Dividend Kings are the crème de la crème of dividend growers, and should be top of mind for any investor who puts income stability above all else.
Dividend Kings are a unique class of stock that offers
investors a phenomenal track record of annual dividend increases.
These elite members of the Dividend Aristocrats, which are
companies in the Standard & Poor's 500-stock index that have raised payouts
once a year for 25 years running, have far more extensive track records.
Specifically, Dividend Kings must have a minimum of 50 consecutive years of
uninterrupted annual dividend hikes.
Dividend Kings' appeal should be obvious in the wake of
2020's COVID-19 outbreak. Many dividend stocks cut or even suspended their
payouts amid uncertainty and disruptions. Income investors who had hoped these
companies were lower-risk simply because they paid dividends received a rude
awakening, as the cuts in payouts often came along side deep share price
declines.
With half a century of increasing distributions, however,
Dividend Kings have a great track record that adds a layer of stability in an
otherwise uncertain market environment. Nothing is ever certain on Wall Street,
but these 16 stocks are all longtime leaders that each exhibit more than 55
years of increases – including one pick with a track record of 68 straight
dividend hikes – making them a bit more trustworthy in 2022 than your typical
income investment.
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