London, UK — Dividend kings refer to a stock with 50 or more consecutive years of dividend increases. The best of the best dividend kings are based on dividend yield. Dividend Kings are the companies that remain firm under suffering or misfortune without yield and sustain through financial storms and difficult markets while still finding a way to increase their dividends each year. You can increase your wealth to yield from dividend kings, but it requires low investment costs, a tax minimization strategy, regular investment in high-quality dividend stocks, and a great deal of time in the market.
Such types of companies are considered and proven as outstanding players in recession times. We can say that dividend kings are recession fighters for portfolios as their steady payouts cushion losses. But on the other hand, not all dividend stocks perform really well during periods of recession. The toolbox can vary in potential and effectiveness. All the sectors and stocks are not able to fight the tide of a downturn equally. According to a stocks expert at BitfinityFX, by focusing on strong names, investors can typically get a portfolio that does its job during a recession. For dividend investors, finding the perfect sectors to invest in during this period is critical. Recently 3M, Altria, Black Hills, Coca-Cola, Federal Realty, Genuine Parts, Leggett & Platt, National Fuel, Northwest Natural, and Universal Corporation are considered the best dividend kings based on dividend yield.
Here we are going to explain 3 dividend kings to ride out the recession. However, we can’t be sure with 100% certainty about what will happen with the economy, inflation, and interest rates in the future, but we can predict that these companies will continue to pay their dividends and even boost them while the rest of the stock the market is not proceeding or acting ineffectually.
- Colgate Palmolive (NYSE: CL)
Colgate-Palmolive is an American-based multinational consumer products company. Its headquarter is on Park Avenue in Midtown Manhattan, New York City. The company specializes in producing, distributing, and providing health care, household, veterinary, and personal care products. In 1806, about 216 years ago, an English immigrant William Colgate came to America and established a company under the name of William Colgate & Company on Dutch Street in New York City. The company specializes in the production of soap, starch, and candle making. Now it is serving its consumers all over the world. More than 34,500 employees are working in the company. Colgate Palmolive’s total assets are worth US$15.034 billion. Its total equity is US$558 million. The company’s total net income is US$2.527 billion, and its operating income is US$3.557 billion. Colgate Palmolive has generated total revenue of US$ 17.48 billion.
Its total market capitalization is US$ 66.85 billion. The company’s total outstanding shares are 837,941,870. Colgate Palmolive Company’s dividend yield is 1.88 (2.38%). Currently, its per-share market price is US$ 79.62. Colgate-Palmolive (NYSE: CL) is a top-rated Dividend King with 60 years of consecutive dividend increases under its belt. The last time when it increased, the stock was paying about 2.55% in yield while trading about 24X its earnings. An analyst at BitfinityFX said that Colgate-Palmolive is “a high-quality stock for the times.” In his view, the company’s pricing power will be boosted by cost-control efforts and product innovation that should more than offset inflation.
According to experts and analysts, if the market is able to hold the stock at a time of recession, they would expect to see it might move sideways and up within the long-term range.
- Hormel Foods (NYSE:HRL)
Hormel Foods is considered a “Dividend King,” with 56 years of consecutive distribution increases to its credit. An American-based company named Hormel Foods. The corporation is a food processing company. By the 1980s, the company was focusing on packaging and selling spam, sausages, ham, and other pork, chicken, lamb, and beef products to customers. Then Hormel started offering a wider and bigger range of refrigerated and packaged foods. In 1993 the firm decided to change its name to Hormel Foods Corporation 1993. The company’s products are available in approximately 80 countries. More than 20000 employees are working with this company.
Hormel Foods’ total operating income is 9.497 billion, and its total assets are worth US$ 8.10 billion. The total revenue generated by this organization is US$ 12.46 billion. Its total market capitalization is US$ 25.89 billion. 546,055,595 are the total number of shares outstanding. Currently, its selling price is US$ 47.37. Hormel’s stock yields a slightly lower 2.35% compared to Colgate-Palmolive, but the distribution is growing so fast. It can also be an outstanding stock to add to the portfolio during times of recession.
- Procter and Gamble (NYSE: PG)
The Procter & Gamble Company (P&G) is a multinational American consumer goods corporation. Its headquarter is in Cincinnati, Ohio. It was established by William Procter and James Gamble in 1837. The company is producing in a wide range of personal consumer health and personal care and hygiene products. These products include beauty, hygiene, health care, fabric & home care, and baby, feminine, & family care. P&G has 101,000 employees. Its total assets are worth US$119.3 billion. P&G’s total operating income is US$18.79 billion, and its net income is US$14.31 billion.
The company’s total equity is US$46.65 billion. P&G generated US$ 79.62 billion in total revenue, and its total market capitalization is US$ 346.94 billion. The company’s total number of outstanding shares is 2,399,296,841. Its current per share selling price is US$ 144.35. P&G is no bargain trading at 23X its earnings. However, it is slightly cheaper than Colgate and Hormel when it comes to paying the highest dividend of the lot. P&G is yielding approximately 2.75% at the current price point and has been boosting for the last 65 years. The payout ratio is the highest at 60%, but even at this level, we view the payout as incredibly safe, making it a potentially strong candidate for investment during a recession.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.