First Published on August 18th, 2022 by Bob Ciura for SureDividend
The Dividend Kings are the best-of-the-best in dividend longevity.
What is a Dividend King? A stock with 50 or more consecutive yearsof dividend increases.
The downloadable Dividend Kings Spreadsheet List below contains the following for each stock in the index among other important investing metrics:
- Payout ratio
- Dividend yield
- Price-to-earnings ratio
You can see the full downloadable spreadsheet of all 45 Dividend Kings(along with important financial metrics such as dividend yields, payout ratios, and price-to-earnings ratios) by clicking on the link below:
Click here to download my Dividend Kings Excel Spreadsheet now. Keep reading this article to learn more.
We typically rank stocks based on their five-year expected annual returns, as stated in the Sure Analysis Research Database.
But for investors primarily interested in income, it is also useful to rank the Dividend Kings according to their dividend yields.
This article will rank the 20 highest-yielding Dividend Kings today.
In this article
Table of Contents
- High Yield Dividend King #20: Target Corporation (TGT)
- High Yield Dividend King #19: Illinois Tool Works (ITW)
- High Yield Dividend King #18: Procter & Gamble (PG)
- High Yield Dividend King #17: PepsiCo Inc. (PEP)
- High Yield Dividend King #16: Cincinnati Financial (CINF)
- High Yield Dividend King #15: National Fuel Gas (NFG)
- High Yield Dividend King #14: Johnson & Johnson (JNJ)
- High-Yield Dividend King #13: The Coca-Cola Company (KO)
- High-Yield Dividend King #12: Computer Services (CSVI)
- High-Yield Dividend King #11: Black Hills Corp. (BKH)
- High-Yield Dividend King #10: Stanley Black & Decker (SWK)
- High-Yield Dividend King #9: Kimberly-Clark (KMB)
- High-Yield Dividend King #8: Northwest Natural Holding Co. (NWN)
- High-Yield Dividend King #7: Federal Realty Investment Trust (FRT)
- High-Yield Dividend King #6: AbbVie Inc. (ABBV)
- High-Yield Dividend King #5: 3M Company (MMM)
- High-Yield Dividend King #4: Leggett & Platt (LEG)
- High-Yield Dividend King #3: Canadian Utilities (CDUAF)
- High-Yield Dividend King #2: Universal Corporation (UVV)
- High-Yield Dividend King #1: Altria Group (MO)
High Yield Dividend King #20: Target Corporation (TGT)
- Dividend Yield: 2.4%
Target is a giant discount retailer. Its business consists of about 1,850 big box stores, which offer general merchandise and food, as well as serving as distribution points for the company’s burgeoning e-commerce business. Target should produce about $110 billion in total revenue this year.
Target reported first quarter earnings on May 18th, 2022, and results were much worse than expected from a margin perspective. Adjusted earnings-per-share missed estimates by 87 cents at $2.19. Revenue was up 4% year-over-year to $25.2 billion, which was $690 million ahead of estimates.
Comparable sales grew 3.3%, which was due to traffic growth of 3.9% and a slightly lower average ticket size. Store comparable sales were up 3.4%, while digital comparable sales grew 3.2%. Operating income was $1.3 billion, down from $2.4 billion, driven primarily by a lower gross margin rate. Gross margins plunged from 30.0% to 25.7% of sales due to higher markdowns and costs related to freight, supply chain disruptions, and increased wages.
The company noted operating margin rate should be roughly where it was in Q1 for Q2, and the company expects to see low- to mid-single digit revenue growth and operating income margin around 6% for the year.
Click here to download our most recent Sure Analysis report on Target (preview of page 1 of 3 shown below):
High Yield Dividend King #19: Illinois Tool Works (ITW)
- Dividend Yield: 2.4%
Illinois Tool Works is a diversified multi-industrial manufacturer with seven unique operating segments: Automotive, Food Equipment, Test & Measurement, Welding, Polymers & Fluids, Construction Products and Specialty Products. Last year the company generated $14.5 billion in revenue. The company is geographically diversified, with more than half of its revenue generated outside of the United States.
