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12 Future Dividend Kings in the Next 6 Years or Less

In this article, we discuss 12 future dividend kings in the next 6 years or less. You can skip our detailed analysis of dividend stocks and their returns over the years, and go directly to read 5 Future Dividend Kings in the Next 6 Years or Less

Dividend Kings are companies that have dividend growth streaks of 50 years or more. Investors are inclined toward these securities as these companies are financially stable and are more likely to raise their payouts in the future. Moreover, these stocks also offer regular income to shareholders along with the potential for capital appreciation as the stock price grows over time. Some of the best dividend kings that investors are paying attention to include The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and The Procter & Gamble Company (NYSE:PG) as these companies have strong cash flow generation which enabled them to raise their payouts for decades.

The current inflationary environment has enhanced the importance of dividend growers. Analysts also recommend loading up on companies with strong dividend growth track records instead of those with high yields. According to a report by Nuveen, global dividend-payers with modest yields of around 3% generally exhibit better earnings potential and higher profit margins when compared with high-yielding dividend stocks. The report also mentioned that dividend growth stocks outperformed their peers during monthly periods of rising volatility. From December 2002 to December 2022, dividend growers delivered an average excess return of 0.7% when the monthly volatility increase was over 20%.

In addition to shareholder return, dividend stocks also contributed significantly to the overall market return. According to a report by T. Rowe Price, compounded dividends have represented over 70% of global market returns. The report also mentioned the performance of dividend growers over the years. The S&P Dividend Aristocrat Index, which tracks the performance of companies that have raised their payouts for 25 years or more, has outperformed the wider market by over 75% since 1989.

Payout ratios also play a vital part when considering investments in dividend growers. In one of our previous articles titled 10 Companies Likely to be Dividend Kings in the Future, we mentioned a research which says dividend growers returned 11.1% on average in a 12-month period starting after the rate hikes in 1994 through the third quarter of 2022, compared with a 9.2% return of the wider market. We also mentioned that payout ratios below 50% are considered healthy as these companies have stable cash flow generation for shareholder return.

Healthy payout ratios show the financial position of the company which directly affects the sustainability of future dividends. Andrew Crowell, financial adviser and vice chairman of wealth management at D.A. Davidson, spoke to Wall Street Journal about dividend payout ratios and their importance. Here are some comments from the analyst:

“The dividend payout ratio is a good indicator of a company’s dividend track record. It is the ratio of the total amount of dividends paid out to shareholders relative to the net income of the company.”

He added:

“The annual dividend payout ratio for dividend aristocrats is 30% to 50%. This allows them to retain enough cash if business stalls, or the economy turns downward.”

Our Methodology:

For this list, we selected companies that have raised their dividend payouts for 44 years or more and are on a steady path to becoming dividend kings (companies which increase their dividends for 50 or more straight years). These companies would be achieving their Dividend King status in six years or less. The stocks are ranked in ascending order of their consecutive years of dividend growth.

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

Consecutive Years of Dividend Growth: 44

The Sherwin-Williams Company (NYSE:SHW) is an Ohio-based paint and coating manufacturing company. On February 15, the company declared a 0.8% growth in its quarterly dividend to $0.605 per share. Through this increase, the company took its dividend growth streak to 44 years. The stock has a dividend yield of 1.15%, as of March 23.

SHW is also favored by investors alongside some of the best dividend kings like The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and The Procter & Gamble Company (NYSE:PG).

In the fourth quarter of 2022, The Sherwin-Williams Company (NYSE:SHW) posted an EPS of $1.89, which beat Street estimates by $0.04. The company’s revenue for the quarter came in at $5.23 billion, up 9.9% from the same period last year. In FY22, it paid $619 million to shareholders in dividends.

In January, RBC Capital maintained an Outperform rating on The Sherwin-Williams Company (NYSE:SHW) with a $267 price target, expecting the company to benefit from US housing fundamentals.

As per Insider Monkey’s Q4 2022 database, 64 hedge funds reported having stakes in The Sherwin-Williams Company (NYSE:SHW), up from 63 in the previous quarter. These stakes have a total value of over $2.44 billion. With over 1.3 million shares, Farallon Capital was the company’s leading stakeholder in Q4.

