Investing

These 6 Dividend Kings Could Be The Best Stocks The Rest Of 2024

Lee Jackson

Published: March 7, 2024 9:05 am

Over the last two years, interest rates have jumped from historical lows of literally 0% to the highest level since 2007 at 5.5%. 30 FHA Mortgages have jumped from 2.65% in January of 2021 to the current 7.24% rate. During that period, any stock that was the least sensitive to interest rates got hammered, and the damage trail covered several sectors.

While it was a tough stretch for shareholders, 2024 could be the year many interest rate-sensitive stocks bounce back with a vengeance. While the possibility of one final interest rate hike still looms, as inflation has risen again, many across Wall Street feel that the Federal Reserve will begin to lower rates later this year.

Investors may be drawn to the Dividend King seeking dividend dependability. These 53 companies have raised the dividends they pay shareholders for 50 consecutive years.

We screened the Dividend Kings, looking for the stocks with the best upside potential for the rest of 2024. We found six companies that investors should consider now. All are buy-rated on Wall Street.

AbbVie

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This stock is one of the top pharmaceutical stock picks across Wall Street and pays a dependable 3.47% dividend. AbbVie Inc. (NYSE: ABBV) is a global, research-based biopharmaceutical company formed in 2013 following separation from Abbott Laboratories.

The company develops and markets drugs in areas such as:

• Immunology
• Virology
• Renal disease
• Dyslipidemia
• Neuroscience

One of the biggest concerns with AbbVie is what might eventually happen with the anti-inflammatory therapy Humira, which has some of the most significant sales for a drug ever recorded.

The company was concerned, so in June 2019, it announced it had agreed to pay $63 billion to rival drugmaker Allergan Plc. This was the latest merger in an industry where some of the biggest companies have been willing to spend a high price to resolve questions about their future growth.

AbbVie may be nearing the limits of how far it can boost Humira’s price as cheaper competitors come to market. This is a problem Allergan is already grappling with as more alternatives to Botox emerge.

Black Hills Corporation

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This Dividend King is way off the radar for many but is among the safest plays now and pays a 5.06% dividend. Through its subsidiaries, Black Hills Corporation (NYSE: BKH) operates as an electric and natural gas utility company in the United States.

It operates in two segments:

• Electric Utilities 
• Gas Utilities.

The Electric Utilities segment generates, transmits, and distributes electricity to approximately 220,000 electric utility customers in:

• Colorado
• Montana
• South Dakota
• Wyoming 

The company owns and operates 1,482 megawatts of generation capacity and 0,024 miles of electric transmission and distribution lines.

The Gas Utilities segment distributes natural gas to approximately 1,107,000 natural gas utility customers in:

• Arkansas,
• Colorado,
• Iowa,
• Kansas,
• Nebraska, and
• Wyoming;

It owns and operates 4,713 miles of intrastate gas transmission pipelines, 42,222 miles of gas distribution mains and service lines, seven natural gas storage sites, approximately 50,000 horsepower of compression, and 515 miles of gathering lines.

Black Hills Corporation also:

• Constructs and maintains gas infrastructure facilities for gas transportation customers 
• Provides appliance repair services to residential utility customers 
• Electrical system construction services to large industrial customers

In addition, it produces electric power through wind, natural gas, and coal-fired generating plants, as well as coal at its coal mine located near Gillette, Wyoming.

Kenvue

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Spun off from Johnson & Johnson, Inc. (NYSE: JNJ) last year, this potential total return home run pays a solid 3.72% dividend. Kenvue Inc. (NYSE: KVUE) is a global consumer health company.

The company operates through three segments:

• Self Care
• Skin Health and Beauty
• Essential Health

The self-care segment offers cough, cold, and allergy pain care, digestive health, smoking cessation, and other products under:

• Tylenol,
• Nicorette
• Zyrtec brands.

The Skin Health and Beauty segment provides face and body care, hair care, sun care, and other products under:

• Neutrogena
• Aveeno
• OGX brand names.

The Essential Health segment offers oral and baby, women’s health, and wound care products under:

• Listerine
• Johnson’s
• Band-Aid
• Stayfree brands

Kimberly-Clark

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This consumer staples leader is a safe bet for nervous investors, paying a dependable 3.98% dividend. Kimberly Clark Corp. (NYSE: KMB) and its subsidiaries manufacture and market personal care and consumer tissue products worldwide.

It operates through three segments:

• Personal Care
• Consumer Tissue
• K-C Professional

The Personal Care segment offers:

• Disposable diapers, swim pants, training and youth pants
• Baby wipes
• Feminine and incontinence care products and other
• Related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Depend, Plenitud, Softex, Poise, and other brand names.

The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under:

• Kleenex
• Scott
• Cottonelle
• Viva
• Andrex
• Scottex
• Neve

The K-C Professional segment offers wipers, tissues, towels, apparel, soaps, and sanitizers under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands.

National Fuel Gas

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This utility stock offers safety, serious upside potential when rates are lowered later this year, and a reliable 4.06% dividend. National Fuel Gas Company (NYSE: NFG) is a diversified energy company.

It operates through four segments:

• Exploration and Production
• Pipeline and Storage
• Gathering
• Utility

The Exploration and Production segment explores for, develops, and produces natural gas and oil.

The Pipeline and Storage segment provides interstate natural gas transportation services through an integrated gas pipeline system in Pennsylvania and New York and owns and operates underground natural gas storage fields.

This segment also transports natural gas for the National Fuel Gas Distribution Corporation and other utilities, industrial companies, and power producers in New York State.

The Gathering segment builds, owns, and operates natural gas processing and pipeline gathering facilities in the Appalachian region and provides gathering services to Seneca.

The Utility segment sells natural gas or provides natural gas utility services to various customers in:

• Buffalo
• Niagara Falls
• Jamestown, New York
• Erie and Sharon, Pennsylvania

PepsiCo

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This top consumer staples stock will supply the goods for NFL playoff football tailgates and parties and pays a solid 3.04% dividend. PepsiCo, Inc. (NYSE: PEP) is a worldwide food and beverage company.

Its Frito-Lay North America segment offers

• Lays and Ruffles potato chips
• Doritos, Tostitos, and Santitas tortilla chips
• Cheetos cheese-flavored snacks, branded dips
• Fritos corn chips

The company’s Quaker Foods North America segment provides:

• Quaker oatmeal
• Grits
• Rice cakes
• Natural granola and oat squares
• Pearl Milling mixes and syrups
• Quaker Chewy granola bars
• Cap’n Crunch cereal
• Life cereal
• Rice-A-Roni side dishes

Pepsico’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:

• Pepsi
• Gatorade
• Mountain Dew
• Diet Pepsi
• Aquafina
• Diet Mountain Dew
• Tropicana Pure Premium
• Sierra Mist
• Mug brands