What are Dividend Kings?

Dividend Kings are often regarded as top-tier dividend-paying companies. These companies have consistently increased their payouts for over half a century, demonstrating their financial strength and durability despite economic downturns and market challenges.

Dividend Kings and Dividend Aristocrats are companies with a long history of consistently increasing dividends, but Dividend Kings require 50 years of uninterrupted dividend increases without S&P 500 membership or market capitalization. Both Dividend Kings and Dividend Aristocrats usually offer investors reliability and steady income, however, these dividend monarchs may provide a greater sense of stability due to their longer track record.

Furthermore, CEOs of companies who have increased their dividends for over 50 years face significant pressure to maintain their streak, as no CEO prefers to be associated with losing such an elite status for their company.

Are Dividend Kings Good Investments?

Dividend Kings are long-term investments with consistent dividend increases, representing the attributes of mature, stable companies with resilient business models. However, as with most investments, Dividend Kings may carry risk due to economic downturns and industry trends. Investors should conduct their own due diligence before making investment decisions and balance with other investments in a diversified portfolio to mitigate risks.

All in all, Dividend Kings are a group of companies with a 50-year dividend growth history, often prized for providing a consistent income stream and a valuable addition to a balanced investment portfolio. However, past performance doesn’t guarantee future results and involves risk.

Dividend Kings Exchange Traded Fund (ETF) – KNGS

The KNGS ETF targets the total return performance of the S&P Dividend Monarchs Index, prior to fees and expenses.

The index selects securities which meet certain criteria, including market capitalization, liquidity, and dividend growth. To be eligible, a security must have a market capitalization of at least $2 billion, an average daily value traded of $5 million or more for the three months prior to the re-balancing reference date, and have increased their total dividend per share amount every year for at least 50 consecutive years.

The index will select all eligible securities, with a minimum constituent count of 25. If fewer than 25 securities are eligible, the index relaxes the dividend growth eligibility factor. The constituents selected for inclusion are weighted based on their indicated annual dividend yield, subject to a single constituent weight cap of 5% of the total Index weight. If the Index is composed of less than 25 securities, the single constituent weight cap increases to 10%.

The Index is reconstituted annually and re-balanced quarterly, with the fund making portfolio changes shortly after. The fund is concentrated in an industry or group of industries, holding 25% or more of its total assets. As of March 31, 2024, it was concentrated in the consumer staples sector.

Dividend Kings List (Sector & Years of Dividend Increases) – Updated 2024

Consumer Discretionary

Consumer Staples

Financials

Healthcare

Industrial

Materials

Real Estate

Utilities

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