning off its Well being Care section right into a standalone entity, which might have had $8.6 billion of income in 2021. The transaction is predicted to shut by the tip of 2023.

3M offered an up to date outlook for 2022, with the corporate now anticipating adjusted earnings-per-share of $10.30 to $10.80 for the yr, down from $10.75 to $11.25 beforehand.

Click on right here to obtain our most up-to-date Positive Evaluation report on 3M (preview of web page 1 of three proven under):

Evaluation Stories On All 45 Dividend Kings

All 45 Dividend Kings are listed under by sector. You may entry detailed protection of every by clicking on the title of every Dividend King. Moreover, you may obtain our latest Positive Evaluation Analysis Database report for every Dividend King as properly.

Primary Supplies

Client Cyclical

Client Staples

Vitality

Monetary Providers

Healthcare

Industrial

Actual Property

Know-how

Utilities

Efficiency Of The Dividend Kings

The Dividend Kings underperformed versus the S&P 500 ETF (SPY) in July 2022. Return information for the month is proven under:

• Dividend Kings July 2022 complete return: 5.9%
• SPY July 2022 complete return: 9.2%

Steady 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 anybody firm. There’s no Dividend King ETF. Which means monitoring the historic efficiency of the Dividend Kings could be tough. Extra particularly, efficiency monitoring of the Dividend Kings usually introduces important survivorship bias.

Survivorship bias happens when one appears at solely the businesses that ‘survived’ the time interval in query. Within the case of Dividend Kings, because of this the efficiency examine doesn’t embrace ex-Kings that decreased their dividend, had been acquired, and so on.

However with that stated, 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 enhance 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 at this time’s Dividend Kings, rebalanced yearly. Attributable to inadequate information, 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 info for this examine 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: 11
• Industrials: 11
• Utilities: 6
• Client Discretionary: 4
• Well being Care: 4
• Financials: 3
• Supplies: 3
• Actual Property: 1
• Vitality: 1
• Know-how: 1

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

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

• 5 Mega caps ($200 billion+ market cap; ABBV, JNJ, PEP, PG, and KO)
• 20 Massive caps ($10 billion to $200 billion market cap)
• 14 Mid caps ($2 billion to $10 billion)
• 6 Small caps ($300 million to $2 billion)

Apparently, 20 out of the 45 Dividend Kings have market capitalizations under $10 billion. This exhibits that company longevity doesn’t must be accompanied by large dimension.

Remaining Ideas

Screening to search out the very best Dividend Kings is just not the one strategy 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 robust aggressive benefits.

Buying companies with these traits at honest or higher costs and holding them for lengthy intervals of time will seemingly end in robust long-term funding efficiency.

Essentially the most interesting a part of investing is that you’ve limitless selection. You should buy into mediocre companies, or simply the wonderful corporations.

As Warren Buffett says:

“Once we personal parts of excellent companies with excellent managements, our favourite holding interval is ceaselessly.”

– Warren Buffett