4 Dividend Kings Poised for Growth, According to Analysts

Dividend Kings are an elite group of companies that have consistently increased their dividends for at least 50 consecutive years. These companies have demonstrated a remarkable ability to generate steady cash flows and reward shareholders with growing payouts, even during challenging economic times.

The significance of a company’s long history of dividend increases cannot be overstated. It serves as a testament to the company’s financial strength, stability, and commitment to shareholder value. Investors seeking reliable income streams often gravitate towards Dividend Kings, as they have a proven track record of delivering consistent and growing dividends.

Here's what analysts are predicting will happen with four of the most popular Dividend King stocks:

Procter & Gamble 

Procter & Gamble Co PG, a consumer goods giant with a diverse portfolio of household brands, has increased its dividend for an impressive 67 consecutive years. The company currently offers a yield of 2.46%. Analysts from Argus Research, Barclays and Deutsche Bank have recently issued price targets for Procter & Gamble, with an average target of $175.33, implying a 6.63% upside potential.

Coca-Cola 

Coca-Cola Co KO, the global beverage leader, has a 61-year streak of dividend increases and currently yields 3.13%. Analysts from Barclays, UBS and Evercore ISI Group have set an average price target of $70.33 for Coca-Cola, suggesting a potential upside of 12.98%.

Johnson & Johnson 

Johnson & Johnson JNJ, a healthcare and pharmaceutical powerhouse, has also increased its dividend for 61 consecutive years and offers a yield of 3.31%. HSBC, Morgan Stanley and RBC Capital have provided an average price target of $170.67 for Johnson & Johnson, indicating a potential upside of 14.39%.

Target 

Target Corp TGT, a leading retailer, has a 55-year history of dividend increases and currently yields 2.78%. Analysts from Evercore ISI Group, Jefferies and Tigress Financial have an average price target of $198.33 for Target, implying a potential upside of 25.11%.

Real Estate As A High-Yield Alternative

While Dividend Kings offer attractive income opportunities, investors seeking higher yields may want to explore alternative investments, such as real estate. Two compelling options in this space are the Cityfunds Yield fund and Arrived’s Single Family Residential Fund.

The Cityfunds Yield fund targets an 8% APY and provides investors with stable cash flow backed by real estate assets. The fund invests in a diversified pool of collateralized real estate loans, including home equity-backed notes and short-term mortgage notes. With quarterly distributions and a five-year term, the Cityfunds Yield fund offers an appealing option for income-focused investors. Click here to see how much you could be earnings with the Cityfunds Yield fund. 

Arrived’s Single Family Residential Fund, launched in Q4 2023, allows investors to gain exposure to a portfolio of single-family rental properties in dynamic markets nationwide. The fund aims to provide a steady income stream and pursue long-term capital appreciation by acquiring properties in markets with strong job and income growth, affordability, and increasing housing demand. As of Q1 2024, the fund has accumulated a portfolio of 33 properties and provided an annualized dividend of 4.0%. Click here to start building your real estate empire with the Single Family Residential Fund. 

The Bottom Line

Dividend Kings have a proven track record of delivering consistent and growing dividends, making them attractive options for income-seeking investors. Analysts’ price targets suggest potential upside for several of these companies, including Procter & Gamble, Coca-Cola, Johnson & Johnson, and Target.

However, alternative investments like real estate may be worth considering for investors seeking higher yields. The Cityfunds Yield fund and Arrived’s Single Family Residential Fund offer compelling opportunities to generate passive income through exposure to real estate assets.

As always, investors should conduct thorough research and consider their individual financial goals and risk tolerance before making any investment decisions.