Passive income investors are always on the lookout for stocks that can provide a steady stream of income through dividend payments. However, not all dividend stocks are created equal. Some stocks go above and beyond by consistently increasing their dividend payouts year after year, eventually earning them the prestigious title of “dividend king.” These companies have a track record of paying increasing dividends for at least 50 consecutive years, a feat that requires strong financial performance and stability through various economic cycles.
One such company that is well on its way to becoming a dividend king is McDonald’s. With its iconic brand, global reach, and market dominance in the fast-food industry, McDonald’s has already achieved dividend aristocrat status with 48 consecutive years of increasing dividends. Currently trading at $292.63 and offering a 2.37% dividend yield, McDonald’s is poised to become a dividend king if it can continue its streak for two more years.
Another potential dividend king in the making is Pentair, a water treatment and sustainable resource company. With a focus on providing water purification and conservation solutions to clients worldwide, Pentair has quietly reached its 49th consecutive year of paying increased dividends. Trading at $105.92 and offering a 0.87% dividend yield, Pentair’s recent earnings report exceeded expectations, leading many analysts to predict further dividend increases in the next quarter.
The Carlisle Companies, a manufacturer of weather-resistant and energy-efficient building materials, is also a strong contender for dividend king status. With products that cater to the growing demand for sustainable construction solutions, Carlisle recently announced an 18% increase in its dividend to $4 per share, marking its 48th consecutive year of paying increased dividends. Trading at $445.34, Carlisle is well-positioned for continued growth in the construction industry.
While there is no guarantee that these stocks will become dividend kings, their track record of consistent dividend increases and strong financial performance make them attractive options for passive income investors. It’s important to consider the overall picture before investing, as dividend king status is not the only indicator of a good stock. However, with their potential for long-term growth and income generation, McDonald’s, Pentair, and the Carlisle Companies are certainly worth keeping an eye on for investors seeking reliable passive income opportunities.
