Hi, Kings and Queens of the Market!
Some companies in the stock market stand out as truly exceptional. They belong to an exclusive group known as Dividend Kings—businesses that have increased their dividends for at least 50 consecutive years. As of today, only 54 companies have achieved this rare milestone. This level of consistency is a testament to their financial strength, resilience, and unwavering commitment to rewarding shareholders.
In this post, I highlight 8 of these elite companies, pointing out their key financial metrics and providing a detailed technical analysis. By combining fundamental insights with price action, I aim to deliver a comprehensive overview of their long-term strength. Helping you navigate both dividend income and potential capital appreciation opportunities.
The Hard Path to Becoming a Dividend King
Reaching 50+ years of consecutive dividend growth is no easy feat. Here’s why
- Only about a few Dividend Kings have ever stopped increasing dividends, usually due to mergers or going private
- Around 25 companies are approaching Dividend King status, having grown dividends for 40-49 years
- The probability of reaching 50 years of dividend growth increases with time
– 30% for companies with a 20-year streak
– 50% for companies with a 30-year streak
– 70% for companies with a 40-year streak
- In 2025, only two companies are expected to achieve Dividend King status, proving how difficult and exclusive this milestone is
Why Dividend Kings Matter
Dividend Kings excel in stability and long-term performance, thriving through downturns while raising dividends annually. They succeed with:
- Safe payout ratios, securing dividends with earnings.
- Recession-resistant businesses that stay strong.
- Careful debt management to protect payouts.
- Smart growth strategies that reward shareholders.
The Power of Dividend Kings for Passive Income
For long-term investors, Dividend Kings represent one of the safest and most consistent sources of passive income
- Reliable cash flow – Steady, growing dividends perfect for income seekers.
- Institutional confidence – Favored by big funds and ETFs for their stability.
- Capital appreciation – Dividend Kings offer both payouts and long-term growth.
Finding the Best Dividend Kings for the Next Years
In this post, I’ll analyze the strongest Dividend Kings
- Technical factors – It should be a great starting point to increase their value
- Fundamental metrics – Including payout ratios, earnings strength, financial stability, and big fund ownership
- Dividend safety – Ensuring consistent payouts even in market downturns
By combining technical analysis and financial fundamentals, I’ll highlight my best long-term dividend stocks for the next years/decades.
The Best Dividend Kings Today…
Stepan Company (SCL)
Sector: Basic Materials
What It Does: Produces specialty chemicals, like surfactants and polymers, for consumer and industrial products.
Fundamental metrics
– Dividend Yield: 1.95%
– Payout Ratio: 32.2%
– 5-Year Dividend Growth Rate: 6.5%
– Debt-to-Equity Ratio: 0.29
– Return on Equity (ROE): 4.56%
– Price-to-Earnings (P/E) Ratio: 45.1
– Price-to-Book (P/B) Ratio: 1.45
– Analyst Average Price Target: $89.00
– Consecutive Years of Dividend Increases: 57
Technical factors
Since 2021, the price has been moving downward within a descending channel, respecting both its upper resistance and lower support trendlines. Currently, we see a third touch of the lower channel, which could act as support.
Adding to this, the $50 level has historically served as support when the price has traded at these levels. Though it has been a while, historical levels remain relevant.
We also have a Fibonacci retracement at 62% (Golden Ratio). While I don’t use Fibonacci often, when drawn from all-time lows to all-time highs and aligning with a key technical zone, it strengthens the case for support.
With the channel support, the $50 level, and Fibonacci alignment, a critical price zone forms between $45 and $55. This area is worth watching for potential buying opportunities or reversals.
———————
Hormel Foods Corporation (HRL)
Sector: Consumer Defensive
What It Does: Makes branded meat and food products, like SPAM and Skippy.
