In this article, we will discuss 15 dividend zombies and dividend kings with the longest dividend payouts. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read 5 Dividend Zombies and Kings With Longest Dividend Payouts.
Dividend zombies are companies with century-long dividend payouts, whereas dividend kings are companies that have raised their dividend payouts for 50 years or more. 2022 was a difficult year from an investing point of view due to high inflation and continuous changes in monetary policies. Despite this, dividend stocks recorded one of their best performances in the year, becoming top choices for investors. Considering investors’ inclination toward dividend stocks, companies in the US steadily raised their payouts last year. According to research conducted by FactSet, the MSCI World Index reported a 5.5% dividend growth in 2022. The report also mentioned that the index is likely to deliver a 3.8% growth this year as well.
Various pieces of research have revealed that dividend stocks perform well during inflationary periods. In this regard, companies with strong dividend growth track records become favorable as they have the ability to generate stable income for investors. According to a report by Indexology, the S&P Dividend Growers Indices outperformed their benchmarks in the three periods when inflation was at its peak since 2006. The report also mentioned that the year-over-year dividend growth rate over the past 15 years ending August 2022 was 13.71%, compared with a 2.21% growth in the Consumer Price Index over the same time.
Analysts are presenting a positive outlook for dividend investment this year as well. According to UBS, the S&P 500 dividends per share will grow by 1% this year, despite an expected 11% drop in earnings per share in a recessionary environment. The bank also noted that dividends per share could show a 20% growth over the next two years if the Federal Reserve successfully avoids recession.
PepsiCo, Inc. (NASDAQ:PEP), AbbVie Inc. (NYSE:ABBV), and Johnson & Johnson (NYSE:JNJ) are some of the popular dividend stocks that are grabbing investors’ attention. In this article, we will discuss dividend zombies and dividend kings that hold the longest dividend payout track records.
Photo by Viacheslav Bublyk on Unsplash
Our Methodology:
For this list, we selected companies that have paid dividends for over 100 years and also have strong dividend growth histories. Some of these companies are dividend kings, which means that they have raised their payouts for 50 years or more. We also considered the hedge fund sentiment around each stock, according to Insider Monkey’s database for Q4 2022. The stocks are ranked in ascending order of the consecutive years of dividend payments.
15. The Coca-Cola Company (NYSE:KO)
Consecutive Years of Dividend Payments: 103
Consecutive Years of Dividend Growth: 61
The Coca-Cola Company (NYSE:KO) is a Georgia-based multinational company that specializes in the marketing and sales of a wide range of beverages. On February 16, the company declared a 4.5% hike in its quarterly dividend to $0.46 per share. This was the company’s 61st consecutive year of dividend growth and has been paying dividends to shareholders for the past 103 years. The stock has a dividend yield of 3.05%, as of March 7.
In addition to KO, PepsiCo, Inc. (NASDAQ:PEP), AbbVie Inc. (NYSE:ABBV), and Johnson & Johnson (NYSE:JNJ) are some other dividend companies with long dividend growth streaks.
In February, Morgan Stanley raised its price target on The Coca-Cola Company (NYSE:KO) to $70 with an Overweight rating on the shares, highlighting the growth in the company’s organic sales.
At the end of Q4 2022, 58 hedge funds in Insider Monkey’s database owned stakes in The Coca-Cola Company (NYSE:KO), worth $28.8 billion collectively. Among these hedge funds, Berkshire Hathaway was the company’s largest stakeholder, owning 400 million shares.
Rowan Street Capital mentioned The Coca-Cola Company (NYSE:KO) in its Q4 2022 investor letter. Here is what the firm has to say:
“Let’s take The Coca-Cola Company (NYSE:KO) for example. Its dividend yield is 2.8%, earnings are estimated to grow at only 3.6% rate per year over next 4 years, and its earnings multiple is currently at 24x (based on next years forecasted earnings). KO has an anemic growth, so we can argue that paying 24x earnings is not very attractive. Let’s assume that the multiple will stay constant over the next 3-5 years, thus our expected annual returns will be 2.8%+3.6% = 6.4% (that is below the current reported inflation rate and only slightly above the risk-free rate of 4%).”
14. International Business Machines Corporation (NYSE:IBM)
Consecutive Years of Dividend Payments: 107
Consecutive Years of Dividend Growth: 27
International Business Machines Corporation (NYSE:IBM), also known as Big Blue, is a New York-based technology company that has operations in over 175 countries. In January, BMO Capital raised its price target on the stock to $155 with a Market Perform rating on the shares, appreciating the company’s recent quarterly earnings.
In the fourth quarter of 2022, International Business Machines Corporation (NYSE:IBM) reported revenue of $16.7 billion, which fell in line with its revenue during the same period last year. For FY22, the company’s operating cash flow came in at $10.4 billion and its free cash flow amounted to $9.3 billion.
