Up to date on February nineteenth, 2025 by Bob Ciura
Dividend powerhouses are firms which have maintained lengthy histories of accelerating their dividends annually, even throughout recessions.
And with regards to dividend powerhouses, there are not any higher shares to select from than the Dividend Kings.
The Dividend Kings are the best-of-the-best in dividend longevity.
What’s a Dividend King? A inventory with 50 or extra consecutive years of dividend will increase.
You possibly can see the total downloadable spreadsheet of all 54 Dividend Kings (together with essential monetary metrics equivalent to dividend yields, payout ratios, and price-to-earnings ratios) by clicking on the hyperlink beneath:
We usually rank shares based mostly on their five-year anticipated annual returns, as acknowledged within the Certain Evaluation Analysis Database.
However for worth traders, it’s also helpful to rank the Dividend Kings in accordance with their valuations.
This text will rank the ten most undervalued Dividend Kings right now.
Desk of Contents
Undervalued Dividend King #10: Becton, Dickinson & Co. (BDX)
- Annual valuation return: 4.1%
Becton, Dickinson & Co. is a world chief within the medical provide trade. The corporate was based in 1897 and has 75,000 staff throughout 190 nations.
The corporate generates about $20 billion in annual income, with roughly 43% of revenues coming from outdoors of the U.S.
On February fifth, 2025, BD launched outcomes for the primary quarter of fiscal yr 2025, which ended December thirty first, 2024. For the quarter, income elevated 9.8% to $5.17 billion, which was $60 million greater than anticipated.
Supply: Investor Presentation
On a foreign money impartial foundation, income improved 9.6%. Adjusted earnings-per-share of $3.43 in contrast favorably to $2.68 within the prior yr and was $0.44 forward of estimates.
For the quarter, U.S. grew 12% whereas worldwide was up 6.7% on a reported foundation. Excluding foreign money, worldwide was greater by 6.3%. Natural development was up 3.9% for the interval.
The Medical phase grew 17.1% organically to $2.62 billion, largely on account of features in Mediation Administration Options and Medicine Supply Options. Life Science was up 0.5% to $1.3 billion.
Click on right here to obtain our most up-to-date Certain Evaluation report on BDX (preview of web page 1 of three proven beneath):
Undervalued Dividend King #9: Tennant Co. (TNC)
- Annual valuation return: 4.6%
Tennant Firm is a equipment firm that produces cleansing merchandise and that gives cleansing options to its prospects.
Within the US, the corporate holds the market management place in its trade, however the firm additionally sells its merchandise in additional than 100 extra nations across the globe.
Supply: Investor Presentation
Tennant Firm reported its third quarter earnings outcomes on October thirty first. The corporate introduced that it generated revenues of $316 million in the course of the quarter, which was 4% greater than the highest line quantity from the earlier yr’s quarter.
This was barely higher than the current development, as income had grown much less on a year-over-year foundation in the course of the earlier quarter. Revenues have been decrease in comparison with what the analyst group had forecasted.
Tennant Firm generated adjusted earnings-per-share of $1.39 in the course of the third quarter, which was lower than what the analyst group had forecasted, and which was down 10% in comparison with the earlier yr.
Click on right here to obtain our most up-to-date Certain Evaluation report on TNC (preview of web page 1 of three proven beneath):
Undervalued Dividend King #8: PPG Industries (PPG)
- Annual valuation return: 4.7%
PPG Industries is the world’s largest paints and coatings firm. Its solely rivals of comparable measurement are Sherwin-Williams and Dutch paint firm Akzo Nobel.
PPG Industries was based in 1883 as a producer and distributor of glass (its identify stands for Pittsburgh Plate Glass) and right now has roughly 3,500 technical staff situated in additional than 70 nations at 100 places.
On January thirty first, 2025, PPG Industries introduced fourth quarter and full yr outcomes for the interval ending December thirty first, 2024. For the quarter, income declined 4.6% to $3.73 billion and missed estimates by $241 million.
Adjusted internet earnings of $375 million, or $1.61 per share, in contrast favorably to adjusted internet earnings of $372 million, or $1.56 per share, within the prior yr. Adjusted earnings-per-share was $0.02 beneath expectations.
For the yr, income from persevering with operations decreased 2% to $15.8 billion whereas adjusted earnings-per-share totaled $7.87.
PPG Industries repurchased ~$750 million price of shares throughout 2024 and has $2.8 billion, or ~10.3% of its present market capitalization, remaining on its share repurchase authorization. The corporate expects to repurchase ~$400 million price of shares in Q1 2025.
