Transcript for:
Top Dividend Kings to Watch in 2025

So, in a recent video, I gave you guys my top five favorite dividend aristocrats, which are stocks that have grown their dividends for over 25 years in a row. But in today's video, we're upping the ante with my top five dividend kings that have grown their dividends for over 50 years in a row. And the great thing about the this market downturn here in 2025 is that as stock prices fall lower, their dividend yields will rise even higher, which by the way are already very high as these stocks have also lost a lot of their value already this past year. So, I can't wait to share this list with you. It's going to be a ton of fun. Some great dividend payers here to throw up on your watch list and keep an eye on. Hit that like button if you want more videos just like this. Let's go ahead and jump straight into it. Now, coming in at king number one, I'm going with a stock that I also own myself in PepsiCo, ticker symbol Pep, which is also a uh global powerhouse in the food and beverage industry with some of the most iconic brands like Pepsi, Fredo Lays, Doritos, Cheetos, Gatorade, Bubbly, Liptin, Quaker, and much more. And it's that diversified portfolio really across both snacks and beverages that not only makes them more appealing to me over their biggest rival in Coca-Cola, which primarily sells just drinks, but it also provides a little more resilience during market fluctu fluctuations, too. Hence why the company has been able to grow their dividend for a whopping 53 years in a row. And after losing over a quarter of its value from the top recently, the stock is now yielding close to 4% on that dividend, which is not only among the highest levels it's ever been, but it's also close to double the sector's average of 1.8. Speaking of which, after the drop, PepsiCo's valuation is also around 20 to 30% lower than their own 5-year average now on a PE basis, while also trading at about the same level as the sector. That's very attractive for a market leader like this. Unfortunately, being such a large global player like PepsiCo. Uh they will likely be affected by tariffs as you would expect this year, which is a concern that investors should be aware of. However, that's much more of a short-term issue than anything else. And if you think our current, you know, tariffs, escalating tariff situation is going to stay like this forever without any trade deals ever getting done in the future, I just think you're strongly mistaken. Tariffs will come down eventually. Trade deals will get signed and ultimately anyone who bought the dip on this world leader will in my opinion likely be awarded years from now when they get to, you know, keep collecting these pretty high dividends on the stock while everyone else gets a much lower yield from buying the stock at the top at a higher price point. And even though I do think that there's a rise in more healthconscious options these days, PepsiCo is so large and dominant at this point that they can easily just acquire smaller players whenever they pop up. As is evident with new product launches and acquisitions like they did in Bubbly, SodaStream, Keto Friendly Chips, Health Warrior Supplements and Snacks, and their newest addition of Poppy that they just acquired this year. Add it all up and PepsiCo is easily one of the best dividend king stocks available this year for a pretty nice discount. All right, coming in at stock number two though, believe it or not, we have a dividend king that I actually like even more than Pepsi right now. And it's also one of my newest additions to my own portfolio in Stanley Black & Decker, ticker symbol S SWK, which currently holds number one market share for tools and outdoor products in the entire world, operating in 60 different countries with even 90% of all cars and light trucks in Europe and North America using their specific fasteners. And you've probably used one of their tools before too from any number of their popular brands like the namesakes Stanley and Black & Decker as well as DeWalt, Craftsman, Irwin, and more. Unfortunately, being a global player like this will certainly impact them from higher tariffs. But the good news is that Stanley has at least been proactively restructuring their supply chain for years to mitigate these kind of risks. In fact, they claimed that for the past 7 years, the company has significantly reduced their reliance on Chinese manufacturing from 40% down to just 15%. With the CEO saying, quote, "We went from uh we went through tariffs in the first President Trump administration. We figured out how to navigate it back then. We feel like we are well prepared to mitigate this again. It will create a modest disruption for periods of time in the short term. But a reminder to everybody is that back seven or eight years ago about 40% of what we sold in the US came from China. And now we're down closer to a number that's in the mid- teens, around 15%. And yet, meanwhile, the stock has been absolutely devastated this year, having now lost about 30% of its value year to date and a mind-blowing 75% from their previous high. Obviously, there's other issues going on with this company, too. Primarily, a decline in their financials coming off the pandemic highs where sales exploded. But the company should be back to growth in future years as their legacy brands remain some of the most popular in the world. While new investments into smart tools and sustainable products with a focus on new e-commerce channels should also help them turn things around over time, too. And best of all is that while I wait for some of that to take shape, I get to collect a mouthwatering dividend yielding close to 6% which has not only been grown for over five decades in a row, but it's also among the highest levels that it's ever been thanks to the stock crash, which also leaves them trading over 50% cheaper than the sector despite being a market leader. Now, I know they have issues, but at this price, I'm going to be a buyer myself this year. All right, coming in at stock number three though is a king that I just really think is flying under the radar right now and that is Cisco. Not the tech one, not the technology one, but uh Cisco S Y ticker symbol. Now, if you've never heard of them, it's because they're almost like an invisible type of giant within the food world. In fact, they're actually the largest food distributor in the entire US, serving everything from restaurants and hospitals to schools, hotels, and even retirement homes, controlling a massive logistics operation that delivers food and related products to over 700,000 customer locations, which they've been