3 Market-Beating Dividend Kings for Generations of Income

Dividend Kings are companies best known for raising dividends for at least the last 50 years - through decades of recessions, market crashes, and changing economic conditions. That track record makes them attractive to income investors, but it's also what can make them seem glacially boring. 

However, a select group is doing more than protecting its payout streak. They’re also delivering strong share-price gains while earning bullish ratings from a broad group of analysts, a combination that isn’t always easy to find. 

High-yield stocks can often struggle to grow, while faster-moving stocks may offer little income. The market-beating Dividend Kings potentially offer both, making them worth a closer look. So let’s take a look at the best of them. 

How I came up with these stocks 

Using Barchart’s Stock Screener, I selected the following filters to build my list: 

• YTD Percent Change: Left blank so I can sort it later from highest to lowest.
• Number of Analysts: 12 or more. Higher analyst coverage provides a broader consensus.
• Current Analyst Rating: 3.5-5. This captures bullish stocks with “Moderate” to “Strong Buy” ratings.
• Dividend Investing Ideas: Dividend Kings.

I set the filters, ran the screen, and found 22 companies. I’ll cover the top three with the highest year-to-date percent change. 

Let’s start with the first Dividend King:

Nucor Corp (NUE)

Nucor Corp is one of the largest U.S. steel producers, supplying steel for the country’s buildings, bridges, and major infrastructure projects. It also recycles scrap metal into new steel, allowing the company to meet demand while making better use of recycled materials. 

Trading around $236, NUE stock is up 45.6% year-to-date, making it the top-performing Dividend King on this list. 

The company pays $2.24 per share per year in dividends, which translates to an annual yield of around 1%. Nucor has also raised its dividend for 53 straight years.

And the icing on top: Nucor has a “Strong Buy” rating from 16 analysts, making it the highest-rated company on this list. Its mean-to-high target prices suggest between 14% and 22% upside over the next year.

Johnson & Johnson (JNJ)

Next up is Johnson & Johnson, one of the world’s largest diversified healthcare companies. It develops medicines and related technologies used by patients and medical professionals worldwide. Its products support everything from cancer treatment and surgery to everyday hospital care, while ongoing research advances new treatments. 

JNJ stock trades at around $254, and it is up 23% since the beginning of the year. 

As for dividends, the company pays $5.36 per share, which translates to around a 2% yield. That said, dividend growth investors will note that Johnson & Johnson has the longest dividend-growth streak on this list, having raised its payout for 64 consecutive years. 

At the same time, a consensus among 25 analysts rates the stock a “Moderate Buy,” while target prices suggest up to 18% upside over the next year. 

Altria Group (MO)

Lastly, we have Altria Group, one of the largest tobacco companies in the United States. While it’s best known for Marlboro cigarettes, today, the company is also expanding into smoke-free products as consumer preferences shift. If you’re a dividend investor, you already know that Altria is right up there among the highest-yielding dividend stocks to buy.

Today, it pays a forward annual dividend of $4.24 a share, which translates to a yield of around 6%, the highest on this list. That’s even more impressive given that the company has raised its dividend 60 times over the past 56 years. 

Meanwhile, MO stock is up 22% since the year began, offering investors a rare combination of high income and solid share-price performance. 

Further, a consensus among 14 analysts rates the stock a “Moderate Buy”, while its high target price implies as much as 16% upside if reached. 

Final thoughts

Nucor, Johnson & Johnson, and Altria are examples where dividend income and share-price growth can still go hand in hand. While these companies are often viewed as old or boring, their strong year-to-date performance shows that established businesses can still deliver attractive returns.

That’s what makes these three Dividend Kings worth watching. Their long histories of raising payouts offer consistency, while their stock performance prove that mature companies can still reward investors beyond dividends alone.