In this article, we will take a look at some of the best dividend kings with the highest yields.
Dividend Kings are a distinguished group of companies that have achieved at least 50 consecutive years of dividend increases. While some of these companies are part of the S&P index, the two categories are not entirely overlapping. The appeal of Dividend Kings became especially clear after the disruptions caused by the COVID-19 pandemic in 2020. During this time, numerous companies either reduced or suspended their dividends, leaving income-focused investors disappointed. Many had assumed that dividend-paying stocks were inherently lower risk, only to face steep share price drops alongside payout cuts. However, Dividend Kings stand out for their remarkable consistency, boasting 50 years of uninterrupted dividend increases. This long history of reliable payouts provides a sense of stability, even in volatile market conditions.
Investors often gravitate toward firms with a track record of consistent dividend growth, as such companies tend to perform well in declining or stagnant markets. Even during periods of strong market performance, dividend growers have captured a significant share of the gains. Following a long-term dividend growth strategy can aid in compounding returns for investors. A T. Rowe Price report highlighted that, between 1985 and 2022, companies in the Russell index that consistently increased dividends outperformed the broader benchmark. Furthermore, these companies exhibited lower price volatility compared to the overall market.
Earning income through dividend stocks is a gradual process that requires patience and a commitment to long-term investing. These stocks are particularly suited for investors with a long-term horizon, as they have consistently outpaced inflation over time. According to data from Morningstar and Yale University’s Robert Shiller, since 1871, the market’s dividends per share have grown at an annualized rate 1.6 percentage points higher than inflation. Moreover, the gap between dividend growth and inflation has widened in recent years. Over the past 50 years, dividends have outpaced inflation by 2.5 percentage points annually, and in the last 20 years, the margin has grown to 4.6 percentage points per year.
During market rallies, dividend-growing stocks may underperform as investor enthusiasm and momentum often take precedence over fundamentals such as valuation and business quality. This trend has been especially noticeable in the recent past, with dividend stocks lagging behind the broader market. Nonetheless, maintaining a long-term strategy centered on dividend growth can be advantageous, as the benefits accumulate over time with each increase in payouts. Companies with solid fundamentals and robust financial stability are typically well-positioned to sustain and grow their dividends. In contrast, smaller or emerging businesses often prioritize reinvesting earnings into their operations to fuel growth. Given this, we will take a look at some of the best dividend kings with the highest yields.
Photo by Artem Beliaikin on Unsplash
Our Methodology:
To create this list, we examined a set of over 50 dividend king companies, recognized for consistently increasing dividends for 50 years or more. From this group, we selected companies with the highest dividend yields as of December 3 and organized them in ascending order based on their yield, from lowest to highest. We also measured hedge fund sentiment around each stock according to Insider Monkey’s database of 900 as of Q3 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
15. Genuine Parts Company (NYSE:GPC)
Dividend Yield as of December 3: 3.14%
Genuine Parts Company (NYSE:GPC) is an American industrial supplies company that specializes in automotive and industrial replacement parts. The stock is down by over 8.4% since the start of 2024 because of temporary business headwinds. The company is currently dealing with two significant demand challenges. The primary issue is a slowdown in industrial production activity within its key U.S. market, which outweighs the growth in demand from international markets. Additionally, there has been a slight decline in sales of replacement automotive parts.
In the third quarter of 2024, Genuine Parts Company (NYSE:GPC) reported revenue of $5.97 billion, which showed a 2.5% growth from the same period last year. The revenue also beat estimates by $21.4 million. However, the company acknowledged that its results fell short of expectations, largely due to ongoing challenging market conditions in Europe and underperformance in its Industrial segment. Its Global Industrial sales of $2.2 billion fell by 1.2% from the prior-year period.
Oakmark Funds highlighted the positives in the company’s business in its Q3 2024 investor letter. Here is what the firm has to say:
“Genuine Parts Company (NYSE:GPC) is a distributor of automotive and industrial replacement parts. The company primarily operates under the NAPA brand name in the automotive market and Motion Industries in the industrials market. The two business segments address different end markets but share some attractive traits. In both markets, the majority of sales are replacement parts, which leads to steady demand and dampened cyclicality. Customers often prioritize speed and service over price, which promotes a rational competitive pricing environment. Additionally, both markets are fragmented, with GPC representing one of a handful of scale players competing against a long tail of independent operators. The NAPA ecosystem, which includes nearly 2,000 company-owned stores and nearly 4,800 independently owned stores in North America, is a difficult-to-replicate asset that offers broad coverage nationwide. We see opportunity for the store base to operate more efficiently as management’s recent investments start to bear fruit. Motion Industries is the clear leader in its niche with roughly twice the revenue base of the closest direct competitor, and it differentiates itself via its technical salesforce and network density. Historically, GPC has consistently earned high returns on capital and supplements solid organic growth with value-accretive tuck-in acquisitions. The stock trades at a sizeable P/E discount to peers and the broader market, which we view as an attractive entry point.”
