Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study from Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the half-century period from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

Companies that have raised the dividends shareholders receive for 50 years or longer are the kind of investments that passive income investors need to own. Dependability is necessary for those seeking to bolster their yearly income with dividend stock investments. The Dividend Kings are the 54 companies that have raised their dividends for 50 years or 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.

Three of the highest-yielding members also have solid support from Wall Street analysts, and all three have a Buy rating to go with a solid price target.

Why we recommend the Dividend Kings

Companies that have paid and raised their dividends for 50 years and longer are the kind that growth and income investors want to buy and hold in stock portfolios forever. These stocks are mostly conservative, and should we see a dramatic market correction, they will likely keep their ground much better than volatile technology names.

Altria

This tobacco company offers value investors a great entry point and a rich 7.08% 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
• e-vapor products under the NJOY ACE brand

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria used to own over 10% of Anheuser-Busch InBev N.V. (NYSE: BUD), the world’s largest brewer. Earlier this year, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings, but it still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.

Bank of America Securities has a Buy rating to go with its $65 target price.

Hormel Foods

With a dependable 3.87% dividend and many well-known products, Hormel Foods Corp. (NYSE: HRL) is a safe investment now. The company develops, processes, and distributes various meat, nuts, and other food products to retail, food service, deli, and commercial customers in the United States and internationally. It operates through three segments: Retail, Food Service, and International.

The company provides various perishable products, including fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacon, and shelf-stable products, including canned luncheon meats, nut butter, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, nutritional food supplements, and others.

It sells its products under these brands:

• Hormel
• Always Tender
• Applegate
• Austin Blues
• Bacon 1
• Black Label
• Bread Ready
• Burke
• Café H
• Ceratti
• Chi-Chi’s
• Columbus
• Compleats
• Corn Nuts
• Cure 81
• Dan’s Prize
• Di Lusso
• Dinty Moore
• Don Miguel
• Doña Maria
• Embasa
• Fast N Easy
• Fire Braised
• Fontanini
• Happy Little Plants
• Herdez
• Hormel Gatherings
• Hormel Square Table
• Hormel Vital Cuisine
• House of Tsang
• Jennie-O
• Justin’s
• La Victoria
• Layout
• Lloyd’s
• Mary Kitchen
• Mr. Peanut
• Natural Choice
• Nut-rition
• Old Smokehouse
• Oven Ready
• Pillow Pack
• Planters
• Rosa Grande
• Sadler’s Smokehouse
• Skippy
• Spam
• Special Recipe
• Thick & Easy
• Valley Fresh
• Wholly

Citigroup has a Buy rating and a $35 target price.

Northwest Natural

This off-the-radar small-cap utility stock suits worried conservative investors and pays a solid 4.75% 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
• Offers natural gas asset management services
• 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

Stifel has a Buy rating on the shares with a $44 price target.

The 5 Highest-Yielding Monthly Dividend Stocks Deliver Gigantic Passive Income Streams

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