/Becton%20Dickinson%20%26%20Co_%20logo%20on%20phone-by%20T_Schneider%20via%20Shutterstock.jpg)
While it’s easy to pick from the most popular companies, like the Apples and Nvidias of the world, sometimes a more defensive pick is also warranted. I’m talking about stocks that pay you income as you hold them, making them perfect for volatile markets and uncertain economies.
While it’s easy to get lost in the noise, picking quality names from the Dividend Kings list can be an excellent starting point to narrow down the search. Dividend Kings are companies that have consistently paid and increased their dividends for at least the last 50 years. The list represents financially stable companies that are prudent in their actions and can still grow their business. Now, these companies are usually expensive, which means their yields are also typically low. But with the recent pullback, some are trading at attractive valuations, allowing you to snag some bargains.
So, let’s talk about the cheapest Dividend Kings in the market today.
How I Came Up With Today's List of the Cheapest Dividend Kings
To start this analysis, I jumped into Barchart’s Stock Screener and used the following filters:
- Watchlists: Dividend Kings
- Annual Dividend Yield: Blank
- Current Analyst Rating: 4.5 to 5 (Strong Buy)
- P/E Ratio TTM: 30 and below. This shows how much you’re paying for every dollar of a company’s earnings, useful when comparing it to the sector average.
The results from that screen provided me with six companies representing the cheapest Dividend Kings today.
I took the top three based on the lowest P/E. Now, let’s talk about each company, starting with the top one:
Tennant Company (TNC)
Tennant Company was founded in 1870. With headquarters in Minnesota, today, they are a global leader in designing, manufacturing, and marketing cleaning equipment and technology.
The company specializes in industrial and commercial-grade cleaning machines, including scrubbers, sweepers, and similar equipment. This allows it to serve different industries, including manufacturing, healthcare, retail, education, and logistics. It has been able to integrate robotic cleaning equipment and IoT-enabled machines, making its products future-proof.
One of the innovations it developed is the use of electrolysis to create a solution with microscopic bubbles that enhances cleaning power. It reverts to plain water after use, leaving no harmful residues. This innovation has earned TNC numerous environmental awards, including recognition from the U.S. Environmental Protection Agency, and a spot on Time’s Best Companies for Sustainable Growth in 2025.
Like most Dividend Kings, Tennant pays dividends every quarter, totaling $1.18 annually, which represents around a 1.6% yield. Tennant Company has increased its dividends for 53 consecutive years, up 29.55% in the last five years alone, making it a core member of the Dividend Kings.
Thanks to recent market volatility, now might be a good time to build a position. TNC stock is trading at a P/E (ttm) of 11.04, which is well below the industry average of 21.92.
Becton Dickinson and Company (BDX)
Becton, Dickinson and Company (BD) is a leading global medical technology firm specializing in the development, manufacturing, and distribution of medical devices, diagnostic instruments, and reagents. The company serves a diverse clientele, including healthcare institutions, physicians, clinical laboratories, life science researchers, and the pharmaceutical industry.
Their company is composed of three segments:
- BD Medical: produces needles, catheters, and syringes,
- BD Life: offers diagnostic tools for infectious diseases and cancer,
- BD Interventional: focuses on surgical and vascular products.
One of BD's flagship systems, the BD FACSAria, is widely used in laboratories worldwide and can process thousands of cells per second, making it crucial for developing targeted therapies and understanding complex diseases. 2025 brings more development, integrating software and automation to facilitate even faster data analysis.
The company has increased its dividends for 53 consecutive years, with its latest increase raising its annual payout to $4.16, which yields around 2%. The stock is also trading at around 14.74 times its trailing twelve-month earnings, which is low compared to the healthcare sector’s 17.02.
California Water Service Group Holding (CWT)
California Water Service Group is a holding company that provides water utility and other related services in California, Washington, New Mexico, Hawaii, and Texas and is the third-largest publicly traded water utility company in the US. Founded in 1926, the company currently serves around 2 million people across 100 communities. Cal Water’s 2024 investments focused on infrastructure to address droughts and retrofit aging systems.
Cal Water is a notable Dividend King and has increased dividends for 58 years. Its annual dividend is $1.20, reflecting a yield of around 2.3%. Meanwhile, the utility sector trades at an average P/E of 18.28, which means that CWT stock could be seen as cheap at a P/E of 15.22.
Final Thoughts
Market dips can be excellent opportunities to buy quality stocks at a discount, such as those on the Dividend Kings list. However, before hitting the “buy” button, it's always a good idea to gauge how “cheap” a stock is relative to its industry - which just goes to show that due diligence is non-negotiable in investing. So, do your research, keep an eye out for opportunities, and always err on the side of safety.