Genuine Parts Company (NYSE:GPC)’s cash position makes it one of the strongest dividend payers in the industry. In the first nine months of 2024, the company generated $1.1 billion in operating cash flow and its free cash flow for the period was $711 million. During this time, it returned $411 million to shareholders through dividends. The company currently pays a quarterly dividend of $1 per share and has a dividend yield of 3.14%, as of December 3. It is one of the best dividend kings on our list with 68 consecutive years of dividend growth.
At the end of Q3 2024, 27 hedge funds tracked by Insider Monkey held stakes in Genuine Parts Company (NYSE:GPC), compared with 31 in the previous quarter. The consolidated value of these stakes is over $391 million.
14. Johnson & Johnson (NYSE:JNJ)
Dividend Yield as of December 3: 3.22%
Johnson & Johnson (NYSE:JNJ) is an American pharmaceutical company, based in New Jersey. The company specializes in a wide range of biotech and medical products and offers related services to consumers. Its earnings came in strong in the third quarter of 2024, with revenues of $22.4 billion showing a 5.25% growth from the same period last year. In the first nine months of the year, the company generated $14 billion in free cash flow, up from $11.9 billion in the prior-year period.
Johnson & Johnson (NYSE:JNJ) has consistently grown its portfolio through a series of acquisitions. Most recently, it purchased the medical device firm V-Wave for an initial payment of $600 million. The agreement also includes potential milestone payments of up to $1.1 billion, depending on regulatory approvals and commercial achievements.
Johnson & Johnson (NYSE:JNJ) has been growing its dividends regularly for the past 62 years. The company’s current quarterly dividend comes in at $1.62 per share. With a dividend yield of 3.22%, as of December 3, JNJ is one of the best dividend kings on our list.
Insider Monkey’s database of Q3 2024 indicated that 81 hedge funds owned stakes in Johnson & Johnson (NYSE:JNJ), up slightly from 80 in the previous quarter. The stakes are valued at over $5.4 billion. Among these hedge funds, Fisher Asset Management owned the largest stake in the company.
13. National Fuel Gas Company (NYSE:NFG)
Dividend Yield as of December 3: 3.29%
National Fuel Gas Company (NYSE:NFG) is a New York-based natural gas distribution company. It operates across the entire natural gas value chain, encompassing upstream, midstream, and downstream activities. While most companies specialize in one or two of these areas, few—typically the largest energy firms—are involved in all three, and even then, their focus often includes oil. This comprehensive approach makes National Fuel Gas a distinctive option for investors seeking exposure exclusively to natural gas. The stock has delivered a 23.4% return to shareholders year-to-date.
National Fuel Gas Company (NYSE:NFG) reported revenue of $372 million in fiscal Q4 2024, which showed a slight growth of 0.85% from the same period last year. The company successfully negotiated a multi-year settlement for its New York rate case, with approval anticipated in the near future. In the Exploration and Production (E&P) segment, capital efficiency showed notable improvement as non-acquisition capital expenditures dropped by $58 million, or 10%, compared to the previous year, while production rose by approximately 5% to reach 392.0 Bcf.
In FY24, National Fuel Gas Company (NYSE:NFG) generated over $1 billion in operating cash flow. In June this year, the company raised its dividend for the 54th consecutive year. Currently, it pays a quarterly dividend of $0.515 per share for a dividend yield of 3.29%, as of December 3.
Insider Monkey’s database of Q3 2024 showed that 21 hedge funds held stakes in National Fuel Gas Company (NYSE:NFG), which remained unchanged from the previous quarter. These stakes have a total value of nearly $214 million. With over 1.3 million shares, GAMCO Investors was the company’s leading stakeholder in Q3.
