7 Dividend Kings to Pay Your Bills in 2024 | Summary and Q&A

TL;DR

This content unveils the top dividend King stocks, which have a history of more than 50 years of consecutive dividend increases and are considered a better list than the dividend Aristocrats.

Key Insights

• 😉 Dividend Kings require at least 50 years of consecutive dividend increases, which demonstrates a strong commitment to shareholder cash return.
• 😋 Cisco Corporation is a leader in food service distribution with a competitive advantage in its extensive distribution network.
• ✋ PepsiCo's diversification across snacks and beverages has contributed to its growth and higher dividend sustainability.
• 😀 Stanley Black and Decker faced challenges in the past two years but is implementing a cost savings program to improve profitability.
• 😃 AbbVie has a strong pipeline in immunology, oncology, and eye care, but faces challenges with patent expirations.
• 🚗 Leggett and Platt's earnings have been impacted by a housing market correction and a slump in auto sales.
• 🥺 3M's upcoming spin-off of its healthcare business could lead to higher valuations and potential returns for shareholders.

Transcript

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Questions & Answers

Q: What is the main requirement to be included in the dividend Kings list?

The main requirement is to have at least 50 years of consecutive dividend increases, showcasing a strong commitment to shareholder cash return.

Q: How does PepsiCo differ from Coca-Cola in terms of diversification?

PepsiCo has a more diverse portfolio, with 55% of its revenue coming from the snacking category, which provides more stability and growth potential compared to Coca-Cola's focus solely on beverages.

Q: Why is 3M an interesting investment opportunity?

Despite facing challenges in recent years, 3M's upcoming spin-off of its healthcare business could unlock shareholder value and lead to potential short-term and long-term upside for both companies.

Q: What challenges does AbbVie face in the pharmaceutical industry?

AbbVie's patent expiration on its blockbuster drug, Humira, poses a significant challenge as biosimilar drugs from other companies enter the market, potentially hindering its sales growth.

Summary & Key Takeaways

• Cisco Corporation (SYI) is a dividend King stock with a 2.5% yield and a strong competitive advantage in food service distribution.

• PepsiCo (PEP) is more than just a soft drink leader, with a 2.6% dividend yield and a diversified portfolio of brands.

• Stanley Black and Decker (SWK) has a dividend yield of 3.7% and a 55-year history of consecutive dividend increases, although it faced challenges in the past two years.

• AbbVie (ABBV) is a popular drug maker with a 3.8% dividend yield and a strong pipeline, but it faces challenges with patent expirations.

• Leggett and Platt (LEG) has a dividend yield of 5.1% and is a global leader in manufactured components for home and auto, but it is experiencing challenges in the current market environment.

• 3M (MMM) has a dividend yield of 5.3% and has been affected by a market sell-off, but its upcoming spin-off of its healthcare business could present an interesting opportunity.

• Altria Group (MO) is the highest yielding dividend King with an 8% dividend yield, and it is driving towards a smoke-free future despite declining cigarette volumes.