7 Dividend Kings Who Have Raised Dividends for Over 60 Years

  • Dividend kings are the best of the best when it comes to investments with reliable returns.
  • American states water (NYSE:AVR): the longest of the dividend kings.
  • Dover Corp (NYSE:DOV): The diversified industrial giant has been increasing its dividend for 66 consecutive years.
  • Coca Cola (NYSE:knockout): Coca-Cola is a pleasant and refreshing choice for dividend investors.
  • Emerson Electric (NYSE:AMY): Emerson Electric astutely transformed its business to adapt to new industrial innovations.
  • 3M (NYSE:MMM): Industrial Center is much more than Post-It stickers.
  • Northwestern natural (NYSE:SZS): A natural gas utility capitalizes on the stability of its industry to generate good returns.
  • Colgate-Palmolive (NYSE:CL): Colgate is a recession-resistant supplier of basic consumer goods.

Source: Shutterstock

Dividend kings are getting more and more attractive as the stock market seems to get more shaky every day. Inflation, war, rising interest rates and falling incomes. There is something to worry about.

As any study of long-term investing will show, time in the market matters. Investors must hold capital in stocks to benefit from long-term compounding. With this in mind, investors should find stocks and build a portfolio that can withstand recessions and bear markets.

There is no better place to look for such sustainable companies than Dividend Kings. These are companies that have raised their dividends for at least 50 consecutive years.

As you can imagine, not many firms have managed to achieve the status of a dividend king. In fact, there are only 44 this year. In this article, we will take it one step further by selecting companies with over 60 years of continuous dividend increases.

These seven dividend kings have proven that they can provide a growing income stream regardless of economic conditions.

AVR American states water $79.69
DOV Dover Corp $134.55
knockout Coca Cola $64.68
AMY Emerson Electric $88.40
MMM 3M $149.51
SZS Northwestern Natural $54.25
CL Colgate-Palmolive $78.86

American States Water (AWR)

at 67An enlarged photograph of a drop of water falling onto a container with a water surface.

Source: Evgeny Sambulov/ShutterStock.com

Years of consecutive dividend increases: 67

For 67 years in a row, American States Water now has the longest streak of consecutive dividend increases among S&P 500 companies.

It’s not hard to see why. Vodokanals are one of the most stable enterprises. No matter what happens to the economy, people need fresh, clean water.

American States Water has been able to capitalize on this continued demand to deliver a sustained growth rate, with earnings per share growing by about 7% per year over the past decade.

In turn, American States Water also increases its dividend by a similar amount each year. AWR shares offer a dividend yield of 1.9%, which is certainly not the highest on this list.

However, its unrivaled track record in terms of how long it has delivered annual dividend increases and the inherent stability of its core business make American States Water a reliable defensive dividend king.

Dover Corp (DOV)

The Dover (DOV) logo displayed on a smartphone screen.

Source: Igor Golovnev / Shutterstock.com

Years of consecutive dividend increases: 66

Dover is a diversified industrial company. It operates across a wide variety of segments, including imaging and identification services, pumps, climate and environmental technology, and engineering products.

Dover is not a particularly glamorous business, but it has steadily run its course. Earnings have risen 5% a year over the past decade, giving the company enough margin to keep increasing its dividend.

DOV stock is also a timely choice right now. Shares are down nearly 25% since the start of the year. This resulted in DOV stock trading at just 15 times its forward earnings, close to its lowest valuation in a decade.

Like many dividend kings, Dover is not one of those companies that get rich overnight, but this stable industrial company serves as a first-class machine for growth and income in the long term.

Coca-Cola (KO)

bottles and cans of Coca-Cola (KO).  coke - blue chip stocks

Source: Fotazdymak / Shutterstock.com

Years of consecutive dividend increases: 60

Coca-Cola is one of Warren Buffett’s favorite stocks, and it’s not hard to see why. The company sells nearly $40 billion worth of sodas and other beverages annually.

