Image by Getty Images; Illustration by Bankrate
Dividend investing can be a great way to generate passive income from your investment portfolio, but identifying the best dividend stocks can be a tricky process. One approach involves looking at the stocks that qualify as Dividend Kings, which means they’ve increased their dividend for at least 50 consecutive years.
In general, Dividend Kings have been successful companies that generate consistent profits for their shareholders that they share in the form of dividends. Here are five Dividend Kings that have yields above 4 percent as of May 2025.
If you’re looking for ways to generate income from your investment portfolio, it may make sense to work with a financial advisor. To get started, Bankrate’s AdvisorMatch tool can help you find an advisor in your area.
5 high-yielding Dividend Kings
| Company | Dividend yield |
|---|---|
| Altria Group (MO) | 6.86 percent |
| Stanley Black & Decker (SWK) | 4.64 percent |
| Target Corp. (TGT) | 4.57 percent |
| PepsiCo (PEP) | 4.32 percent |
| Archer-Daniels-Midland (ADM) | 4.08 percent |
Note: Yield data as of May 20, 2025.
Altria Group (MO)
Altria is the name behind Marlboro cigarettes, one of the most recognized and popular tobacco brands in the world, and the company also owns a sizable stake in Anheuser-Busch InBev. Altria’s management has stated for years that it intends to pay out the vast majority of its earnings as dividends.
- Market cap: $100.2 billion
- Dividend yield: 6.86 percent
Stanley Black & Decker (SWK)
Stanley Black & Decker is a global provider of hand tools, power tools, outdoor products and accessories. The company generated 2024 revenue of $15.4 billion. The company says it is committed to returning capital to shareholders through a strong and growing dividend, as well as opportunistic share repurchases.
- Market cap: $10.9 billion
- Dividend yield: 4.64 percent
Target Corp. (TGT)
Target is one of the largest retailers in the U.S. and aims to offer differentiated merchandise and everyday essentials at discounted prices for its customers. The Minneapolis-based company generated $106.6 billion in revenue during its 2024 fiscal year.
- Market cap: $44.5 billion
- Dividend yield: 4.57 percent
Need an advisor?
Need expert guidance when it comes to managing your investments or planning for retirement?
Bankrate’s AdvisorMatch can connect you to a CFP® professional to help you achieve your financial goals.
PepsiCo (PEP)
PepsiCo is a global food and beverage company that owns a portfolio of well-known brands, such as Pepsi-Cola, Mountain Dew, Gatorade, Lay’s, Dorito’s, Cheetos, Quaker and more. The company sells to consumers in more than 200 countries and territories.
- Market cap: $180.7 billion
- Dividend yield: 4.32 percent
Archer-Daniels-Midland Co. (ADM)
Archer-Daniels-Midland is a global agricultural supply chain manager and processor that processes various agricultural products for industries, such as food and beverage, industrial, animal feed and more. The company generated $85.5 billion in revenue during 2024.
- Market cap: $24.0 billion
- Dividend yield: 4.08 percent
How to invest in dividend stocks
Dividend stocks are a great way to generate investment income while still having the potential for growth. There are generally two ways to invest in dividend stocks.
- Buy stocks that pay dividends: Many stocks pay dividends to shareholders, and it can be rewarding to own individual stocks. However, you’ll want to make sure you understand each company before buying shares. Dividends aren’t guaranteed, and you’ll have more risk if you just own a few stocks compared to a diversified fund.
- Buy dividend funds: Dividend funds invest in stocks that pay dividends, essentially doing the research for you. Dividend funds tend to focus on stocks with either high dividend yields, or growing dividends. The best dividend funds often come with low expense ratios, which means more of the return ends up in your pocket.
Bottom line
Dividend stocks can be a great choice for investors seeking investment income, and Dividend Kings have consistently increased their payouts over the course of 50 years or more. If you’re looking for more ways to generate income from your investments, you may want to consult with a financial advisor, who can help you devise a plan based on your risk tolerance, time horizon and individual needs.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
Read the full article here
