Dividend Kings List for 2021 – Should You Invest?

Editorial IndependenceWe wish to make it easier to make extra knowledgeable selections. Some hyperlinks on this web page — clearly marked — could take you to a associate web site and will lead to us incomes a referral fee. For extra data, see How We Make Money.Dividend investing is likely one of the best methods so as to add passive earnings to your life. It’s basically being profitable in your sleep. A dividend is a cost made by an organization to its shareholders from its income. Dividends will be paid out in numerous methods like money or shares. Investing in dividend-paying shares is a manner so as to add a daily supply of earnings to your portfolio. And whereas there are many firms and funds that reward their shareholders with dividends, there’s an elite record of 31 firms, referred to as Dividend Kings, which have the longest  historical past of doing so. As a part of a diversified portfolio, these shares with established monitor information may help you generate earnings whereas investing.”[Dividend Kings] are firms that endured by way of monetary storms and tough markets whereas nonetheless discovering a method to improve their dividends every year. They’re firms that traders can depend on,” stated Chance Burroughs, a monetary advisor at Manske Wealth.Keep studying to study extra about Dividend Kings and whether or not you need to embody them in your portfolio.What Are Dividend Kings?A Dividend King is a publicly traded firm that has elevated its shareholder dividends yearly for at the very least the previous 50 years. These firms have a confirmed monitor file of rewarding shareholders with common dividends. Think of those as firms like Coca-Cola and Johnson and Johnson.“Dividend Kings are firms which have a protracted historical past of economic success,” Burroughs stated. List of Dividend Kings for 2021To change into a Dividend King, an organization will need to have at the very least 50 consecutive years of dividend will increase. Because of that top normal, it probably doesn’t come as a shock that solely an unique record of corporations make the record. In 2021, there are simply 31 Dividend Kings:CompanyConsecutive Years of Dividend IncreasesAmerican States Water Co.66 Dover Corp.65 Genuine Parts Co.65 Northwest Natural Holding Co65Procter & Gamble Co.65 Parker-Hannifin Corp.65 Emerson Electric Co.64 3M Co.63 Cincinnati Financial Corp.61 Coca-Cola Co59 Lowe`s Cos., Inc.59 Colgate-Palmolive Co.58Johnson & Johnson59Lancaster Colony Corp.59Nordson Corp.58Farmers & Merchants Bancorp56 Hormel Foods Corp.55 SJW Group54ABM Industries Inc.54 Commerce Bancshares, Inc.53 California Water Service Group54Federal Realty Investment Trust54 Stepan Co.53 Stanley Black & Decker Inc54 Tootsie Roll Industries, Inc.52 H.B. Fuller Company52 Altria Group Inc.51 Sysco Corp.51National Fuel Gas Co.51Universal Corp.50Black Hills Corporation51Other firms are on the cusp of becoming a member of this elite record of dividend-paying firms. For instance, Target is on monitor to achieve its fiftieth consecutive yr of dividend will increase in 2021.Dividend Kings vs. AristocratsA Dividend Aristocrat is an organization that’s part of the S&P 500 that has elevated its dividends for at the very least 25 consecutive years. Similar to Dividend Kings, the Aristocrats have a protracted historical past of economic success. In truth, loads of firms make the record of each Dividend Kings and dividend aristocrats. But there are a couple of important variations.First, to be thought of a Dividend Aristocrat, an organization have to be part of the S&P 500. In different phrases, they have to be one of many 500 largest firms listed on inventory exchanges. That’s not essentially the case for Dividend Kings.The different large distinction between Dividend Kings and Dividend Aristocrats is their historical past of accelerating dividends. While Dividend Kings will need to have elevated their dividends for at the very least 50 consecutive years, Dividend Aristocrats should solely have elevated them for the previous 25 years.No matter which normal you utilize, each Dividend Kings and Dividend Aristocrats have a historical past of economic success and of rewarding their shareholders by passing on income within the type of dividends.Dividend Kings ETFAn exchange-traded fund (ETF) is a fund that tracks the efficiency of many underlying property, typically from a specific market or sector. ETFs have the advantages of mutual funds in that they make it easier to diversify your portfolio and put money into many securities directly. They additionally share advantages with particular person shares in that they are often traded all through the day on exchanges.An ETF is a manner that traders can acquire publicity to Dividend Kings and different dividend-paying shares of their portfolios with out investing in particular person shares, that are riskier.“If you’re solely invested in Microsoft, you’re placing all of your eggs within the Microsoft basket. If you’ve got Microsoft as a part of your basket in an ETF, it lowers your danger,”  stated Julian Morris, a Certified Financial Planner and the founding father of Concierge Wealth Management.The ProShares S&P 500 Dividend Aristocrats ETF, for instance, is a low-cost ETF that tracks the complete Aristocrat Dividend record. The solely actual draw back of investing in a dividend ETF versus particular person shares is you can anticipate to pay a small administration price. But this price will be nicely value it for the diversification you get in return.Should You Invest in Dividend King Companies?Investing in Dividend Kings — or any dividend-paying inventory, for that matter — is a method to create a daily supply of passive earnings, which some traders are trying for. Even if you happen to aren’t taken with passive earnings proper now, they’ll nonetheless be an efficient a part of your general investing technique.Pro TipYou can put money into Dividend Kings, whether or not by way of ETFs or particular person shares, in a daily brokerage account or in a tax-advantaged account like a Roth or conventional IRA. “Dividend investing is a vital a part of a balanced portfolio,” Morris stated. “Dividends can offset losses if the market is declining and assist with inflation.”Investing selections shouldn’t be made calmly, and it’s vital to do your analysis upfront. Consider your present funding technique, your quick and long-term targets, and what you’re hoping to perform with a brand new funding.While Dividend Kings and different dividend-paying shares could be a nice a part of any portfolio, they’re greatest paired with different methods, like investing in index funds. Dividend Kings typically aren’t thought of progress shares, which means they aren’t rising as quickly as others in the marketplace and will not present the identical capital acquire.“In basic, any funding that you simply make, you need to all the time do your analysis and due diligence,” says Morris. “Make positive the dividend technique suits in along with your general portfolio.”


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