Top 5 Dividend Kings for 2025

Introduction

• Focus on Dividend Kings: Stocks with over 50 years of consecutive dividend growth.
• Current market downturn in 2025 offers higher dividend yields due to falling stock prices.

1. PepsiCo (Ticker: PEP)

• Industry: Food and Beverage
• Brands: Pepsi, Frito-Lay, Doritos, Cheetos, Gatorade, Bubbly, Lipton, Quaker.
• Dividend Growth: 53 years in a row.
• Current Yield: Close to 4%, nearly double the sector average of 1.8%.
• Valuation: 20-30% lower than 5-year average PE; attractive for a market leader.
• Concerns: Tariffs impacting global operations, short-term issue expected to resolve in future.
• Strategy: Acquisitions to address rising health-conscious trends (e.g., Bubbly, SodaStream, Health Warrior).

2. Stanley Black & Decker (Ticker: SWK)

• Industry: Tools and Outdoor Products
• Market Share: #1 globally, operates in 60 countries.
• Brands: Stanley, Black & Decker, DeWalt, Craftsman, Irwin.
• Dividend Growth: Over 5 decades.
• Current Yield: Close to 6%.
• Challenges: Impact from higher tariffs, but proactive restructuring of supply chain (reduced reliance on Chinese manufacturing to 15%).
• Valuation: Stock down 75% from highs, trading at over 50% cheaper than the sector.

3. Sysco (Ticker: SYY)

• Industry: Food Distribution
• Operations: Largest U.S. food distributor, serving restaurants, hospitals, schools, etc.
• Financials: Strong sales with positive EPS post-2020 pandemic.
• Dividend Growth: 56 years.
• Current Yield: Close to 3%.
• Challenges: Tariff impacts on food supply chain, working on more local sourcing.
• Valuation: Stock down 18% from top, over 20% lower valuation than sector.

4. Ken View (Ticker: KVUE)

• Industry: Pharmaceuticals
• Background: Spin-off from Johnson & Johnson.
• Brands: Tylenol, Johnson's, Band-Aid, Listerine.
• Dividend Growth: Over 6 decades.
• Current Yield: About 3.7%.
• Valuation: Stock price down post-spin-off, attractive PG ratio 50% cheaper than sector median.
• Focus: Streamlining operations and investing in product launches.

5. Federal Realty Investment Trust (Ticker: FRT)

• Industry: Real Estate Investment Trust (REIT)
• Portfolio: High-quality retail and mixed-use properties in prime U.S. locations.
• Performance: Outperformed peers during economic downturns.
• Dividend Growth: Close to 6 decades.
• Current Yield: Close to 5%.
• Valuation: Attractive due to cyclic downturn, good time for buying.

Conclusion

• Overview of the top 5 dividend kings amidst the 2025 market downturn.
• Encouragement to share personal opinions and suggestions for other dividend kings.
• Gratitude for viewer support and interaction.