5 Companies Likely to be Dividend Kings in the Future

2. The Sherwin-Williams Company (NYSE:SHW)

Consecutive Years of Dividend Growth: 43
5-Year Average Dividend Payout Ratio: 26.7%

The Sherwin-Williams Company (NYSE:SHW) is an Ohio-based company that specializes in the manufacturing of coating and painting materials. The company offers a quarterly dividend of $0.60 per share and has a dividend yield of 1.01%, as of February 7. With a five-year average dividend payout ratio of 26.7% and a 43-year streak of dividend growth, the company is likely to be a dividend king in the future.

In January, RBC Capital maintained an Outperform rating on The Sherwin-Williams Company (NYSE:SHW) with a $267 price target. The firm mentioned that the company is well-positioned to benefit from ‘carried over volume backlogs’.

At the end of September 2022, 63 hedge funds tracked by Insider Monkey owned stakes in The Sherwin-Williams Company (NYSE:SHW), up from 52 in the previous quarter. The collective value of these stakes is over $2.8 billion.

Baron Funds mentioned The Sherwin-Williams Company (NYSE:SHW) in its Q4 2022 investor letter. Here is what the firm has to say:

“In the most recent quarter, following a more than 40% correction over the course of 2022 in its share price from a high of $348 to $195, we re-acquired shares of The Sherwin-Williams Company (NYSE:SHW).

The company is a global leader in the manufacturing, development, distribution, and sale of paint, coatings, and related products to professional, industrial, commercial, and retail customers. Its well-known brands include Sherwin-Williams, Dutch Boy, Krylon, Minwax, Thompson’s Water Seal, and Valspar.

Sherwin-Williams products are sold exclusively through more than 4,850 company-operated stores and facilities, while the company’s other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers, and industrial distributors…” (Click here to read the full text)