doing for decades. So, when you go out to eat, uh there's actually a very high chance that Cisco handled at least part of what's on your plate before it got to the kitchen. And that massive size has also led to really strong financials with sales usually breaking new record highs in most years and should even be surpassing a h 100red billion in a few years, too. Unfortunately, as you would expect, the 2020 pandemic was pretty devastating for Cisco, as many of their customers were forced to close down for long periods of time. But even during what was really the worst type of operational environment that you could imagine for them, Cisco still managed to generate positive EPS with surging growth every year since. That resilience has also allowed them to grow their dividends for 56 years in a row. Currently yielding close to 3% with also a very low payout ratio below 50%. Meaning it's likely to be uh you know very safe here at these levels going forward. As you would expect though, the Trump tariffs will likely put pressure on Cisco's margins and their overall food supply chain. But over the years, they have at least worked on developing more local and domestic sourcing for that supply chain. And when it's all said and done, I actually think that, you know, new trade deals coming in the future could end up benefiting a global player like this longer term. The problem, of course, is that in the short term, there will likely be more pain to come. But while investors wait, they at least get the attractive dividend to collect with also a stock price that has already been suppressed for years and is currently down 18% from the top, leaving a dirt cheap valuation that is over 20% lower than the sector on a PG basis despite this being the clear market leader. I'm waiting to see if I can get that dividend yield up a little higher, though. Usually, I want them to be at least above 3%. But the more Cisco falls here, the more tempted I am at uh you know starting to buy into to a stock like this, which may happen very soon depending on how this year plays out. All right, with that said, we are left now with the final two kings of the list. And coming in at number four, I'm actually going with a pharmaceutical giant and one of the few that has actually raised their dividend for over five decades in a row. And that is Ken View, ticker symbol KU, who was actually spun off from Johnson and Johnson. Hence why most investors still consider them a king post spin-off having kept the company's cash cow consumer health brands like Tylenol, Johnson's, Band-Aid, Listerine and more that historically were really the biggest reasons for uh you know them being able to increase th that dividend for so many years. But the great thing about being its own standalone company now is that Ken View can focus on just streamlining their main operations while also investing in new product launches that specifically fit best with their own portfolio of products rather than having a giant entity trying to do so many different things at once and getting convoluted and and and messy. And while this is really by no means a growthoriented company, that narrow down focus is at least resulting in record-breaking sales most years. That's the expectation. While the billions in profits uh is going to allow them to continue growing their dividend that currently sits at not just over 5 decades of growth, but it's actually higher than six decades, which is pretty crazy. While also yielding about 3.7% after the stock price fell by double digits since the spin-off, leaving them with also a pretty attractive PG ratio that is around 50% cheaper than the sector median. I already own several biotechs myself like in Fizer, Bristle Meyers, Merc, and Avy, but Ken View is definitely high up on my watch list, too, as a great alternative option to any of those other ones that I really like. All right, finally guys, for our fifth and final pick, I'm going with the only real estate investment trust that is also considered a dividend king, and that is Federal Realy, ticker symbol FRT, who owns various retail and other mixeduse properties like office and apartment buildings. Now, of course, the majority of their rent is coming from retail, but FRT has actually done a great job of handpicking only the highest quality properties in prime locations across the US. In fact, they prioritize quality over quantity by so much that despite being around for over six decades, uh, their portfolio consists of only around 100 select properties, making sure they're located in only the best hightraic areas with large population densities and high average incomes. And because it's been run so well by management during the 2020 pandemic when most reeds were, you know, getting crushed, FRT was actually able to go out and buy new properties to ensure future growth like in their first assets purchased from Phoenix, Arizona. Now, don't get me wrong, the pandemic was still a difficult time for the company, but sales have been growing every year since with funds from operations also outperforming their closest peers even during economic downturns. For example, during the '08 financial crisis, FRT put up many times greater performance than the peer a than their peer average, which uh you can see on here, it wasn't even close. Now, the result was also that FRT has been able to grow their dividend more consecutive years than literally any other REIT in the entire market, currently sitting at close to six decades in a row. Yet, because of the cyclicality of these types of REITs, FRT is currently going through one of those major downturns itself, which is arguably one of the best times to be buying this type of stock as the dividend yield has also risen to one of its highest levels at close to 5%. Like I mentioned in my last video, though, I do already own three other different REITs myself, so I haven't really been interested in adding a fourth at the moment, so I just think there'd be a little too much exposure to them in my portfolio. However, if I was looking to pick up another FRT would be right near the top of my list as I think it's actually a pretty solid choice here at these levels. Anyway, that'll do it for my top five list here of D dividend kings. Let me know if you agree with my list and if not, what stock would you replace with a different dividend king? I'd love to hear your suggestions down below in the comment section. But either way, I hope that you enjoyed this video. Thanks again for stopping by, my friends. Thank you for all your support. Means a lot to me. I hope you're all doing well and I will catch you in the next one. All right, take care everybody. Bye-bye.