On August 2nd, 2022, Illinois Tool Works reported second quarter 2022 results for the period ending June 30th, 2022. For the quarter, revenue came in at $4.0 billion, up 9% year-over-year. Sales were up 14% in the Automotive OEM segment, the largest out of the company’s seven segments. Five of the other segments saw sales growth above 20%, with the last segment being flat. Net income equaled $738 million or $2.37 per share compared to $775 million or $2.45 per share in Q2 2021.
Source: Investor Presentation
Illinois Tool Works also reiterated its 2022 earnings guidance and sees $9.00 to $9.40 in earnings-per-share for the full year. At the same time, the company reduced its revenue growth estimates to 6% to 9% (down from 8.5% to 11.5%). The company also plans to repurchase $1.5 billion of its own shares in 2022.
Illinois Tool Works has an excellent dividend growth history. Its payout ratio was relatively high during the last financial crisis, but the company was not forced to cut the payout. Today the dividend payout ratio sits at 53% of expected earnings, above the company’s long-term target, meaning that future dividend growth may trail earnings growth.
Click here to download our most recent Sure Analysis report on ITW (preview of page 1 of 3 shown below):
High Yield Dividend King #18: Procter & Gamble (PG)
- Dividend Yield: 2.4%
Procter & Gamble is a consumer products giant that sells its products in over 180 countries. Notable brands include Pampers, Luvs, Tide, Gain, Bounty, Charmin, Puffs, Gillette, Head & Shoulders, Old Spice, Dawn, Febreze, Swiffer, Crest, Oral-B, Scope, Olay and many more. The company generated $76 billion in sales in fiscal 2021.
Procter & Gamble has paid a dividend for 131 years and has grown its dividend for 66 consecutive years – one of the longest active streaks of any company. On April 12th, 2022, Procter & Gamble raised its dividend by 5.0%, from $0.8698 per quarter to $0.9133.
Source: Investor Presentation
Procter & Gamble’s dividend payout ratio has oscillated between 50% and 75% in the last decade, with the current mark coming in around 60%. This is somewhat high for your typical company, but well within a reasonable range for such a high-quality firm. We believe that the company can keep growing its dividend at a rate roughly in line with earnings-pershare growth going forward.
Procter & Gamble has significant competitive advantages thanks to its strong brands. The company has several categoryleading brands. These brands provide Procter & Gamble with pricing power and consistent profits, in good times or bad. During the Great Recession, the company posted earnings-per-share of $3.04, $3.64, $3.58, $3.53, and $3.93 in the 2007 through 2011 stretch, while the dividend kept on rising.
Click here to download our most recent Sure Analysis report on P&G (preview of page 1 of 3 shown below):
High Yield Dividend King #17: PepsiCo Inc. (PEP)
- Dividend Yield: 2.6%
PepsiCo is a global food and beverage company that generates $82 billion inannual sales. The company’s brands include Pepsi, Mountain Dew, Frito–Lay chips, Gatorade, Tropicana orange juice and Quaker foods. The company hasmore than 20 $1 billion brands in its portfolio.
Source: Investor Presentation
On 2/10/2022, PepsiCo announced that it would increase its annualized dividend by 7% to $4.60 starting with the dividend expected to be paid in June 2022, making the company a Dividend King. The company also announced a share repurchase authorization of up to $10 billion.
On July 12th, 2022, PepsiCo reported second quarter results for the period ending June 30th, 2022. Revenue grew 5.3% to $20.2 billion, topping analysts’ estimates by $720 million. Adjusted earnings-per-share of $1.86 compared to $1.72 in the prior year and was $0.12 better than expected. Organic sales for the second quarter were up 13%. Beverages and foods had volume growth of 6% and 3%, respectively.
PepsiCo Beverages North America’s revenue grew 9% organically, though volume was lower by 1%. Frito-Lay North America’s revenue grew 14% despite a 2% decline in volume. Quaker Foods North America was up 18%, aided mostly by pricing, but also a 2% increase in volume. Revenues in Europe were higher by 9% as pricing offset weakness in volume.