For 2025, the corporate expects adjusted earnings-per-share in a variety of $7.75 to $8.05.
Click on right here to obtain our most up-to-date Certain Evaluation report on PPG (preview of web page 1 of three proven beneath):
Undervalued Dividend King #7: Sysco Corp. (SYY)
- Annual valuation return: 5.3%
Sysco Company is the most important wholesale meals distributor in the USA. The corporate serves 600,000 places with meals supply, together with eating places, hospitals, colleges, inns, and different amenities.
Supply: Investor Presentation
On January twenty eighth, 2025, Sysco reported second-quarter outcomes for Fiscal 12 months (FY)2025. The corporate reported a 4.5% improve in gross sales for the second quarter of fiscal yr 2025, reaching $20.2 billion.
U.S. Foodservice quantity grew by 1.4%, whereas gross revenue rose 3.9% to $3.7 billion. Working earnings elevated 1.7% to $712 million, with adjusted working earnings rising 5.1% to $783 million. Earnings per share (EPS) remained at $0.82, whereas adjusted EPS grew 4.5% to $0.93.
The corporate reaffirmed its full-year steering, projecting gross sales development of 4%-5% and adjusted EPS development of 6%-7%.
Click on right here to obtain our most up-to-date Certain Evaluation report on SYY (preview of web page 1 of three proven beneath):
Undervalued Dividend King #6: Hormel Meals (HRL)
- Annual valuation return: 5.5%
Hormel Meals is a juggernaut within the meals merchandise trade with practically $10 billion in annual income. It has a big portfolio of category-leading manufacturers. Just some of its prime manufacturers embody embody Skippy, SPAM, Applegate, Justin’s, and greater than 30 others.
It has additionally pursued acquisitions to drive development. For instance, in 2021, Hormel acquired the Planters snack nuts enterprise from Kraft-Heinz (KHC) for $3.35 billion, which has boosted Hormel’s development.
Supply: Investor Presentation
Hormel posted fourth quarter and full-year earnings on December 4th, 2024, and outcomes have been according to expectations.
The corporate posted adjusted earnings-per-share of 42 cents, which met estimates. Income was off 2% year-on-year to $3.14 billion, additionally hitting estimates.
Working earnings was $308 million for the quarter on an adjusted foundation, or 9.8% of income. Working money movement was $409 million for This fall.
For the yr, gross sales have been $11.9 billion, and adjusted working earnings was $1.1 billion, or 9.6% of income. Adjusted earnings-per-share was $1.58. Working money movement hit a report of $1.3 billion.
Click on right here to obtain our most up-to-date Certain Evaluation report on Hormel (preview of web page 1 of three proven beneath):
Undervalued Dividend King #5: SJW Group (SJW)
- Annual valuation return: 5.7%
SJW Group is a water utility firm that produces, purchases, shops, purifies and distributes water to shoppers and companies within the Silicon Valley space of California, the realm north of San Antonio, Texas, Connecticut, and Maine.
SJW Group has a small actual property division that owns and develops properties for residential and warehouse prospects in California and Tennessee. The corporate generates about $670 million in annual revenues.
Supply: Investor Presentation
On October twenty eighth, 2024, SJW Group reported third quarter outcomes for the interval ending June thirtieth, 2024. For the quarter, income grew 9.9% to $225.1 million, beating estimates by $11.6 million. Earnings-per-share of $1.18 in contrast favorably to earnings-per-share of $1.13 within the prior yr and was $0.04 greater than anticipated.
As with prior durations, the development in income was largely on account of SJW Group’s California and Connecticut companies, which benefited from greater water charges, whereas development in prospects aided the Texas enterprise.
Greater charges total added $40 million to outcomes for the quarter, greater buyer utilization added $4.8 million, and development in prospects contributed $2.4 million. Working manufacturing bills totaled $166.7 million, which was a 12% improve from the prior yr.
Click on right here to obtain our most up-to-date Certain Evaluation report on SJW (preview of web page 1 of three proven beneath):
Undervalued Dividend King #4: PepsiCo Inc. (PEP)
- Annual valuation return: 7.4%
PepsiCo is a world meals and beverage firm. Its merchandise embody Pepsi, Mountain Dew, Frito-Lay chips, Gatorade, Tropicana orange juice and Quaker meals.
Its enterprise is break up roughly 60-40 by way of meals and beverage income. It’s also balanced geographically between the U.S. and the remainder of the world.
Supply: Investor Presentation
On February 4th, 2025, PepsiCo introduced that it might improve its annualized dividend by 5.0% to $5.69 beginning with the cost that was made in June 2025, extending the corporate’s dividend development streak to 53 consecutive years.