12. Consolidated Edison, Inc. (NYSE:ED)
Dividend Yield as of December 3: 3.35%
Consolidated Edison, Inc. (NYSE:ED) ranks twelfth on our list of the best dividend kings. The American energy company remains dedicated to fulfilling its obligations to shareholders, now targeting the distribution of 55% to 65% of its adjusted earnings as dividends, a reduction from the earlier goal of 60% to 70%. This shift allows the company to retain more of its earnings to fund internal growth initiatives. This approach is anticipated to enhance earnings per share growth, potentially increasing overall returns by combining dividend payouts with stock price appreciation as earnings improve. Since the start of 2024, the stock has surged by over 6.6%.
Consolidated Edison, Inc. (NYSE:ED) reported strong earnings in the third quarter of 2024. The company’s revenue came in at $4.09 billion, which showed a 5.7% growth from the same period last year. The revenue also surpassed analysts’ estimates by $25.5 million. The company reported that its programs successfully reduced electric demand during another hot summer in New York, ensuring uninterrupted power supply for customers. As New Yorkers increasingly adopt electrification for building heating and transportation, the company has streamlined the process for installing EV chargers and continues to offer incentives for heat pump installations.
On October 17, Consolidated Edison, Inc. (NYSE:ED) declared a quarterly dividend of $0.83 per share, which fell in line with its previous dividend. The company has never missed a dividend since 1885 and has raised its payouts for 50 years in a row. The stock’s dividend yield on December 3 came in at 3.35%.
As per Insider Monkey’s database of Q3 2024, 29 hedge funds owned stakes in Consolidated Edison, Inc. (NYSE:ED), compared with 32 in the preceding quarter. These stakes have a collective value of over $601.8 million.
11. Target Corporation (NYSE:TGT)
Dividend Yield as of December 3: 3.43%
Target Corporation (NYSE:TGT) is a Minnesota-based retail corporation that operates a chain of hypermarkets and discount department stores. The stock has declined by more than 8.5% since the beginning of 2024 due to persistent macroeconomic challenges. A major hurdle Target currently faces is its product mix. As reported by CNBC, over half of the retailer’s offerings fall into the discretionary category, putting it at a disadvantage compared to competitors that focus primarily on essentials like groceries. Another problem the company is dealing with involves pricing. Although it reduced many prices ahead of the holiday season, it only saw a small uptick in foot traffic. This suggests that the pricing adjustments may not be enough to address the challenges.
In the third quarter of 2024, Target Corporation (NYSE:TGT) reported revenue of $25.7 billion, which showed a modest growth of 1.06% from the same period last year. The revenue missed analysts’ estimates by $231.8 million. For the fourth quarter, the company anticipates comparable sales to remain roughly unchanged, with GAAP and Adjusted EPS ranging from $1.85 to $2.45. This leads to a full-year forecast for GAAP and Adjusted EPS between $8.30 and $8.90.
Though Target Corporation (NYSE:TGT) did not meet investor and analysts’ estimates, its cash position is still stable to support its dividends. In the first nine months of 2024, the company generated $4.07 billion in operating cash flow. It ended the quarter with $3.4 billion available in cash and cash equivalents. During the quarter, the company returned $516 million to shareholders through dividends. It currently pays a quarterly dividend of $1.12 per share and has a dividend yield of 3.43%, as of December 3. With a dividend growth streak of 53 years, TGT is one of the best dividend kings on our list.
As of the end of Q3 2024, 49 hedge funds owned stakes in Target Corporation (NYSE:TGT), compared with 52 in the previous quarter, as per Insider Monkey’s database. These stakes are worth nearly $1.4 billion in total. With nearly 3 million shares, Diamond Hill Capital owned the largest stake in the company.
10. Kimberly-Clark Corporation (NYSE:KMB)
Dividend Yield as of December 3: 3.51%
Kimberly-Clark Corporation (NYSE:KMB) is an American consumer goods company that offers a wide range of related products to its consumers. Since the pandemic, many large consumer goods companies have increased their prices to counteract rising costs, which are now starting to stabilize from their peak levels. This has led to increased competition from more affordable brands as consumers focus on getting better value for their money. Kimberly-Clark Corporation peaked in August 2020, trading at approximately $158 per share. Since then, the stock has been unable to reach this price again and has actually fallen by nearly 13% during this period. However, in the past 12 months, the stock has surged by over 11%.