PepsiCo provided a revised outlook for 2022 as well, with the company still expecting adjusted earnings-per-share of $6.63 for the year. Organic sales are now projected to be up 10% compared to the prior year, compared to 8% and 6%, previously.
Click here to download our most recent Sure Analysis report on PepsiCo (preview of page 1 of 3 shown below):
High Yield Dividend King #16: Cincinnati Financial (CINF)
- Dividend Yield: 2.6%
Cincinnati Financial is an insurance company founded in 1950. It offers business, home, auto insurance, and financial products, including life insurance, annuities, property, and casualty insurance. Cincinnati Financial is headquartered in Fairfield, Ohio, trading with a $20.1 billion market capitalization.
As an insurance company, Cincinnati Financial makes money in two ways. It earns income from premiums on policies written and by investing its float, or the large sum of money consisting of the time value between the premium income and insurance claims.
Cincinnati Financial has grown earnings by 11.5% per year over the past nine years and 15.6% over the past five years. Consensus analysts expect earnings to grow by 6% for the next five years. Book value, a significant metric for insurance companies, has increased by 10.4% over the past nine years and 8.4% over the past five years.
Unlike many insurers, the company is not a significant buyer of its shares for per-share growth. The company makes most of its net income from its investment gains and is highly dependent on bond interest rates and stock market performance. Cincinnati Financial is a somewhat aggressive investor and has a 39.3% allocation to equities compared to many insurers. This gives the company better long-term portfolio growth but a bit more volatility.
Click here to download our most recent Sure Analysis report on CINF (preview of page 1 of 3 shown below):
High Yield Dividend King #15: National Fuel Gas Co. (NFG)
- Dividend Yield: 2.6%
National Fuel Gas Co. is a diversified energy company that operates in five business segments: Exploration & Production, Pipeline & Storage, Gathering, Utility, and Energy Marketing. The company’s largest segment is Exploration & Production.
Source: Investor Presentation
In early May, National Fuel Gas reported (5/5/22) financial results for the second quarter of fiscal 2022. The company grew its production by 2% over the prior year’s quarter, primarily thanks to the development of core acreage positions in Appalachia.
In addition, the price of natural gas rallied thanks to strong demand and tight supply. As a result, adjusted earnings-per-share grew 25%, from $1.34 to $1.68, and exceeded analysts’ consensus by $0.06.
The price of natural gas has rallied to a 13-year high lately due to the sanctions of Europe on Russia for its invasion in Ukraine. Thanks to this tailwind, National Fuel Gas raised its guidance for the earnings-pershare of 2022 again, from $5.20-$5.50 to $5.70-$6.00, for 36% growth at the mid-point.
Click here to download our most recent Sure Analysis report on NFG (preview of page 1 of 3 shown below):
High Yield Dividend King #14: Johnson & Johnson (JNJ)
- Dividend Yield: 2.7%
Johnson & Johnson is a diversified health care company and a leader in the area of pharmaceuticals (~49% of sales), medical devices (~34% of sales) and consumer products (~17% of sales). The company has annual sales in excess of $93 billion.
The company’s most recent earnings report was delivered on July 19th 2022, for the second quarter. Results were better than expected on both revenue and profits, but the company lowered guidance for the full year, which it attributed to a much stronger US dollar.
Source: Investor presentation, page 14
For the second quarter, adjusted earnings-per-share came to $2.59, which was four cents ahead of expectations. Revenue was $24 billion, up 3% year-over-year and $180 million ahead of estimates.
Johnson & Johnson has averaged 7% growth in earnings-per-share for the past decade, which is impressive given its massive size. The company has been able to move the needle steadily through a combination of higher sales, better profit margins, and a slight reduction in the float through buybacks.
Click here to download our most recent Sure Analysis report on J&J (preview of page 1 of 3 shown below):
High Yield Dividend King #13: The Coca-Cola Company (KO)
- Dividend Yield: 2.7%
Coca-Cola is the world’s largest beverage company, as it owns or licenses more than 500 unique non–alcoholic brands. Since the company’s founding in 1886, it has spread to more than 200 countries worldwide.
Source: Investor Presentation
The company also has an exceptional 59-year dividend increase streak.
