Key Points
Altria (NYSE: MO), the highest-yielding Dividend King, has not only maintained its dividend for over 50 years but also delivered a 28% stock gain year-to-date, doubling the S&P 500’s performance.
Stanley Black & Decker (NYSE: SWK) offers a nearly 4.7% dividend yield, benefiting from strong brand recognition and consumer reliance during economic downturns, making it an attractive value play.
Target (NYSE: TGT), despite past controversy and a hit to its stock price, remains a blue-chip retailer with a 4%+ dividend yield and over 50 years of dividend increases.
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Transcript:
[00:00:04] Doug McIntyre: Lee. Would you do two things? the first one is tell people what dividend kings are, and then tell people what your favorite dividend kings are.
[00:00:14] Lee Jackson: Well, the dividend kings are the stocks and publicly traded stocks that have lifted their dividend for 50 years or longer. Which is a long, long time.
[00:00:26] Lee Jackson: And, the companies that are in the dividend Kings, unlike the dividend aristocrats, do not have to be in the S&P 500. So it’s a broader list of companies for our investors readers and those seeing this, that they can look at. And I’m sure you’re well aware that their top yielding stock that has paid dividends for like, I don’t know, 53, 54 years.
[00:00:51] Lee Jackson: Altria, and I know that’s your favorite stock. And it’s interesting, a lot of, the companies that are in the top 10, the yielding companies are either REITs or they are utilities. So it’s not surprising that many of them have, been able to put out their dividends for 50 years and more.
[00:01:08] Lee Jackson: The, there are some interesting value on in the top 10 yielding stocks and one of ’em is. a company that everybody grew up with, which is, it was, well, it was two separate companies, but it’s Stanley Black and Decker, and the symbol is SWK. This is the largest tool company in the world. They dominate the business.
[00:01:30] Lee Jackson: It’s a safe, safe area to be in, especially if the economy gets tough, the do it yourself world gets really rolling and then, it’s trading at a level where you’re getting almost a 470 dividend that’s been paid for years. It’s quality and a safe place for long-term money to be like Altria is.
[00:01:52] Lee Jackson: And another one that, that investors probably should look at because they’ve had their troubles as well as target targets, paid dividends for over 50 years. The stock, it got hit hard a couple of years, kind of a Bud Light sort of issue where they kind of went off of their main trail to pursue, L-B-G-T-Q stuff and, other stuff like that. And that didn’t sit good with a lot of investors, so they got
[00:02:19] Doug McIntyre: No, yeah.
[00:02:20] Lee Jackson: I think all in all, target will survive ’cause it’s a store a lot of people see as a little more upscale, Walmart, and they’re like in direct competition.
[00:02:29] Lee Jackson: But again, you’re looking at a company that’s yielding over 4%, and is a blue chip sort of value name that, our readers and viewers can consider.
[00:02:41] Doug McIntyre: There’s something else people should look at, with these high dividend stocks, and that is just because it has a high yield doesn’t mean it’s a dog of a stock that trades sideways.
[00:02:53] Doug McIntyre: Right? Altria is up 28% this year compared to the S&P. It may be 9%,
[00:03:00] Lee Jackson: It’s twice the S&P, right? And that’s the highest yielding dividend king. So I mean, right.
[00:03:06] Doug McIntyre: It doesn’t mean it’s a dead stock that you’re buying the yield and there’s no appreciation in terms of the,
[00:03:11] Lee Jackson: Well, the new fact that the companies that are in the dividend kings, and we’ve written about this over the last 15 years, so many times, it’s ridiculous because people are interested in these stocks because there’s one key ingredient.
[00:03:23] Lee Jackson: They’ve raised their dividends for 50 years and, sometimes it’s, Hey, it’s a penny. It’s two pennies, it’s a nickel, whatever, but at least they have the cash flow to do that, and they can manage growth in the company and still pay that dividend.
[00:03:38] Doug McIntyre: to me, the thing that I love about these stocks is they’ve even done it during recessions.
[00:03:43] Doug McIntyre: Yeah. Which means that their underlying cash flow, yeah. Their balance sheets and cashflow are ridiculously good.
[00:03:51] Lee Jackson: Because you can’t, a lot of ’em, again, being REITs and utilities. Well, I mean, the demand for electricity, as we’ve talked about in great detail, is not going down.
[00:04:01] Lee Jackson: It’s going up. So I think that for investors looking for quality names that they can count on to get passive income streams from every 90 days, there’s a couple of stocks in there that maybe, monthly yielding stocks in there, but most of ’em are quarterly pay. But 50 years is something you can hang your hat on and say, okay, I know I’m gonna get my dividends for the next 20 years.
[00:04:29] Doug McIntyre: Yeah.
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The post The Dividend King I’d Buy Without Hesitation appeared first on 24/7 Wall St..
