At 24/7 Wall St., we know how important dividend size, stability and growth are to growth and income investors that need a dependable stream of income. We often have written about the opportunities that the Dividend Aristocrats offer for long-term investors. These are the companies that meet the guidelines for inclusion and have raised their dividends every year for 25 consecutive years. Just 66 stocks made the cut in 2022 and remain top picks across Wall Street.
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For those seeking even greater dividend dependability, investors may be drawn to the Dividend Kings. These 44 companies have raised the dividends they pay to shareholders for a stunning 50 consecutive years or longer.
Despite last week’s big rally, the market may once again start teetering on the abyss and we may be headed much lower. If that is indeed the case, then it may be time for investors to look for momentum or high beta stocks lurking in their portfolios, especially if they are still profitable or flat, and move the capital invested in them to one of the safest Dividend Kings.
We screened the current Dividend Kings list for the seven highest-yielding stocks, and we listed them in order of the biggest dividends. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Altria
This maker of tobacco products offers value investors a great entry point now as it has been hit as cigarette sales have slowed. Altria Group Inc. (NYSE: MO) is the parent company of Philip Morris USA (cigarettes), UST (smokeless), John Middleton (cigars), Ste. Michelle Wine Estates and Philip Morris Capital. PMUSA enjoys a 51% share of the U.S. cigarette market, led by its top cigarette brand Marlboro.
Altria also owns over 10% of Anheuser-Busch InBev, the world’s largest brewer. In March 2008, it spun off its international cigarette business to shareholders. In December 2018, the company acquired 35% of Juul Labs, and it has purchased a 45% stake in cannabis company Cronus for $1.8 billion.
Shareholders receive a 6.61% dividend. BofA Securities has a $58 target price on Altria stock. The consensus target is $58.83, and the stock closed on Tuesday at $54.09.
24/7 Wall St.Universal
While this company’s products, like Altria’s, may not be for everyone, they have strong demand, and it has been in business for almost 150 years. Universal Corp. (NYSE: UVV) processes and supplies leaf tobacco and plant-based ingredients worldwide. It engages in procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products.
The company contracts, purchases, processes and sells flue-cured, burley and oriental tobaccos that are primarily used in the manufacture of cigarettes, and dark air-cured tobaccos principally used in the manufacture of cigars, natural wrapped cigars and cigarillos and smokeless and pipe tobacco products. It also provides value-added services, including blending, chemical and physical testing of tobacco; service cutting for various manufacturers; manufacturing reconstituted leaf tobacco; just-in-time inventory management services; electronic nicotine delivery systems; and smoke testing services for customers.
Universal also offers testing services for crop protection agents and tobacco constituents in seed, leaf and finished products, including e-cigarette liquids and vapors; and analytical services that include chemical compound testing in finished tobacco products and mainstream smoke. Further, it provides various value-added manufacturing processes to produce specialty vegetable and fruit-based ingredients for the food and beverage end markets, as well as provides water pipe style leaf tobacco, and it recycles waste materials from tobacco production.
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Investors receive a 4.98% dividend. We could not confirm which Wall Street firm has the Buy rating on the stock, but we did find that BlackRock owns a stunning 16% of the shares. Over the past year, the stock has traded between $46.24 and $64.13 a share, closing on Tuesday at $63.68.
Leggett & Platt
While somewhat off the radar, this stock has almost been cut in half over the past year and offers massive upside potential. Leggett & Platt Inc. (NYSE: LEG) designs, manufactures and markets engineered components and products worldwide.
The company offers steel rods, drawn wires, foam chemicals and additives, innersprings, specialty foams, private label finished mattresses, mattress foundations, wire forms for mattress foundations, adjustable beds, industrial sewing and quilting machines, and mattress packaging and glue drying equipment, as well as machines to produce innersprings for industrial users of steel rods and wires, manufacturers of finished bedding, big box and e-commerce retailers, bedding brands and mattress retailers, department stores and home improvement centers.