Coca-Cola reported second quarter earnings on July 26th 2022, and results were better than expected on both the top and bottom lines. Adjusted earnings-per-share came to 70 cents, which was three cents ahead of expectations. Revenue was up almost 12% year-over-year, rising to $11.3 billion, and beating estimates by $730 million. Organic revenue was up 16%, including 12% growth in price and mix, as well as 4% growth in concentrate sales.
Operating margin was 30.7% of revenue on an adjusted basis, down 100bps from the second quarter of last year. Margin compression was due to strong topline growth that was more than offset by the impact of the BODYARMOR purchase, higher operating costs, and an increase in marketing investments.
Earnings-per-share came to 70 cents on an adjusted basis, up 4% year-over-year. Free cash flow was $4.1 billion, down $1.0 billion year-over-year. The company also updated guidance to organic revenue growth of 12% to 13%, and adjusted EPS growth of 5% to 6%.
Click here to download our most recent Sure Analysis report on KO (preview of page 1 of 3 shown below):
High Yield Dividend King #12: Computer Services (CSVI)
- Dividend Yield: 2.9%
Computer Services provides regional banks with a wide range of services, such as core processing, digital banking, payments processing, and regulatory compliance solutions.
In early May, Computer Services reported (5/4/2022) financial results for the fourth quarter of fiscal 2022. The company grew its revenue by 7%, from $75.5 million to a nearly all-time high of $81.0 million, and its earnings-per-share by 24%, from $0.49 to $0.61, thanks to new accounts, continued demand for digital banking services and higher demand for payments processing and regulatory compliance.
Notably approximately 90% of the total revenues are generated from long-term contracts. Management expects to accelerate investments in the business in the new fiscal year.
Given also higher staffing levels and a return to pre-pandemic travel levels, management expects earnings growth to somewhat decelerate later this year. In September, Computer Services raised its dividend by 8.0%, which marked the 50th consecutive year of dividend growth.
Computer Services has grown its earnings-per-share at an 11.3% average annual rate over the last decade. The pandemic has not affected the performance of Computer Services at all. Thanks to sustained momentum in the core business and no signs of fatigue, we expect it to grow its earnings-per-share by 7.0% per year over the next five years.
The impressive growth record of Computer Services is a testament to the strength of its business model and the existence of a significant competitive advantage. The company signs multi-year contracts with its customers and offers them a wide range of services. It is very costly and inefficient for these customers to stop working with the
company, particularly given that they pay appreciable early termination fees.
As a result, Computer Services enjoys high renewal rates. In fact, when it loses a customer, the most frequent reason is that the bank has been acquired by another bank that is not a customer of Computer Services.
Click here to download our most recent Sure Analysis report on CSVI (preview of page 1 of 3 shown below):
High Yield Dividend King #11: Black Hills Corporation (BKH)
- Dividend Yield: 3.0%
Black Hills Corporation is an electric utility that provides electricity and natural gas to customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. Black Hills was founded in 1941, and the company is headquartered in Rapid City, South Dakota.
Source: Investor Presentation
Black Hills Corporation reported its second quarter earnings results on August 3. The company generated revenues of $470 million during the quarter, which was up 27% year-over-year. Earnings-per-share of $0.52 rose by 30% on a relative basis, versus the previous year’s quarter. Q4 and Q1 are seasonally stronger quarters due to higher natural gas demand for heating, which was again showcased by the below-average profitability during the second quarter.
Black Hills Corporation forecasts earnings-per-share of $3.95 to $4.15 for the current fiscal year. This represents growth of around 8% for 2022, using the midpoint of management’s guidance range.
Click here to download our most recent Sure Analysis report on Black Hills (preview of page 1 of 3 shown below):
High Yield Dividend King #10: Stanley Black & Decker (SWK)
- Dividend Yield: 3.1%
Stanley Black & Decker is a world leader in power tools, hand tools, and related items. The company holds the top global position in tools and storage sales. Stanley Black & Decker is second in the world in the areas of commercial electronic security and engineered fastening.
On July 20th, 2022, Stanley Black & Decker announced it was raising its quarterly dividend 1.3% to $0.80, extending the company’s dividend growth streak to 55 consecutive years.
