Consistency is king… literally. As an investor focused on building a sustainable passive income, I look for companies that not only pay dividends but consistently raise them. Maybe you’ve heard about the Dividend Aristocrats, S&P 500 listed companies that have been paying consistently increasing dividends for 25 years. Still, there’s an even more elite group: the Dividend Kings. These companies have thrived through all market conditions, increasing their dividend payouts every single year for at least 50 years.
If you think that the recent tariff debacle was brutal, Dividend Kings survived wars, financial collapses, and recessions, highlighting its track record of financial resilience and shareholder commitment.
However, note that not all Dividend Kings are created equal. Some may have soft yields but offer strong growth, while others offer high yields right now - and that is where I am focusing today.
So, how do we know if it’s a buy or not? We stick to the fundamentals. A company’s financial performance tells us about the company’s current position. Additionally, valuation metrics and indicators such as analyst sentiment and Barchart Opinion are great tools to uncover if the stock is, in fact, a buy.
So, today, I’ll walk and dig into the top 5 highest-yielding Dividend Kings and whether they are worth owning today.
How I Came Up With The Following Dividend Stocks
I used Barchart’s Stock Screener to find companies on my Kings watchlist with the highest dividend yields to get today’s list. I’ll be covering their financials, high targets, analyst ratings, and Barchart Opinion - which hints at the stock’s short-term direction.
- Annual Dividend Yield: We will use this filter to sort the stocks according to the highest dividends.
- Watchlists: Dividend Kings
With all of this set, I ran the screen and got the following results:
So, except for Universal Corp, which does not have an analyst rating, here are the five highest-yielding Dividend Aristocrats. The question is: are they a buy today? Let me cover that for you, starting with number one:
Altria Group (MO)
Altria Group is a leader in the manufacturing and production of tobacco products in the U.S. It used to own Philip Morris, the most profitable U.S. cigarette manufacturer, whose portfolio is led by Marlboro. While Philip Morris is no longer a subsidiary of Altria, the company retains exclusive rights to sell Marlboro domestically, which I think was a genius move. Altria is also extending its dominance by leading in the moist smokeless tobacco and oral tobacco industry.
The company’s second-quarter financials reported sales of $6.2 billion, declining 1.7% from the same quarter last year. Its net income also weakened 10.1% to $1.4 billion. Altria pays a forward annual dividend of $4.08, which translates to a yield of approximately 6.59%, the highest among all Dividend Kings.
Wall Street consensus is a “Hold”, which has been consistent for at least the last 3 months, according to 14 analysts. This indicates a wait-and-see phase for MO. Currently, the stock is 4.9% shy of its $65 high price target.
Barchart Opinion has an overall average of 88% buy for MO, combined with high strength and maximum direction, indicating significant short-term confidence in the stock’s potential.
Looking at its valuation, Altria’s forward price-to-earnings ratio of 11.39 trades lower than most of its peers. However, its price-to-sales ratio of 4.16 is the highest among the group, suggesting that while investors are paying less for future earnings, they are placing a premium on its current revenue, likely because of its dominance in the market.
Northwest Natural Gas Company (NWN)
The second company on my highest-yielding Dividend Kings list is Northwest Natural Gas Company, which is a natural gas and water/wastewater utility provider. It regulates gas distribution to residential, commercial, and industrial customers in the United States.
The company’s first-quarter financials reported sales of $494.28 million, which increased 14% year-over-year. Its net income rose 37.7% to $87.92 million from the same quarter last year. Northwest Natural Gas Company pays a forward annual dividend of $1.96, which translates to a yield of approximately 4.91%
NWN has a consensus “Moderate Buy” rating among 5 Wall Street analysts, a sentiment that has been consistent over the past three months. It has a high target of $50, which suggests a potential upside of 25.3%.
In the short-term direction, Barchart Opinion has an overall average sell of 48% which could suggest a bearish phase in the near term.
