Volatility comes and goes… but despite that, some companies continue to pay consistently.
The Dividend Kings are the elite group of companies that have offered shareholders 50 years of consistent dividend growth. These companies have weathered recessions, periods of inflation, and various market uncertainties while achieving stable, long-term payouts. This is the kind of consistency that offers retirees the possibility of generational wealth.
But not all Dividend Kings are a buy today. Some have higher cash flow and more stable payout ratios, some offer higher yields, and some have Wall Street’s seal of approval. I prefer a trifecta: companies that tick all the boxes. That’s why today I’ll cover the dividend kings that meet all of these criteria.
I used Barchart’s Stock Screener to find the top-performing companies on my watchlist.
Annual dividend yield (FWD), %: Left blank so it can be sorted from largest to smallest
Dividend payout ratio (%): 35 – 65%. This is the sweet spot, as I look for companies that pay fair dividends without spreading themselves too thin. This also means they are balancing customer value and business growth.
Operating income growth last year (%): At least 10%
Number of analysts: 12 or higher. A higher number means greater confidence in the rating.
Current Analyst Rating: 3.5 – 5. Stocks that analysts call “moderate buy” to “strong.” Only the best will do.
Investment ideas: Dividend kings. I’m looking to narrow my search to companies that exhibited long-term resilience and consistent performance.
I got exactly three results after running the screen. I will cover them according to the dividend yield from highest to lowest:
Let’s go to the first king of dividends, starting with:
Procter & Gamble makes consumer goods that people use around the world. The company was founded in 1837 and now offers a wide range of products, including health, baby, fabric, home, beauty and personal care.
Chances are you have some of their products at home, as they are the company behind Pampers, Tide, Crest, and more. In fact, P&G’s Charmin just launched its largest toilet paper roll yet, the Forever Roll, which has 1,700 sheets that can last up to a month, which has sparked great interest among consumers. It’s backed by a 30-day money-back guarantee, highlighting the company’s convenience-based approach.
According to the company’s most recent financial statements, P&G reported that sales increased 3% year over year to $22.4 billion and net income increased 20%. The company also pays an annual forward dividend of $4.23, which translates to approx. yield of 2.8%. And with a dividend payout ratio of about 57%, it reflects a balance between shareholder value and company growth – exactly what income-focused investors want. And Wall Street tends to agree.
A consensus among 25 analysts rates the stock as a “Moderate Buy,” a sentiment consistent over the past three months.
The next dividend king on my list is Johnson & Johnson, a company founded in 1886 and now one of the driving forces in the healthcare industry. The company is famous for making products like Band-Aid and Listerine, but it does so much more. It currently operates in two main segments: J&J Innovative Medicine and MedTech.
Notably, Johnson & Johnson MedTech just announced that it is working with NVIDIA to integrate AI simulation into the development of its next-generation robotic surgery systems. NVIDIA will provide highly realistic virtual operating rooms and models to improve surgeon training, scheduled for 2026.
In its most recent quarterly financial statements, Johnson & Johnson reported that sales rose about 7% year over year to $24 billion, and net income rose more than 91% to $5.2 billion. They also pay an annual forward dividend of $5.20, which translates to a yield of approx. 2.8%. And with a dividend payout ratio of 49%, there is high potential for further dividend growth.
A consensus among 25 analysts rates the stock as a “Moderate Buy,” and conviction has strengthened over the past three months.
The last dividend king on my list is Emerson Electric, a company founded in 1809 and today specializing in automation solutions while helping industrial and commercial companies achieve efficiency and sustainability.
Speaking of efficiency, Emerson recently released its updated AMS Trex Device Communicator that now supports Bluetooth connectivity, app compatibility, and increased processing power. In English? Field technicians love it because it can calibrate over 2,500 field instruments with just one tool.
In its most recent quarterly financial statements, Emerson reported that sales increased about 4% year over year to $4.55 billion and net income increased more than 78% to $586 million. The company also pays an annual forward dividend of $2.11 per share, which translates to a yield of about 1.5%. Emerson also has a very healthy dividend yield payout ratio of 35.72% which will allow the company to easily increase the payout.
A consensus among 24 analysts rates the stock a “Moderate Buy,” a sentiment that has been consistent over the past three months.
These three dividend kings: Procter & Gamble, Johnson & Johnson, and Emerson Electric are a testament to what long-term consistency looks like. Aside from their proven track records, these companies exhibit growing profitability and dividends even in changing market environments, making them an attractive option 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
