5 Companies Likely to be Dividend Kings in the Future

In this article, we discuss 5 companies likely to be dividend kings in the future. If you want to read our detailed analysis of the returns of dividend growers, go directly to read 10 Companies Likely to be Dividend Kings in the Future. 

5. Brown-Forman Corporation (NYSE:BF-B)

Consecutive Years of Dividend Growth: 39
5-Year Average Dividend Payout Ratio: 39.5%

Brown-Forman Corporation (NYSE:BF-B) is a Kentucky-based company that produces spirits and wines. In fiscal Q2 2023, the company reported revenue of $1.09 billion, which showed a 9.7% growth from the same period last year. At the end of October 2022, it had over $1 billion available in cash and cash equivalents, up from $868 million six months before that.

On January 24, Brown-Forman Corporation (NYSE:BF-B) declared a quarterly dividend of $0.2055 per share, consistent with its previous dividend. The company maintains a 39-year streak of consistent dividend growth and has a dividend yield of 1.25%, as of February 7. With a 5-year average dividend payout ratio of 39.5%, BF-B is likely to be a dividend king in the future.

At the end of September 2022, 36 hedge funds in Insider Monkey’s database owned investments in Brown-Forman Corporation (NYSE:BF-B), up from 28 a quarter earlier. These stakes have a total value of over $1.5 billion. With over 12.2 million shares, Fundsmith LLP was the company’s leading stakeholder.