10 Best Dividend Kings to Buy for Safe Dividend Growth

4. H.B. Fuller Company (NYSE:FUL)

5-Year Average Annual Dividend Growth Rate: 12.25%

H.B. Fuller Company (NYSE:FUL) is a Minnesota-based adhesives manufacturing company that also specializes in sealants and other specialty chemical products. The company is benefitting a lot from its acquisitions, which are enhancing its market position. It recently acquired ND Industries, a top provider of specialty adhesives and fastener locking and sealing solutions, catering to clients in the automotive, electronics, aerospace, and other sectors. Acquiring this business would expand the company’s footprint by approximately 5 locations and increase its workforce by 300 employees. This acquisition is expected to contribute around $70 million in annual revenues, boosting pro forma sales by approximately 2%.

On April 11, H.B. Fuller Company (NYSE:FUL) declared an 8.5% hike in its quarterly dividend to $0.2225 per share. Through this increase, the company stretched its dividend growth streak to 55 years, which makes FUL one of the best dividend kings on our list. The stock has a dividend yield of 1.13%, as of June 19. In the first quarter of 2024, the company reported a strong cash position. Its operating cash flow increased $42 million on a year-over-year basis to $47 million. During the quarter, the company’s sales increased marginally by 0.2% to $810 million, which was primarily driven by the contributions from recent acquisitions. In addition, the company’s net debt remained relatively stable at $1.67 billion, however, with trailing EBITDA increasing to $594 million, the company’s leverage ratio decreased to 2.8 times. Street analysts have maintained a Moderate Buy rating on the stock, with a $95.5 price target, which shows a 21% upside potential from its current levels.

Insider Monkey’s database of Q1 2024, 18 hedge funds owned stakes in H.B. Fuller Company (NYSE:FUL), which remained the same as in the previous quarter. These stakes have a collective value of more than $150 million. Among these hedge funds, P2 Capital Partners was the company’s leading stakeholder in Q1.