Who And What Are Dividend Kings?

dividend, what is a dividend?, explaining a dividend

One of our goals is to educate and improve the financial literacy of as many readers as possible. With that goal in mind, we created our Investing 101 series! Today’s topic will focus on an elite class of dividend growth stocks…Dividend Kings. Let’s jump right in to our latest article explaining Who & What are Dividend Kings!

What are Dividend Kings?

After the market started to tumble in 2020 as the COVID-19 pandemic took hold, investors began looking to invest in quality dividend growth stocks. I mean, can you blame them? During this economic downturn, more and more companies began cutting or suspending their dividend. Retail and oil giants slashed their dividend to preserve capital. Just like that, for some investors, the benefits of years and years of hard work, investing in dividend stocks was gone. With their wounds still fresh, investors are looking for quality dividend growth stocks. Enter Dividend Kings.

Dividend Kings are an elite subset of dividend paying stocks. To be considered a dividend King, there is one requirement. In fact, it is a rather simple requirement.

Dividend Kings are companies that have increased their dividend for 50+ consecutive years

Each of these companies have increased their dividend annually sine 1970! Think of how much has changed in the world, and stock market, since that time. Dividend Kings have increased their dividend through economic booms and buts. Dividend Kings maintained their dividend increase streak through two banking crises (The Great Recession in the 2000s and the S&L Crisis in the 1980s). For individuals like ourselves, who are determined to grow their passive income by investing in dividend growth stocks, this list will help provide a great foundation to build our dividend stock portfolio.

What Are the Differences Between Dividend Kings and Dividend Aristocrats?

Our last Investing 101 article was titled Who & What Are Dividend Aristocrats? Dividend Aristocrats, like Dividend Kings, are also companies that have increased their dividend for 25+ consecutive years. If Dividend Aristocrats have increased their dividend for 25+ consecutive years and Dividend Kings have increased their dividend for 50+ consecutive years, shouldn’t all Aristocrats be considered Kings?

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Disclaimer: I do not recommend any decision to the reader or any user, please consult your own research. Thank you.

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Chee Hin Teh 1 year ago Member's comment

Well Said. Many thanks

Chee Hin Teh 1 year ago Member's comment

Well said. Many thanks