- The Top 10 best Dividend Kings are ranked using our expected total return for the next 5 years and the dividend score.
- A dividend king will give you by default at least 50 years of consecutive dividend increases.
- These top 10 stocks represent attractive long-term buys for dividend growth investors.
Estimating the expected 5 years future total returns are based on two main components for dividend growth stocks:
- Dividend yield
- Change in share price
The change in share price often comes from dividend growth which is mainly driven by earnings per share growth and the difference between the share price and the fair value. The expected price-to-earnings ratio over the next 5 years or the average dividend yield over the last 5 years is often used to estimate the change in the share price. The assumption made is that the share price will return over time to this average value.
To estimate the future total return the following values are added together:
- Estimated EPS growth next 5 years, as an indicator for the average dividend growth
- Average dividend yield, assuming
- Extra return due to over/undervaluation
Good to know: In August 2021, PPG Industries (PPG) made it to the Dividend Kings list and is included in the research for this top-10. Based on the selection criteria PPG is currently in position 16.
The table below lists the Dividend Kings with the highest estimated future total return for the next 5 years (CAGR), the EPS estimate for the next 5 years, and the extra positive or negative return due to over/undervaluation. The dividend score is also a factor that should be considered when evaluating those dividend stocks.
Members can see all dividend kings, please use the Dividend kings 5Y total return screener to see all.
See also the Top 10 Dividend Aristocrats for July.