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10 Future Dividend Kings in the Next 5 Years or Less

In this article, we discuss 10 future dividend kings in the next 5 years or less. You can skip our detailed analysis of the best dividend kings and the performance of dividend growth stocks, and go directly to read 5 Future Dividend Kings in the Next 5 Years or Less

Dividend Kings refer to a select group of companies that have consistently raised their dividends for at least 50 years. Growing dividends for half a century demands significant dedication and financial stability. Hence, only 54 out of 4,000 publicly traded companies in the US have managed to accomplish this feat of sustained dividend growth. Moreover, these companies have raised and maintained their dividends despite enduring seven recessions over the past five decades, including the Black Monday in 1987, the Great Financial Crisis of 2008, and the Coronavirus Crash of 2020. The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and Colgate-Palmolive Company (NYSE:CL) are some of the best dividend kings with decades-long dividend growth streaks.

Companies that have the ability to raise their dividends have shown resilience and stability over time. The S&P 500 Dividend Aristocrats Index, which tracks the performance of companies with 25 or more consecutive years of dividend growth, has outperformed the S&P 500 since its inception in 2005. According to a report by ProShares, the initial investment of $10,000 made in 2005 in the index could have potentially grown to over $61,000 by March 2021. Moreover, the index has surpassed the broader market in performance during eight out of the ten most significant quarterly downturns since 2005. The report also mentioned that the companies in the Dividend Aristocrats Index have grown their dividends at an annual average rate of 8.3% between 2005 and 2022, compared with a 6.7% annual average dividend growth rate of the S&P 500 companies.

Investors have been actively seeking dividend growth stocks because of their capacity to provide consistent and increasing income over time. As corporate balance sheets are showing strength, many companies in the US are steadily growing their dividends. According to the latest data from S&P Dow Jones Indices, the companies in the S&P 500 distributed $151.6 billion in dividends in the first quarter of 2024, up from $146.8 billion during the same period last year. The report further mentioned that total dividend increases were $22.7 billion for the quarter, compared with $19.7 billion in the first quarter of 2023. Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices, has given a strong outlook for dividend growth this year, especially for large-cap companies. Here is what he said:

“Absent an economic or geopolitical event, dividend growth is expected to selectively continue. S&P 500 large caps appear to be weathering uncertainty and volatility better. The index is expected to post a 6% increase in payments for 2024 compared to its 5.1% increase in 2023 and the 10.8% increase seen in 2022.”

Generating income from dividend stocks is not a quick process; it mainly requires patience and a long-term investment approach. Dividend stocks are ideal for long-term investors as these equities have outpaced inflation over the years. Morningstar cited data from Yale University’s Robert Shiller and revealed that since 1871, dividends per share in the S&P 500 have increased at an annualized rate of 1.6 percentage points faster than inflation. In addition to this, the advantage of dividend growth over inflation has strengthened in recent years. Over the past 50 years, dividends have surpassed inflation by an annualized rate of 2.5 percentage points, and over the last 20 years, by 4.6 percentage points annually.

That said, achieving dividend growth and that too, for such long periods of time, is not an easy task. However, there are some companies that are on the verge of achieving Dividend King status, showing their commitment to consistent dividend increases. In this article, we will take a look at future dividend kings in five years or less.

Our Methodology:

For this list, we selected companies that have raised their dividend payouts for 45 years or more and are on a steady path to becoming dividend kings (companies that increase their dividends for 50 or more straight years). These companies would be achieving their Dividend King status in five years or less. The stocks are ranked in ascending order of their consecutive years of dividend growth.

Data from over 900 elite hedge funds tracked by Insider Monkey in the fourth quarter of 2023 was used to identify the number of hedge funds that hold stakes in each firm. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

10. The Sherwin-Williams Company (NYSE:SHW)

Consecutive Years of Dividend Growth: 45

The Sherwin-Williams Company (NYSE:SHW) is an Ohio-based paint and coating manufacturing company that also specializes in floor coverings and related products. On April 17, the company declared a quarterly dividend of $0.715 per share, which was in line with its previous dividend. Overall, it has raised its payouts for 45 consecutive years, which makes SHW one of the best dividend kings of the future. The stock has a dividend yield of 0.89%, as of May 8.

At the end of Q4 2023, 72 hedge funds in Insider Monkey’s database held stakes in The Sherwin-Williams Company (NYSE:SHW), up from 71 in the previous quarter. These stakes have a total value of over $3.62 billion. With over 1.3 million shares, D E Shaw was the company’s leading stakeholder in Q4.

