10 Dividend Zombies and Kings with Longest Dividend Payouts

1. The York Water Company (NASDAQ:YORW)

Consecutive Years of Dividend Payments: 209

The York Water Company (NASDAQ:YORW) tops our list of the best dividend zombies to invest in. The water services company has never missed a dividend in 209 years, the longest streak held by any publicly traded company in the US market. The company offers a quarterly dividend of $0.2108 per share and has a dividend yield of 2.34%, as of June 20. It has been rewarding shareholders with growing dividends for the past 27 years.

As a water utility company, The York Water Company (NASDAQ:YORW)’s growth depends on its customer base and water and wastewater rates. Since it can’t directly control prices, the most effective way for the company to expand is by increasing its number of customers. The company has pursued growth by acquiring other businesses within its territory. Its customer count rose modestly from 71,411 in 2019 to 78,000 at the end of 2023. The company’s revenue for FY23 came in at over $71 million, up from $60 million in the previous year.

The York Water Company (NASDAQ:YORW) benefits massively from its business model. Since the services provided by the company are needed by nearly every renter and homeowner, its operating cash flow remains clear and predictable year after year. Its operating cash flow for FY23 jumped to $32 million during the year, from $22 million in the prior-year period. The company’s debt situation might worry investors as it had $190 million in long-term debt at the end of 2023, which might become more expensive to manage if high interest rates persist. However, its debt/equity ratio of 0.85 positions it relatively in a safe spot.

At the end of the March quarter of 2024, 9 hedge funds held stakes in The York Water Company (NASDAQ:YORW), up from 8 in the previous quarter, as per Insider Monkey’s database. These stakes are valued at over $37 million in total.

While we acknowledge the potential of YORW as an investment, our conviction lies in the belief that deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued dividend stock that is as promising as YORW but that trades at less than 7 times its earnings and yields nearly 10%, check out our report about the dirt cheap dividend stock.