When it comes to building a retirement portfolio, stability and consistent income are key. While speculative investments like penny stocks and startups may offer short-term excitement, long-term financial security demands a different approach. For investors seeking a blend of reliability and income growth, Dividend Kings stand out. These elite dividend stocks have a track record of increasing dividend payments for at least the past 50 years, making them ideal choices for long-term investments. Here are three Dividend Kings currently offering the highest yields in the market:
1. 3M Company (MMM)
3M, a diversified conglomerate (NYSE:MMM), epitomizes versatility with its extensive range of products. With over a century of dividend payouts and 64 consecutive years of dividend growth, 3M is a stalwart in the dividend investing realm. Despite facing challenges in 2023, including flat sales and legal disputes impacting its financials, 3M remains a solid investment opportunity. Analysts maintain a cautious stance on the stock, reflected in its “Hold” recommendation. However, for savvy investors, the current downturn presents a prime opportunity to acquire a high-yield Dividend King at discounted prices. With estimated full-year earnings per share (EPS) for 2024 showing promise and litigation hurdles gradually receding, 3M’s status as a Dividend King makes it an attractive prospect. Presently, 3M offers an annual dividend yield of 6.5% and an annual dividend rate of $6.04 per share.
2. Leggett & Platt (LEG)
Leggett & Platt (NYSE:LEG), renowned for its ComfortCore innerspring and various home, office, and automotive components, boasts one of the highest annual dividend yields in the Dividend Kings list, standing at 8.93%. However, recent financial performance has raised concerns about its ability to maintain Dividend King status. Quarterly and full-year sales for 2023 witnessed declines, with projected earnings for 2024 falling below expected dividend payouts. Despite these challenges, LEG remains resilient, implementing a restructuring plan to enhance profitability and mitigate costs. While the stock has experienced a 21% decline since the end of 2023, investors should approach LEG with caution due to its uncertain outlook as a dividend investment.
3. Altria Group (MO)
Altria Group (NYSE:MO), a dominant player in the tobacco industry renowned for brands like Marlboro and Philip Morris, offers the highest dividend yield among Dividend Kings, standing at 9.5%. With a consistent history of dividend increases over 54 years, MO presents a compelling option for income-oriented investors. In 2023, despite facing challenges in revenue, MO demonstrated resilience through strategic acquisitions, such as NJOY Holdings, expanding its market share in smoke-free products. Additionally, MO’s $1 billion share repurchase program underscores its commitment to enhancing shareholder value. For investors seeking steady income from a market-leading company, Altria Group warrants consideration.
