These 11 stocks will be Dividend Kings in 5 years or less.

February 27, 2023 at 07:00 AM EST

dividend kings stocks

Sometimes investors would like more choices than what’s on our dividend kings and aristocrats list.

So this week, we discussed upcoming dividend aristocratsand why investors should consider adding them to their portfolios.

But today, we are serving up the main course with these 11 stocks well on their way to becoming dividend kings. We have ordered this list by how many consecutive years these companies have grown their dividends.

Let’s get into it.

Telephone and Data Systems. 49 years

Telephone and Data Systems (NYSE: TDS) has a current dividend yield of 5.7%, while its stock price is $12.61. The company is a telecommunications industry player with a current market cap of $1.43 billion.

Although TDS is presently unprofitable with earnings per share of negative $0.32, analysts predict its EPS will grow to negative $0.16 per share within the coming year.

Lowe’s Companies. 49 years

Lowe's Companies (NYSE: LOW) has a stock price of $202.21 and yields a dividend of 1.95%. Lowe's is a home improvement retailer with a market capitalization of $124 billion.

One thing which may appeal to investors about Lowe’s dividend is that its dividend payout ratio is sustainable at 41.14%.

Automatic Data Processing. 48 years

Automatic Data Processing (NASDAQ: ADP) has a dividend yield of 1.96%, with a stock price of $222.78. ADP is a business process outsourcing provider and helps companies worldwide with their administration and human resources need. It has a market cap of $91.43 billion.

The company’s annual dividend of $5 puts it far above the average dividend of companies in the NASDAQ, which is $1.

RPM International. 48 years

At the time of writing, the stock price of RPM International (NYSE: RPM) is $86.81, and the dividend yield is 1.88%. RPM is a chemicals manufacturer and serves customers in a number of different segments, including industries. The company’s market cap is $11.07 billion.

Although RPM is well on its way to becoming a dividend king, one of its weaknesses is that its 3-year dividend growth rate stands at 4.74%, while companies listed on the NYSE have an average growth rate of 6.02%.

MGE Energy. 47 years

MGE Energy (NASDAQ: MGEE) has a dividend yield of 2.2%, along with a stock price of $72.07. MGE is a public utility holding company that provides electricity and natural gas services. Its market cap is on the smaller side at $2.58 billion.

MGE’s dividend increase track record is far above the average of those in the NASDAQ, which is six years, and companies in the utility sector, which is 18 years.

Walgreens Boots Alliance. 47 years

Walgreens Boot Alliance (NASDAQ: WBA) has a dividend yield of 6.12% and a stock price of $131.57 at the time of writing. Walgreens is a global pharmacy and health business that sells products that range from prescription medicine to cosmetics. The business has a considerable market cap of $30.93 billion.

Overall, Walgreen’s dividend is one of the best on this list, with its yield putting it firmly in the top 25% of all dividend-paying stocks.

RLI Corp. 47 years

RLI Corp. (NYSE: RLI) has a dividend yield of 6.12% and a stock price of $131.57 at the time of writing. RLI is an insurance company and is known as a cyclical business that’s particularly sensitive to changes in interest rates. The market cap of this company is $5.98 billion.

RLI Corp has one of the worst outlooks of all upcoming dividend kings on this list. This is due to short interest climbing to 3.30% in the short term.

Carlisle Companies. 46 years

Carlisle Companies (NYSE: CSL) has a dividend yield of 1.08% and a stock price of $257.79 at the time of writing. The business is a diversified industrial company that operates heavily in the construction and materials industries. It has a market cap of $13.15 billion.

Investors might be interested to know that it has a healthy upside, according to analysts, at 29.1%. Analysts expect its EPS to grow 8.95% in the coming year to $23.73.

McDonald’s. 46 years

McDonald’s (NYSE: MCD) has a dividend yield of 2.12% and a stock price of $264.24. As one of the world’s largest fast food chains and employers, this business almost needs no introduction. McD’s market cap is a huge $193.21 billion.

Despite making a stellar share price run over the past couple of months, analysts still predict that it has a 9.6% further upside. Earnings are also projected to grow by 10.73%.

Medtronic. 46 years

Medtronic (NYSE: MDT) has a stock price of $83.99 and a dividend yield of 3.17%. This is a medical technology company that provides numerous modalities of therapy to patients worldwide. Its market cap is $110.07 billion.

One warning sign for Medtronic is that it could be paying out an unhealthy amount of its retained earnings as dividends. This is reflected in its payout ratio of 89.47%, which could be unsustainable in the long term.

Sherwin-Williams Company. 45 years

Sherwin-Williams (NYSE: SHW) has a dividend yield of 1.34% and a stock price of $220.8. The Sherwin-Williams Company is a global leader in manufacturing and selling paints, coatings, and related products. The business has a market cap of $57.06 billion.

This stock has one of the largest predicted EPS growths in the coming year at 16.30%. Insiders also bought $500,327 worth of shares last quarter.

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