No matter what happens to the economy or political conditions, Coca-Cola continues to sell the same amount of soft drinks.

Soda is no longer an emerging industry. However, Coca-Cola has succeeded in diversifying into other beverages such as water, juice, and soda.

Meanwhile, given the company’s unrivaled scale, it has maintained a strong cost advantage over its competitors, resulting in an enviable profit margin.

Coca-Cola isn’t going to post strong short-term capital gains, but its 2.8% dividend yield is quite solid, and the company has increased that payout every year since the 1960s.

Emerson Electric (EMR)

Source: Shutterstock

Years of consecutive dividend increases: 65

A company that has increased its dividend for 65 years in a row may seem old-fashioned. However, companies do not become dividend kings without being able to develop.

Emerson, for example, started out as an industrial firm specializing in products such as electric fans, sewing machines, and power tools. Emerson has changed over the decades. The company is now increasingly becoming a software company specializing in factory and industrial process automation.

This is the key technology right now. Supply chain problems and runaway inflation have made it more important than ever to get the most out of the company’s existing manufacturing processes.

Emerson’s emphasis on efficiency and the reduction of industrial waste for its customers also stands out in today’s market that favors environmental, social and governance (ESG) investments.

Sometimes an old dog can learn new tricks, and Emerson’s transformation into a progressive automation company is one such impressive example.

3M Corporation (MMM)

Source: Ti Lim / Shutterstock.com

Years of consecutive dividend increases: 64

3M is an American industrial giant. He is best known for his Post-It notes. However, the company manufactures a wide range of products including safety equipment, adhesives, dental supplies, industrial filters and more.

In short, 3M is a diversified conglomerate that, in essence, is betting on American industry itself.

MMM shares are also amazingly cheap, as they are currently trading for just 13 times their forward earnings. Traders are concerned about the impact of the recession on the company, as well as some pending product liability lawsuits.

However, once those worries subside, 3M stock should return to a more generous valuation ratio, offering significant capital gains. Meanwhile, the stock offers an attractive 4.1% dividend yield.

Northwestern Natural (NWN)

Picture of a gas burner with a blue flame

Source: Shutterstock

Years of consecutive dividend increases: 66

Northwest Natural is a public utility operating primarily in Oregon and Washington.

Utilities are generally a very stable business, and Northwest Natural is no exception to this rule. Typically, gas utilities receive managed returns and receive upward adjustments for inflation, providing investors with a reliable cash flow for decades to come.

Northwest Natural is by no means a compelling growth story; over the past decade, its revenues have increased by about 2% per year.

However, for investors who like stable returns with small annual gains, NWN stock’s initial dividend yield of 3.5% may be a good option.

Colgate-Palmolive (CL)

Image of the Colgate-Palmolive logo on a building

Source: Shutterstock

Years of consecutive dividend increases: 60

Toothpaste and cleaning products manufacturer Colgate-Palmolive has had an unforgettable decade.

In 2012, Colgate’s revenue was $17.1 billion. In 2021, that amount rose to just $17.4 billion, less than 1% year-on-year. Despite a brief surge in buying during the pandemic, Colgate has struggled to post strong revenue growth.

However, the company’s dividend growth story continues. Thanks to significant share repurchases and cost reductions, Colgate was able to increase core earnings and thus dividend payouts, despite the lack of revenue growth.

The 2020s may look better than the 2010s. Colgate has a huge presence in emerging markets and has therefore suffered as many of these countries have experienced weak economic performance in recent years. However, now that prices for oil, metals and agricultural products are going through the roof, countries like Brazil should see stronger economic performance, which will lead to a significant increase in Colgate’s profitability.

Jan Bezek was long NWN, EMR, DOV and MMM as of the date of publication. The opinions expressed in this article are those of the author in accordance with the InvestorPlace.com Publication Policy.

Jan Bezek has written over 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as an associate analyst at Kerrisdale Capital, a $300 million hedge fund based in New York. You can reach him on Twitter at @irbezek.

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