Dividend stocks provide investors with a combination of income and growth that could help buffer potential losses during the turbulence of any market crash. If you are unsure where to start, look at the cream of the crop of dividend investing — the Dividend Kings. Dividend Kings are the top dogs of the income investment space, as these stocks has increased their dividends yearly for at least 50 years in a row, making them a predictable source of income. In addition, they also offer growth as the stock can continue over time, making them perfect for long-term investors.
This article will look at some dividend stocks that any serious investor should have in their portfolio.
Colgate-Palmolive (CL)
Colgate-Palmolive (NYSE:CL) is a household name for oral hygiene. It is best known for its oral-care products, including its flagship product, Colgate toothpaste. Over the years, the company has expanded its product line with home care, personal care and pet nutrition products. This makes CL a stock that thrives even in dire economic situations. The company currently offers a dividend yield of 2.62% and has consecutively increased its dividends for the last 61 years, cementing its place in the list of Dividend Kings to own.
Colgate-Palmolive is expected to release its 3rd quarter earnings on October 27th and analysts are anticipating that the company will report at least $0.80 EPS, a potential growth of 3.89% QoQ. Analysts recommend CL as a “Strong Buy” with a 12-month high-target price of $98.00. The company’s leadership in toothpaste and toothbrush products gives it an economic moat to face financial challenges. Colgate-Palmolive also raised its FY 2023 and expects an organic sales growth of 5% to 7%. This makes CL one of the Dividend Kings to own on our list.
Kimberly-Clark (KMB)
Kimberly-Clark (NYSE:KMB) is another consumer staple, specializing in natural and synthetic fibers. It is known for its products like Kotex, Kleenex and Huggies. The company sells products for personal care, including diapers, baby wipes, feminine care products, Kleenex and Cottonelle. The company has increased its dividends for 51 straight years and is currently offering its investors a 3.97% dividend yield. This steady income helps investor protect their portfolio and long-term returns.
KMB’s been exhibiting strong performance quarter by quarter. Its last three quarters beat analyst estimates, which bodes well for continuing earnings growth. Kimberly-Clark also raised its outlook for the fiscal year, with adjusted EPS to expected to increase by 10-14% and organic growth by 3-5%. KMB also received praise on the sustainability front with its place on Barron’s “100 Most Sustainable Companies” and Ethisphere’s “2023 World’s Most Ethical Companies.” These provide a long-term case for KMB’s future, making it an excellent dividend stock to own for defensive investors.
Procter & Gamble (PG)
The Procter & Gamble (NYSE:PG) is another consumer staple brand offering personal care products like soap, shampoo, razors, etc., for consumers. The company’s famous products include Ariel, Downy, Tide, Rejoice and Head & Shoulders. Its products are sold in various outlets and e-commerce sites across 180 countries and territories. PG currently offers a 2.53% dividend yield, marking 2023 as its 67th year of continuous dividend increase.
PG announced a stellar Q1 2024, with earnings beating estimates by 7.02%. Diluted net earnings per share also increased by 17% YoY, while net sales increased by 6% YoY. Overall, the company expects its FY 2024 net sales to grow by 2-4%. Procter & Gamble remains positive about its current strategy that focuses on creating long-term value and growth. The solid quarterly performance has made it a favorite of analysts with its “Strong Buy” consensus rating and a 12-month high-target price of $179.00. The strong performance and its strong product category have made PG one of our top dividend stocks for a down market.
On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.