9. Medtronic plc (NYSE:MDT)

Consecutive Years of Dividend Growth: 46

Medtronic plc (NYSE:MDT) is a medical device company that specializes in various related technologies to treat chronic diseases. In the first nine months of its FY24, the company generated an operating cash flow of over $4 billion, up from $3.5 billion during the same period last year. Its free cash flow for the period came in at nearly $3 billion, growing from $2.5 billion in the prior-year period.

Medtronic plc (NYSE:MDT), one of the best dividend kings of the future, has been growing its dividends consistently for the past 46 years. It currently offers a quarterly dividend of $0.69 per share and has a dividend yield of 3.38%, as of May 8.

As of the close of Q4 2023, 56 hedge funds tracked by Insider Monkey held stakes in Medtronic plc (NYSE:MDT), compared with 59 in the previous quarter. The consolidated value of these stakes is over $2.68 billion.

8. McDonald’s Corporation (NYSE:MCD)

Consecutive Years of Dividend Growth: 47

An American multinational fast-food chain, McDonald’s Corporation (NYSE:MCD) is next on our list of the best dividend kings of the future. The company currently pays a quarterly dividend of $1.67 per share and has a dividend yield of 2.49%, as recorded on May 8. It holds a 47-year track record of consistent dividend growth.

According to Insider Monkey’s database of Q4 2023, 63 hedge funds held stakes in McDonald’s Corporation (NYSE:MCD), down from 70 in the preceding quarter. These stakes are worth over $2 billion. Among these hedge funds, Ken Griffin’s Citadel Investment Group was the company’s leading stakeholder in Q4.

Horizon Kinetics LLC mentioned McDonald’s Corporation (NYSE:MCD) in its Q4 2023 investor letter. Here is what the firm has to say:

“The next major development for the industrialized economies was the opening of “denied areas.” It’s not a familiar term today, but it would be found in books on geopolitics written before the collapse of the Soviet Union. It referred to the Soviet Union and China, and simply meant that businesses couldn’t expand there.

For instance, prior to 1990, it was inconceivable that someone would assert that McDonald’s Corporation (NYSE:MCD) was going to open a store in Moscow, or even Bucharest or Warsaw. But it ultimately happened. And then in Shanghai and other Chinese cities. So, in addition to the disinflationary commodity and labor impacts, the third miracle for Western economies was that all the major consumer brand companies that could only expand globally within the context of what we then called the free world, could now be truly global. Much expansion ensued, growth that could not otherwise have occurred…” (Click here to read the full text)

7. Carlisle Companies Incorporated (NYSE:CSL)

Consecutive Years of Dividend Growth: 47

Carlisle Companies Incorporated (NYSE:CSL) is an Arizona-based manufacturing company that operates through multiple segments and offers a wide range of services and products in various sectors. On April 30, the company announced a quarterly dividend of $0.85 per share, which was consistent with its previous dividend. It is one of the best dividend kings of the future as the company has been rewarding shareholders with growing dividends for the past 47 years. the stock’s dividend yield on May 8 came in at 0.84%.

Insider Monkey’s database of Q4 2023 indicated that 35 hedge funds held stakes in Carlisle Companies Incorporated (NYSE:CSL), compared with 37 in the previous quarter. The overall value of these stakes is over $765.4 million.

6. Franklin Resources, Inc. (NYSE:BEN)

Consecutive Years of Dividend Growth: 48

Franklin Resources, Inc. (NYSE:BEN) ranks sixth on our list of the best dividend kings of the future. The global investment management company has been growing its payouts for 48 consecutive years and currently offers a quarterly dividend of $0.31 per share. The stock has an impressive dividend yield of 5.35%, as of May 8.

The number of hedge funds tracked by Insider Monkey owning stakes in Franklin Resources, Inc. (NYSE:BEN) grew to 26 in Q4 2023, from 22 in the previous quarter. These stakes are worth over $182.6 million collectively. With 1 million shares, Fairfax Financial Holdings was the company’s leading stakeholder in Q4.

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Disclosure. None. 10 Future Dividend Kings in the Next 5 Years or Less is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
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Trump has made it clear: Europe and U.S. allies must buy American LNG.

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AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

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AI needs energy. Energy needs infrastructure.

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This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

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This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

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The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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  • The AI infrastructure supercycle
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Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…