Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.
A recent study from the Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past half-century (1973-2022). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
Most dividend investors aim to secure a reliable passive income stream from quality dividend stocks. Passive income is a consistent unearned income that does not require active traditional work. It is a financial goal that can be achieved through various means, including investments, real estate, or side hustles.
Investors seeking dividend dependability to generate solid passive income streams may be drawn to the Dividend Kings. These 53 companies have not just raised their dividends but have done so for 50 consecutive years or more, demonstrating a level of reliability and trust that investors can count on. We screened the list for the six highest-yielding companies, which includes three very conservative utility stocks.
Why do we cover the Dividend Kings?
The fact that these companies have raised their dividends for 50 years is more a testament to their dependability and reliability. Those are two “must-have” items for investors who rely on passive income to boost their overall revenue.
Altria
Source: Mario Tama / Getty Images
This tobacco company offers value investors a great entry point and a rich 8.73% dividend. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.
The company provides cigarettes primarily under the Marlboro brand, as well as:
- Cigars and pipe tobacco, principally under the Black & Mild brand
- Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
- on! Oral nicotine pouches.
It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
Altria owns over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer. Recently, the company announced it would sell 35 million of its 197 million shares through a global secondary offering.
Universal Corporation
Source: Matt Cardy / Getty Images
While this company’s products, like Altria’s, may not be for everyone, they have strong demand, have been in business for almost 150 years, and offer shareholders a hefty 5.92% dividend. Universal Corp. (NYSE: UVV) processes and supplies leaf tobacco and plant-based ingredients worldwide.
The company operates through two segments:
- Tobacco Operations
- Ingredients Operations
It procures, finances, processes, packs, stores, and ships 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
- Manufactures dark air-cured tobaccos, naturally wrapped cigars, cigarillos, and smokeless and pipe tobacco products.
Universal 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
- Customer smoke testing services
Canadian Utilities
Source: zhengzaishuru / iStock via Getty Images
With a strong 5.72% dividend and residing in a highly safe sector, this stock is a steal at current trading levels. Canadian Utilities Ltd. (OTC: CDUAF) together with its subsidiaries, engages in the electricity, natural gas, renewables, pipelines, liquids, and retail energy businesses in Canada, Australia, and internationally.
It operates through three segments:
- ATCO Energy Systems
- ATCO EnPower
- Corporate & Other segments
The ATCO Energy Systems segment provides regulated electricity transmission and distribution services in:
- Northern and central east Alberta
- The Yukon
- The Northwest Territories
- The Lloydminster area of Saskatchewan
This segment also provides integrated natural gas transmission and distribution services in Alberta, the Lloydminster area of Saskatchewan, and Western Australia. It owns and operates approximately 9,100 kilometers of natural gas pipelines, 11 compressor sites, approximately 3,600 receipt and delivery points, and a salt cavern natural gas storage peaking facility near Fort Saskatchewan, Alberta in Canada.
The ATCO EnPower segment provides:
- Hydro
- Solar
- Wind
- Natural gas electricity generation
- Natural gas storage
- Industrial water solutions
- Clean fuels, including hydrogen, carbon capture, and underground storage projects; and related infrastructure development in Alberta, the Yukon; the Northwest Territories, Australia, Ontario, Mexico, and Chile
The Corporate & Other segment retails electricity and natural gas and provides whole-home solutions.
Northwest Natural Holding
Source: Kerkez / Getty Images
This off-the-radar utility stock suits worried conservative investors and pays a solid 5.09% dividend. Northwest Natural Holding Co. (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. It 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
- Water services to about 80,000 people through about 33,000 water and wastewater connections in the Pacific Northwest and Texas
Black Hills
Source: onurdongel / E+ via Getty Images
This Dividend King is way off the radar for many but is among the safest plays now and pays a hefty 4.56% dividend. Through its subsidiaries, Black Hills Corp. (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 also 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
- Wyoming
In addition, the company 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 also constructs and maintains gas infrastructure facilities for gas transportation customers, provides appliance repair services to residential utility customers, and constructs electrical systems for large industrial customers.
Lastly, it produces electric power through wind, natural gas, coal-fired generating plants, and coal at its coal mine near Gillette, Wyoming.
Federal Realty Investment Trust
Source: anouchka / iStock Unreleased via Getty Images
While real estate has slowly come back, 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 in major coastal markets from the District of Columbia to Boston, San Francisco, and Los Angeles.
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
- Assembly Row in Somerville, Massachusetts
Federal Realty’s 102 properties include approximately 3,300 tenants in 26 million square feet and 3,100 residential units. Federal Realty has increased its quarterly dividends to its shareholders, which is currently 4.29% for 56 consecutive years, the longest record in the REIT industry.
∴
ALERT: Take This Retirement Quiz Now (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