In the third quarter of 2024, Kimberly-Clark Corporation (NYSE:KMB) reported revenue of $4.95 billion, which fell by 4% from the same period last year. Under the Powering Care strategy, the company is fast-tracking its innovation pipeline and cutting costs to provide higher-quality consumer solutions across all price ranges. It is also streamlining its operational structure to become more agile and responsive in the market. The company is on track to achieve strong growth in operating profit, margins, and EPS in 2024 while continuing to invest in sustaining business momentum into 2025.
Kimberly-Clark Corporation (NYSE:KMB)’s cash generation remained strong this year. In the first nine months of 2024, the company reported an operating cash flow of $2.4 billion, up from $2.3 billion in the prior-year period. During this period, it returned $2 billion to shareholders through dividends and share repurchases. It is one of the best dividend kings on our list as the company has been rewarding shareholders with growing dividends for the past 52 years. Currently, it pays a quarterly dividend of $1.22 per share and has a dividend yield of 3.51%, as of December 3.
The number of hedge funds tracked by Insider Monkey owning stakes in Kimberly-Clark Corporation (NYSE:KMB) grew to 45 in Q3 2024, from 43 in the previous quarter. These stakes have a consolidated value of over $1 billion.
9. United Bankshares, Inc. (NASDAQ:UBSI)
Dividend Yield as of December 3: 3.53%
United Bankshares, Inc. (NASDAQ:UBSI) is a West Virginia-based bank holding company that offers a wide range of related services to its consumers. The company reported robust earnings in the latest quarter, demonstrating consistently strong performance. Profitability metrics remained solid, growth trends showed continued improvement, and expenses were effectively managed. Additionally, asset quality, liquidity, and capital levels continued to serve as key strengths. Since the start of 2024, the stock has surged by over 10.3%.
In the third quarter of 2024, United Bankshares, Inc. (NASDAQ:UBSI) generated revenue of $262.2 million, which beat analysts’ estimates by $2.32 million. Its net interest income for the quarter also showed a 2% YoY growth at $230.3 million. The company ended the quarter with over $1.6 billion available in cash and cash equivalents, up from $1.13 billion in the prior-year period.
On November 10, United Bankshares, Inc. (NASDAQ:UBSI) declared a quarterly dividend of $0.37 per share, which was consistent with its previous dividend. Overall, the company has raised its dividends for 50 consecutive years, which makes it one of the best dividend kings on our list. The stock’s dividend yield on December 3 came in at 3.53%.
United Bankshares, Inc. (NASDAQ:UBSI) was a part of 14 hedge fund portfolios at the end of Q3 2024, up from 13 in the previous quarter, according to Insider Monkey’s database. The stakes held by these hedge funds have a consolidated value of over $76.7 million. Ken Fisher’s Fisher Asset Management owned the largest stake in the company.
8. AbbVie Inc. (NYSE:ABBV)
Dividend Yield as of December 3: 3.59%
AbbVie Inc. (NYSE:ABBV) is an American pharmaceutical and biotech company, offering related products and services to its shareholders. The company reported third-quarter 2024 revenue of $14.46 billion, marking a 4% increase compared to the same period last year. Its Immunology Portfolio contributed over $7 billion in revenue, also reflecting a 4% year-over-year rise. In August, the company acquired Cerevel Therapeutics, a neuroscience-focused pharmaceutical firm, for $8.7 billion in cash. This acquisition added a pipeline of promising drug candidates, including emraclidine, a potential treatment for schizophrenia.
One of the best dividend kings, AbbVie Inc. (NYSE:ABBV) surged by nearly 14% since the start of 2024, showcasing investor confidence in the company’s handling of Humira’s patent expiration. Humira, once a top-selling drug with peak sales of $21 billion in 2022, saw a significant revenue decline after losing patent protection last year. Despite this, the company’s management effectively managed the situation, compensating for the loss in Humira’s sales, which previously accounted for nearly a third of the company’s total revenue.
AbbVie Inc. (NYSE:ABBV) offers a quarterly dividend of $1.64 per share, having raised it by nearly 6% in October this year. Through this increase, the company stretched its dividend growth streak to 52 years. As of December 3, the stock supports a dividend yield of 3.59%.
Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 68 funds had invested in AbbVie Inc. (NYSE:ABBV), up from 67 in the previous quarter. The total value of these stakes is over $2.5 billion.
