Core Insights - RLI Corp. has achieved the status of a Dividend King by raising its annual dividend for the 50th consecutive year, demonstrating resilience through economic challenges [1][2] - The company has a market capitalization of approximately $5.8 billion and has faced a 21% decline in stock price this year due to various industry pressures [3] Company Performance - Despite the stock decline, RLI has managed to grow its operating earnings in the first nine months of the year, maintaining a combined ratio of slightly over 85%, indicating underwriting profitability [4] - The company has a dividend yield of around 1% and a free cash flow yield of nearly 10%, suggesting potential for continued dividend growth in the future [6] Market Context - RLI operates in a competitive insurance market and is experiencing challenges from rising technology investments and increased claims due to more frequent natural disasters [3] - The stock's current price is $61.67, with a 52-week range between $55.94 and $84.40, reflecting volatility in the market [5][6]

These two Dividend Kings should be at the top of your list if you are looking to generate a reliable income stream to pay your bills.I usually buy dividend stocks when Wall Street is downbeat on their shares for a reason I believe will be temporary. However, some investors simply don't like taking what can be deeply contrarian stances. That doesn't mean you can't find great dividend stocks that will satisfy your need for income.Right now, Coca-Cola (KO +0.33%) and Federal Realty (FRT +0.16%) are two of my f ...

Core Insights - The article highlights two lesser-known companies, Automatic Data Processing (ADP) and Marzetti, which are notable for their consistent dividend increases, making them attractive to income investors [1][2]. Group 1: Automatic Data Processing (ADP) - ADP has recently celebrated its status as a Dividend King, having increased its quarterly dividend by 10% to $1.70 per share, marking 51 consecutive years of dividend hikes [3][6]. - The company operates in the finance sector, providing payroll and human resources services, and has maintained a stable profit margin between 17% and 20% over the last five fiscal years [4][5]. - For the first quarter of fiscal 2026, ADP reported a 7% year-over-year revenue increase to $5.2 billion and a 6% rise in GAAP net income to $1 billion, indicating sustained profitability [6][5]. - The upcoming dividend payout will be distributed on January 1, 2026, yielding 2.7% based on the most recent stock price [7]. Group 2: Marzetti - Marzetti, a food products supplier, has also increased its dividend for the 63rd consecutive year, raising it by 5% to $1 per share [9]. - The company reported a nearly 6% rise in net sales to over $493 million for the first quarter of 2026, with significant growth in its food service segment, which saw an 8% increase [10][12]. - Marzetti's business model includes a balanced approach between its food service and retail segments, allowing it to mitigate risks associated with fluctuations in consumer spending [13]. - The raised dividend will be paid on December 31 to stockholders of record as of December 5, yielding approximately 2.4% based on the current share price [14].

Core Viewpoint - The article discusses the concept of "buy-and-forget" dividend stocks, emphasizing that while this strategy is not without challenges, it is feasible for long-term investors. It highlights the importance of selecting stocks from the Dividend Kings list, which includes companies with a long history of increasing dividends [2][3]. Group 1: Investment Strategy - The "buy-and-forget" approach involves holding onto core dividend stocks indefinitely, regardless of market fluctuations [2]. - Dividend Kings are defined as companies that have consistently paid and increased dividends for over 50 years, making them suitable for long-term investment [2]. Group 2: Stock Selection Criteria - The selection process utilized filters such as: - Investing Ideas: Dividend Kings - Current Analyst Rating: 4 to 5, indicating positive consensus from analysts [3]. - Number of Analysts: 20 or more for reliable consensus [3]. - Market Cap: Large to Mega for safety [3]. - 60-Month Beta: 0 to 1 for stability [3]. - 5-YR Percent Change: 20% and above for capital appreciation potential [3]. Group 3: AbbVie Inc (ABBV) - AbbVie focuses on developing drugs for cancer and immune system disorders, with a stock price around $227 and a 112% gain over the past 5 years [6]. - The company has a 60-month beta of 0.50, indicating relative stability [6]. - AbbVie pays a forward dividend of $6.56, with a quarterly payout of $1.64 per share, resulting in a 2.9% forward yield and a dividend payout ratio of 68.08% [7]. - Recent financials show an annual revenue increase of 3.7% to $56.33 billion, while net income declined by 12% to $4.27 billion, attributed to rising R&D expenses [7].

