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Investors looking for high-quality dividend stocks can consider the Dividend Kings, a collection of 48 companies that have been increasing their payouts for at least 50 years. Because these stocks weather recessions well, retirees find them particularly attractive.
This article presents three Dividend Kings with yields above 3% that can support dividend growth during recessions:
Atria group
Altria Group Inc (NYSE:MO), a leader in consumer essentials, was founded in 1847 by Philip Morris. In the United States, it markets Marlboro cigarettes and controls several non-smoking brands. Altria also holds prominent positions in Cronos Group, Juul and Anheuser-Busch InBev.
In 2023, Altria focused on expanding its line of smokeless products by acquiring NJOY and On! PLUS worldwide. Through a joint venture with JT, the company launched heated tobacco products. In response to the explosion of illegally flavored disposable e-vapor products, Altria pushed for a regulated e-vapor market. Altria aims to expand NJOY’s distribution network and strengthen its supply chain.
Altria Projects adjusted 2024 diluted earnings per share between 1% and 4%, or $5 to $5.15. The company pays dividends starting at around 80% of its annual adjusted earnings per share. With 54 consecutive years of dividend increases, Altria currently yields 8.5%.
Hormel food
Founded in Minnesota in 1891, Hormel Foods Corp (NYSE:HRL) has become a global leader in the food industry with annual sales of $19 billion. Well-known brands including Applegate, SPAM and Skippy are among Hormel’s products sold in eighty countries.
The premium bacon, prepared protein, poultry and snack categories drove Hormel’s $3 billion in sales and adjusted earnings per share of 41 cents in the first quarter of 2024. Acquisitions and natural expansion are fueling Hormel’s business and enabling steady dividend increases.
Hormel’s competitive advantages include its market-leading merchandise and extensive global distribution network. With a current yield of 3.1%, Hormel has raised dividends for 58 years in a row. The company expects annual profit growth of 5%, driven by cost savings and revenue growth.
National Fuel Gas Co
Operating in five segments: exploration and production, pipelines and storage, gathering, utilities and energy marketing. National Fuel Gas Co. (NYSE:NFG) is a diversified energy company. Exploration and production are the largest segment.
Effective hedging and robust volume growth helped National Fuel Gas achieve a 10% production increase in the second quarter of fiscal 2024. Analysts did not expect earnings per share to rise 16%. The company has routinely exceeded analyst expectations in 17 of the past 20 quarters.
National Fuel Gas aims to grow by increasing natural gas production and the length of its pipeline system. Over the past decade, the company has grown its earnings per share by an average of 4.4% per year. In 2022 and 2023, it increased its proven reserves by 8% and 9%, respectively. The company maintains a prudent dividend payout ratio of approximately 50% and solid interest coverage on the balance sheet.
With 53 years of consecutive dividend increases, National Fuel Gas qualifies as Dividend King and currently yields 3.5%.
Known for their impressive dividend history and high yields, these Dividend Kings provide reliable income and resilience during economic downturns, making them attractive investments for long-term income stability.
Are you missing out on higher returns?
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This article 3 Dividend Kings to Buy for a Lifetime of Reliable Income originally appeared on Benzinga.com
