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. (NYSE:ED) 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. (NYSE:SWK) 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. (NYSE:SWK) 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. (NASDAQ:MGEE) 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 (NYSE:GPC) 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 (NYSE:KO) 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. (NYSE:ABBV) is a global, diversified, research-based biopharmaceutical company. It focuses on the research and development, manufacturing, commercialization, and sale of medicines and therapies.
While we acknowledge the potential of ABBV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ABBV and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see Top 5 Dividend Kings to Buy for Safe Dividend Growth
Disclosure: None. Follow Insider Monkey on Google News.
