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If you are focused on investing for income look no further. Dividend Kings are stocks that have raised their dividends for at least 50 consecutive years, a feat made possible by uber-consistent business management and commitment to shareholders.
These are stocks that have not only survived a huge range of different adverse economic environments but have managed to increase the cash they return to investors despite the challenging periods.
Further boosting your odds of picking a winning stock, each of the recommendations in this article have strong Zacks Ranks, indicating improving earnings revisions.
Kimberly-Clark (KMB - Free Report) , Northwest Natural (NWN - Free Report) , and AbbVie (ABBV - Free Report) all offer hefty dividends, which have been steadily increasing for decades, and will likely continue to rise for years to come.
Image Source: Zacks Investment Research
KimberlyClark
KimberlyClark is a multinational consumer goods company founded in 1872. Headquartered in the United States, the company specializes in the manufacturing and marketing of personal care and hygiene products. KMB offers a diverse range of brands, including Huggies, Kleenex, Cottonelle, and Scott. The company operates globally, serving customers in over 175 countries. Notably, KimberlyClark has raised its dividend for 51 years consecutively.
KMB currently boasts a Zacks Rank #2 (Buy), and beat earnings estimates last quarter by a whopping 25%. Additionally, its Zacks earnings ESP projects a 7% earnings beat at the next report. FY23 earnings have been revised higher by 5% and are expected to climb 10% YoY.
KimberlyClark has a dividend yield of 3.4% and has raised the payment by an average of 3.9% annually over the last five years. Further demonstrating its commitment to returning cash to shareholders is management’s willingness to buy back shares. Over the last 20 years the KMB share count has been reduced by 31%.
Image Source: Zacks Investment Research
KimberlyClark is trading at a one-year forward earnings multiple of 22x, which is above the market average of 20.5x, and above its 10-year median of 19.3x.
Image Source: Zacks Investment Research
Northwest Natural
Founded in 1859, Northwest Natural is a gas utility company that operates in the Pacific Northwest region. Over the years, Northwest Natural has experienced substantial growth, expanding its customer base to serve more than 760,000 customers to date. The company's primary mission revolves around the delivery of natural gas to its customers in the Pacific Northwest. NWN has raised its dividend for 66 consecutive years.
Current quarter earnings have been revised higher by 42% over the last two months, giving NWN a Zacks Rank #2 (Buy). FY23 earnings estimates have been upgraded just slightly but are projected to grow 6.3% YoY a nice pace for a utility company.
Image Source: Zacks Investment Research
Northwest Natural has a generous dividend yield of 4.6%, which has been raised by an average of 0.5% annually over the last five years. Over the last 25 years NWN’s dividend yield has grown at a CAGR of 2%.
Image Source: Zacks Investment Research
Northwest Natural is currently trading at a 10-year low valuation in terms of earnings multiple. Its one-year forward earnings multiple is 15.8x, which is below the market average of 20.5x, and well below its 10-year median 21.6x.
Image Source: Zacks Investment Research
AbbVie
AbbVie is a global pharmaceutical company that was separated from Abbott Laboratories in 2013. It focuses on research and development, aiming to address various medical conditions. AbbVie's portfolio includes therapeutic areas such as immunology, oncology, neuroscience, and virology. The company's notable product is Humira, a leading treatment for autoimmune diseases.
While facing biosimilar competition in Europe and the upcoming loss of patent protection for Humira in the United States, AbbVie remains proactive in expanding its product pipeline and pursuing new drug discoveries. Through strategic acquisitions and collaborations, AbbVie continues growing. ABBV has raised its dividend for 51 consecutive years.
ABBV is extremely steady when it comes to earnings reports. Over the last decade it has missed its quarterly earnings estimates only two times. AbbVie also currently has a Zacks Rank #2 (Buy), indicating upward trending earnings revisions.
AbbVie is currently trading at a one-year forward earnings multiple of 12x, which is below the industry average of 17.8x, and in line with its 10-year median of 12x. ABBV offers a substantial dividend yield of 4.5% and has raised it by an average of 9.8% annually over the last five years.
Image Source: Zacks Investment Research
Bottom Line
Like big dividend checks and companies that will likely be around for another few decades? KimberlyClark, Northwest Natural and AbbVie all fit the profile. Dividend kings and dividend aristocrats are a great place for investors to go looking for income producing stocks. Better yet if they have improving earnings estimates as measured by the Zacks Rank.
