In 2026, the Dividend Kings have significantly outperformed the S&P 500 as investors rotate out of high-valuation growth stocks and into companies offering stable, reliable cash flows. This shift is clearly visible in fund flows: the equal-weighted NOBL Dividend Aristocrats ETF has outperformed market-cap-weighted growth funds during the 2026 rotation. Its equal-weight structure helps it avoid being dragged down by the heavy concentration in a handful of large-cap tech names that dominate many growth benchmarks.
The Dividend Kings are the 56 companies that have raised their dividends for at least 50 years, a testament to their dependability and consistency. Those are two “must-have” items for investors who rely on passive income to supplement their overall income. Unlike the Dividend Aristocrats, the Dividend Kings do not have to be members of the S&P 500.
We screened the current Dividend Kings for companies that are outperforming the S&P 500, which is up 9% this year, and four of our favorite companies are significantly outperforming the venerable index. Of course, all four offer reliable passive income given their Dividend Kings status, but they also deliver big total returns to shareholders. All four are rated Buy by the top Wall Street firms we cover.
Why we recommend the Dividend Kings
Companies that have paid and raised dividends for 50 years or more are the kinds of stocks growth and income investors want to buy and hold in their portfolios indefinitely. These stocks are mostly conservative and, should a dramatic market correction occur, will likely hold their ground much better than volatile technology names.
Coca-Cola
Coca-Cola (NYSE: KO | KO Price Prediction) is an American multinational corporation founded in 1892. This company remains a top long-time holding of Warren Buffett, whose 400 million shares are 9.3% of the float and 9.9% of the portfolio. The stock pays a dependable 2.48% dividend. Surging by more than 16% year to date, the stock is easily outpacing both the S&P 500 and the Nasdaq Composite while extending its historic dividend growth streak to 64 consecutive years.
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. And remember that the company owns 19.5% of Monster Beverage (NASDAQ: MNST), which continues to deliver strong financial results.
Citigroup has a Buy rating with a $91 target price on the shares.
Colgate-Palmolive
This consumer staples giant has been an outstanding idea for conservative investors, paying a dividend every year since 1895 and currently yielding 2.19%. Colgate-Palmolive (NYSE: CL) is a growth company focused on Oral Care, Personal Care, Home Care, and Pet Nutrition. The shares have surged roughly 20.4% year to date. The consumer staples giant remains an ultra-reliable income stock. It features an uninterrupted streak of payouts stretching back to 1895. It has also successfully increased its annual dividend distribution for 63 consecutive years.
The company sells its products under such brands as:
- Colgate
- Palmolive
- Elmex
- Hello
- Meridol
- Sorriso
- Tom’s of Maine
- EltaMD
- Filorga
- Irish Spring
- Lady Speed Stick
- PCA SKIN
- Protex
- Sanex
- Softsoap
- Speed Stick
- Ajax
- Axion
- Fabuloso
- Murphy
- Soupline
- Suavitel
- Hill’s Science Diet and Hill’s Prescription Diet
The Home Care product segment is managed geographically in five segments:
- North America
- Latin America
- Europe
- Asia Pacific
- Africa/Eurasia
All the segments sell primarily to a variety of traditional and e-commerce retailers, wholesalers, distributors, dentists, and skin health professionals.
The Pet Nutrition products include specialty pet nutrition products manufactured and marketed by Hill’s Pet Nutrition. Customers of Pet Nutrition products include authorized pet supply retailers, veterinarians, and e-commerce retailers.
UBS has a big $100 target price.
Kimberly-Clark
Kimberly-Clark (NYSE:KMB) is an American multinational personal care company that primarily manufactures and markets paper-based consumer products worldwide. The stock is also beating the index this year, up over 13%. Yielding 4.41%, the company raised its dividend for the 54th consecutive year earlier this year, retaining its spot on the Dividend Kings list.
It operates through three segments. The Personal Care segment offers a diverse range of products, including:
- Disposable diapers
- Swim pants, training and youth pants, baby wipes
- Feminine and incontinence care products
It provides related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Depends, Plenitud, Softex, Poise, and other brand names.
The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under these brand names:
- 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.
In 2025, Kimberly-Clark announced it would acquire Kenvue (NYSE: KVUE) in a $48.7 billion deal, with the transaction expected to close in the second half of 2026. The acquisition will create a combined consumer health and wellness company, with Kenvue shareholders receiving cash and stock. Kenvue shareholders will get $3.50 in cash plus 0.14625 shares of Kimberly-Clark.
Piper Sandler has an Overweight rating with a $121 target price.
Target
The steady dividend and improving consumer have helped boost the shares big in 2026. Target (NYSE: TGT) is a general merchandise retailer in the United States that offers apparel for women, men, boys, girls, toddlers, infants, and newborns, as well as jewelry, accessories, and shoes. The company also offers a range of beauty and personal care products, baby gear, cleaning supplies, paper products, and pet care products.
Surging 32% through early July 2026, the stock is easily outpacing the S&P 500’s roughly 9% rally. Despite this massive outperformance, it still trades at a cheap valuation and offers an attractive dividend yield of 3.56%.
Target also provides:
- Dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, and food service
- Electronics, which includes video game hardware and software
- Toys, entertainment, sporting goods, and luggage
- Furniture, lighting, storage, kitchenware, small appliances, home décor, bed, and bath
- Home improvement
- School and office supplies
- Greeting cards, party supplies, and other seasonal merchandise
In addition, the company sells merchandise through periodic design and creative partnerships, shop-in-shop experiences, and in-store amenities. It also sells its products through its stores and digital channels, including Target.com.
Jefferies has a Buy rating and a $161 target price.
Contact [email protected] for any questions or corrections.
Top Gaining Stocks
Top Losing Stocks