Hey everyone! If you’re looking for the ultimate "set it and forget it" addition to your portfolio, you’ve come to the right place. Today, we are looking at the Dividend Kings—the elite group of companies that have managed to increase their dividends for at least 50 consecutive years.
Think about that for a second: 50 years covers the high inflation of the 70s, the dot-com bubble, the 2008 financial crisis, and a global pandemic. These companies didn't just survive; they gave their shareholders a raise every single year.
I’ve summarized 2025 Dividend Kings list, and there are some fascinating trends regarding yield, safety, and growth that you need to see.
If your primary goal is maximum cash flow right now, two names stand out from the crowd:
Altria Group Inc (MO): Currently leading the pack with a massive 7.05% dividend yield.
Universal Corp (UVV): A close second with a 6.14% yield and a solid 55-year growth streak.
While these yields are tempting, always look at the Dividend Payout Ratio. Altria’s sits at 79.39%, which is high but common for their industry.
Yield isn't everything. If you have a longer time horizon, you want Dividend Growth. This is where the 5-Year Compound Annual Growth Rate (CAGR) comes in. Some of these "old" companies are growing their payouts like tech stocks:
Nordson Corp (NDSN): Boasting a staggering 16.02% 5-year CAGR.
Parker-Hannifin Corp (PH): Not far behind with 15.36% growth.
Lowe's Companies Inc (LOW): Proving that retail still has teeth with 14.84% growth.
Investing in a company like Nordson means that even if the starting yield is lower (1.31%), your "yield on cost" could explode over the next decade.
A dividend is only as good as the cash backing it up. We use the FCF Payout Ratio to see if a company is paying dividends out of real cash or just accounting earnings.
The "Safety" Stars: Archer-Daniels-Midland (ADM) has a very comfortable 20.82% FCF payout ratio, meaning their dividend is incredibly safe. Cincinnati Financial (CINF) is even lower at 19.45%.
The "Caution" Zone: Hormel Foods (HRL) and Stanley Black & Decker (SWK) currently have payout ratios over 100%. This often indicates the company is paying out more than it's bringing in, which is something we need to monitor closely for sustainability.
Finally, let's pay some respect to the companies with the longest-running streaks on the board. These are the "Kings of Kings":
American States Water Co (AWR): 71 years of increases.
Northwest Natural Holding Co (NWN): 70 years.
Dover Corp (DOV): 70 years.