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3 Dividend Kings Yielding Royal Sums
If you are focused on investing for income look no further. Dividend Kings are stocks that have raised their dividends for at least 50 consecutive years, a feat made possible by uber-consistent business management and commitment to shareholders.
These are stocks that have not only survived a huge range of different adverse economic environments but have managed to increase the cash they return to investors despite the challenging periods.
Further boosting your odds of picking a winning stock, each of the recommendations in this article have strong Zacks Ranks, indicating improving earnings revisions.
Kimberly-Clark (KMB - Free Report) , Northwest Natural (NWN - Free Report) , and AbbVie (ABBV - Free Report) all offer hefty dividends, which have been steadily increasing for decades, and will likely continue to rise for years to come.
Image Source: Zacks Investment Research
KimberlyClark
KimberlyClark is a multinational consumer goods company founded in 1872. Headquartered in the United States, the company specializes in the manufacturing and marketing of personal care and hygiene products. KMB offers a diverse range of brands, including Huggies, Kleenex, Cottonelle, and Scott. The company operates globally, serving customers in over 175 countries. Notably, KimberlyClark has raised its dividend for 51 years consecutively.
KMB currently boasts a Zacks Rank #2 (Buy), and beat earnings estimates last quarter by a whopping 25%. Additionally, its Zacks earnings ESP projects a 7% earnings beat at the next report. FY23 earnings have been revised higher by 5% and are expected to climb 10% YoY.
KimberlyClark has a dividend yield of 3.4% and has raised the payment by an average of 3.9% annually over the last five years. Further demonstrating its commitment to returning cash to shareholders is management’s willingness to buy back shares. Over the last 20 years the KMB share count has been reduced by 31%.
Image Source: Zacks Investment Research
KimberlyClark is trading at a one-year forward earnings multiple of 22x, which is above the market average of 20.5x, and above its 10-year median of 19.3x.
Image Source: Zacks Investment Research
Northwest Natural
Founded in 1859, Northwest Natural is a gas utility company that operates in the Pacific Northwest region. Over the years, Northwest Natural has experienced substantial growth, expanding its customer base to serve more than 760,000 customers to date. The company's primary mission revolves around the delivery of natural gas to its customers in the Pacific Northwest. NWN has raised its dividend for 66 consecutive years.
Current quarter earnings have been revised higher by 42% over the last two months, giving NWN a Zacks Rank #2 (Buy). FY23 earnings estimates have been upgraded just slightly but are projected to grow 6.3% YoY a nice pace for a utility company.
Image Source: Zacks Investment Research
Northwest Natural has a generous dividend yield of 4.6%, which has been raised by an average of 0.5% annually over the last five years. Over the last 25 years NWN’s dividend yield has grown at a CAGR of 2%.
Image Source: Zacks Investment Research
Northwest Natural is currently trading at a 10-year low valuation in terms of earnings multiple. Its one-year forward earnings multiple is 15.8x, which is below the market average of 20.5x, and well below its 10-year median 21.6x.
Image Source: Zacks Investment Research
AbbVie
AbbVie is a global pharmaceutical company that was separated from Abbott Laboratories in 2013. It focuses on research and development, aiming to address various medical conditions. AbbVie's portfolio includes therapeutic areas such as immunology, oncology, neuroscience, and virology. The company's notable product is Humira, a leading treatment for autoimmune diseases.
While facing biosimilar competition in Europe and the upcoming loss of patent protection for Humira in the United States, AbbVie remains proactive in expanding its product pipeline and pursuing new drug discoveries. Through strategic acquisitions and collaborations, AbbVie continues growing. ABBV has raised its dividend for 51 consecutive years.
ABBV is extremely steady when it comes to earnings reports. Over the last decade it has missed its quarterly earnings estimates only two times. AbbVie also currently has a Zacks Rank #2 (Buy), indicating upward trending earnings revisions.
AbbVie is currently trading at a one-year forward earnings multiple of 12x, which is below the industry average of 17.8x, and in line with its 10-year median of 12x. ABBV offers a substantial dividend yield of 4.5% and has raised it by an average of 9.8% annually over the last five years.
Image Source: Zacks Investment Research
Bottom Line
Like big dividend checks and companies that will likely be around for another few decades? KimberlyClark, Northwest Natural and AbbVie all fit the profile. Dividend kings and dividend aristocrats are a great place for investors to go looking for income producing stocks. Better yet if they have improving earnings estimates as measured by the Zacks Rank.