Dividend Kings are companies that have increased their payments for at least the last 50 consecutive years. This steady dividend growth can really add up over the long term.
Several Dividend Kings have delivered a more than 100% total return over the past decade, including Coca-Cola (KO +0.39%), Johnson & Johnson (JNJ +0.23%), and Consolidated Edison (ED +1.28%). A simple, lower-risk strategy of buying and holding several Dividend Kings could enable you to double your money in the next 10 years.
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Plenty of pop to grow its dividend payment
Coca-Cola increased its dividend payment by 5.2% earlier this year, extending its growth streak to 63 years in a row. The global beverage giant has delivered a roughly 125% total return over the past decade (8.4% annualized).
The company is in a rock-solid position to continue increasing its dividend in the future. Coca-Cola's portfolio of beloved beverage products produces durable and growing revenue and earnings. The company has grown its earnings at a 7% average rate over the past five years. Its long-term goal is to organically grow its revenue by 4% to 6% per year while delivering high-single-digit earnings-per-share growth.
NYSE: KO
Key Data Points
The company invests heavily in product innovation, marketing, and initiatives to increase productivity to drive organic growth. Additionally, Coca-Cola has a strong balance sheet, giving it ample financial capacity to make acquisitions as compelling opportunities arise. Nearly a quarter of the company's earnings growth over the past decade has come from acquisitions. With its dividend yielding nearly 3% and its earnings on track to grow at a high-single-digit rate, Coca-Cola could easily deliver a more than 100% total return over the next 10 years.
A very healthy dividend stock
Johnson & Johnson hiked its dividend payment by 4.8% earlier this year. That enabled it to keep pace with Coca-Cola in extending its dividend growth streak to 63 consecutive years. The healthcare giant has delivered an impressive total return exceeding 165% over the past decade (10.3% annualized).
NYSE: JNJ
Key Data Points
The innovative medicines and medical technology company has one of the healthiest financial profiles in the world. Johnson & Johnson has a pristine AAA bond rating, one of only two public companies with a perfect credit rating. The company also produces resilient and steadily rising earnings.
Johnson & Johnson invests heavily in research and development to discover, test, and launch new therapies and medical technologies. It also leverages its strong financial profile to make acquisitions that enhance its ability to grow. The company aims to grow its sales at 5% to 7% compound annual rate through at least 2030, with improving margins supporting even faster earnings growth. Add that healthy growth rate to its 2.5% yielding dividend, and Johnson & Johnson is on the path to produce a more than 100% total return again over the next decade.
Plenty of power to continue increasing the payout
Consolidated Edison extended its dividend growth streak to 51 straight years in early 2025. That's the longest period of active dividend increases among utility stocks in the S&P 500. Consolidated Edison has grown its payout at a healthy 5.6% compound annual rate during that period. The electric and gas utility focused on the New York City area has generated a more than 120% total return over the past decade (8.2% annually).
NYSE: ED
Key Data Points
The utility generates very stable and steadily rising revenue backed by resilient demand and government-regulated rate structures. The company routinely invests capital to maintain and expand its utility infrastructure, which it recovers via higher rates set by regulators.
Consolidated Edison expects to invest $72 billion over the next decade to support its core services, cleaner energy usage, and climate resilience. This investment rate should support 5% to 7% annual earnings growth over the next several years, with dividend growth likely in the low-to-mid single digits through at least 2030. With a 3.5% current yield, this growth rate supports the potential for Consolidated Edison to deliver the 7%+ average annual total returns needed to double an investor's money in the next decade.
A proven strategy
Investing in Dividend Kings can be a great way to steadily grow your wealth. Several of these resilient dividend growth stocks have delivered total returns in excess of 100% over the last 10 years, including Coca-Cola, Johnson & Johnson, and Consolidated Edison. The trio is in a strong position to deliver similar returns over the next 10 years, making them ideal Dividend Kings to buy and hold for the long term.
