Best 4 dividend kings to buy in a high-interest rate environment

By: Crispus Nyaga
Crispus Nyaga
Crispus is an active trader, where he is followed and copied at Capital.com. He lives in Nairobi with his… read more.
on Jan 20, 2022
  • Dividend kings are companies that have raised dividends for 50+ years.
  • They are good companies to buy as interest rates start rising.
  • We identify four dividend kings to invest in in 2022.

Dividend kings are companies that have successfully increased their payouts to investors for at least 50 straight years. They differ from dividend aristocrats, which are companies that have increased payouts for at least 25 years.. Dividend kings are good investments in a period when the Fed is talking about rate hikes. Here are the best dividend kings to buy in 2022.

Colgate-Palmolive 

Colgate-Palmolive (NYSE: CL) is a leading consumer staples company valued at over $70 billion. It is a dividend king that has boosted its payouts for 58 straight years.

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Colgate generates over $15 billion in annual revenue and more than $2 billion in net income. While it is well-known for its oral products, it has a large and growing pet nutrition business. Its home hygiene business is also seeing strong growth.

It has a dividend yield of about 2% and a payout ratio of 55.97%, meaning that its payouts are relatively safe. Most importantly, it has a global reach and a strong market share in key markets.

Procter & Gamble

Procter & Gamble (NYSE: PG) is a dividend king that has raised its dividend for 65 straight years. It is a leading consumer staples company that has a market capitalization of over $392 billion.

The P&G stock price has risen by over 21% in the past 12 months and over 108% in the past 5 years. It is a good company to invest in for several reasons. First, it sells essential items that are relatively sticky with customers. For example, its Always brand has a strong market share with women.

Second, the company has managed to do well in a high inflation environment by raising prices without losing market share.

Third, the firm has a dividend yield of 2.10% and a relatively low payout ratio. Most importantly, analysts expect that the stock will keep rising. They have a target of $158, which is higher than the current $126.

Dover

Dover (NYSE: DOV) is an American industrial company that manufactures products used by other companies. It makes equipment and components and even software. Its segments are engineered products, fueling systems, imaging & identification, pumps & process solutions, and refrigeration. 

It has a market cap of over $25 billion and a annual revenue of over $6 billion. It is a dividend king that has raised dividends for 66 years. It is a good company because of its strong market share and its track record of delivering value to shareholders.

Genuine Parts

Genuine Parts (NYSE: GPC) is a leading dividend king that has raised dividends for 66 years. It is in the distribution of automotive and industrial replacement parts. The company has a market cap of over $19 billion.

The Genuine Parts stock price has climbed by over 35% in the past 12 months as demand for auto parts has jumped. It has a good market share in its industry. It also has a dividend yield of 2.43% that is backed by a payout ratio of 47%.

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