3 High-Yield Dividend Kings for Long-Term Passive Income
These names are part of a select group of companies that have increased their payouts for at least 50 straight years.
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The Dividend Kings are a group of just 56 companies that have increased their dividends for at least 50 consecutive years.
Regular dividend increases each year, even during recessions, are critical for dividend growth investors. This makes the Dividend Kings list a great way to start searching for strong dividend stocks.
The Dividend Kings are also appealing because many have high dividend yields. Let's discuss three Dividend Kings that have yields above 4%, and should continue raising their dividends each year.
Making a 'Federal' Case Out of It
Federal Realty Investment Trust FRT is one of the larger real estate investment trusts (REITs) in the United States. The trust was founded in 1962 and concentrates in high-income, densely populated coastal markets in the U.S., allowing it to charge more per square foot than its competition.
On February 13, Federal Realty reported its financial results for the fourth quarter of 2024. The company achieved funds from operations (FFO) per share of $1.73 for the quarter and $6.77 for the full year, setting records even after accounting for a one-time $0.04 charge related to an executive departure. Total revenue surpassed $300 million for the quarter and $1.2 billion for the year, reflecting growth rates of 7% and 6% over their respective prior periods.
Leased occupancy reached 96.2%, and occupied occupancy was 94.1% at year-end, the highest levels in nearly a decade. These results were driven by strong tenant demand, with both leased and occupied metrics increasing by 200 and 190 basis points, respectively, over year-end 2023 levels.
Federal Realty also reported solid lease rollover of 11% on a cash basis and sector-leading contractual rent increases of approximately 2.5% for both anchor and small shop tenants. The residential portfolio contributed positively, with same-store property operating income (POI) growth of 5%.
The company also announced a dividend increase to $4.40 per share, marking the 57th consecutive year of dividend growth, the longest streak in the REIT industry.
Federal Realty’s growth moving forward will be comprised of a continuation of higher rent rates on new leases and its impressive development pipeline fueling asset base expansion. Margins are expected to continue to rise slightly as it redevelops pieces of its portfolio and same-center revenue continues to move higher.
FRT currently yields 4.7%.
A Fine Dividend Tool for Your Portfolio
Stanley Black & Decker SWK is a world leader in power tools, hand tools, and related items. The company holds the top global position in tools and storage sales. Stanley Black & Decker is also second in the world in the areas of commercial electronic security and engineered fastening.
On April 30, Stanley Black & Decker announced 2025 first-quarter financial results. For the quarter, revenue of $3.74 billion came in $20 million above expectations. Adjusted earnings per share of $0.75 was $0.09 ahead of estimates.
Quarterly revenue declined 3% year over year, but organic growth was 1%. However, unfavorable currency and divestitures weighed on the top line. Meanwhile, adjusted EPS rose 34% year over year, due mainly to the benefits of cost reductions.
The company has a $500 million cost reduction target for 2025. The benefits are already being felt, as first-quarter gross margin was 29.9%, an expansion of 130 basis points from the same quarter last year.
SWK continues to increase its dividend each year. On July 25, 2024, Stanley Black & Decker announced it was raising its quarterly dividend 1.2% to $0.82, extending the company’s dividend growth streak to 57 consecutive years.
SWK currently yields 5.3%.
There's Dividends in Them Thar Hills
Black Hills Corp. BKH is an electric utility that provides electricity and natural gas to customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. Black Hills was founded in 1941, and the company is headquartered in Rapid City, South Dakota.
Black Hills reported its fourth quarter earnings results in February. The company generated revenues of $597 million during the quarter, which was 1% more than the revenues that it was able to generate during the previous year’s quarter. This was a reversal from the previous quarter, when revenues had been down.
The company generated earnings per share of $1.37 during the fourth quarter, which was above the consensus analyst estimate. EPS were up by close to 20% versus the previous year’s quarter. Q4 and Q1 are seasonally stronger quarters due to higher natural gas demand for heating, which was again showcased by the above-average profitability during the fourth quarter.
Management forecasts EPS of $4.00 to $4.20 for the current fiscal year. Growth over the coming years depends on several factors. This includes rate reviews, which drive revenues and profits per kWh. Another factor is the expansion of the company’s existing assets via new utility infrastructure. Black Hills regularly adds new projects to its growth investment backlog.
Planned growth investments include new electric transmission lines and new natural gas pipelines to service its customers. Rate reviews will allow Black Hills to recover investments into its existing systems, thereby more or less guaranteeing increasing revenues over time as long as volumes on existing systems remain unchanged in the long run, which should lead to rising profits down the road.
Now that the company exited its oil business, the increased focus on its core utility business is a positive for Black Hills, as this allows for more consistent and reliable growth.
Black Hills has increased its dividend for 55 years.
BKH currently yields 4.5%.
At the time of publication, Ciura had no positions in any securities mentioned.