These 3 Are the Highest Yielding Dividend Kings Today

Dividend stocks can be a great way to increase your wealth over the long term. In addition, they make regular cash payments making them ideal choices for dividend investors.

That said, not all dividend stocks are the same. Some of the most elite stocks are on the dividend aristocrats and dividend kings list. Now, I wouldn’t blame you if you thought they were similar. 

A dividend aristocrat is an S&P 500 Index-listed company that has increased its dividend for 25 consecutive years. But there's a much more elite group of dividend stocks that aren't as well-known: dividend kings. These do not have to be members of the S&P 500 but must have increased their dividends for at least the last 50 consecutive years.

At the time of this writing, there are 45 dividend kings, and these 3 are worth watching as they currently offer the highest dividend yield of the bunch.

Federal Realty Investment Trust (FRT)

Federal Realty Investment Trust (FRT) is a real estate investment trust (REIT) founded in 1962 by Samuel J. Gorlitz. And today, the company is headquartered in Rockville, Maryland, United States. Today, the company offers three types of properties: office space, residential space, and FRT's specialty leasing spaces. 

Recent Financials

For the quarter ending June 30, 2022, FRT's revenue was $264 million representing an increase of 14.02% compared to the previous year. 

Its last quarter's diluted EPS was $0.75 per share (an increase of 31.58%), which helps boost investor confidence during the current economic climate. Moreover, with a market value of $7.3 billion, the company has many levers at its disposal to help solidify its future success.

Based on its last trading price, FRT’s current dividend yield is 4.84%, more than double that of the broad market. In addition, Federal Realty Investment Trust is an S&P 500 listed company and has increased its dividend for 55 consecutive years, making it both a dividend aristocrat and a dividend king.

Leggett & Platt, Incorporated (LEG)

Leggett & Platt, Incorporated (LEG) is a diversified company that manufactures and sells various home, automotive, and textile products. The company was founded in 1883 and headquartered in Carthage, Missouri, U.S. 

Dividend growth investors will appreciate the company has been on the Dividend Kings list since 1970.

Recent Financials

For the last quarter, Leggett & Platt’s revenue came in at $1.33 billion, an increase of 5% compared to the same quarter last year. 

Today, the company has a market cap of $4.29 billion, and its dividend yield is 5.07%. Compare that with the S&P 500 Dividend yield of 1.78% - and it’s easy to see how Legett & Platt could be a winner.

Now, if you’re wondering why the dividend yield is so high - it’s for several reasons. First - on October 11, 2022, the company announced reduced guidance for the remainder of the year, in addition to an acquisition. Also, the global inflationary environment is resulting in higher costs and limited growth on the sales side. That said, the company has a dividend payout ratio of over 58%, so the company has lots of room to reinvest in other areas, such as growth.

3M Company (MMM)

Founded in 1902, 3M is a diversified technology company with operations in more than 70 countries. The company has been essential during COVID-19, as it produces various products used in the healthcare industry. In addition, it is considered a global leader in innovation as it spent approximately two billion dollars on research and development last year alone.

Recent Financials

3M announced its dividend of $1.49 a share for the last quarter representing a yield of 5.50% on the last trading price of $108.84.

The companies’ dividend payout ratio is 59.64% - leaving plenty of room for growth. 

Dividend growth investors appreciate that for the past 64 years, this company has steadily increased its dividend- despite macroeconomic issues such as the dot com bubble, the great recession, and even the last pandemic. Add to that a share repurchase program, and its investors are rewarded even further.

Takeaway

Investing in stocks over the long term has proven to be wise. And dividend growth investors can look to the dividend kings as a reliable way to create a source of income in a diversified and reliable portfolio. And getting >4-5% yield from this group of stocks is rare. So, the only question is, is now the right time to buy more?

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