5 Safe High-Yield Dividend Kings That Every Retiree Should Own

While reaching retirement age can be both a blessing and a curse, relying on the U.S. government to provide for your needs is not the best idea. The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually for those born from 1955 to 1960, reaching 67. For anyone born in 1960 or later, full retirement benefits are payable at age 67. Baby Boomers and those nearing retirement are likely aware that Social Security alone will not provide a comfortable retirement, so passive income can be a significant help in increasing overall monthly income. The Dividend Kings are among the best investment ideas for those looking to generate safe and reliable passive income.

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, 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 list looking for companies that are among the highest-yielding and are also among the safest names in the group. Five well-known giants are the type of companies retirees and Baby Boomers can buy now and hold for years to come. All are rated Buy at top firms that we follow on Wall Street.

Why do we cover the high-yielding Dividend Kings?

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past 50 years (1973-2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

Altria

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

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 reserve. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.

Stifel has a Buy rating with a $63 target price.

Northwest Natural Holding

This small-cap company provides natural gas service to approximately 2.0 million people in more than 140 communities. This off-the-radar utility stock suits concerned conservative investors, pays a dependable dividend, and has risen by over 9% this year. Northwest Natural Holding Co. (NYSE: NWN), through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, industrial, and transportation customers in Oregon and Southwest Washington.

The company also operates:

• 5.7 billion cubic feet of the Mist gas storage facility contracted to other utilities and third-party marketers
• Offers natural gas asset management services
• Operates an appliance retail center

In addition, it engages in gas storage, water, non-regulated renewable natural gas, and other investments and activities.

The company provides natural gas service through approximately:

• 786,000 meters in Oregon and southwest Washington
• Water services to about 80,000 people through about 33,000 water and wastewater connections in the Pacific Northwest and Texas

United Bancshares

United Bankshares Inc. (NASDAQ: UBSI) is a bank holding company with dual headquarters in Charleston, West Virginia, and Fairfax, Virginia. This mid-cap financial company also offers solid total return potential now, in a sector that has performed well over the last year. United Bancshares primarily provides commercial and retail banking products and services in the United States, and it operates through two segments:

• Community Banking
• Mortgage Banking

The company accepts:

• Checking, savings, and time and money market accounts
• Individual retirement accounts and demand deposits
• Statement and special savings
• NOW accounts

Its loan products include:

• Commercial loans and leases to small to mid-size industrial and commercial companies
• Construction and real estate loans, such as commercial and residential mortgages
• Loans secured by owner-occupied real estate
• Personal, student, and credit card receivables
• Personal, commercial, and floor plan loans
• Home equity loans

In addition, the company offers credit cards, safe deposit boxes, wire transfers, and other banking products and services, as well as investment and security services. It also provides services to correspondent banks, including buying and selling federal funds, automated teller machine services, and internet and telephone banking services.

Furthermore, it provides community banking services, including asset management, real property title insurance, financial planning, mortgage banking, brokerage services, investment management, and retirement planning.

Kimberly-Clark

This American multinational personal care corporation produces mostly paper-based consumer products. This consumer staples leader is a safe bet for nervous investors, offering a substantial dividend yield. Kimberly-Clark Corp. (NYSE: KMB) and its subsidiaries manufacture and market personal care and consumer tissue products worldwide.

It operates through three segments:

• Personal Care
• Consumer Tissue
• K-C Professional

The Personal Care segment offers a diverse range of products, including:

• Disposable diapers
• Swim pants, training and youth pants, baby wipes
• Feminine and incontinence care products, as well as related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Depends, Plenitud, Softex, Poise, and other brand names

The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under the brand names.

• Kleenex
• Scott
• Cottonelle
• Viva
• Andrex
• Scottex
• Neve

The K-C Professional segment offers a range of products, including wipers, tissues, towels, apparel, soaps, and sanitizers, under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands.

Federal Realty Investment Trust

Founded in 1962, Federal Realty Investment Trust’s (NYSE: FRT) mission is to deliver long-term, sustainable growth through investing in densely populated, affluent communities. While real estate has slowly recovered, demand is still growing, and hard assets are generally considered a prudent investment in times of inflation. The trust is a recognized leader in the ownership, operation, and redevelopment of high-quality, retail-based properties in major coastal markets, spanning from the District of Columbia and Boston to San Francisco and Los Angeles.

Federal Realty’s mission is to deliver long-term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply.

Its expertise includes creating urban, mixed-use neighborhoods like:

• Santana Row in San Jose, California
• Pike & Rose in North Bethesda, Maryland
• Assembly Row in Somerville, Massachusetts

Federal Realty’s portfolio comprises approximately 3,500 tenants across 27 million square feet of space and 3,100 residential units. Federal Realty has increased its quarterly dividend to its shareholders for 57 consecutive years, the longest record in the REIT industry.

Investors Can Generate Huge Passive Income With 7 Dividend Kings

 

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