In a market that obsesses over quick rewards and short-term excitement, it’s easy to overlook companies that quietly do everything right.
Income investors are often pushed toward the flashiest returns or latest trends, but the strongest long-term returns tend to come from companies that consistently grow earnings, consistently increase dividends, and compound in value over time.
That’s exactly why I like to stay on top of the dividend kings, particularly the overlooked ones that are accelerating their dividend growth, showing improved profitability, and maintaining long-term bullish momentum, all while remaining relatively under-covered by Wall Street. These are not stories of change or speculative bets. Rather, they are established companies with the financial strength and discipline to reward shareholders year after year.
Using the right filters, the result is a focused list of Dividend Kings built to stick around for the long term and can be relied on for consistent income.
Using Barchart’s Stock Screener, I selected the following filters to get my list:
5-year dividend growth (%): 20% or more. I filtered the results by companies with a “high” or “very high” five-year dividend trend and then sorted them from highest to lowest.
Core EPS growth last year (%): at least 1% to find companies whose profitability has increased over the last year.
5-year percentage change: Greater than 10%. I’m looking for those with long-term bullish momentum.
Current Analyst Rating: 3.5-5. Stocks that have an average rating of “moderate” and “strong buy.”
Number of analysts: 8-16: More analysts indicate greater confidence in the rating.
I ran the screen and got 4 results. I’ll cover them all, from highest to lowest, 5-Year Dividend Growth.
Let’s start this list with the first Dividend King:
Nordson Corp. is a global leader in precision manufacturing, creating complex components and advanced technologies for industries such as aerospace, medical and electronics.
In its recent financial statements, the company’s sales increased 1% year over year to $752 million. Net income rose 24% to $152 million, while its core EPS grew 4.77%. The company also pays an annual forward dividend of $3.28, which translates to a yield of around 1.2%. Coupled with a 5-year dividend growth rate of over 106%, Nordson is an overall attractive investment with strong growth potential.
A consensus among 11 analysts rates the stock as a “Moderate Buy.” There could also be an upside of up to 8% if the stock were to hit its projected high of $295 over the next 12 months.
The second dividend king is Cincinnati Financeone of the largest insurers in the US, offering property, life and other insurance products, and whose shares have consistently outperformed the broader financial sector.
In its recent quarterly financial statements, Cincinnati’s sales increased 12% year over year to $3.7 billion. Net income rose 37% to $1.1 billion, while its core EPS rose 24.79%. The company has a 5-year dividend growth rate of over 44% and pays an annual forward dividend of $3.48, which translates to a yield of approximately 2.15%. This combination makes it a potentially solid investment for those looking for stable, growing payouts.
Additionally, a consensus among 10 analysts rates the stock as a “Moderate Buy,” with a 17% upside potential if it hits its high price of $191.
Next on my list of dividend kings is RPM Internationalworld leader in construction materials, including specialty coatings, sealants and related products. It owns some of the industry’s famous brands, including Rust-Oleum, DAP and Zinsser, and is expanding its global reach by acquiring Kalzip, a leader in high-performance roofing and façade systems.
The company’s recent quarterly financial statements reported that sales rose 3.5% year-over-year to $1.9 billion, while net income fell 12% to $161 million due to higher integration costs and expenses, even as overall demand supported higher sales. Still, core EPS grew 17.47% and the company pays an annual forward dividend of $2.16, which translates to a yield of around 1.9%. With a 5-year dividend growth rate close to 40%, RPM stock still looks like a pretty decent investment.
Additionally, the consensus among 16 analysts rates the stock as a “Moderate Buy.” With a high target of $151, analysts see up to 34% upside for the stock this year.
The last dividend king on my list is Altria Groupone of the most important companies in the tobacco sector.
In its most recent financial statements, sales fell 3% year over year to $6.1 billion, but net income grew 3.6% to $2.4 billion. Apart from that, the core EPS grew by 43.11%, the highest on this list. Additionally, the company pays a quarterly dividend of $1.06, which translates to a yield of about 6.8%, also the highest on my list. With five-year dividend growth of around 22%, MO stock makes a pretty strong case for being a must-have investment.
A consensus of 14 analysts rates the stock as a “Moderate Buy,” compared to a “Hold” over the past three months. It also has nearly 17% upside potential if it hits its high price target of $72.
With a growing preference for stocks with higher yields, dividend kings are often overlooked, but not in my case. These companies have demonstrated their resilience, stability and ability to generate increasing returns for more than a decade, a feat that few can match. While stocks with the flashiest yields make noise, these dividend kings are quietly proving their worth through a long-term bullish trend, making them a good investment for income-focused investors.
As of the date of publication, Rick Orford had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com