ClearBridge Investments mentioned The Sherwin-Williams Company (NYSE:SHW) in its Q4 2022 investor letter. Here is what the firm has to say:

“A third approach to return generation is purchasing idiosyncratic businesses that largely control their own destiny. We saw mixed results from this group in the fourth quarter, with paint and coatings maker The Sherwin-Williams Company (NYSE:SHW) benefiting from significant pricing power that will allow it to grow earnings handsomely with only modest revenue increases.”

11. Medtronic plc (NYSE:MDT)

Consecutive Years of Dividend Growth: 45

Medtronic plc (NYSE:MDT) is a Minnesota-based medical device company that provides medical services, technology, and solutions. In its fiscal Q3 2023, the company posted revenue of $7.7 billion, which showed a 0.5% growth from the same period last year. Its cash position remained strong with an operating cash flow of $3.6 billion and a free cash flow of $2.5 billion.

Deutsche Bank raised its price target on Medtronic plc (NYSE:MDT) to $87 with a Hold rating on the shares, following the company’s strong quarterly earnings.

Medtronic plc (NYSE:MDT) is on its way to becoming one of the best dividend kings as it has raised its payouts consistently for the past 45 years. The company currently pays a quarterly dividend of $0.68 per share and has a dividend yield of 3.40%, as of March 23.

As of the end of Q4 2022, Medtronic plc (NYSE:MDT) was a part of 58 hedge fund portfolios, up from 55 in the previous quarter, according to Insider Monkey’s data. The collective value of these stakes is over $2.6 billion.

Carillon Tower Advisers mentioned Medtronic plc (NYSE:MDT) in its Q4 2022 investor letter. Here is what the firm has to say:

“Medtronic plc (NYSE:MDT) announced disappointing clinical trial results for a new product in its pipeline and lowered its fiscal 2023 financial guidance due to lingering supply chain issues and slower than expected medical procedure recovery.”

10. McDonald’s Corporation (NYSE:MCD)

Consecutive Years of Dividend Growth: 46

McDonald’s Corporation (NYSE:MCD) is an American multinational fast-food company. Tigress Financial raised its price target on the stock to $330 in March with a Buy rating on the shares, appreciating the company’s strategies to enhance growth. The firm further appreciated the company’s resilient business model that enables it to drive strong performance in all economic cycles.

McDonald’s Corporation (NYSE:MCD) will be among the best dividend kings in the future as its current dividend growth streak stands at 46 years. The company offers a quarterly dividend of $1.52 per share for a dividend yield of 2.27%, as recorded on March 23.

The number of hedge funds tracked by Insider Monkey owning stakes in McDonald’s Corporation (NYSE:MCD) grew to 57 in Q4 2022, from 53 in the preceding quarter. These stakes have a consolidated value of over $2.7 billion. Ken Griffin, Ray Dalio, and D. E. Shaw were some of the company’s leading stakeholders in Q4.

9. Carlisle Companies Incorporated (NYSE:CSL)

Consecutive Years of Dividend Growth: 46

Carlisle Companies Incorporated (NYSE:CSL) is an Arizona-based diversified company that manufactures and markets a wide range of products including optical fibers and defense electronics. The company will be among the best dividend kings in the future as it has raised its dividends for 46 years straight. It currently pays a quarterly dividend of $0.75 per share and has a dividend yield of 1.38%, as of March 23.

In the fourth quarter of 2022, Carlisle Companies Incorporated (NYSE:CSL) reported revenue of $1.45 billion, which saw a 3.6% growth from the same period last year. For 12 months that ended December 2022, the company’s operating cash flow came in at over $1 billion and its free cash flow stood at $825.6 million. During this period, it returned $134.4 million to shareholders in dividends, which shows that its future dividends are secure.

In March, BMO Capital maintained an Outperform rating on Carlisle Companies Incorporated (NYSE:CSL) with a $335 price target, highlighting the company’s operational initiatives.

