In this article, we will take a look at the Top 11 Dividend Kings to Buy for Safe Dividend Growth.
Dividend Kings have earned a strong following among income investors because they have proven their ability to raise their dividends through different market cycles. For many investors, that kind of consistency can provide confidence that income will continue to grow over time.
That said, a long history of dividend increases does not automatically make a stock a good investment. To be classified as a Dividend King, a company must have increased its dividend for at least 50 consecutive years.
Reaching that milestone reflects a clear commitment to rewarding shareholders. Even so, no dividend is guaranteed. Morningstar Indexes strategist Dan Lefkovitz said companies with wide economic moats have historically been less likely to cut their dividends than those with narrow moats. Businesses without economic moats, he noted, face the highest risk of dividend reductions.
Investors should also pay attention to valuation. A company may have an outstanding dividend record, but buying the stock at an inflated price can hurt overall returns. Morningstar director of equity research Damien Conover said that purchasing a significantly overvalued stock simply for its dividend can lead to disappointing long-term results. In his view, investors should focus on three key factors together: valuation, the company’s ability to maintain and grow its dividend, and the strength of its economic moat.
Given this, we will take a look at some of the best Dividend Kings to invest in.
Our Methodology:
For this article, we scanned the list of dividend kings, which are the companies that have raised their payouts for 50 years or more. From that list, we picked 12 companies with the highest 5-year annual average dividend growth rates. The stocks are ranked in ascending order of their annual average dividend growth in the past five years.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
11. Consolidated Edison, Inc. (NYSE:ED)
5-Year Average Dividend Growth Rate: 2.44%
On June 2, Mizuho downgraded Consolidated Edison, Inc. (NYSE:ED) to Neutral from Outperform. It set a a $105 price target. The firm cited the company’s “constrained growth trajectory” and valuation as reasons for the downgrade. According to Mizuho, Consolidated Edison’s valuation discount relative to its peers is no longer compelling. The analyst noted in a research report that this leaves limited upside potential from current share price levels.
Earlier, on May 21, Morgan Stanley lowered its price recommendation on ED to $99 from $105. It reiterated an Underweight rating on the stock. The firm updated its price targets for North American Regulated & Diversified Utilities and Independent Power Producers (IPPs) for April. Morgan Stanley also pointed out that utility stocks underperformed the S&P this month, according to the analyst’s note to investors.
Consolidated Edison, Inc. is a holding company that provides a range of energy-related products and services through its subsidiaries. These include Consolidated Edison Company of New York, Inc. (CECONY), Orange and Rockland Utilities, Inc. (O&R), and Con Edison Transmission, Inc.
10. Stanley Black & Decker, Inc. (NYSE:SWK)
5-Year Average Dividend Growth Rate: 3.47%
On June 18, Wells Fargo raised the firm’s price recommendation on Stanley Black & Decker, Inc. to $90 from $80. It reiterated an Equal Weight rating on the stock. The firm met with the company’s CFO, Pat Hallinan, and Investor Relations representative Michael Wherley in Toronto the previous day. According to Wells Fargo, management’s tone was upbeat and consistent with comments made during the firm’s CEO fireside chat the week before.
Earlier, on May 28, Morgan Stanley lowered its price goal on SWK to $84 from $87. It kept an Equal Weight rating on the shares. Analyst Christopher Snyder said the company continues to execute well as its restructuring efforts progress. Those improvements have supported higher gross margin and earnings-per-share estimates. At the same time, ongoing competitive pressures and a still-soft Tools & Outdoor market continue to weigh on the outlook, with few near-term catalysts expected to drive demand, the analyst noted in a research report.
Stanley Black & Decker, Inc. is a global provider of hand tools, power tools, outdoor products, and related accessories. The company also supplies engineered fastening solutions through its Tools & Outdoor and Engineered Fastening segments.
9. MGE Energy, Inc. (NASDAQ:MGEE)
5-Year Average Dividend Growth Rate: 5.12%
On June 8, Ladenburg upgraded MGE Energy, Inc. (NASDAQ:MGEE) to Buy from Neutral. It set a price target of $81, down from $83.50. The firm said the upgrade was based on valuation.
A few days earlier, on May 29, Freedom Broker initiated coverage of MGE Energy with a Hold rating and a $77 price target. Analyst Matvey Tayts said the company offers “defensive” regulated utility earnings, though he believes the shares are fairly valued at current levels.
MGE Energy reported first-quarter 2026 GAAP earnings of $48.5 million, or $1.32 per share, compared with $41.6 million, or $1.14 per share, in the same period last year. Earnings from the electric segment increased by $5.5 million year over year. The growth was driven by strategic capital investments that expanded the company’s rate base. Much of that increase came from the successful deployment of key renewable energy projects.
MGE Energy, Inc. is a public utility holding company. Its operations include regulated electric utility services, regulated gas utility services, nonregulated energy operations, transmission investments, and other business activities.