In the 2022 second quarter, revenue grew 15.5% to $4.4 billion, but was $350 million less than expected. Adjusted earnings-per-share of $1.77 compared unfavorably to $3.08 in the prior year and was $0.36 below estimates. Organic growth declined 6%. Sales for Tools & Outdoor, the largest segment within the company, experienced an organic decline of 9% as a 7% benefit from pricing was more than offset by a decline in volume.
The company also announced a cost reduction program that is expected to reduce expenses by $1 billion by the end of 2023 and by $2 billion within three years.
Stanley Black & Decker offered revised guidance for 2022. Due to inflationary pressures and lower demand, the company now expects adjusted earnings-per-share in a range of $5.00 to $6.00, down from $9.50 to $10.50 and $12.00 to $12.50 previously.
Click here to download our most recent Sure Analysis report on SWK (preview of page 1 of 3 shown below):
High Yield Dividend King #9: Kimberly-Clark (KMB)
- Dividend Yield: 3.4%
Kimberly-Clark is a global consumer products company that operates in 175 countries and sells disposable consumer goods, including paper towels, diapers, and tissues.
It operates through two segments that each house many popular brands: Personal Care Segment (Huggies, Pull-Ups, Kotex, Depend, Poise) and the Consumer Tissue segment (Kleenex, Scott, Cottonelle, and Viva), generatingnearly $20 billion in annual revenue.
Source: Investor Presentation
Kimberly-Clark reported second quarter earnings on July 26th, 2022, and results were better than expected on both the top and bottom lines. Adjusted earnings-per-share was $1.34, which was three cents better than estimates. Revenue rose 7% year-over-year to $5.1 billion, which was $110 million better than expected.
Total revenue was up 7%, as forex reduced sales by 2%. Organic sales were up 9%, as net selling prices were up 9%, product mix increased 1%, and volumes offset that with a 1% decline. North America organic sales were up 11% in consumer products and up 8% in K-C Professional.
Click here to download our most recent Sure Analysis report on Kimberly-Clark (preview of page 1 of 3 shown below):
High Yield Dividend King #8: Northwest Natural Holding Co. (NWN)
- Dividend Yield: 3.6%
NW Natural was founded in 1859 and has grown from just a handful of customers to serving more than 760,000 today. The utility’s mission is to deliver natural gas to its customers in the Pacific Northwest and it has done that well, affording it the ability to raise its dividend for 66 consecutive years.
Source: Investor Presentation
NW Natural reported Q2 results on August 4th. The company reported net income of $0.05 compared to a net loss of $0.02 in the year-ago period. Revenue increased 30.9% to $194.96 million year-over-year. NW Natural added 10,200 natural gas meters over the past 12 months, equating to a 1.3% growth rate.
Meanwhile, management reaffirmed its guidance for 2022 with earnings-per-share expected to come in at between $2.45 and $2.65 and long-term earnings per share growth rate target to 4% to 6%.
Click here to download our most recent Sure Analysis report on NWN (preview of page 1 of 3 shown below):
High Yield Dividend King #7: Federal Realty Investment Trust (FRT)
- Dividend Yield: 3.8%
Federal Realty was founded in 1962. As a Real Estate Investment Trust, Federal Realty’s business model is to own and rent out real estate properties. It uses a significant portion of its rental income, as well as external financing, to acquire new properties. This helps create a “snow-ball” effect of rising income over time.
Federal Realty primarily owns shopping centers. However, it also operates in redevelopment of multi-purpose properties including retail, apartments, and condominiums. The portfolio is highly diversified in terms of tenant base.
Source: Investor Presentation
Federal Realty reported Q2 earnings on 08/04/22. FFO per share came in at $1.65, up from $1.41 in the year-ago quarter. Total revenue increased 14.0% to $264.1M year-over-year. Net income available for common shareholders stood at $0.75, up from $0.57 in the year-ago period.
