GenExDividendInvestor: Companies About To Be Dividend Kings

While investors should be forward looking, considering a company’s future prospects relative to a current price, dividend investing can be more backwards at times. That’s because a company that pays a dividend can be attractive, so long as that dividend grows over time thanks to growing earnings.

Some companies have even earned the moniker “dividend king” for paying out growing dividends annually for at least 50 years. Typically, these companies have also had strong capital gains.

A handful of companies are approaching dividend king status, with steadily growing payouts for more than 45 years. That’s even amid a global pandemic, the housing and tech crashes, and other market fears.

These stocks look set to join the 49 companies that have already become dividend kings.

One such company is McDonald’s (MCD). The company started paying a dividend in 1946, and has raised it annually ever since. That includes a 10 percent jump in 2022, as the fast-food company has held up well in a slowing economy.

While many may see the growth over, as the chain isn’t opening too many new stores, increase same-store sales, improved automation, and price increases can likely keep the company growing for years. That growth rate won’t be fast, but it will be profitable for shareholders, which should keep the dividends growing.

To see the full list of companies nearing dividend king status, click here.