International Business Machines Corporation (NYSE:IBM) holds one of the longest dividend payment records of 107 years. Moreover, it has raised its payouts for 27 years in a row. The company offers a quarterly dividend of $1.65 per share and has a dividend yield of 5.07%, as of March 7.
At the end of Q4 2022, 43 hedge funds tracked by Insider Monkey reported owning stakes in International Business Machines Corporation (NYSE:IBM), up from 40 in the previous quarter. These stakes have a collective value of $1.23 billion.
13. National Fuel Gas Company (NYSE:NFG)
Consecutive Years of Dividend Payments: 120
Consecutive Years of Dividend Growth: 52
National Fuel Gas Company (NYSE:NFG) is an American diversified energy company, based in New York. In fiscal Q1 2023, the company posted revenue of $658.8 million, which showed a 20.5% growth from the same period last year. The company’s operating cash flow came in at $327.3 million, up 91% from the prior-year period.
National Fuel Gas Company (NYSE:NFG) currently pays a quarterly dividend of $0.475 per share and has a dividend yield of 3.27%, as of March 7. The company holds a 52-year streak of consistent dividend growth and has raised its payouts for consecutive 120 years. It is one of the dividend zombies with the longest dividend payouts on our list.
At the end of Q4 2022, 30 hedge funds tracked by Insider Monkey owned stakes in National Fuel Gas Company (NYSE:NFG), compared with 29 in the previous quarter. These stakes have a consolidated value of nearly $230 million. With over 1.1 million shares, GAMCO Investors was the company’s leading stakeholder in Q4.
12. Chubb Limited (NYSE:CB)
Consecutive Years of Dividend Payments: 121
Consecutive Years of Dividend Growth: 29
Chubb Limited (NYSE:CB) is an American insurance company that provides personal property and casualty insurance services to its consumers. In February, Atlantic Equities raised its price target on the stock to $250 with an Overweight rating on the shares. The firm believes that the property and casualty sector is well-positioned to benefit from the ongoing higher interest rates.
Chubb Limited (NYSE:CB) holds one of the longest dividend payout records, paying uninterrupted dividends to shareholders for the past 121 years. The company also holds a 29-year streak of dividend growth. It offers a quarterly dividend of $0.83 per share and has a dividend yield of 1.60%, as recorded on March 7.
In the fourth quarter of 2022, Chubb Limited (NYSE:CB) reported revenue of $10.5 billion, which saw a 13.2% growth from the same period last year. The company’s operating cash flow for the quarter came in at $2.65 billion and it paid $345 million to shareholders in dividends.
The number of hedge funds tracked by Insider Monkey owning stakes in Chubb Limited (NYSE:CB) grew to 45 in Q4 2022, from 41 in the previous quarter. The collective value of these stakes is over $2.18 billion.
Aristotle Capital Management mentioned Chubb Limited (NYSE:CB) in its Q1 2022 investor letter. Here is what the firm has to say:
“Our investment in Chubb began in the fourth quarter of 2015, shortly after ACE Limited announced it would acquire the Chubb Corporation, creating the largest global property and casualty insurance company by underwriting income. During our nearly seven-year holding period, the company’s combination progressed leading to the realization of main catalysts we had identified. These included cost savings, broadened product offerings and an expanded customer base, as well as enhanced distribution capabilities and improved pricing due to scale. In addition, Chubb successfully grew its profitable high-net-worth personal lines. While we still consider Chubb to be a high-quality business, few catalysts remain after what was, in our opinion, a remarkable run of successful business execution. As such, we decided to step aside in favor of what we believe to be a more optimal investment in Blackstone.”
11. Church & Dwight Co., Inc. (NYSE:CHD)
Consecutive Years of Dividend Payments: 122
Consecutive Years of Dividend Growth: 27
Church & Dwight Co., Inc. (NYSE:CHD) is a New Jersey-based consumer goods company that deals in personal care and household products. On February 3, the company announced a 3.8% hike in its quarterly dividend to $0.2725 per share. Through this increase, the company took its dividend growth streak to 27 years. It has also been paying regular dividends to shareholders for the past 122 years, holding one of the longest dividend payment streaks. The company’s shares boast a yield of 1.30%, as of March 7.
In February, Oppenheimer readded Church & Dwight Co., Inc. (NYSE:CHD) to its Top Pick list due to the management’s execution. The firm lifted its price target on the stock to $93 with an Outperform rating on the shares.
In FY22, Church & Dwight Co., Inc. (NYSE:CHD) reported an operating cash flow of $885 million. The company paid $265 million in dividends to shareholders during the year.