During the quarter, Federal Realty continued record levels of leasing with 132 signed leases for 562,111 square feet of comparable space. The trust’s portfolio, during the quarter, was 92.0% occupied and 94.1% leased, up by 240 basis points and 140 basis points, respectively, year-over-year. That said, the trust maintained a 210 basis points spread between occupied and leased. Moreover, small shop leased rate was 89.3%, up by 360 basis points year-over-year. Federal Realty also reported Q2 comparable property operating income growth of 8.2%.
Meanwhile, the company raised its 2022 earnings per share guidance to $2.50-$2.65 from $2.36-$2.56 and FFO per diluted share guidance to $6.10-$6.25 from $5.85-$6.05. the company also expects comparable property income growth to be in the range of 5.5% to 7.0%.
Click here to download our most recent Sure Analysis report on Federal Realty (preview of page 1 of 3 shown below):
High Yield Dividend King #6: AbbVie Inc. (ABBV)
- Dividend Yield: 4.0%
AbbVie Inc. is a pharmaceutical company spun off by Abbott Laboratories (ABT) in 2013. Its most important product is Humira, which is now facing biosimilar competition in Europe, which has had a noticeable impact on the company. Humira will lose patent protection in the U.S. in 2023.
Even so, AbbVie remains a giant in the healthcare sector, with a large and diversified product portfolio.
AbbVie reported its second-quarter earnings results on July 29. Revenue of $14.58 billion rose by 4.4% year-over-year while adjusted EPS of $3.37 beat estimates by $0.06. The company lowered full-year earnings guidance to a range of $13.78 to $13.98, from prior expectations of $13.92 to $14.12 per share.
Click here to download our most recent Sure Analysis report on AbbVie (preview of page 1 of 3 shown below):
High Yield Dividend King #5: 3M Company (MMM)
- Dividend Yield: 4.0%
3M sells more than 60,000 products that are used every day in homes, hospitals, office buildings and schools around the world. It has about 95,000employees and serves customers in more than 200 countries.
For now, 3M is composed of four separate divisions. The Safety & Industrial division produces tapes, abrasives, adhesives and supply chain management software as well as manufactures personal protective gear and security products.
The Healthcare segment supplies medical and surgical products as well as drug delivery systems. Transportation & Electronics division produces fibers and circuits with a goal of using renewable energy sources while reducing costs. The Consumer division sells office supplies, home improvement products, protective materials and stationary supplies.
On July 26th, the company reported second-quarter results. For the quarter, revenue fell 3% to $8.7 billion. Adjusted EPS declined 10% year-over-year, from $2.75 in Q2 2021 to $2.48 in Q2 2022.
Along with its quarterly results, the company separately announced that it will spinoff its healthcare segment. This is a major announcement, as the healthcare business itself generates over $8 billion in annual sales.
The new 3M will consist of the segments which generated $26.8 billion of sales in 2021, while the healthcare spin-off will retain the product portfolio which generated $8.6 billion of sales in 2021.
Click here to download our most recent Sure Analysis report on 3M (preview of page 1 of 3 shown below):
High Yield Dividend King #4: Leggett & Platt (LEG)
- Dividend Yield: 4.2%
Leggett & Platt is an engineered products manufacturer. The company’s products include furniture, bedding components, store fixtures, die castings, and industrial products. Leggett & Platt has 14 business units and more than 20,000 employees. The company qualifies for the Dividend Aristocrats Index as it has 50 years of consecutive dividend increases.
In the 2022 second quarter, revenue of $1.33 billion rose 4.7% year-over-year. Earnings-per-share of $0.70 beat estimates by a penny. The company lowered full-year guidance, now expecting sales in a range of $5.2 billion to $5.4 billion, and earnings-per-share of $2.65 to $2.80 for 2022.
Click here to download our most recent Sure Analysis report on Leggett & Platt (preview of page 1 of 3 shown below):
High Yield Dividend King #3: Canadian Utilities (CDUAF)
- Dividend Yield: 4.4%
Canadian Utilities is an $8.07 billion company with approximately 5,000 employees. ATCO owns 53% of Canadian Utilities. Based in Alberta, Canadian Utilities is a diversified global energy infrastructure corporation delivering solutions in Electricity, Pipelines & Liquid, and Retail Energy.
