2022 Dividend Kings Record | Up to date Every day

Up to date on September 1st, 2022 by Bob CiuraSpreadsheet information up to date day by day

The Dividend Kings are the best-of-the-best in dividend longevity.

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 similar to dividend yields, payout ratios, and price-to-earnings ratios) by clicking on the hyperlink under:

The Dividend Kings record consists of current additions similar to 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.

Alternatively, Dividend Aristocrats should have 25+ years of rising dividends, be a member of the S&P 500 Index, and meet sure minimal measurement and liquidity necessities.

Desk of Contents

How To Use The Dividend Kings Record to Discover Dividend Inventory Concepts

The Dividend Kings record is a superb place to seek out dividend inventory concepts. Nevertheless, not all of the shares within the Dividend Kings record make a fantastic funding at any given time.

Some shares is perhaps overvalued. Conversely, some is perhaps undervalued – making nice long-term holdings for dividend development traders.

For these unfamiliar with Microsoft Excel, the next walk-through exhibits learn how to filter the Dividend Kings record for the shares with probably 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 tutorial video under. Be aware that we display 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 greater dividend yield Dividend Kings (yields of two% or 3% or greater) will present shares with 50+ years of rising dividends and above-average dividend yields.

On the lookout for companies which have a protracted historical past of dividend will increase isn’t an ideal solution to determine shares that can enhance their dividends yearly sooner or later, however there may be appreciable consistency within the Dividend Kings.

The 5 Finest Dividend Kings Immediately

The next 5 shares are our top-ranked Dividend Kings right this moment, 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 embody a mix of future earnings-per-share development, dividends, and any adjustments within the P/E a number of.

Dividend King #5: Dover Company (DOV)

5-12 months Annual Anticipated Returns: 12.5%

Dover Company is a diversified international industrial producer with annual revenues of practically $9 billion. Dover consists of 5 reporting segments: Engineered Programs, Clear Vitality & Fueling, Pumps & Course of Options, Imaging & Identification, and Local weather & Sustainability Applied sciences. Dover is a Dividend King with greater than six many years of dividend will increase. Barely greater than half of revenues come from the U.S., with the rest coming from worldwide markets.

On July twenty first, 2022 Dover reported second quarter earnings outcomes for the interval ending June thirtieth, 2022. Income grew 6.4% to $2.16 billion, however was $20 million lower than anticipated. Adjusted earnings-per-share of $2.14 in contrast favorably to $2.06 within the prior yr and was $0.07 above estimates. Natural income stays excessive, with the corporate seeing a 7% enhance within the second quarter. Dover’s backlog grew 30% year-over-year to $3.3 billion, although this was 2.9% decrease quarter-over-quarter.

Supply: Investor Presentation

Dover reaffirmed steerage for 2022. Adjusted earnings-per-share are anticipated in a spread of $8.45 to $8.65 with income projected to develop 8% to 10%. Dover did increase its natural development forecast to eight% to 10% from 7% to 9% beforehand.

We count on 8% annual EPS development via 2027. As well as, the inventory has a present dividend yield of 1.6%. Lastly, the inventory seems to be undervalued. Complete returns are estimated at 12.5% per yr over the following 5 years.

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

Dividend King #4: Tennant Firm (TNC)

5-12 months Annual Anticipated Returns: 13.3%

Tennant Firm is a equipment firm that produces cleansing merchandise and that gives cleansing options to its prospects. Within the US, the corporate holds the market management place in its trade, however the firm additionally sells its merchandise in additional than 100 further international locations across the globe. Tennant was based in 1870.

Tennant Firm reported its second quarter earnings outcomes on August 9. The corporate introduced that it generated revenues of $280 million through the quarter, which was 0.4% greater than the highest line quantity from the earlier yr’s quarter. This was a reversal from current traits, as income had declined on a year-over-year foundation through the earlier quarter. Revenues additionally have been up on a sequential foundation through the interval.

Tennant Firm generated adjusted earnings-per-share of $0.92 through the second quarter, which was greater than what the analyst group had forecasted, and which was up simply in comparison with the earlier quarter.

Administration is at the moment forecasting that adjusted earnings-per-share will fall into a spread of $4.15 to $4.75 in 2022, which represents a discount versus the steerage vary the corporate had introduced in the beginning of the yr. However, with a midpoint of $4.45, earnings-per-share are forecasted to extend barely versus the earlier yr.

The inventory has a 1.7% dividend yield, and we count on 6% annual EPS development. With a ~5.6% annual increase from an increasing P/E a number of, complete returns are anticipated to achieve 13.3% per yr.

