List Of Undervalued Dividend Kings: Sure-Fire Ways Of Growing Passive Income

Have you heard of stocks that pay out increasing dividends every single year?

By investing in stocks with impeccable dividend-paying records, we can patiently wait for the dividend income to grow every year.

We share what dividend kings are, and list out the dividend king value stocks at the end of the article. So you can enjoy growing passive income from dividends, and a high probability of equity growth.

What Are Dividend Kings?

Dividend kings are stocks that have increased their dividend payout for at least 50 consecutive years. If you invested in a dividend king 50 years ago, you would have enjoyed growing dividend income every single year, and achieve the 4% rule for retirement. These stocks are the most valuable blue-chip stocks.

Century-old, household names like 3M and Coca-Cola are examples of profitable companies that pay dividends like royalty.

Which Is Better Dividend Kings or Aristocrats?

Dividend aristocrats are a part of the S&P 500 that have increased their dividend payout for at least 25 consecutive years. When compared to dividend kings, the dividend aristocrats have lower requirements for dividend-paying history.

But some people may feel dividend aristocrats are safer investments because they are a part of the S&P 500 index.

Why Invest in Dividend Kings?

If the goal of investing is to accumulate wealth, we need to consider both growing passive income and protecting our capital during a market crash.

The US stock market has experienced 10 major crashes over the last 50 years, and countless fluctuations.

market crashes
The market experienced 10 crashes in the last 50 years.

Every single dividend king has survived the market downturns while continuing to grow dividend payouts every year.

If you held a position in SPY during 2/18-3/18 in 2020, the value of the ETF evaporated by more than 30% in 30 days. Even a seasoned investor would have experienced months of sleepless nights.

spy value crash
The value of SPY ETF fell by 30% during 2020/2/18-3/18.

So buying and holding in dividend kings is a good way to secure your capital through recessions and market crashes.

Why Only Invest When the Stock Is Undervalued?

The value investing philosophy is to only buy stocks when they are undervalued. So we can acquire blue-chip stocks at a discount.

If the Upside is big enough, there is enough margin of safety for our stocks to appreciate in value.

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Shortcut to Picking Dividend Kings

We can use the Dividend Stock Screener to filter stocks with more than 50 consecutive years of increasing dividends.

dividend kings filter settings
Filter stocks with >50 years of dividend growth.

We can set the Years of Dividend Growth to be larger than 50 to find the complete list of dividend kings in seconds.

Undervalued Dividend Kings List

To get a healthy margin of safety in our selection, we can sort the list of dividend kings by Upside. As a result, we find all the dividend kings with Upside greater than 0%.

StocksDescriptionLastFair valueUpsideDividend yieldYears of dividend growth
SWKStanley Black & Decker Inc$75.12$127.1069.20%4.26%55
MMM3M Co$119.92$181.7351.54%4.97%64
FRTFederal Realty Investment Trust$101.04$139.9838.54%4.28%55
CINFCincinnati Financial Corp$102.39$137.1233.92%2.70%61
DOVDover Corp$135.41$169.8025.40%1.48%67
BDXBecton, Dickinson and Co$254.09$308.0421.23%1.42%51
TGTTarget Corp$148.78$175.7318.11%2.90%51
EMREmerson Electric Co$95.80$110.7515.61%2.17%66
SYYSysco Corp$76.45$81.366.42%2.56%53

The undervalued dividend kings have a strong dividend record and a huge bullish potential.

Now you know how to find great value dividend kings, you can use the Dividend Screener to find the best dividend stocks to increase your passive income.

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