Now, from a valuation perspective, Northwest Natural’s price-to-earnings of 14.13 is the lowest among its industry peers, suggesting that the stock is priced more conservatively relative to expected earnings. However, its price-to-sales ratio of 1.42 is modest, indicating investors are placing less emphasis on its revenue stream.
Stanley Black & Decker Inc (SWK)
The next Dividend King in this list is Stanley Black & Decker Inc., the world’s largest tool company. It manufactures hand, power, and outdoor equipment and accessories. The company is known for its brands like Stanley, Black & Decker, DeWalt, and Craftsman that serve both individual and commercial use.
In the company’s second-quarter financials, sales were down 2% year-over-year to $3.95 billion. Its net income sharply rose by about 1010% to 101.9 million from the same quarter last year. Stanly Black & Decker pays a forward annual dividend of $3.28 with a yield of approximately 4.85%.
SWK has a “Moderate Buy” rating consensus from 16 Wall Street analysts, indicating confidence in the stock’s bullish potential.
Meanwhile, Barchart Opinion has an overall average of 64% sell, with soft strength and only average short-term direction that signals short-term weak momentum and a lack of strong technical support.
SWK’s forward price-to-earnings of 14.93, which is the lowest among its industry peers, suggests that the stock is priced more conservatively relative to expected earnings. However, its price-to-sales ratio of 0.69 is also the lowest, which means investors are paying less for each dollar of Stanley’s revenue compared to its peers.
Federal Realty Investment Trust (FRT)
The next Dividend King is Federal Realty Investment Trust, a leader in the real estate investment trust that owns, manages, and redevelops retail and mixed-use properties in the U.S. The company is also known for high-quality retail properties like supermarkets, drug stores, and residential spaces.
The company’s most recent financials reported sales of $309.15 million, which jumped 6.1% from the same quarter last year. Its net income also rose year-over-year by 12.4% to $63.77 million. Federal Realty pays a forward annual dividend of $4.40, which translates to a yield of 4.77%.
FRT has a “Moderate Buy” rating consensus from 17 Wall Street analysts, anticipating a bullish run that can soon occur. At its current stock price, this suggests as much as 41.1% upside should the stock touch its high target of $130.
On the other hand, the stock has an overall average of 88% Sell from Barchart Opinion, indicating that the stock is bearish using short-term technical indicators.
Next, looking at its valuation, Federal Realty’s forward price-to-earnings of 13.26, which is roughly in line with its peers, suggests that it is fairly valued within the REIT space. However, its price-to-sales ratio of 6.77 appears to be on the higher end, indicating that investors are willing to pay a premium for FRT’s revenue base.
Black Hills Corp (BHK)
The last Dividend King in this list is Black Hills Corp, which is an energy company. It specializes in delivering electricity and natural gas to customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. It generates energy through multiple sources, such as natural gas, coal, and wind, and also produces
The company’s recently released second-quarter financials reported sales grew 9% year-over-year to $439 million. Its net income rose 16.6% to 28.8 million from the same quarter last year. Black Hills pays a forward annual dividend of $2.70, translating to a yield of approximately 4.68%.
Currently, the stock has a consensus “Hold” rating from 5 Wall Street Analysts. This market sentiment has been consistent for the past three months, suggesting as much as 17.7% potential upside in the stock should it hit its high target of $68.
Meanwhile, Barchart Opinion has an overall average of 64% sell for BKH, indicating a potential bearish short-term direction.
Looking at its valuation, Black Hills' forward price-to-earnings of 13.77 is the lowest among its peers, suggesting that the stock may be cheap relative to expected earnings. Its price-to-sales ratio of 1.93 indicates that investors are paying less for each dollar of BKH’s revenue. These metrics suggest that BKH could be undervalued based on its revenue.
Final Thoughts
So, there you have it: the five Dividend Kings arranged according to the highest dividend yields, including the market’s expectations, and what short-term technical indicators tell us about them. Owning any of the companies on this list could mean owning stability and a generation of increasing income.
On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
