5 Future Dividend Kings in the Next 5 Years or Less

In this article, we discuss 5 future dividend kings in the next 5 years or less. If you want to read our detailed analysis of the best dividend kings and the performance of dividend growth stocks, go directly to read 10 Future Dividend Kings in the Next 5 Years or Less. 

5. Pentair plc (NYSE:PNR)

Consecutive Years of Dividend Growth: 48

Pentair plc (NYSE:PNR) is a Minnesota-based water treatment company that offers water solutions and equipment. The company offers a quarterly dividend of $0.23 per share and has a dividend yield of 1.10%, as of May 8. It is one of the best dividend kings of the future as the company has been growing its dividends consistently for the past 48 years.

As of the end of the fourth quarter of 2023, 35 hedge funds owned stakes in Pentair plc (NYSE:PNR), compared with 36 in the previous quarter, as per Insider Monkey’s database. The total value of these stakes is over $1.85 billion. Among these hedge funds, Impax Asset Management was the company’s leading stakeholder in Q4.

4. MGE Energy, Inc. (NASDAQ:MGEE)

Consecutive Years of Dividend Growth: 48

MGE Energy, Inc. (NASDAQ:MGEE) is an American utility holding company that produces and distributes electricity and natural gas. The company pays a quarterly dividend of $0.4275 per share, having raised it by 5% in 2023. Overall, the company holds a 48-year track record of consistent dividend growth, which places it on our list of the best dividend kings of the future. The stock’s dividend yield on May 8 came in at 2.12%.

MGE Energy, Inc. (NASDAQ:MGEE) was a popular buy among elite funds as hedge fund positions in the company grew to 15 in Q4 2023, from 6 in the previous quarter, according to Insider Monkey’s database. The stakes owned by these hedge funds are collectively valued at nearly $22 million.

3. RLI Corp. (NYSE:RLI)

Consecutive Years of Dividend Growth: 49

RLI Corp. (NYSE:RLI) is an American insurance company that specializes in underwriting property and casualty insurance. On May 2, the company declared a 7.4% hike in its quarterly dividend to $0.29 per share. Through this increase, the company stretched its dividend growth streak to 49 years, which makes RLI one of the best dividend kings of the future. The stock offers a dividend yield of 0.79%, as of May 8.

RLI Corp. (NYSE:RLI) was a part of 18 hedge fund portfolios at the end of Q4 2023, which remained the same as in the previous quarter, as per Insider Monkey’s database. The stakes held by these hedge funds have a total value of over $368.2 million.

2. Automatic Data Processing, Inc. (NASDAQ:ADP)

Consecutive Years of Dividend Growth: 49

Automatic Data Processing, Inc. (NASDAQ:ADP) specializes in human capital management solutions. On April 3, the company announced a quarterly dividend of $1.40 per share, which was in line with its previous dividend. With a dividend growth streak of 49 years, ADP is just one year away from becoming one of the best dividend kings. As of May 8, the stock has a dividend yield of 2.32%.

At the end of December 2023, 54 hedge funds, up from 50 in the previous quarter, owned stakes in Automatic Data Processing, Inc. (NASDAQ:ADP), as per Insider Monkey’s database. The consolidated value of these stakes is more than $3 billion. With over 5.8 million shares, Fundsmith LLP was the company’s leading stakeholder in Q4.

5. Telephone and Data Systems, Inc. (NYSE:TDS)

Consecutive Years of Dividend Growth: 49

Telephone and Data Systems, Inc. (NYSE:TDS) tops our list of the best dividend kings of the future. The American diversified telecommunications company offers a quarterly dividend of $0.19 per share. In February this year, it achieved its 49th consecutive annual dividend hike. Its dividend yield on May 8 came in at 5.00%.

According to Insider Monkey’s database of Q4 2023, 28 hedge funds held stakes in Telephone and Data Systems, Inc. (NYSE:TDS), up from 27 in the preceding quarter. These stakes have a consolidated value of more than $202.7 million.

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