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

Dividend King #3: Lowe’s Firms (LOW)

5-12 months Annual Anticipated Returns: 13.8%

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

In August, the corporate reported quarterly monetary outcomes. Income of $27.48 billion declined 0.3% year-over-year, and missed estimates by $680 million. Comparable gross sales fell 0.3%, whereas U.S. comparable gross sales elevated 0.2%. Throughout the quarter, the corporate repurchased roughly 21.6 million shares for $4.0 billion, and it paid $524 million in dividends.

The corporate supplied 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 mix of a number of growth, 6% anticipated EPS development and the 1.8% dividend yield result in complete anticipated returns of 13.8% 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 #2: Parker-Hannifin (PH)

5-12 months Annual Anticipated Returns: 13.8%

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.

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

Over the past decade, the corporate has grown its earnings per share by 9.7% per yr on common, from $7.45 in 2012 to $18.72 in fiscal 2022, which ended on June thirtieth. It has completed such a powerful efficiency primarily because of a collection of acquisitions. It has acquired smaller corporations and has included their merchandise effectively in its personal portfolio whereas it has additionally loved nice synergies from these acquisitions.

Even higher for the shareholders, enterprise momentum has accelerated lately.

Supply: Investor Presentation

In early August, Parker-Hannifin reported monetary outcomes for the fourth quarter of fiscal 2022. Quarterly income of $4.19 billion rose 5.8% year-over-year, and beat estimates by $120 million. Adjusted earnings-per-share of $5.16 beat by $0.46. For the upcoming fiscal yr, administration expects natural gross sales development of two% to five%, together with earnings-per-share in a spread of $18.10 to $18.90 on an adjusted foundation.

We count on complete returns of 13.8% per yr, pushed by 9% EPS development, the two% dividend yield, and a ~2.8% annual increase 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 #1: 3M Firm (MMM)

5-12 months Annual Anticipated Returns: 18.2%

3M sells greater than 60,000 merchandise which are used daily in properties, hospitals, workplace buildings and faculties across the world. It has about 95,000 workers and serves prospects 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 phase provides medical and surgical merchandise in addition to drug supply programs. The Transportation & Digitals division produces fibers and circuits with a aim of utilizing renewable power sources whereas decreasing prices. The Shopper division sells workplace provides, house 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 development 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 phase right into a standalone entity, which might have had $8.6 billion of income in 2021. The transaction is anticipated to shut by the tip of 2023.

3M supplied 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 identify of every Dividend King. Moreover, you may obtain our latest Positive Evaluation Analysis Database report for every Dividend King as effectively.

Primary Supplies

Shopper Cyclical

Shopper Staples

Vitality

Monetary Companies

Healthcare

Industrial

Actual Property

Expertise

Utilities

Efficiency Of The Dividend Kings

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

Dividend Kings August 2022 complete return: -1.3%
SPY August 2022 complete return: -3.8%

Secure 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 are usually not formally regulated and monitored by anyone firm. There’s no Dividend King ETF. Which means monitoring the historic efficiency of the Dividend Kings may be tough. Extra particularly, efficiency monitoring of the Dividend Kings typically introduces important survivorship bias.

Survivorship bias happens when one seems at solely the businesses that ‘survived’ the time interval in query. Within the case of Dividend Kings, which means that the efficiency research doesn’t embody ex-Kings that lowered their dividend, have been acquired, and so on.

However with that mentioned, 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 durations 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 right this moment’s Dividend Kings, rebalanced yearly. As a result of 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 research is from Ycharts.

Within the subsequent part of this text, we’ll present an summary 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.

Shopper Staples: 11
Industrials: 11
Utilities: 6
Shopper Discretionary: 4
Well being Care: 4
Financials: 3
Supplies: 3
Actual Property: 1
Vitality: 1
Expertise: 1

The Dividend Kings are chubby within the Industrials, Shopper Staples, and Utilities sectors. Apparently, The Dividend Kings have only one inventory from the Info Expertise 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 traits 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 need to be accompanied by huge measurement.

Remaining Ideas

Screening to seek out the most effective Dividend Kings is just not the one solution to discover high-quality dividend development inventory concepts.

Positive Dividend maintains comparable databases on the next helpful universes of shares:

There may be nothing magical about investing within the Dividend Kings. They’re merely a bunch of high-quality companies with shareholder-friendly administration groups which have robust aggressive benefits.

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

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

As Warren Buffett says:

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

– Warren Buffett