8. Genuine Parts Company (NYSE:GPC)
5-Year Average Dividend Growth Rate: 5.45%
On June 16, DA Davidson initiated coverage of Genuine Parts Company (NYSE:GPC) with a Buy rating and a $145 price target. The firm views the stock as “materially undervalued” and said the planned spin-off of the motion business could unlock value.DA Davidson also sees more upside potential from cost reductions within the NAPA business. The firm noted that Genuine Parts also has exposure to an improving industrial upcycle.
During the company’s first-quarter 2026 earnings call, CEO William Stengel said the separation process remained on track and continued to move forward as planned. He said the company made progress toward completing the separation in the first quarter of 2027. Stengel also noted that teams performed well during the quarter and delivered financial results that exceeded the company’s expectations.
Discussing geopolitical challenges, Stengel said the war in the Middle East required the company to remain flexible and disciplined. He explained that the conflict affected the movement of some goods through the global supply chain and added pressure to certain products and logistics costs. At the same time, he said the company did not see a significant impact on its financial results during the first quarter.
CFO Herbert Nappier said the company’s teams delivered a strong first-quarter performance, with sales meeting expectations and profits coming in ahead of forecasts. He reported adjusted earnings per share of $1.77 and said nonrecurring costs related to restructuring and the separation totaled $75 million before taxes, or $56 million after taxes.
Genuine Parts Company is a global service provider of automotive and industrial replacement parts and value-added solutions.
7. The Coca-Cola Company (NYSE:KO)
5-Year Average Dividend Growth Rate: 6.21%
On June 22, The Wall Street Journal reported that The Coca-Cola Company (NYSE:KO) and the IRS are heading to court in a long-running dispute involving $20 billion. The case focuses on the beverage company’s reporting of profits generated in the US and overseas.
Coca-Cola is taking the matter to a federal appeals court in Miami as it seeks to resolve a tax liability issue linked to how the company and its foreign subsidiaries reported profits between 2007 and 2009. The reporting was based on an accounting practice known as transfer pricing.
The dispute focuses on a 1996 agreement between Coca-Cola and the IRS regarding how the company would report foreign profits. Coca-Cola’s US corporation licenses its intellectual property, including recipes, brand names, and trademarks, to foreign subsidiaries that produce concentrates used for its beverages in international markets.
Coca-Cola said it organized its operations according to the 1996 agreement by using a “10-50-50” method. Under this approach, foreign suppliers keep 10% of gross sales, while the US parent company and foreign subsidiaries divide the remaining profits.
“Far from seeking to evade its tax obligations, Coca-Cola carefully structured its operations to adhere to a method that the IRS had repeatedly blessed,” the company said in a court filing, according to The Wall Street Journal.
The Coca-Cola Company is a beverage company. Its segments include Europe, the Middle East and Africa (EMEA), Latin America, North America, Asia Pacific, and Bottling Investments.
6. AbbVie Inc. (NYSE:ABBV)
5-Year Average Dividend Growth Rate: 6.33%
On June 22, Wells Fargo maintained an Overweight rating on AbbVie Inc. (NYSE:ABBV). It also set a $260 price target on the shares. The firm said AbbVie’s reported bid for Apogee Therapeutics makes sense because Apogee is a strong fit based on its M&A screen. Wells Fargo told investors in a research note that such a transaction would likely be viewed positively for AbbVie shares. The firm also noted that the deal could create pressure on Regeneron due to increased competition.
On June 22, Reuters reported that AbbVie said it would acquire Apogee Therapeutics for $10.9 billion. The deal, AbbVie’s largest buyout in more than five years, is aimed at strengthening its treatment pipeline for inflammatory diseases, including atopic dermatitis and asthma.
The acquisition is one of the biggest biotech deals of the year and reflects the rise in pharmaceutical dealmaking as companies work to expand their portfolios ahead of upcoming patent expirations on major treatments. AbbVie has relied on acquisitions to offset declining demand for its former top-selling drug Humira following biosimilar competition. The company is also preparing for patent expirations of its immunology drugs Skyrizi and Rinvoq.
AbbVie Inc. is a global, diversified, research-based biopharmaceutical company. It focuses on the research and development, manufacturing, commercialization, and sale of medicines and therapies.
5. Nucor Corporation (NYSE:NUE)
5-Year Average Dividend Growth Rate: 6.57%
On June 22, Morgan Stanley raised the firm’s price recommendation on Nucor Corporation (NYSE:NUE) to $258 from $227. It reiterated an Equal Weight rating on the shares. The firm increased its steel price forecasts to reflect the extended supply-driven rally. At the same time, Morgan Stanley believes the expected higher steel prices are already reflected in the stocks across the group. Analyst Carlos De Alba added that Commercial Metals is the firm’s only Overweight-rated steel stock in North America. The firm believes market concerns about new rebar supply are already overly reflected in the stock.
On June 18, Wells Fargo lowered its price goal on Nucor to $283 from $292. It maintained an Overweight rating on the shares. The firm noted that the company’s second-quarter EPS guidance of $4.50-$4.60 was above the consensus estimate of $4.21 but below Wells Fargo’s estimate of $4.91, even with a $130 million one-time refund. Wells Fargo said it believes intersegment eliminations affected the quarter.
