If you’re looking to boost your dividend income, investing in Dividend Kings is a smart move. These are stocks that have increased their dividend for at least 50 consecutive years, indicating strong financials and growth prospects. Three Dividend Kings to consider buying right now are Coca-Cola (NYSE: KO), Philip Morris (NYSE: PM), and Realty Income (NYSE: O).
Coca-Cola, as highlighted by John Ballard, is a dominant global beverage brand that has paid 62 consecutive years of growing dividends. The company has seen a 21% increase in its stock price year to date, driven by strong financial results. Despite consumer spending tightening, Coca-Cola has remained resilient, reporting a 2% year-over-year increase in unit case volume. With a diversified portfolio of brands and a robust operating profit margin of 21%, Coca-Cola is well-positioned for continued growth. The company pays out about 75% of its annual earnings in dividends, with a current quarterly dividend of $0.485 per share, offering an attractive forward-dividend yield of 2.71%.
Philip Morris, as discussed by Jeremy Bowman, has successfully diversified its business beyond cigarettes into next-gen products like IQOS heat-not-burn sticks and Zyn nicotine pouches. These products now account for over 40% of the company’s revenue and gross profit, with strong demand driving growth. Philip Morris recently raised its quarterly payout by 3.8% to $1.35, offering a dividend yield of 4.4%. While not technically a Dividend King, Philip Morris has a history of dividend increases for the last 55 years, making it a solid long-term dividend stock.
Realty Income, as highlighted by Jennifer Saibil, is a retail real estate investment trust (REIT) known for its high-yielding monthly dividends. The company has expanded its portfolio significantly in recent years, diversifying into new industries and doubling its property count. Realty Income has paid a dividend for over 50 years and raised it for 108 consecutive quarters. With a current dividend yield of nearly 5%, well above the S&P 500 average, Realty Income is a reliable option for passive income investors.
In conclusion, investing in Dividend Kings like Coca-Cola, Philip Morris, and Realty Income can provide a steady stream of income and long-term growth potential. These companies have a track record of increasing dividends and solid financial performance, making them attractive options for investors looking to boost their dividend income. Consider adding these Dividend Kings to your portfolio for a lifetime of passive income.
