Persistent inflation is likely to keep the Federal Reserve from cutting rates until well into 2027. Rising costs in services, housing, energy, and tariffs continue to keep inflation above the Fed’s 2% target, while the labor market remains strong enough to support wage pressures. Because of this, the Fed is expected to keep rates higher for longer rather than risk inflation rising again. Bank of America economists recently said they do not expect rate cuts until mid- or late 2027, and they are not the only ones on Wall Street who feel that way. Remember that even with a peace agreement with Iran, oil will still stay above the $50 to $60 a barrel level that was baked in last year for 2026. That, plus rising food prices, could force the Fed to hold its fire for another year or longer.
Companies that have raised dividends for shareholders for 50 years or more are the kinds of investments passive income investors need to own. Dependability is crucial for investors seeking to grow their annual income through dividend stocks. The Dividend Kings are the 58 companies that have raised their dividends for at least 50 years, a testament to their dependability and consistency. These are two essential qualities for investors who rely on dividends to supplement their overall income.
Unlike the Dividend Aristocrats, the Dividend Kings do not have to be members of the S&P 500. Notably, 36 of the 58 members are outperforming the broader market year to date. The 2026 outperformance makes sense in context: stable dividend growers like the Dividend Kings tend to underperform in bull markets but outperform relative to the market during more volatile or bearish stretches, and given the extended valuation in the stock market, they likely make the most sense now.
We screened the current Dividend Kings list for the safest stocks in the group and found five that are outstanding ideas for growth and income investors unnerved by the current volatility in the stock market. While the war in Iran will not last forever, the near term could be volatile, and those needing to put capital to work should consider the safest Dividend Kings now. All five are rated Buy by the top Wall Street firms we cover.
Why do we cover the Dividend Kings stocks?
Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
ADP
This company, founded in 1949, is a global leader in payroll and HR services and provides cloud-based software trusted by over 80% of Fortune 100 companies. Automatic Data Processing (NYSE: ADP | ADP Price Prediction) is a global technology company engaged in providing cloud-based human capital management (HCM) solutions that unite HR, payroll, talent, time, tax, and benefits administration. The company benefits from its dominant position in payroll and HR services, with highly recurring, subscription-like revenue, and pays a 2.95% dividend.
Its segments include:
- Employer Services
- Professional Employer Organization (PEO)
The Employer Services segment serves clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees worldwide, offering a range of technology-based HCM solutions, including its cloud-based platforms and human resource outsourcing (HRO) solutions (other than PEO).
The company’s offerings include:
- Payroll Services
- Benefits Administration
- Talent Management
- HR Management
- Workforce Management
- Compliance Services
- Insurance Services
- Retirement Services
Its PEO business, called ADP TotalSource, provides clients with employment administration outsourcing solutions. ADP serves over 1.1 million clients in 140 countries and territories.
Mizuho has a Buy rating with a $305 target price.
Coca-Cola
Coca-Cola (NYSE: KO) is an American multinational corporation founded in 1892. This company has been a long-time top holding of Warren Buffett and Berkshire Hathaway, and it pays a reliable 2.56% dividend. Buffett owns a massive 400 million shares, representing 9.3% of the float and 9.9% of Berkshire’s portfolio. Organic revenue rose 5% in 2025, and the company anticipates 4% to 5% growth in 2026, with analysts projecting adjusted EPS growth of 7% to 8%.
Coca-Cola is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands. Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, including:
- Diet Coke
- Coca-Cola Light
- Coca-Cola Zero Sugar
- Caffeine-free Diet Coke
- Cherry Coke
- Fanta Orange
- Fanta Zero Orange
- Fanta Zero Sugar
- Fanta Apple
- Sprite
- Sprite Zero Sugar
- Simply Orange
- Simply Apple
- Simply Grapefruit
Fresca - Schweppes
- Dasani
- Fuze Tea
- Glacéau Smartwater
- Glacéau Vitaminwater
- Gold Peak
- Ice Dew
- Powerade
- Topo Chico
- Minute Maid
Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of over 1.9 billion servings per day. It’s also important to remember that the company owns 16% of Monster Beverage (NASDAQ: MNST), which continues to deliver strong financial results.
UBS has a Buy rating and a target price of $92.
Emerson Electric
This technology and industrial giant has raised its dividend for 69 consecutive years. Emerson Electric (NYSE: EMR) is a global technology and software company that provides solutions to customers across a wide range of end markets worldwide. This long-tenured industrial Dividend King has a diversified automation and technology portfolio that has weathered numerous economic downturns and pays a 1.53% dividend.
The company operates through seven segments under two business groups. The Intelligent Devices business includes:
- Final Control
- Measurement & Analytical
- Discrete Automation
- Safety & Productivity
The Software and Control business encompasses:
- Control Systems & Software
- Test & Measurement
- AspenTech
The Final Control segment is a global provider of:
- Control valves
- Isolation valves
- Shutoff valves
- Pressure relief valves
- Pressure safety valves
- Actuators
- Regulators for process and hybrid industries
Its Measurement & Analytical segment is a supplier of intelligent instrumentation that measures the physical properties of liquids and gases. The AspenTech segment provides asset optimization software that enables industrial manufacturers to design, operate, and maintain their operations.
Loop Capital has a Buy rating and a $180 price target.
Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is a multinational American corporation specializing in pharmaceuticals, biotechnology, and medical devices. With shares trading at 14.5 times forward earnings and paying a 2.25% dividend, this diversified healthcare giant looks attractively valued at current prices. It is among the most conservative of major pharmaceutical companies, with a diverse product portfolio and a well-established brand. The company researches, develops, manufactures, and sells a range of healthcare products. Its primary focus is on products related to human health and well-being.
It operates through two segments. The Innovative Medicine segment is focused on various therapeutic areas, including:
- Immunology
- Infectious diseases
- Neuroscience
- Oncology
- Pulmonary hypertension
- Cardiovascular and metabolic diseases.
Products in this segment are distributed directly to retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use.
The MedTech segment encompasses a diverse portfolio of products used in orthopedics, surgery, interventional solutions, cardiovascular intervention, and vision care. It also offers a commercially available intravascular lithotripsy (IVL) platform for the treatment of coronary artery disease and peripheral artery disease.
Argus has a Buy rating with a $275 target price.
Procter & Gamble
Procter & Gamble (NYSE: PG) was founded more than 185 years ago as a soap-and-candle company. It has paid dividends to shareholders since 1891, raised them for 70 straight years, and currently pays a 2.90% dividend. Procter & Gamble focuses on providing branded consumer packaged goods worldwide. This is one of the most widely held Dividend Kings, with a portfolio of essential consumer brands that generate steady cash flow through all economic cycles.
The company’s segments include:
- Beauty
- Grooming
- Health Care
- Fabric & Home Care
- Baby
- Feminine & Family Care
Its products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores, high-frequency stores, pharmacies, electronics stores, and professional channels. It also sells directly to individual consumers. It has operations in approximately 70 countries.
Procter & Gamble offers products under such brands as:
- Head & Shoulders
- Herbal Essences
- Pantene
- Rejoice
- Olay
- Old Spice
- Safeguard
- Secret
- SK-II
- Braun
- Gillette
- Venus
- Crest
- Oral-B
- Ariel
- Downy
- Gain
- Tide
- Always
- Always Discreet
- Tampax
- Bounty
UBS has a Buy rating with a $177 price objective.
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