At the end of December 2022, 36 hedge funds tracked by Insider Monkey owned stakes in Church & Dwight Co., Inc. (NYSE:CHD), with a total value of over $1.4 billion. Among these hedge funds, Fundsmith LLP was the company’s leading stakeholder in Q4.
10. Union Pacific Corporation (NYSE:UNP)
Consecutive Years of Dividend Payments: 123
Consecutive Years of Dividend Growth: 16
Another dividend stock holding the longest dividend payout record is Union Pacific Corporation (NYSE:UNP), which is a Nebraska-based transport company. In Q4 2022, the company posted revenue of $6.2 billion, which showed an 8.2% growth from the same period last year. At the end of December 2022, the company had over $973 million available in cash and cash equivalents, up from $960 million in 2021.
Union Pacific Corporation (NYSE:UNP) currently pays a quarterly dividend of $1.30 per share. The company has been making regular dividend payments to shareholders for the past 123 years and has raised its payouts for 16 years in a row. The stock’s dividend yield on March 7 came in at 2.49%.
RBC Capital upgraded Union Pacific Corporation (NYSE:UNP) to Outperform and also raised its price target on the stock to $210 in February.
Union Pacific Corporation (NYSE:UNP) was a popular buy among elite funds in Q4 2022, as 83 hedge funds in Insider Monkey’s database owned stakes in the company, up from 74 in the previous quarter. These stakes have a total value of roughly $5.4 billion.
Diamond Hill Capital Management mentioned Union Pacific Corporation (NYSE:UNP) in its Q2 2022 investor letter. Here is what the firm has to say:
“Union Pacific Corporation (NYSE:UNP) is a large railroad company that carries freight across the western US and between Canada and Mexico. It transports a variety of industrial goods, raw materials and containerized freight between major US ports, industrial hubs and international gateways. The goods that Union Pacific and other railroads transport are fundamental inputs in the economy and are resilient to long-term trends in the business cycle. We believe Union Pacific offers a compelling investment opportunity as its substantial infrastructure investments, relative cost advantages, limited leverage and the essential nature of the products it delivers provides the company with what we believe is one of the widest moats in the transportation sector. We also like that Union Pacific has a shareholder-oriented management team that is focused on growing earnings while returning capital to shareholders.”
9. PPG Industries, Inc. (NYSE:PPG)
Consecutive Years of Dividend Payments: 124
Consecutive Years of Dividend Growth: 51
PPG Industries, Inc. (NYSE:PPG) is a Dividend King, holding one of the longest dividend payout streaks of 124 years. The paint manufacturing company currently pays a quarterly dividend of $0.62 per share and has a dividend yield of 1.86%, as of March 7. The company has been raising its dividends consistently for the past 51 years.
Following the company’s Q4 earnings, Deutsche Bank raised its price target on PPG Industries, Inc. (NYSE:PPG) to $145 and maintained a Buy rating on the shares.
In the fourth quarter of 2022, PPG Industries, Inc. (NYSE:PPG) reported revenue of $4.2 billion, which remained consistent with its revenue during the same period last year. At the end of FY22, the company’s operating cash flow amounted to $963 million. It paid $570 million to shareholders in dividends through December 2022, compared with $536 million in 2021.
As of the close of Q4 2022, 31 hedge funds in Insider Monkey’s database owned stakes in PPG Industries, Inc. (NYSE:PPG), compared with 34 in the previous quarter. These stakes have a total value of over $316.7 million.
ClearBridge Investments mentioned PPG Industries, Inc. (NYSE:PPG) in its Q1 2022 investor letter. Here is what the firm has to say:
“While commodities-exposed areas of the materials sector such as mining and steel fared well in the quarter, we tend to have less direct exposure to commodities across our portfolio. Holdings like paint and coating company PPG Industries (NYSE:PPG) that use natural gas and oil related products as feedstock into their products faced sharp input cost escalation, driving meaningful margin compression, which was not well-received by investors. While negative in the short term, we remain confident that the company will be able to adjust pricing accordingly and recover margins over the medium term.”
8. Colgate-Palmolive Company (NYSE:CL)
Consecutive Years of Dividend Payments: 128
Consecutive Years of Dividend Growth: 60
Colgate-Palmolive Company (NYSE:CL) is an American multinational consumer goods company, based in New York. In February, Citigroup presented a positive outlook on the consumer sector and initiated its coverage on the stock with a Buy rating and an $84 price target.
Colgate-Palmolive Company (NYSE:CL) is a Dividend King with one of the longest dividend payout records, paying regular dividends to shareholders for the past 128 years. The company has been raising its dividends consistently for the past 60 years. It currently pays a quarterly dividend of $0.47 per share and has a dividend yield of 2.57%, as of March 7.