Source: Investor Presentation
The company prides itself on having Canada’s longest consecutive years of dividend increases, with a 50-year streak. Unless otherwise noted, US dollars are used in this research report.
On July 28th, 2022, Canadian Utilities reported its Q2-2022 results for the period ending June 30th, 2022. Revenues for the quarter amounted to $726, 18.1% higher year-over-year, while EPS came in at $0.39 compared to a loss of $0.03 in Q2-2022. Higher revenues were mainly the result of rate relief provided to customers in 2021 in light of the COVID-19 global pandemic and, subsequently, the decision to maximize the collection of 2021 deferred revenues in 2022.
By benefiting from a stable business model, Canadian Utilities can slowly but progressively grow its earnings. The company consistently invests in new projects and benefits from the base rate increases, which grow at around 3% to 4% annually.
Last year, management had filed an application with the Alberta Utilities Commission to postpone Canadian Utilities’ electricity and natural gas distribution rate increases. The company expects to receive the deferred revenues in early 2022. We retain our expected growth rate at 4%.
Click here to download our most recent Sure Analysis report on CDUAF (preview of page 1 of 3 shown below):
High Yield Dividend King #2: Universal Corporation (UVV)
- Dividend Yield: 5.9%
Universal Corporation is the world’s largest leaf tobacco exporter and importer. The company is the wholesale purchaser and processor of tobacco that operates between farms and the companies that manufacture cigarettes, pipe tobacco, and cigars. Universal Corporation was founded in 1886 and is headquartered in Richmond, Virginia.
Universal Corporation reported its fiscal 2023 first-quarter earnings results on August 3rd. Quarterly revenue of $430 million increased 23% from the same quarter last year. Earnings-per-share of $0.27 rose 3.8% year-over-year. Growth was due to higher carryover tobacco sales volumes and prices, as well as contributions from acquisitions including Shank’s in October 2021.
Click here to download our most recent Sure Analysis report on Universal (preview of page 1 of 3 shown below):
High Yield Dividend King #1: Altria Group (MO)
- Dividend Yield: 7.9%
Altria Group was founded by Philip Morris in 1847. Today, it is a consumer staples giant. It sells the Marlboro cigarette brand in the U.S. and a number of other non-smokeable brands, including Skoal and Copenhagen.
The flagship brand continues to be Marlboro, which holds over 40% retail market share in the U.S.
Source: Investor Presentation
Altria also has a 10% ownership stake in global beer giant Anheuser-Busch InBev, in addition to large stakes in Juul, a vaping products manufacturer and distributor, as well as cannabis company Cronos Group (CRON).
On 07/28/22, Altria reported second quarter results. Adjusted diluted earnings-per-share increased 2.4% to $1.26 yearover-year. Net revenue stood at $6.5 billion, down by 5.7% year-over-year. Reported diluted earnings per share stood at $0.49, down by 57.8% year-over-year. Revenue decreased 4.1% to $5.37 billion year-over-year.
Meanwhile, Altria reported approximately $750 million remaining under the company’s existing $3.5 billion share repurchase program which is expected to complete by December 31, 2022. The company also reaffirmed full-year 2022 adjusted diluted earnings-per-share guidance of $4.79-$4.93 which represents an adjusted diluted earnings-per-share growth rate of 4% to 7%.
Click here to download our most recent Sure Analysis report on Altria Group (preview of page 1 of 3 shown below):
Final Thoughts
High yield dividend stocks have obvious appeal to income investors. The S&P 500 Index yields just ~1.4% right now on average, making high yield stocks even more attractive by comparison.
Of course, investors should always do their research before buying individual stocks.
That said, the 20 stocks in this list have yields at least double the S&P 500 Index average, going all the way up to 8.6%. And, each of these stocks has increased their dividends for 50 consecutive years. They are all part of the exclusive Dividend Kings list.
As a result, income investors may find these 20 dividend stocks attractive.
This article was first published by Bob Ciura for Sure Dividend
Sure dividend helps individual investors build high-quality dividend growth portfolios for the long run. The goal is financial freedom through an investment portfolio that pays rising dividend income over time. To this end, Sure Dividend provides a great deal of free information.
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