Have you ever heard of stocks that pay out increasing dividends each yr?
By investing in stocks with impeccable dividend-paying records, we are able to patiently wait for the dividend income to grow yearly.
We share what dividend kings are, and list out the dividend king value stocks at the top of the article. So you’ll be able to enjoy growing passive income from dividends, and a high probability of equity growth.
What Are Dividend Kings?
Dividend kings are stocks which have increased their dividend payout for a minimum of 50 consecutive years. In the event you invested in a dividend king 50 years ago, you’ll have enjoyed growing dividend income each yr. These stocks are the most dear blue-chip stocks.
Century-old, household names like 3M and Coca-Cola are examples of profitable corporations that pay dividends like royalty.
Which Is Higher Dividend Kings or Aristocrats?
Dividend aristocrats are a component of the S&P 500 which have increased their dividend payout for a minimum of 25 consecutive years. Compared to dividend kings, the dividend aristocrats have lower requirements for dividend-paying history.
But some people may feel dividend aristocrats are safer investments because they’re a component of the S&P 500 index.
Why Put money into Dividend Kings?
If the goal of investing is to build up wealth, we want to contemplate each growing passive income and protecting our capital during a market crash.
The US stock market has experienced 10 major crashes during the last 50 years, and countless fluctuations.
The market experienced 10 crashes within the last 50 years.
Each dividend king has survived the market downturns while continuing to grow dividend payouts yearly.
In the event you held a position in SPY during 2/18-3/18 in 2020, the worth of the ETF evaporated by greater than 30% in 30 days. Even a seasoned investor would have experienced months of sleepless nights.
The worth of SPY ETF fell by 30% during 2020/2/18-3/18.
So investing in dividend kings is a great approach to secure your capital through recessions and market crashes.
Why Only Invest When the Stock Is Undervalued?
The worth investing philosophy is to only buy stocks once they are undervalued. So we are able to acquire blue-chip stocks at a reduction.
If the Upside is large enough, there’s enough margin of safety for our stocks to understand in value.
Shortcut to Picking Dividend Kings
We are able to use the Dividend Stock Screener to filter stocks with greater than 50 consecutive years of accelerating dividends.
Filter stocks with >50 years of dividend growth.
We are able to set the Years of Dividend Growth to be larger than 50 to seek out the whole list of dividend kings in seconds.
Undervalued Dividend Kings List
To get a healthy margin of safety in our selection, we are able to sort the list of dividend kings by Upside. Because of this, we discover all of the dividend kings with Upside greater than 0%.
| Stocks | Description | Last | Fair value | Upside | Dividend yield | Years of dividend growth |
|---|---|---|---|---|---|---|
| SWK | Stanley Black & Decker Inc | $75.12 | $127.10 | 69.20% | 4.26% | 55 |
| MMM | 3M Co | $119.92 | $181.73 | 51.54% | 4.97% | 64 |
| FRT | Federal Realty Investment Trust | $101.04 | $139.98 | 38.54% | 4.28% | 55 |
| CINF | Cincinnati Financial Corp | $102.39 | $137.12 | 33.92% | 2.70% | 61 |
| DOV | Dover Corp | $135.41 | $169.80 | 25.40% | 1.48% | 67 |
| BDX | Becton, Dickinson and Co | $254.09 | $308.04 | 21.23% | 1.42% | 51 |
| TGT | Goal Corp | $148.78 | $175.73 | 18.11% | 2.90% | 51 |
| EMR | Emerson Electric Co | $95.80 | $110.75 | 15.61% | 2.17% | 66 |
| SYY | Sysco Corp | $76.45 | $81.36 | 6.42% | 2.56% | 53 |
The undervalued dividend kings have a powerful dividend record and an enormous bullish potential.
Now you recognize easy methods to find great value dividend kings, you need to use the Dividend Screener to seek out the very best dividend stocks to extend your passive income.