Printed on April twentieth, 2026 by Bob Ciura
The Dividend Kings are a choose group of 58 shares which have elevated their dividends for no less than 50 consecutive years.
We imagine the Dividend Kings are among the many highest-quality dividend progress shares to purchase and maintain for the long run.
With this in thoughts, we created a full checklist of all 58 Dividend Kings.
You possibly can obtain the complete checklist, together with essential monetary metrics reminiscent of dividend yields and price-to-earnings ratios, by clicking on the hyperlink beneath:
Annually, we individually assessment all of the Dividend Kings.
The latest member of the Dividend Kings checklist is Sonoco Merchandise (SON), which lately elevated its dividend for the fiftieth consecutive 12 months.
This text will present a extra detailed evaluation of the corporate.
Enterprise Overview
Sonoco Merchandise offers packaging, industrial merchandise and provide chain companies to its clients.
The markets that use the corporate’s merchandise embody these within the home equipment, electronics, beverage, development and meals industries.
Sonoco was based in Hartsville, South Carolina in 1899 and launched the primary paper textile cone. The corporate generates $7.5 billion in annual gross sales.
Sonoco Merchandise is now composed of two main segments, Shopper Packaging, and Industrial Packaging, with all different companies listed as “All Different”.
On September seventh, 2025, the corporate introduced that it had agreed to promote its ThermoSafe enterprise unit to Arsenal Capital Companions for $656 million in gross money proceeds. The transaction closed on November third, 2025.
On February sixteenth, 2026, Sonoco Merchandise reported fourth quarter and full 12 months outcomes. For the quarter, income grew 30.1% to $1.77 billion, which beat estimates by $10 million.
Adjusted earnings-per-share of $1.05 in comparison with $1.00 within the prior 12 months and was $0.05 higher than anticipated.
For the 12 months, income elevated 41.7% to $7.5 billion whereas adjusted earnings-per-share of $5.71 in comparison with $4.89 in 2024. Income and earnings as soon as once more benefited from the addition of Eviosys.
For the quarter, Shopper Packaging revenues have been up 62.1% to $1.14 billion, largely on account of contributions from Eviosys.
Outcomes have been as soon as once more aided by worth will increase that have been applied to offset inflation and tariff strain.
Gross sales for Industrial Paper Packing have been down barely to $568 million on account of weaker quantity following two plant divestitures in China final 12 months.
All Different declined 34.9% to $57 million because of the divestiture of ThermoSafe in November.
Sonoco Merchandise offered an outlook for 2026 as effectively, with the corporate anticipating adjusted earnings-per-share in a variety of $5.80 to $6.20 for the 12 months.
On April fifteenth, 2026, Sonoco Merchandise raised its quarterly dividend 1.9% to $0.54 per share, extending the corporate’s dividend progress streak to 50 consecutive years.
Development Prospects
The corporate has grown earnings-per-share at a price of 8.6% since 2016. Going ahead, we anticipate 5% annual earnings-per-share progress over the following 5 years.
Sonoco’s future progress is anticipated to be powered by sturdy demand for fiber-based packaging, lasting enlargement in client and industrial markets, and momentum from the corporate’s rising mixture of sustainable and value-added merchandise.
Sonoco Merchandise has a protracted historical past of dividend progress.
Given the very cheap payout ratio, we venture that dividend progress can proceed for years to return. We see the payout reaching $2.71 by 2031.
Aggressive Benefits & Recession Efficiency
A key aggressive benefit for Sonoco Merchandise is that the corporate is often capable of go alongside rising uncooked materials and transportation prices to its clients.
Skill to go alongside prices is a bonus as this exhibits that the corporate’s choices are in demand.
Additionally serving to develop the highest and backside strains is Sonoco Merchandise’ historical past of acquisitions.
The Eviosys, Ball Metalpack, Conitex, and Can Packaging purchases are prime examples of rising by means of acquisitions.
Earnings-per-share declined 21% from 2008 to 2009, however Sonoco Merchandise was capable of return to progress the next 12 months.
Though the corporate confronted some challenges over the past recession, it maintained its dividend.
The corporate’s income remained sturdy in the course of the COVID-19 pandemic as effectively, with EPS even surging between 2020 and 2022, because of the important nature of its packaging options.
Over the previous decade the corporate has averaged a forty five% dividend payout ratio, however it’s projected to be a lot decrease than that this 12 months.
Sonoco Merchandise has a really cheap dividend payout ratio of 35% primarily based off our expectations for 2026. As such, Sonoco Merchandise’ dividend seems protected.
Valuation & Anticipated Returns
SON inventory trades for a price-to-earnings ratio of 9.6. That is beneath our truthful worth estimate of 11.
SON inventory has a 10-year common P/E ratio of 13.9, however the a number of falls to 10.8 when simply final 5 years. We’ve lowered our 2031 goal P/E to 11 from 12, as this higher displays the common a number of over the medium-term.
Nonetheless, the inventory seems to be undervalued. An increasing P/E a number of may add 2.8% to annual returns over the following 5 years.
Except for adjustments within the price-to-earnings ratio, future returns will probably be pushed by earnings progress and dividends. We anticipate 5% annual earnings progress over the following 5 years.
As well as, SON inventory has a present dividend yield of three.8%. Placing all of it collectively, we anticipate complete annual returns of 11.0% over the following 5 years.
Remaining Ideas
Sonoco Merchandise Firm is now anticipated to supply a complete annual return of 11.0% by means of 2031.
Our projected return stems from our anticipated earnings progress price of 5%, the three.8% present yield, and a slight tailwind from a number of enlargement.
Sonoco Merchandise offered steering for 2026 that suggests progress year-over-year and shares nonetheless commerce beneath our truthful worth goal.
There may be a lot to love concerning the firm and the inventory, together with the dividend progress historical past and the valuation.
We proceed to view shares of Sonoco Merchandise as a purchase on account of projected returns and the sturdy dividend threat rating.
Further Studying
Moreover, the next Positive Dividend databases comprise probably the most dependable dividend growers in our funding universe:
In case you’re in search of shares with distinctive dividend traits, contemplate the next Positive Dividend databases:
Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to [email protected].