Fundamental metrics
– Dividend Yield: 3.77%
– Payout Ratio: 76.4%
– 5-Year Dividend Growth Rate: 7.7%
– Debt-to-Equity Ratio: 0.48
– Return on Equity (ROE): 9.8%
– Price-to-Earnings (P/E) Ratio: 20.5
– Price-to-Book (P/B) Ratio: 2.03
– Analyst Average Price Target: $31.00
– Consecutive Years of Dividend Increases: 58
Technical Factors
I like the way the price took liquidity and dropped below the 2017 low, only to get rejected from there. Now, it’s coming back for a second retest, which has the potential to hold.
If the price drops sharply, like HRL has done in the past, especially between 2022 and 2024, the recovery takes time. Yes, it found liquidity and printed a big Monthly candle in February 2024 but these things don’t play out overnight. It takes time.
The current correction looks fairly good, and I can recommend it technically. The criteria aren’t quite there, but I’m leaning on experience and visual patterns to read the setup. And for those looking for confirmation – yes, we have RSI divergence around the bottom, so at least there’s something to work with.
—————-
Kimberly-Clark Corporation (KMB)
– Sector: Consumer Defensive
– What It Does: Produces personal care and hygiene products, like Huggies and Kleenex.
Fundamental metrics
– Dividend Yield: 3.52%
– Payout Ratio: 66.8%
– 5-Year Dividend Growth Rate: 4.0%
– Debt-to-Equity Ratio: 5.18
– Return on Equity (ROE): 231.0%
– Price-to-Earnings (P/E) Ratio: 16.12
– Price-to-Book (P/B) Ratio: 35.8
– Analyst Average Price Target: $150.00
– Consecutive Years of Dividend Increases: 53
Technical Factors
The story here is simple: we need a monthly close above $150. That would signal a fight back above a key resistance zone, one that has repeatedly rejected price action in the past.
Yes, the price has been above $150 before, but that move turned out to be a fakeout. After that, $140 has only strengthened as a key support level. Since 2020, the stock has made multiple breakout attempts every year, yet none have had the momentum to sustain a move higher.
Dividends will keep coming but if you’re looking for both dividends and upside potential, the best approach is patience. Wait for a monthly candle close above $150, and then the stock should have what it takes to climb to higher levels again.
———————
PPG Industries, Inc. (PPG)
– Sector: Basic Materials
– What It Does: Manufactures paints, coatings, and specialty chemicals.
Fundamental metrics
– Dividend Yield: 2.2%
– Payout Ratio: 40.8%
– 5-Year Dividend Growth Rate: 6.1%
– Debt-to-Equity Ratio: 0.81
– Return on Equity (ROE): 18.7%
– Price-to-Earnings (P/E) Ratio: 19.8
– Price-to-Book (P/B) Ratio: 3.62
– Analyst Average Price Target: $141.00
– Consecutive Years of Dividend Increases: 53
Technical Factors
Once again, PPG has arrived near a key support area – almost there. The strong resistance zone from 2014 to 2020 has now started to act as support, a common technical shift when previous ceilings turn into floors. The last test of this level lacked momentum but this time, the setup looks stronger with better confluence factors.
Keep your eyes on $90 – $100. Several technical elements align in this zone
– Two trendlines – One drawn from closing prices, the other from wicks, with the middle point acting as the major zone
– A psychological round number at $100, reinforcing the support
– 50% retracement from the all-time high
– Monthly EMA200, which was respected perfectly during the COVID crash, adding further technical weight
Yes, the dividend yield is relatively low, but this setup presents an opportunity to benefit from price growth. The choice is yours – strictly dividends or a combination of growth and yield.
———————
I hope my take on them has been helpful – now, let’s move on to my favorites! The most interesting candidates from a technical analysis perspective. And let’s be honest, their strength isn’t limited to just charts!
If you’re curious about the rest of my favorites, I’d be grateful if you’d check out the full list on Substack – link’s in my bio (under the Website icon) –
If you’re on mobile, just scroll down to my signature and choose your preferred language!
Give this post a boost if you liked it – appreciate the support!
All the best,
Vaido