Nucor Corporation is a manufacturer of steel and steel products, with operating facilities in the United States, Canada, and Mexico. The company also produces and sources ferrous and non-ferrous materials, mainly for use in its steel manufacturing business.
4. H.B. Fuller Company (NYSE:FUL)
5-Year Average Dividend Growth Rate: 7.72%
On June 17, UBS raised the firm’s price recommendation on H.B. Fuller Company (NYSE:FUL) to $71 from $63. It reiterated a Neutral rating on the shares. The firm said it expects a beat and raise quarter, though the potential Advanced Medical Solutions deal remains an overhang.
On May 27, JPMorgan upgraded FUL to Neutral from Underweight. It kept an unchanged price target of $58. The firm said the company’s near-term share price performance could depend on whether H.B. Fuller moves ahead with the Advanced Medical Solutions transaction or begins a full review of strategic alternatives. JPMorgan cited valuation as the reason for the upgrade.
H.B. Fuller Company is a pure-play adhesives company. It operates as a formulator, manufacturer, and marketer of adhesives, sealants, and other specialty chemical products.
3. ABM Industries Incorporated (NYSE:ABM)
5-Year Average Dividend Growth Rate: 8.16%
On June 8, Baird raised the firm’s price recommendation on ABM Industries Incorporated (NYSE:ABM) to $48 from $45. It reiterated a Neutral rating on the shares. Analyst Andrew Wittmann updated his model following the company’s strong quarterly results.
During ABM’s second-quarter 2026 earnings call, President, CEO, and Director Scott Salmirs said the company delivered a strong quarter. He highlighted organic revenue growth of 6.1% and noted that first-half new sales bookings reached $1.2 billion, setting a new record for ABM.
Salmirs also pointed to sequential margin improvement and a significant increase in free cash flow during the first half compared with the previous year. He said the company expects volumes to increase meaningfully in ATS and M&D, which should support stronger earnings and margin growth in the second half of the year.
Executive Vice President and CFO David Orr reported that revenue grew 8.4% year-over-year to a second-quarter record of $2.3 billion. He added that adjusted EBITDA increased by $5.8 million from the prior year to $131.7 million, while segment operating margin improved by 20 basis points sequentially to 7.3%.
ABM Industries Incorporated provides integrated facility, engineering, and infrastructure solutions. The company’s segments include Business & Industry (B&I), Manufacturing & Distribution (M&D), Education, Aviation, and Technical Solutions.
2. W.W. Grainger, Inc. (NYSE:GWW)
5-Year Average Dividend Growth Rate: 8.34%
On June 16, DA Davidson initiated coverage of W.W. Grainger, Inc. (NYSE:GWW) with a Neutral rating and a $1,250 price target. The firm said the company is expected to continue delivering above-market growth, supported by its endless assortment “flywheel.” DA Davidson noted that it sees a balanced risk/reward at current share levels, adding that Grainger’s gross margins face structural downward pressure.
On May 27, Morgan Stanley analyst Christopher Snyder raised the firm’s price target on Grainger to $1,300 from $1,190 and maintained an Equal Weight rating on the shares. The firm updated its estimates to reflect first-quarter results and rolled forward its forecasts.
W.W. Grainger, Inc. is a broadline distributor of maintenance, repair, and operating (MRO) products for businesses and institutions. The company’s segments include High-Touch Solutions North America (High-Touch Solutions N.A.) and Endless Assortment.
1. Nordson Corporation (NASDAQ:NDSN)
5-Year Average Dividend Growth Rate: 16.02%
On May 29, Oppenheimer raised its price recommendation on Nordson Corporation (NASDAQ:NDSN) to $335 from $325. It reiterated an Outperform rating on the stock. The firm pointed to a strong increase in backlog, which rose 18% year over year in the second quarter and 38% year to date. Advanced Technology Solutions (ATS) was the primary driver of that backlog growth.
A few days earlier, on May 27, DA Davidson raised its price goal on Nordson to $345 from $335. It kept a Buy rating following the company’s second-quarter earnings beat and higher guidance. The firm also increased its fiscal 2026 and fiscal 2027 earnings-per-share estimates by $0.20 to $11.55 and $12.40, respectively. According to the analyst, the revisions reflect stronger-than-expected growth in the Advanced Technology Solutions segment, supported by solid dispensing demand from semiconductor applications and accelerating test and inspection (T&I) orders. DA Davidson added that demand from the automotive market also appears to be improving. As a result, Nordson is seeing more synchronized organic growth across its three operating segments.
Nordson Corporation is a precision technology company that engineers, manufactures, and markets specialized products and systems. Its technologies are used for precision dispensing, applying, and controlling adhesives, coatings, polymers, sealants, biomaterials, and other fluids.
READ NEXT: 12 Ultra-High Dividend Stocks to Buy for Income Investors and 13 Best Dividend Stocks to Buy Under $25
Hedge Fund Resource Center