At 24/7 Wall St., we know how vital dividend size, stability, and growth are to growth and income investors who need a dependable income stream. We have often 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. Sixty-seven stocks made the cut in 2023 and remain top picks across Wall Street.
For those seeking even more excellent dividend dependability, investors may be drawn to the Dividend Kings. These are the 50 companies that have raised the dividends they pay to shareholders for a stunning 50 consecutive years in a row or longer.
Treasury yields have traded higher over the last year and a half as the Federal Reserve raised the interest rate from 0% to the current target rate of 5.25%-5.5%. The benchmark 10-year note and the 30-year Treasury long-bond soared to yield heights not seen since 2007.
Investors feeling that the Federal Reserve may be done with increasing the fed-funds rate started to buy maturities across the curve, and investors like Bill Ackman, who were shorting the long bond, began to cover. The current 10-year note trades at 4.64%, while the 30-year bond is at 4.82%.
We found 5 Dividend Kings that all yield more than the 10-year and 30-year paper. While theoretically not as safe for total return investors looking for growth and income, they make more sense now:
This maker of tobacco products offers value investors a great entry point now and pays a massive 9.64% dividend. Altria Group Inc. (NYSE: MO) is the parent company of:
- Philip Morris USA (cigarettes)
- UST (smokeless)
- John Middleton (cigars)
- Ste. Michelle Wine Estates
- Philip Morris Capital Corp
- Philip Morris USA enjoys a 51% share of the US cigarette market, led by its top cigarette brand, Marlboro
Altria also owns over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer, which some feel is worth more than $10 billion and maybe a segment of the company that could be sold.
Leggett & Platt
While somewhat off-the-radar, this stock pays a whopping 7.68% dividend. Leggett & Platt Incorporated (NYSE: LEG) designs, manufactures, and markets engineered components and products worldwide. It operates through three segments: Bedding, Specialized Products, Furniture, Flooring & Textile Products.
The company offers steel rods, drawn wires, foam chemicals, and additives, innerspring:
- Specialty foams, private label finished mattresses, mattress foundations
- Wire forms for mattress foundations, adjustable beds, industrial sewing and quilting machines, mattress packaging and glue drying equipment
- Devices to produce innerspring 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
- Cables; titanium, nickel, and stainless steel tubing; formed tubes, tube assemblies, and flexible joint components for fluid conveyance systems
- Engineered hydraulic cylinders to automobile OEMs and Tier 1 suppliers, aerospace OEMs and suppliers, and mobile equipment OEMs
While this company’s products, like Altria’s, may not be for everyone, they have strong demand and pay a fat 6.32% dividend. Universal Corporation (NYSE: UVV) processes and supplies leaf tobacco and plant-based ingredients worldwide. The company operates through two segments: Tobacco Operations and Ingredients Operations.
Universal Corporation is involved 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, naturally wrapped cigars and cigarillos, smokeless and pipe tobacco products.
- It also provides value-added services, including blending, chemical, and physical tobacco testing, 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.
In addition, Universal Corporation 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.
- The company also provides various value-added manufacturing processes to produce specialty vegetable and fruit-based ingredients for the food and beverage end markets, provides water pipe style leaf tobacco, and recycles waste materials from tobacco production.
This is a top blue-chip company that pays shareholders a hefty 6.39% dividend. 3M Company (NYSE: MMM) is a diversified technology company worldwide. It operates through four segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer.
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.
The 3M Transportation and Electronics segment provides ceramic solutions; attachment tapes, films, sound, and temperature management for 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.
Italy, the company’s Healthcare segment offers food safety indicator solutions; healthcare procedure coding and reimbursement software; skin, wound care, and infection prevention products and solutions; dentistry and orthodontic solutions; and filtration and purification systems.
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.
Northwest Natural Holding
This is an off-the-radar utility stock that is a good choice for worried conservative investors and pays a solid 4.96% dividend. Northwest Natural Holding Company (NYSE: NWN), through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, industrial, and transportation customers in Oregon and Southwest Washington.
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 about 80,000 people through about 33,000 water and wastewater connections in the Pacific Northwest and Texas.
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