At the end of December 2022, Colgate-Palmolive Company (NYSE:CL) was a part of 61 hedge fund portfolios, compared with 57 in the previous quarter, as per Insider Monkey’s data. The stakes owned by these hedge funds have a total value of over $4.46 billion.
Third Point mentioned Colgate-Palmolive Company (NYSE:CL) in its recently-published Q4 2022 investor letter. Here is what the firm has to say:
“Colgate-Palmolive Company (NYSE:CL) remains one of the firm’s largest equity positions. The company offers defensive growth at a reasonable valuation, and we continue to see the potential for shares to deliver attractive risk adjusted returns over the next several years.
Fourth Quarter results were disappointing. The company missed on gross margins, guided 2023 well below the Street, and took another large impairment charge on its portfolio of skin care brands. The price action on the day of the print (down 5%) was extreme and perhaps reflective of growing investor frustration that the company has failed to sustainably grow earnings over the past decade.
We believe some of this “miss” was beyond the company’s control and that Colgate is on the road to delivering more predictable results. Organic growth remains strong and we expect it to start translating into earnings growth as execution improves, margins recover, and external pressures calm down…” (Click here to read the full text)
7. The Procter & Gamble Company (NYSE:PG)
Consecutive Years of Dividend Payments: 132
Consecutive Years of Dividend Growth: 66
An American multinational consumer goods company, The Procter & Gamble Company (NYSE:PG) ranks seventh on our list of the stocks with the longest dividend payout record. The company has been making regular dividends to shareholders for the past 132 years and also maintains a 66-year streak of consistent dividend growth. It pays a quarterly dividend of $0.9133 per share and has a dividend yield of 2.60%, as of March 7.
JPMorgan upgraded The Procter & Gamble Company (NYSE:PG) to Overweight and also raised its price target on the stock to $155 in March. The firm gave a positive stance on the company’s businesses.
At the end of December 2022, 74 elite funds tracked by Insider Monkey reported owning stakes in the company in Q4 2022, up from 69 in the previous quarter. These stakes are collectively valued at over $4.7 billion.
Rowan Street Capital mentioned The Procter & Gamble Company (NYSE:PG) in its Q4 2022 investor letter. Here is what the firm has to say:
“Let’s look at The Procter & Gamble Company (NYSE:PG). Dividend yield is 2.4%. Earnings are forecasted to grow at 5.9%, and its current earnings multiple is at 25x. Now, lets say over the next 3-5 years the market loses interest in the “safe”, mature companies that grow at anemic rates and gets an appetite for growth again. It’s very unlikely that Mr. Market will be paying 25x for 5.9% earnings growth. Lets assume that multiple declines to the market average of 18x — that would be ~6.9% drag per year on the total expected return over next 3-5 years. If we get 2.4% (dividend) + 5.9% (earnings growth) – 6.9% (decrease in earnings multiple) = 1.4% (annual return we can expect on average from this stock).”
6. Eli Lilly and Company (NYSE:LLY)
Consecutive Years of Dividend Payments: 138
Consecutive Years of Dividend Growth: 9
Eli Lilly and Company (NYSE:LLY) is an American multinational pharmaceutical company that specializes in medicines for a wide range of ailments. In February, Morgan Stanley raised its price target on the stock to $455 with an Overweight rating on the shares, highlighting the company’s recent earnings beat.
Eli Lilly and Company (NYSE:LLY) has been paying dividends to shareholders for the past 138 years. The company also maintains a 9-year streak of consistent dividend growth. It currently offers a quarterly dividend of $1.13 per share and has a dividend yield of 1.42%, as of March 7. PepsiCo, Inc. (NASDAQ:PEP), AbbVie Inc. (NYSE:ABBV), and Johnson & Johnson (NYSE:JNJ) are also favored by investors.
As of the close of Q4 2022, 76 hedge funds tracked by Insider Monkey reported owning stakes in Eli Lilly and Company (NYSE:LLY), up from 75 in the previous quarter. The collective value of these stakes is over $5 billion.
Baron Funds mentioned Eli Lilly and Company (NYSE:LLY) in its Q4 2022 investor letter. Here is what the firm has to say:
“Eli Lilly and Company (NYSE:LLY) is a large-cap pharmaceutical company. Shares increased on investor optimism about Lilly’s new product pipeline, which includes Mounjaro for diabetes and obesity and Donanemab for Alzheimer’s disease. We continue to think Lilly has a healthy base business with limited near-term patent expirations, a strong pipeline, and potential for significant margin expansion, which should translate to strong revenue and earnings growth over at least the next five years.”
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Disclosure. None. 15 Dividend Zombies and Kings With Longest Dividend Payouts is originally published on Insider Monkey.
