Dividend investing has long been favored by those seeking steady income, especially in uncertain markets. At the top of the dividend investing hierarchy are the Dividend Kings — elite companies that have increased their dividends for 50 consecutive years or more. These firms, all part of the S&P 500, have proven their ability to weather economic storms, navigate recessions, and still reward shareholders with rising payouts year after year.
Validea defines Dividend Kings as companies in the S&P 500 that have raised their dividends every year for at least 50 years. These aren’t just stable businesses — they’re masters of consistency, and many of them have built their reputations on operational excellence and shareholder discipline.
But like any strategy, dividend investing comes with its own set of trade-offs.
The Pros of Dividend Investing
- Income generation: Dividends provide a tangible return, especially attractive for retirees or income-focused investors.
- Stability: Companies that consistently pay and raise dividends are often financially sound and less volatile.
- Total return potential: Dividends can contribute significantly to long-term returns when reinvested.
The Drawbacks
- Tax inefficiency: Dividends are taxed as income, which can reduce net returns, especially for investors in higher tax brackets.
- Reinvestment challenges: Unlike capital gains, dividends are paid out regardless of market timing.
- Opportunity cost: Some companies that don’t pay dividends (like Warren Buffett’s Berkshire Hathaway) reinvest earnings into high-return projects instead of distributing them.
What the Numbers Say
Based on our analysis, the average dividend yield among the 49 Dividend Kings is approximately 2.70%, with the top yielders offering north of 4%–6%. Here’s a look at the top 10 Dividend Kings by dividend yield:
Top 10 Dividend Kings by Dividend Yield
To see the entire list of Dividend Kings, click here.
| Ticker | Company Name | Price | PE Ratio | Dividend Yield |
|---|---|---|---|---|
| MO | ALTRIA GROUP INC | 59.30 | 9.9 | 6.8% |
| UVV | UNIVERSAL CORP | 58.60 | 11.7 | 5.5% |
| SWK | STANLEY BLACK & DECKER INC | 66.34 | 28.2 | 4.9% |
| NWN | NORTHWEST NATURAL HOLDING CO | 40.45 | 16.1 | 4.8% |
| TGT | TARGET CORP | 95.06 | 10.5 | 4.7% |
| BKH | BLACK HILLS CORP | 57.56 | 14.7 | 4.6% |
| FRT | FEDERAL REALTY INVESTMENT TRUST | 93.66 | 27.0 | 4.3% |
| PEP | PEPSICO INC | 130.12 | 19.1 | 4.2% |
| ADM | ARCHER-DANIELS-MIDLAND CO | 47.96 | 17.1 | 4.2% |
| UBSI | UNITED BANKSHARES INC | 36.13 | 13.4 | 4.1% |
Parting Thoughts on Dividend Kings
Dividend Kings can serve as a foundational component of a diversified, income-oriented portfolio. Their decades-long history of dividend increases speaks to the resilience and shareholder focus of these businesses. But investors should also weigh the potential tax inefficiencies and recognize that high dividend yields aren’t always synonymous with strong total returns.
In the end, a blend of dividend growth, quality fundamentals, and valuation awareness can provide a powerful roadmap for long-term investing success.
🔍 Further Research
- Dividend Aristocrats on Validea
Another popular screen focused on companies with a long history of growing dividends. - Dividend Kings on Validea
See the full list of companies with 50 years of increasing dividends - Warren Buffett Strategy – Validea Guru Model
See how stocks score according to Validea’s Buffett-based investment model. - Top Guru-Rated Dividend Stocks – Guru Stock Screener
Find high-ranking dividend stocks based on Validea’s multi-strategy guru models. - Validea Pro Research Platform
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