Full list of 'Dividend Kings' stocks by sector

Dividend kings are stocks with an unparalleled track record of increasing their dividends over time. The minimum requirement to be considered in this elite list is 50 years of dividend increases. In this post, we will present these stocks by sector. We will also provide, for each stock, the current dividend yield, payout ratio, and dividend growth rate of the past five years.

The list below is a good start for any dividend investor to pick from the best dividend stocks. As you can see below, the list is dominated by consumer defensive stocks and some industrial heavy weights. It’s no surprise. For a company to pay and increase dividends for over 50 years, it has to operate in sectors that can weather difficult times or be dominant in its industry.

S&P 500 dividend aristocrats: full list by sector

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Investing in dividend-paying stocks

Investing in dividend paying stocks is a strategy that appeals to young and old investors. Here is a quick reminder of the main concepts to keep in mind before applying this strategy:

Investment horizon: 5 years or more minimum. The strategy of investing in dividend paying stocks is not suitable for an investor with a short term horizon (less than 5 years).

Objective: The strategy can help you build passive income or further grow your capital by reinvesting the dividends received.

Risk Tolerance: Medium (provided you restrict yourself to selecting quality securities and having a diversified portfolio across several sectors).

Why invest in Dividend Kings

If you are asking yourself, what is the typical profile of a dividend king stock? I have listed some common characteristics below:

Dividend kings tend to dominate their industry

• The vast majority are companies that are well established in their sector. They manage to generate significant profits thanks to their comfortable position against the competition. They also sometimes operate in regulated markets such as electric utilities with almost no competition;

Safe heaven during turbulent times

• “Dividend kings” are sometimes considered by the financial market as safe havens in the event of a market correction or decline. Indeed, dividend aristocrats are generally less volatile than the market, and there are less targeted by speculators;

Strong financial statements

• “Dividend kings” will tend to have a better financial situation in terms of liquidity than the rest of the market. Their levels of liquidity or debt are generally better than the rest of the market;

Limited growth but there are exceptions

• In general, dividend aristocrats are mature businesses. That is, the growth potential is quite limited. However, some companies can pay dividends and invest in their growth. Usually, the dividend payout ratio is a good indicator. If the rate is low, it means the business is saving some money to grow. Business with high dividend pay out ratio have no financial resources left to grow.