Volatility often reminds us why consistency matters. One day, the markets tank on news, only to recover the next day, with the bargain hunters coming calling the day after. When markets are unpredictable, companies with decades of steady performance tend to stand out.
Dividend Kings represent some of the most durable businesses in the market. These companies have increased their dividends for at least 50 consecutive years, proving their ability to operate successfully through recessions, market downturns, and shifting economic conditions. Sure, they don't always generate headlines, but their reliability has made them a cornerstone for many long-term investors.
And in these uncertain times, consistency goes a long way. So, here are three Dividend Kings with decent historical returns and Wall Street’s stamp of approval.
How I came up with the following stocks
Using Barchart’s Stock Screener, I selected the following filters to get my list:
- Annual Dividend Yield %(FWD): Left blank so I can sort it later from highest to lowest.
- 5-Year Percent Change: 10% or more. I am looking for companies with positive stock performance.
- Current Analyst Rating: The best stocks according to Wall Street, with a rating of “Strong Buy”.
- Number of Analysts: 12 or more. The higher the number, the stronger the consensus.
- Dividend Investing Ideas: Dividend Kings
I ran the screen and got three results, and I'll cover all companies based on their highest forward annual dividend yield.
Let’s start with the first Dividend King:
Coca-Cola Company (KO)
The Coca-Cola Company is a global beverage giant best known for its flagship Coca-Cola soft drink. The company produces and markets a wide range of beverages, including sparkling drinks, juices, bottled water, coffee, and sports drinks. Its products are sold in more than 200 countries through its massive distribution system.
In its recent quarterly financials, the company reported that sales rose 2.4% YOY to $11.8 billion. Net income was also up 3.5% to $2.3 billion.
Dividend growth investors will note that Coca-Cola increased its payout for 64 consecutive years. It currently pays a forward annual dividend of $2.04 per share every, translating to a yield of ~2.5%. Meanwhile, the stock has increased by 55% over the past five years (dividends excluded), proving that a “boring” stock like KO can still make a great investment, especially during times of uncertainty.
Further, a consensus among 24 analysts rates the stock a “Strong Buy”, with as much as 14% upside if it reaches the high price target of $89.
S&P Global Inc (SPGI)
The second Dividend King on my list is S&P Global Inc, a financial services company known for credit ratings, market benchmarks, and data analytics used by investors and institutions worldwide. Its well-known divisions include S&P Global Ratings and S&P Dow Jones Indices, which manage major indexes such as the S&P 500.
In its most recent financials, S&P Global reported that sales were up 9% YOY to $3.9 billion, while net income also increased 29% to $1.3 billion.
The company has also increased its dividends for more than 50 consecutive years. Currently, it pays a forward annual dividend of $3.88, translating to a yield of a little below 1%. While it may look uninteresting, the stock has grown 29% over the past five years.
Meanwhile, a consensus among 26 analysts rates the stock a “Strong Buy”. The high target price of $640 implies there's as much as 44% potential upside if reached.
Walmart Inc (WMT)
The last Dividend King on my list is Walmart Inc, the world’s largest retailer (by revenue) that operates discount stores, supermarkets, and warehouse clubs. It offers a wide range of products, including groceries, household essentials, electronics, apparel, and general merchandise, through thousands of stores and its growing e-commerce platform.
In its recent quarterly financials, sales were reportedly up 6% YOY to $179 billion, and net income rose 34% to $6.1 billion.
Walmart has also consistently increased its dividends for 53 consecutive years. Today, it pays a forward annual dividend of $0.94, translating to a yield of approximately 0.74%. While that looks relatively low, the stock showed strong price growth, up a whopping 186% over the past five years.
And even then, a consensus among 38 analysts rates the stock a “Strong Buy”, with a high target price of $150, suggesting there's still as much as 17% upside potential.
Final Thoughts
These three Dividend Kings prove that “slow” and “dull” investments don’t mean they can’t be meaningful in the long term, especially during times of uncertainty. When markets are in turmoil, companies that have decades of consistency and resilience tend to keep doing what they have always done: delivering steady performance for investors.
While there is no guarantee that their performance will remain the same, these companies’ long history and established fundamentals suggest they are built to endure changing market conditions.
On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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