Core Viewpoint - Dividend stocks are valuable for providing regular cash flow and can be beneficial for both new and seasoned investors [1] Group 1: Johnson & Johnson - Johnson & Johnson has increased its dividend for 63 consecutive years, classifying it as a Dividend King with a yield of approximately 2.6% [3] - The company holds a "AAA" credit rating from S&P Global, indicating strong financial stability, which allows for significant investments in research and development [4] - Recent acquisitions include Halda Therapeutics for $3.05 billion to enhance its oncology pipeline, Intra-Cellular Therapies for $14.6 billion to expand its neuroscience portfolio, and Shockwave Medical for $13.1 billion to improve its medical device offerings [5][6] - In Q3, Johnson & Johnson reported net sales of $24 billion, a 6.8% year-over-year increase, and net income rose 91% to $5.2 billion [9] Group 2: Coca-Cola - Coca-Cola has also increased its dividend for 63 consecutive years, making it a Dividend King with a yield of about 2.8% [10] - The company employs an asset-light franchise model, focusing on concentrate production and brand strategy while independent bottling partners handle manufacturing and distribution [11] - Coca-Cola's diverse portfolio includes water, juices, coffee, tea, and energy drinks, allowing it to adapt to changing consumer preferences [13] - In Q3 2025, Coca-Cola reported net revenue of $12.5 billion, a 5% increase, and earnings per share of $0.86, reflecting a 30% rise [15] Group 3: Realty Income - Realty Income has paid and raised its dividend for over 30 years, with a current yield of approximately 5.7% and a history of 665 consecutive monthly dividends [16] - The company utilizes a triple-net lease structure, which minimizes exposure to rising operating expenses and provides stable rental income [17] - Realty Income owns over 15,500 properties leased to around 1,650 clients across 92 industries, focusing on service-oriented retail tenants to insulate cash flows [19] - For Q3 2025, Realty Income reported net income of $315.8 million and funds from operations of $981.1 million, representing increases of 21% and 15% year-over-year, respectively [20]

Core Insights - Dividend Kings are highly sought-after stocks for income investors due to their consistent dividend increases over more than 50 years [1] - These stocks tend to be fairly or slightly overvalued because of their mature status and reliable revenue streams, making it challenging to find "cheap" options [2] - A recent analysis identified several Dividend Kings trading at attractive valuations based on multiple metrics [3] Company Analysis - RPM International Inc is highlighted as a notable Dividend King, specializing in specialty coatings, sealants, and building materials [5][6] - The company boasts a diverse portfolio of leading brands, including Tremco, Carboline, Stonhard, Seal-Krete, Rust-Oleum, Zinsser, and Sunnyside [6] Investment Criteria - The analysis utilized specific filters to identify potential investment opportunities among Dividend Kings, focusing on analyst ratings, dividend yield, Relative Strength Index (RSI), and Price-to-Earnings (P/E) ratio [4] - The criteria included a moderate to strong buy rating from analysts, a forward P/E ratio of 20 or below, and an RSI of 40 or below to identify stocks in a practical oversold zone [4]

Core Insights - Dividend Kings are companies that have increased their dividends for 50 consecutive years or more, showcasing resilience and long-term potential [1] Group 1: Lowe's Companies (LOW) - Lowe's has achieved 62 years of consecutive dividend growth, making it a standout Dividend King [2] - The company operates over 1,700 stores in the U.S. and has invested in e-commerce, which supports its earnings despite market conditions [2] - Lowe's dividend payout ratio is 35%, supported by strong free cash flow, and it paid out $673 million in dividends in the third quarter [3] - The stock has a "Moderate Buy" rating, with 17 out of 28 analysts rating it as a "Strong Buy" and a mean target price of $277.76, indicating a 26.5% upside potential [4] Group 2: PepsiCo (PEP) - PepsiCo has over 52 consecutive years of dividend increases, making it a reliable Dividend King in the consumer staples sector [5] - The company benefits from a diverse range of beverages and snacks, allowing for steady revenue growth [5] - PepsiCo's dividend yield is 3.9%, significantly higher than the consumer staples average of 1.9%, with a payout ratio of 70.6% [5][6] - The stock has a "Moderate Buy" rating, with six out of 21 analysts rating it as a "Strong Buy" and a mean target price of $156.10, indicating a 4.9% upside potential [7]