7. Hormel Foods Corporation (NYSE:HRL)
Dividend Yield as of December 3: 3.63%
Hormel Foods Corporation (NYSE:HRL) is an American food processing company that specializes in marketing and production of a wide range of consumer-branded food and meat products. The stock is delivering negative returns this year, falling by nearly 3% since the start of 2024, because of some temporary challenges. However, the company is focusing on reducing costs and leveraging its historical strength in innovation to regain its growth momentum. Given its long track record of success, this goal appears achievable. However, the process may take time, and during this period of navigating challenges, both overall growth and dividend increases are expected to remain modest.
In the third quarter of 2024, Hormel Foods Corporation (NYSE:HRL) reported revenue of $2.9 billion, which fell by 2.2% from the same period last year. The company’s food service segment remained the winner, with sales amounting to $142.5 million. Its international sales saw a huge jump of 78% on a YoY basis at $21.8 million.
Hormel Foods Corporation (NYSE:HRL) also showed a solid cash position during the quarter. The company generated $218 million in operating cash flow and ended the quarter with approximately $538 million available in cash and cash equivalents. On November 27, it declared a 2.7% hike in its quarterly dividend to $0.29 per share. This marked the company’s 51st consecutive year of dividend growth. The stock offers a dividend yield of 3.63% as of December 3, which makes HRL one of the best dividend kings on our list.
At the end of the third quarter of 2024, 31 hedge funds tracked by Insider Monkey owned stakes in Hormel Foods Corporation (NYSE:HRL), the same as in the previous quarter. The collective value of these stakes is over $601.6 million.
6. Stanley Black & Decker, Inc. (NYSE:SWK)
Dividend Yield as of December 3: 3.69%
Stanley Black & Decker, Inc. (NYSE:SWK) ranks sixth on our list of the best dividend kings. The Connecticut-based manufacturing company deals in industrial tools, household hardware, and security products. Industrial manufacturers have faced a tough year, and Stanley experienced sluggish demand in its key markets during the third quarter. Declines in interest-sensitive sectors like consumer DIY tools and the automotive industry outweighed growth in aerospace and a rebound in industrial fasteners. Since the start of 2024, the stock has declined by over 10%.
In Q3 2024, Stanley Black & Decker, Inc. (NYSE:SWK) reported revenue of $3.75 billion, which fell by over 5% from the same period last year, as well as missed analysts’ estimates by $52.4 million. However, the company achieved improvements in gross margins and strong cash generation, driven by the effective execution of its operational priorities. In the future, it aims to drive organic revenue growth at a rate of 2 to 3 times faster than the market by focusing on innovation and electrification and expanding its presence in global markets.
Stanley Black & Decker, Inc. (NYSE:SWK)’s cash generation was a relief for income investors. In the third quarter of 2024, the company generated $286 million in operating cash flow and its free cash flow came in at approximately $200 million. The free cash flow facilitated a debt reduction of approximately $100 million during the third quarter. The company pays a quarterly dividend of $0.82 per share and has a dividend yield of 3.69%, as of December 3. It maintains a 58-year streak of consistent dividend growth.
Stanley Black & Decker, Inc. (NYSE:SWK) remained popular among elite funds at the end of Q3 2024, with hedge fund positions in the company growing to 29, from 24 in the previous quarter, as per Insider Monkey’s database. The stakes held by these hedge funds have a consolidated value of over $516.6 million.
5. Federal Realty Investment Trust (NYSE:FRT)
Dividend Yield as of December 3: 3.85%
Federal Realty Investment Trust (NYSE:FRT) is a real estate investment trust company, based in Maryland, US. The company mainly invests in shopping centers and other entertainment properties. Currently, the company pays a quarterly dividend of $1.10 per share and has a dividend yield of 3.85%, as of December 3. Its dividend growth streak spans over 56 years, which makes FRT one of the best dividend kings on our list. The stock is popular among investors because of its long dividend growth history and attractive yield.
Operating as a typical REIT, Federal Realty Investment Trust (NYSE:FRT) distinguishes itself with a unique approach. Instead of focusing on a large property portfolio, it emphasizes quality. By September 2024, it owned just 102 properties, all situated in highly sought-after areas. Federal Realty strategically acquires properties in major metropolitan regions with dense populations and high-income demographics. This strategy has been advantageous, particularly during the pandemic, when it attracted tenants relocating from nearby locations to occupy spaces in its premium sites, avoiding the occupancy struggles faced by many others. The stock has surged by nearly 9% since the start of 2024.