That very same day, PepsiCo introduced fourth quarter and full yr outcomes for the interval ending December thirty first, 2025. For the quarter, income decreased 0.3% to $27.8 billion, which was $110 million beneath estimates.
Adjusted earnings-per-share of $1.96 in contrast favorably to $1.78 the prior yr and was $0.02 higher than excepted.
For the yr, income grew 0.4% to $91.9 billion whereas adjusted earnings-per-share of $8.16 in comparison with $7.62 in 2023. Forex trade lowered income by 2% and earnings-per-share by 4%.
Click on right here to obtain our most up-to-date Certain Evaluation report on PEP (preview of web page 1 of three proven beneath):
Undervalued Dividend King #3: California Water Service Group (CWT)
- Annual valuation return: 7.5%
California Water Service is a water inventory and is the third-largest publicly-owned water utility in the USA.
It was based in 1926 and has six subsidiaries that present water to roughly 2 million folks in 100 communities, primarily in California but additionally in Washington, New Mexico and Hawaii.
Supply: Investor Presentation
California Water Service reported its third quarter earnings outcomes on October thirty first. Working revenues totaled $300 million in the course of the quarter, which was 18% greater than the identical quarter final yr. This represents a stronger efficiency in comparison with what the analyst group had forecasted.
The working income improve was pushed by fee will increase over the past yr in addition to by greater accrued unbilled income in comparison with the earlier yr’s quarter.
Click on right here to obtain our most up-to-date Certain Evaluation report on CWT (preview of web page 1 of three proven beneath):
Undervalued Dividend King #2: Farmers & Retailers Bancorp (FMCB)
- Annual valuation return: 7.6%
Farmers & Retailers Bancorp is a regionally owned and operated group financial institution with 32 places in California. Because of its small market cap and its low liquidity, it passes underneath the radar of most traders.
F&M Financial institution has paid uninterrupted dividends for 88 consecutive years and has raised its dividend for 59 consecutive years.
In late January, F&M Financial institution reported (1/23/25) monetary outcomes for the fourth quarter of fiscal 2024. The financial institution grew its earnings-per-share 9% over the prior yr’s quarter, from $28.55 to a brand new all-time excessive of $31.11. Loans and deposits grew 1% every.
Web curiosity earnings dipped -3% on account of a contraction of internet curiosity margin from 4.30% to 4.05% amid greater deposit prices. Administration stays optimistic for the foreseeable future, because the financial institution enjoys one of many widest internet curiosity margins in its sector.
We reiterate that F&M Financial institution is among the most resilient banks throughout downturns, such because the pandemic, a possible recession or the monetary turmoil attributable to the collapse of Silicon Valley Financial institution, Credit score Suisse and First Republic.
Click on right here to obtain our most up-to-date Certain Evaluation report on FMCB (preview of web page 1 of three proven beneath):
Undervalued Dividend King #1: Archer Daniels Midland (ADM)
- Annual valuation return: 8.8%
Archer-Daniels-Midland is the most important publicly traded farmland product firm in the USA. Archer-Daniels-Midland’s companies embody processing cereal grains, oilseeds, and agricultural storage and transportation.
Archer-Daniels-Midland reported its third-quarter outcomes for Fiscal 12 months (FY) 2024 on November 18th, 2024. The corporate reported adjusted internet earnings of $530 million and adjusted EPS of $1.09, each down from the prior yr on account of a $461 million non-cash cost associated to its Wilmar fairness funding.
Consolidated money flows year-to-date reached $2.34 billion, reflecting sturdy operations regardless of market challenges.
Click on right here to obtain our most up-to-date Certain Evaluation report on ADM (preview of web page 1 of three proven beneath):
Remaining Ideas
Most traders focus totally on the expansion prospects of shares with a view to establish probably the most enticing buys. Nonetheless, valuation is equally essential.
When market sentiment turns damaging for a inventory on account of a brief headwind, its valuation could turn out to be too low-cost.
When the headwind subsides, the valuation of the inventory is prone to revert to regular ranges. On this means, an organization can provide excessive whole returns even with out rising its earnings considerably.
The ten dividend shares on this record are all a part of the unique Dividend Kings record, and are presently undervalued.
Because of this, worth traders could discover these 10 dividend shares enticing.
Additional Studying
If you’re serious about discovering high-quality dividend development shares and/or different high-yield securities and earnings securities, the next Certain Dividend assets might be helpful:
Different Certain Dividend Sources
Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to assist@suredividend.com.
