3 High-Yielding Dividend Kings Are Passive Income September Bargains

According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate. It can also include income from limited partnerships, stocks, bonds, and other similar enterprises in which the investor is not actively involved. The more passive income that can help cover rising costs—such as mortgages, insurance, taxes, and other expenses—the easier it is for investors to set aside money for future needs as they prepare for retirement. Dependable, recurring dividends are a recipe for success.

Companies that have raised their dividends for shareholders for 50 years or longer are the kind of investments that passive income investors need to own. Dependability is crucial for individuals seeking to increase their annual income through dividend stock investments. The Dividend Kings are the 55 companies that have raised their dividends for 50 years or longer, a testament to their dependability and reliability. Those are two “must-have” items for investors who rely on passive income to boost their overall revenue. Unlike the Dividend Aristocrats, the Dividend Kings do not have to be members of the S&P 500.

We screened the Dividend Kings looking for the companies with among the highest yields that are also offering among the best entry points for investors now, in addition to generating the highest streams of passive income. Three top companies hit our screens, and all look like solid ideas as we head into the seasonal part of the trading year that often has negative returns. All three are rated Buy at top Wall Street firms that we cover.

Why we recommend the Dividend Kings

Companies that have paid and raised their dividends for 50 years or more are the kind that growth and income investors want to buy and hold in their stock portfolios for the long term. These stocks are mostly conservative, and should we see a dramatic market correction, they will likely hold their ground much better than volatile technology names.

Altria

This is one of the world’s largest producers and marketers of cigarettes and other tobacco-related products. This tobacco company offers value investors a compelling entry point and a generous dividend yield. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States.

The company provides cigarettes primarily under the Marlboro brand, as well as:

• Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands
• Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! Oral nicotine pouches
• e-vapor products under the NJOY ACE brand

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria used to own over 10% of Anheuser-Busch InBev S.A. (NYSE: BUD), the world’s largest brewer. Earlier this year, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings, but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.

Stanley Black & Decker

Stanley Black & Decker Inc. (NYSE: SWK) is the world’s largest tool company, with 50 manufacturing facilities in the United States and more than 100 worldwide. With the potential for the economy to slow down somewhat, you can bet that the do-it-yourself legions will fix rather than buy new. This legendary stock is a solid idea now, especially down almost 15% in 2025 and trading 37.9% below its 52-week high of $110.13 from September 2024. The company provides hand tools, power tools, outdoor products, and related accessories in the United States, Canada, Europe, Asia, and elsewhere.

Its Tools & Outdoor segment offers professional-grade corded and cordless electric power tools and equipment, including:

• Drills
• Impact wrenches and drivers
• Grinders, saws, routers, and sanders
• Pneumatic tools and fasteners, such as nail guns, nails, staplers and staples, and concrete and masonry anchors; corded and cordless electric power tools
• Hand-held vacuums, paint tools, and cleaning appliances
• Leveling and layout tools, planes, hammers, demolition tools, clamps, vises, knives, saws, chisels, and industrial and automotive tools
• Drill, screwdriver, router bits, abrasives, saw blades, and threading products
• Toolboxes, sawhorses, medical cabinets, and engineered storage solutions
• Electric and gas-powered lawn and garden products

This segment sells its products under these brand names:

• DeWalt
• Craftsman
• Cub Cadet
• Black+Decker
• Hustler

The company’s Industrial segment provides:

• Threaded fasteners, blind rivets and tools, blind inserts and tools
• Drawn arc weld studs and systems
• Engineered plastic and mechanical fasteners
• Self-piercing riveting systems
• Precision nut running systems
• Micro fasteners
• High-strength structural fasteners
• Axle swage, latches, heat shields, pins, couplings, fittings, and other engineered products
• Attachments used on excavators and handheld tools

This segment sells its products through a direct sales force and third-party distributors to the automotive, manufacturing, electronics, construction, aerospace, and other industries.

UBS has a Buy rating on the shares and a target price of $100.

Target

This American retail corporation operates a chain of discount department stores and hypermarkets. It remains a solid and safe retail total return play, and after a rough first half of 2025, down almost 23%, it is a stellar buy. Target Corp. (NYSE: TGT) is a general merchandise retailer in the United States. It offers apparel for women, men, boys, girls, toddlers, infants, and newborns, as well as jewelry, accessories, and shoes. The company also offers a range of beauty and personal care products, baby gear, cleaning supplies, paper products, and pet care products.

Target also provides:

• Dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, and food service
• Electronics, which includes video game hardware and software
• Toys, entertainment, sporting goods, and luggage
• Furniture, lighting, storage, kitchenware, small appliances, home décor, bed, and bath
• Home Improvement
• School/office supplies
• Greeting cards, party supplies, and other seasonal merchandise

In addition, the company sells merchandise through periodic design and creative partnerships, shop-in-shop experiences, and in-store amenities. It also sells its products through its stores and digital channels, including Target.com.

Guggenheim has a Buy rating, accompanied by a $115 target.

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