At the end of December 2022, 41 hedge funds in Insider Monkey’s database owned stakes in Carlisle Companies Incorporated (NYSE:CSL), worth roughly $8 billion collectively.

Madison Funds mentioned Carlisle Companies Incorporated (NYSE:CSL) in its Q4 2022 investor letter. Here is what the firm has to say:

“The bottom five detractors for the quarter were Carlisle Companies Incorporated (NYSE:CSL), Brown & Brown, Brookfield, CarMax, and Armstrong World Industries. Following robust outperformance during the first three quarters of the year, Carlisle shares took a step back this quarter as investors worried about commercial roofing demand in a potentially slowing economy.”

8. RLI Corp. (NYSE:RLI)

Consecutive Years of Dividend Growth: 47

Another best dividend king of the future on our list is RLI Corp. (NYSE:RLI), which is an American insurance company. It mainly specializes in property insurance and casualty insurance. In January, RBC Capital raised its price target on the stock to $136 with a Sector Perform rating on the shares. The firm mentioned that the company’s recent results showed healthy growth, improved margins, and higher investment income.

RLI Corp. (NYSE:RLI) currently pays a quarterly dividend of $0.26 per share for a dividend yield of 0.81%, as of March 23. The company maintains a 47-year streak of consistent dividend growth.

As of the close of Q4 2022, 19 hedge funds tracked by Insider Monkey were long RLI Corp. (NYSE:RLI), owning stakes worth over $251.3 million collectively.

First Pacific Advisors mentioned RLI Corp. (NYSE:RLI) in its Q4 2022 investor letter. Here is what the firm has to say:

RLI Corp. (NYSE:RLI) is a high-quality specialty insurer with a collection of niche and arcane lines across property & casualty (P&C). RLI has an attractive combined ratio and return on equity, 9 a conservative underwriting culture and growth opportunities. Despite its full price, we continue to hold RLI because of its high quality and our reluctance to trade in and out. The insurance sector as a whole performed well last year, but RLI got a boost from strong Q3 2022 earnings and the sale of its equity stake in sunglass manufacturer Maui Jim.”

7. Pentair plc (NYSE:PNR)

Consecutive Years of Dividend Growth: 47

Pentair plc (NYSE:PNR) is an American water treatment company, based in Minnesota. In its fourth-quarter earnings, the company reported revenue of $1 billion, which showed a 1.45% year-over-year growth. For FY22, its operating cash flow came in at $364 million and its free cash flow amounted to over $283 million.

On February 21, Pentair plc (NYSE:PNR) declared a quarterly dividend of $0.22 per share, which was in line with its previous dividend. The company is among the best dividend kings of the future as it maintains a 47-year streak of consistent dividend growth. The stock’s dividend yield on March 23 came in at 1.71%.

Cowen showed confidence in Pentair plc (NYSE:PNR)’s margin expansion and pool returns this year as it raised its price target on the stock to $65 in February with an Outperform rating on the shares.

At the end of Q4 2022, 29 hedge funds tracked by Insider Monkey reported having stakes in Pentair plc (NYSE:PNR), the same as in the previous quarter. The collective value of these stakes is over $1.15 billion. Among these hedge funds, Impax Asset Management was the company’s leading stakeholder in Q4.

6. MGE Energy, Inc. (NASDAQ:MGEE)

Consecutive Years of Dividend Growth: 47

MGE Energy, Inc. (NASDAQ:MGEE) is an American utility holding company that generates and distributes electricity and also owns generation units. The company currently pays a quarterly dividend of $0.4075 per share and has a dividend yield of 2.22%, as of March 23. It holds a 47-year track record of consistent dividend growth.

The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and The Procter & Gamble Company (NYSE:PG) are some of the best dividend kings to invest in the current environment.

At the end of December 2022, 12 hedge funds tracked by Insider Monkey owned stakes in MGE Energy, Inc. (NASDAQ:MGEE), compared with 13 in the previous quarter. The collective value of these stakes is over $16.4 million.

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Disclosure. None. 12 Future Dividend Kings in the Next 6 Years or Less is originally published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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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.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
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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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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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Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

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The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

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