Federal Realty Investment Trust (NYSE:FRT) posted third-quarter 2024 revenue of $303.3 million, reflecting a 6% increase compared to the same period last year and exceeding analysts’ expectations by $1.85 million. The company finalized 126 leases for 580,977 square feet of comparable retail space, resulting in a 14% rise in cash-based rents and a 26% increase on a straight-line basis. Net income available to common shareholders grew to $58.9 million, up from $55 million in the previous year.
Federal Realty Investment Trust (NYSE:FRT) was included in 36 hedge fund portfolios at the end of Q3 2024, growing from 24 in the previous quarter, according to Insider Monkey’s database. The stakes held by these hedge funds have a collective value of nearly $302 million.
4. Black Hills Corporation (NYSE:BKH)
Dividend Yield as of December 3: 4.14%
Black Hills Corporation (NYSE:BKH) is a South Dakota-based natural gas distribution company. It has benefitted a lot recently as the areas where the company operates are experiencing population growth at a rate roughly three times higher than the national average in the United States. This influx of customers brings a dual advantage, contributing to increased revenue while also justifying the need for higher capital expenditures. Currently, the company has outlined a five-year investment plan valued at $4.3 billion, a significant figure compared to its market capitalization of $4.5 billion. The stock is up by more than 14% since the start of 2024.
In the third quarter of 2024, Black Hills Corporation (NYSE:BKH) reported revenue of $401.6 million, which, though, fell by 1.4% from the same period last year, surpassed analysts’ consensus by $7.92 million. The company’s 260-mile Ready Wyoming transmission project is progressing as planned, aiming to enhance system capacity and improve power market access. Additionally, efforts continue to secure new renewable energy resources in Colorado and establish dispatchable, baseload generation in South Dakota. For over a decade, its innovative service model has effectively met the demands of data centers. Looking ahead, the company is preparing to support Meta’s upcoming AI data center in Cheyenne, Wyoming, scheduled for completion by 2026.
Black Hills Corporation (NYSE:BKH) is one of the best dividend kings on our list with 54 consecutive years of dividend growth. The company pays a quarterly dividend of $0.65 per share for an attractive dividend yield of 4.14%.
According to Insider Monkey’s database of Q3 2024, 25 hedge funds owned stakes in Black Hills Corporation (NYSE:BKH), growing from 22 in the previous quarter. The consolidated value of these stakes is nearly $217 million. With nearly 1.6 million shares, Zimmer Partners was the company’s leading stakeholder in Q3.
3. Northwest Natural Holding Company (NYSE:NWN)
Dividend Yield as of December 3: 4.51%
Northwest Natural Holding Company (NYSE:NWN) is a natural gas distribution company that offers a wide range of related products and services to its consumers. The company recently revealed that it had reached a $425 million agreement, including cash and assumed debt, to acquire a gas utility operating in the Texas Triangle region. It made this announcement on November 18, and since then, the stock has surged by over 3%. Its year-to-date returns came in at over 8%.
Northwest Natural Holding Company (NYSE:NWN)’s third-quarter revenue came in at $137 million, surpassing analysts’ estimates by $4.47 million. The company’s net income for the quarter came in at $34 million. Over the past 12 months, it increased its gas and water utility connections by nearly 17,000, achieving a combined growth rate of 1.9% as of September 30, 2024, largely fueled by successful water acquisitions. Palm Valley Capital Management made the following comment about NWN in its Q1 2024 investor letter:
“During the quarter, we purchased Northwest Natural Holding Company (NYSE:NWN). Founded in 1859, NW Natural is a natural gas utility operating in Oregon and Washington. While the company targets long-term earnings growth of 4%-6%, earnings per share in 2024 are expected to decline by 7% to 15%. Earnings are being pressured by above average investments in the utility’s infrastructure and higher than expected inflation. In response, management filed for a rate increase with regulators in December 2023, which would provide the utility with a 10.1% return on equity. If approved, new rates are expected to go into effect in November and should move earnings in 2025 closer to our normalized estimate of $2.80/share. NW Natural is currently trading at 13x our normalized EPS estimate and 1.2x tangible book value—both near historical lows. The firm has increased its dividend for 68 years in a row, and the stock offers a 5.3% yield. While there remains uncertainty related to regulatory decisions and interest rates, at its current price, we believe we’re being adequately compensated for risk assumed.”
