What Makes a Stock a Dividend Kings List constituent?
The Dividend Kings screen identifies elite companies that have increased their annual dividend for at least 50 consecutive years. This rigorous threshold filters for companies like Coca-Cola, which has maintained its streak since 1963, proving resilience through the 1973 oil crisis and the 2008 financial collapse.
Filter for 50-Year Longevity
We isolate firms that survived the 1970s stagflation and the 2000 dot-com bubble. For example, Procter & Gamble has increased dividends for 68 years, proving immense pricing power.
Assess Dividend Coverage
We check the payout ratio to ensure the dividend is sustainable. A company like 3M, with a payout ratio often exceeding 80%, requires closer scrutiny than a 40% ratio firm.
Verify Financial Health
We use ROE and D/E to ensure the streak isn't debt-fueled. Johnson & Johnson maintains a strong balance sheet, keeping its D/E ratio well below 1.0 even during expansion.