Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the stock market’s ups and downs, many people need reliable passive income streams to supplement their income from employment or other sources such as Social Security and pensions.
Some of the best stocks for passive investors are the Dividend Kings: the 58 companies that have raised their dividends for 50 years or more, a testament to their dependability and reliability. Those are two “must-have” qualities for investors who rely on passive income to supplement their overall income. We decided to screen the Dividend Kings and found, surprisingly, that five of the stocks that have raised the dividend every year for the longest time are companies many investors likely have never heard of.
Why We Recommend the Dividend Kings
Companies that have paid and raised dividends for 50 years or more are the kinds of stocks 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 hold their ground much better than volatile technology names.
American States Water
When you have products that everyone depends on and pay a reliable 2.27% dividend that you have raised for 70 years, your investors will likely do well. American States Water (NYSE: AWR) is a holding company with segments in water, electric, and contracted services.
Within the segments, the company has three principal business units: water and electric service utility operations conducted through its regulated utilities, Golden State Water Company (GSWC) and Bear Valley Electric Service (BVES), respectively, and contracted services conducted through American States Utility Services (ASUS) and its subsidiaries.
GSWC is a public water utility that purchases, produces, distributes, and sells water in 11 counties in the state of California, and provides wastewater collection and treatment services.
BVES is a public electric utility that distributes electricity in several San Bernardino County Mountain communities in California.
ASUS operates, maintains, and performs construction activities (including renewal and replacement capital work) on water and wastewater systems at various U.S. military bases.
California Water Service
This company has raised its dividend for a stunning 77 years, yielding 2.44%. California Water Service Group (NYSE: CWT) is a holding company that provides water utility and other related services in California, Washington, New Mexico, Hawaii, and Texas.
Its business is conducted through its operating subsidiaries and provides utility services. The business consists of the production, purchase, storage, treatment, testing, distribution, and sale of water for domestic, industrial, public, and irrigation uses, as well as the provision of domestic and municipal fire protection services.
The company provides wastewater collection and treatment services, including treatment that allows water recycling. It also provides non-regulated water-related services under agreements with municipalities and other private companies.
The non-regulated services include full water system operation, meter reading, and billing services. Non-regulated operations also include the lease of communication antenna sites, lab services, and promotion of other non-regulated services.
Dover
While somewhat off the radar, this company has increased the 0.95% dividend paid to shareholders for an incredible 70 consecutive years. Dover (NYSE: DOV | DOV Price Prediction) is a diversified global manufacturer and solutions provider operating in five primary segments.
The Engineered Products segment provides a range of equipment, components, software, solutions, and services to the vehicle aftermarket, aerospace, defense, and other industries.
Its Clean Energy & Fueling segment provides components, equipment, and software solutions and services. It also designs, manufactures, and supplies vacuum-insulated piping systems for various liquefied gases, including nitrogen, oxygen, carbon dioxide, and other industrial gases.
The Imaging & Identification segment supplies precision marking and coding, product traceability, brand protection, and digital textile printing equipment.
The Pumps & Process Solutions segment manufactures specialty pumps and flow meters, fluid transfer connectors, engineered precision components, instruments, and digital controls.
Dover’s Climate & Sustainability Technologies segment is a provider of energy-efficient equipment, components, and parts.
Emerson Electric
This technology and industrial giant has raised its dividend for 70 consecutive years, which stands at 1.56%, and may be the most familiar name on this list. Emerson Electric (NYSE: EMR) is a global technology and software company that provides solutions to customers across a wide range of end markets worldwide.
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.
Genuine Parts
Investors seeking a solid retail investment should consider purchasing this company, as its products remain in high demand and it has raised its dividend for 70 consecutive years, with the yield currently standing at 3.30%. Genuine Parts (NYSE: GPC) is a global service provider of automotive and industrial replacement parts and value-added solutions.
The company’s Automotive segment distributes replacement parts (other than collision parts) for all makes and models of automobiles, trucks, and other vehicles in North America, Europe, and Australasia. Its main automotive customers are repair and maintenance shops.
The Industrial segment distributes a wide variety of industrial bearings, mechanical and fluid power transmission equipment, including:
- Hydraulic and pneumatic products
- Material handling components
- Related parts and supplies
This business offers replacement parts and solutions to customers in the maintenance, repair, and operation sector, as well as to original equipment manufacturers. Its main industrial customers are businesses operating in distribution, manufacturing, and production equipment.
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