Northwest Natural Holding Company (NYSE:NWN) has been generating solid cash this year. In the first nine months of 2024, the company reported an operating cash flow of nearly $220 million. It ended the quarter with over 35 million available in cash and cash equivalents. The company holds one of the longest dividend growth streaks in the market, having raised its dividends by 69 years in a row. Currently, it pays a quarterly dividend of $0.49 per share and has a dividend yield of 4.5%, as of December 3.
As of the close of Q3 2024, 14 hedge funds in Insider Monkey’s database owned stakes in Northwest Natural Holding Company (NYSE:NWN), up from 11 in the previous quarter. These stakes are valued at over $62.7 million.
2. Universal Corporation (NYSE:UVV)
Dividend Yield as of December 3: 5.67%
Universal Corporation (NYSE:UVV) is a Virginia-based global leaf tobacco supplier that operates in various segments of the tobacco industry, including procuring, processing, packaging, storing, and shipping leaf tobacco. The company reported strong earnings in its fiscal Q2 2025, with revenue amounting to $711 million.
Universal Corporation (NYSE:UVV)’s strong customer demand in the Tobacco Operations segment, coupled with larger, higher-quality, and better-yielding crops in Africa, has been a key driver of performance. The Tobacco Operations segment is expected to maintain its strong performance in the second half of the fiscal year. The company also continued to expand Universal Ingredients’ market presence during the quarter, seeing increased interest from both new and existing customers, despite pricing pressures from higher food costs. The newly expanded ingredients facility is expected to support production increases and make a significant contribution to fiscal year 2026 results. Moving forward, the focus will be on maximizing the tobacco business, expanding the ingredients business, and exploring ways for the two segments to collaborate.
Universal Corporation (NYSE:UVV) reported approximately $80 million in cash balance at the end of the quarter. The company’s quarterly dividend comes in at $0.81 per share for a dividend yield of 5.67%, as of December 3. It is one of the best dividend kings on our list as the company has been growing its payouts for 54 consecutive years.
According to Insider Monkey’s database of Q3 2024, 14 hedge funds owned stakes in Universal Corporation (NYSE:UVV), up from 12 a quarter earlier. The consolidated value of these stakes is nearly $72 million. Among these hedge funds, Pzena Investment Management was the company’s leading stakeholder in Q3.
1. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of December 3: 7.12%
Altria Group, Inc. (NYSE:MO) is an American tobacco company that manufactures a wide range of related products including cigarettes and other nicotine products. The tobacco industry is known for its exceptional resilience, arguably more so than most other sectors. Altria’s primary focus is on selling traditional cigarettes within the US market. Its role in the cigarette industry is particularly noteworthy, as it operates exclusively in North America and holds control over Marlboro, the leading cigarette brand in the region. The company’s dominant market position provides significant advantages, including the ability to implement price increases more effectively, which helps counteract declining sales volumes. Since the start of 2024, the stock has surged significantly by nearly 37%.
In the third quarter of 2024, Altria Group, Inc. (NYSE:MO) reported revenue of $5.34 billion, which showed a modest growth of 1.1% from the same period last year. The company reported strong income growth in its smokeable products segment, driven by the continued strength of the Marlboro brand. In the oral tobacco products segment, its MST brands contributed to profitability, while the on! product maintained market momentum. Additionally, the company introduced its “Optimize & Accelerate” initiative, aimed at modernizing operations and advancing its strategic goals. Altria also reaffirmed its 2024 adjusted diluted EPS guidance, projecting a range of $5.07 to $5.15, reflecting a growth rate of 2.5% to 4% compared to its 2023 base of $4.95.
In the third quarter, Altria Group, Inc. (NYSE:MO) paid $1.7 billion to shareholders through dividends, which shows the company’s commitment to its investors. Moreover, in the past 55 years, the company has raised its payouts 59 times, which makes it one of the best dividend kings on our list. It offers a per-share dividend of $1.02 every quarter and has a solid dividend yield of 7.12%, as of December 3.
At the end of Q3 2024, 32 hedge funds held stakes in Altria Group, Inc. (NYSE:MO), compared with 36 in the previous quarter, as per Insider Monkey’s database. These stakes are worth over $2.2 billion in total.
Overall, Altria Group, Inc. (NYSE:MO) ranks first on our list of the best dividend kings. While we acknowledge the potential for MO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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