The purpose of this list is to learn about those companies, and study how they managed to grow dividends for such a long period of time. The intelligent dividend investor should refrain from purchasing any of those securities, without:
1) Understanding their business model
2) Determining whether they believe the business will be able to earn more over time
3) Determining if the business is available at an attractive valuation
The companies that are members of the dividend king list for 2016 include:
Name | Symbol | Industry | Consecutive Years of Rising Dividends | 10 year Annual Dividend Growth | Forward P/E | Dividend Yield | 10 year Annual EPS Growth |
American States Water | AWR | Utility-Water | 61 | 6.86% | 26.81 | 2.10% | 7.24% |
Dover Corp. | DOV | Machinery | 60 | 11.52% | 16.07 | 2.87% | 3.83% |
Northwest Natural Gas | NWN | Utility-Gas | 60 | 3.51% | 22.15 | 3.77% | 0.60% |
Emerson Electric | EMR | Industrial Equipment | 59 | 8.35% | 14.48 | 4.26% | 3.24% |
Genuine Parts Co. | GPC | Auto Parts | 59 | 7.11% | 18.21 | 2.94% | 6.26% |
Parker-Hannifin Corp. | PH | Industrial Equipment | 59 | 15.96% | 15.35 | 2.69% | 5.10% |
Procter & Gamble Co. | PG | Consumer Products | 59 | 9.22% | 20.83 | 3.39% | 3.57% |
3M Company | MMM | Conglomerate | 57 | 9.33% | 19.43 | 2.79% | 6.26% |
Vectren Corp. | VVC | Utility-Electric/Gas | 56 | 2.61% | 17.81 | 3.86% | 2.61% |
Cincinnati Financial | CINF | Insurance | 55 | 4.70% | 17.30 | 3.17% | -0.15% |
Coca-Cola Company | KO | Beverages-Non-alcoholic | 53 | 8.95% | 21.36 | 3.11% | 6.91% |
Johnson & Johnson | JNJ | Drugs/Consumer Prod. | 53 | 9.81% | 16.50 | 2.94% | 5.97% |
Lancaster Colony Corp. | LANC | Food/Consumer Prod. | 53 | 6.41% | 26.24 | 1.81% | 5.41% |
Lowe's Companies | LOW | Retail-Home Improv. | 53 | 26.14% | 22.26 | 1.52% | 6.74% |
Colgate-Palmolive Co. | CL | Personal Products | 52 | 10.45% | 23.50 | 2.32% | 8.62% |
Nordson Corp. | NDSN | Machinery | 52 | 11.05% | 16.54 | 1.52% | 11.16% |
Farmers & Merchants Bancorp | FMCB | Banking | 51 | 5.43% | 15.50 | 2.46% | 4.38% |
Hormel Foods Corp. | HRL | Food Processing | 50 | 14.42% | 26.89 | 1.47% | 11.02% |
There are two new additions to the list from 2015. The first addition is Hormel Foods (HRL) and the second addition is Farmers & Merchants Bancorp (FMCB). The second company claims to have raised dividends for 51 years in a row. Based on my research of historical SEC filings, I could only verify dividend growth for the past 20 years ( since 1995 on page 23 )
I would expect that Tootsie Roll Industries (TR) becomes a dividend king in 2016. So far the company has managed to boost dividends for 49 years in a row.
There were no companies on the list that cut dividends or kept them unchanged. Since I first compiled the list of dividend kings in 2010, there has only been one company that stopped raising dividends – Diebold (DBD).
Full Disclosure: Long KO, LOW, CL, MMM, PG, EMR, GPC
Relevant Articles:
- Dividend Kings List for 2015
- Ten Dividend Kings raising dividends for over 50 years
- Dividend Champions - The Best List for Dividend Investors
- How to value dividend stocks
- What drives future investment returns?