Core Viewpoint - Parker-Hannifin is a Dividend King with a strong track record of dividend growth, significant backlog, and a strategic acquisition that positions it for continued success in the motion and control technologies industry [1][5][16]. Company Overview - Parker-Hannifin has raised its dividends for 69 consecutive years, making it one of the elite Dividend Kings [5]. - The stock has generated over 2,300% returns since 2000, with reinvested dividends totaling approximately 3,600% [6]. Industry Position - The company leads the motion and control technologies sector with annual sales projected at $19 billion for fiscal year 2025 [9]. - Aerospace and defense represent the largest market, contributing 35% of total revenue, with other significant markets including industrial equipment and energy [9][10]. Growth Drivers - Parker-Hannifin has a record backlog of $11 billion, with aerospace backlog reaching $7.4 billion, indicating strong future growth potential [12]. - The company is guiding for 4% to 7% sales growth in fiscal 2026, with organic sales in aerospace and defense expected to grow by nearly 9.5% [13]. Aftermarket Focus - The aftermarket segment, which includes sales of repair and replacement parts, generated 51% of total sales last fiscal year and is a key growth driver [14]. - The recent acquisition of Filtration Group for $9.25 billion will enhance Parker-Hannifin's aftermarket capabilities, as this segment accounts for 85% of Filtration Group's sales [15].

Core Insights - PepsiCo has made significant acquisitions, including full ownership of Sabra, Obela, Siete Foods, and Poppi, marking a major diversification effort in its portfolio [1] - The company is undergoing a portfolio transformation and cost reduction strategy to enhance operations and respond to the growing demand for wellness and healthy snacks [2] - The consumer staples sector, including PepsiCo, has faced challenges due to rising living costs, inflation, and a weakening job market, leading to decreased foot traffic and demand for snacks and beverages [3][4] Company-Specific Summaries - **PepsiCo**: The company is focusing on diversifying its product offerings through acquisitions that do not overlap with its existing brands, aiming to adapt to changing consumer preferences [2][7] - **Procter & Gamble (P&G)**: P&G is demonstrating strong pricing power and modest earnings growth, with international markets helping to offset weaknesses in North America [8] - **Colgate-Palmolive**: Colgate is primarily focused on oral and home care products, maintaining a strong position in the toothpaste market, and has a high-margin pet nutrition segment [9][10][11] - **Kimberly-Clark**: The company is facing challenges following its acquisition of Kenvue, but it maintains strong brands in the diaper and tissue markets, which are resilient during economic downturns [12][14][15] - **Target**: Target is struggling to compete on price but is improving its in-store experience and e-commerce capabilities, still generating sufficient cash flow to support its dividend [16] Market Performance and Valuation - The consumer staples sector, including Dividend Kings like PepsiCo, P&G, and Colgate, has seen a decline in stock performance, with many companies trading at attractive valuations based on forward earnings projections [17][18] - Kimberly-Clark is noted for trading at a significant discount to its historical average, although this may change post-acquisition of Kenvue [18] - The current market conditions present a compelling opportunity for long-term investors to consider these Dividend Kings, particularly those with strong cash flow and dividend reliability [19]

Core Viewpoint - Altria Group's stock has recently declined due to disappointing earnings, but it remains a potential buy for long-term investors focused on dividend growth [2][3]. Stock Performance - As of November 17, 2025, Altria's stock (MO) was trading at approximately $58, down from around $67 in early October, primarily due to a 1.7% revenue drop in Q3 and lower Marlboro shipments [3][4]. - The stock has shown some recovery from a recent low of $56, with current prices consolidating around $58, attracting interest from income investors [4]. Dividend History - Altria has increased its dividend for 56 consecutive years, making it part of the elite Dividend Kings list, which includes companies that have raised dividends for 50 years or more [5]. - The company currently offers a forward dividend yield of 7.3%, appealing to younger income investors with longer investment horizons [6]. Valuation Metrics - Altria's price-to-earnings ratio stands at 12.6, indicating that the stock is relatively cheap compared to its earnings [7]. - Despite a decline in annual revenue from $26 billion in 2020 to $24 billion in 2024, the company's bottom line has increased by 144%, from $4.5 billion to $11 billion during the same period [9]. Dividend Payout Ratio - The company's dividend payout ratio is around 76%, which is considered high and may limit reinvestment opportunities in the business [10]. Analyst Consensus - A consensus among 15 analysts rates Altria's stock as a "hold," with a high target price of $72, suggesting a potential upside of 24% over the next 12 months [11]. - Overall, Altria presents a high yield, low valuation, and a strong track record of delivering shareholder value, making it a potential entry point for long-term dividend growth investors [11].