Leggett & Platt also provides mechanical and pneumatic lumbar support and massage systems for automotive seating; seat suspension systems, motors and actuators and cables; titanium, nickel and stainless-steel tubing, formed tubes, tube assemblies and flexible joint components for fluid conveyance systems; and engineered hydraulic cylinders to automobile original equipment manufacturers (OEMs) and Tier 1 suppliers, aerospace OEMs and suppliers, and mobile equipment OEMs.
Investors receive a 4.42% dividend. The Goldman Sachs target price is $50, and the consensus target on Leggett & Platt stock is $46.50. The shares closed at $39.17 on Tuesday.
3M
This top company could really benefit from continued economic pick-up, and the shares are down big this year. 3M Co. (NYSE: MMM) operates as a diversified technology company worldwide. It operates through the following four segments.
The Safety and Industrial segment offers industrial abrasives and finishing for metalworking applications; auto body repair solutions; closure systems for personal hygiene products, masking and packaging materials; electrical products and materials for construction and maintenance, power distribution and electrical original equipment manufacturers; structural adhesives and tapes; respiratory, hearing, eye and fall protection solutions; and natural and color-coated mineral granules for shingles.
3M’s Transportation and Electronics segment provides ceramic solutions; attachment tapes, films, sound and temperature management for transportation vehicles; premium large format graphic films for advertising and fleet signage; light management films and electronics assembly solutions; packaging and interconnection solutions; and reflective signage for highway and vehicle safety.
The Health Care segment offers food safety indicator solutions; health care procedure coding and reimbursement software; skin, wound care and infection prevention products and solutions; dentistry and orthodontic solutions; and filtration and purification systems.
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The Consumer segment provides consumer bandages, braces, supports and consumer respirators; cleaning products for the home; retail abrasives, paint accessories, car care DIY products, picture hanging and consumer air quality solutions; and stationery products.
3M stock comes with a 4.00% dividend. Deutsche Bank has a Hold rating, but its $164 target price compares with a $155.91 consensus target and the most recent close at $149.29
Northwest Natural
This off-the-radar utility stock is a good choice for worried, conservative investors looking for income and safety. Northwest Natural Holding Co. (NYSE: NWN) through its subsidiary Northwest Natural Gas, provides regulated natural gas distribution services to residential, commercial, industrial and transportation customers in the Pacific Northwest.
The company also operates 5.7 billion cubic feet of the Mist gas storage facility contracted to other utilities and third-party marketers; offers natural gas asset management services; and operates an appliance retail center. In addition, it engages in gas storage, water, non-regulated renewable natural gas and other investments and activities.
The company provides natural gas service through approximately 786,000 meters in Oregon and southwest Washington and water services to a total of approximately 80,000 people through approximately 33,000 water and wastewater connections in the Pacific Northwest and Texas.
Shareholders receive a 3.56% dividend. The $62 Maxim target price is higher than the $54.71 consensus target. Northwest Natural stock ended Tuesday trading at $54.29.
24/7 Wall St.Federal Realty Investment Trust
While real estate has come back strongly, demand is still growing and hard assets are good in inflationary times. Federal Realty Investment Trust (NYSE: FRT) is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Boston to Washington, as well as San Francisco and Los Angeles.
Founded in 1962, Federal Realty’s mission is to deliver long-term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland, and Assembly Row in Somerville, Massachusetts.
Federal Realty’s 105 properties include approximately 3,000 tenants in 24 million square feet and over 2,600 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 52 consecutive years, the longest record in the real estate investment trust industry.
Unitholders receive a 3.69% distribution. The price target on Federal Realty Investment Trust stock at Deutsche Bank is $143. The consensus target is lower at $134.53 but still well above Tuesday’s close at $114.97.
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Kimberly-Clark
This consumer staples leader is another safe bet for nervous investors. Kimberly-Clark Corp. (NYSE: KMB) manufactures and markets personal care and consumer tissue products worldwide. It operates through the following three segments.
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