Dividend Kings: Not a Medieval Dynasty (But Close)

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Alright, folks, settle in. The market’s been doing the cha-cha lately – one step forward, two steps back, mostly thanks to some international kerfuffles that make the War of the Roses look like a polite disagreement over tea. As of March 13th, the S&P 500 index decided to take a 3.1% nap. A nap! Can you believe it? But don’t panic! Investing in companies that consistently share the wealth – I mean, pay dividends – is like having a tiny, reliable army of accountants working for you, even when the world is going bananas.

Now, I’ve been poking around, and two companies really stand out. They’re not kings in the traditional sense, no crowns or castles, but they are Dividend Kings. Colgate-Palmolive (CL 0.51%) and American States Water (AWR 1.35%) have been raising dividends annually for over 50 years. Fifty years! That’s longer than some of you have been alive, and I’ve seen a lot of years. They’re so consistent, they make a metronome look erratic. Seriously, these are the kind of stocks you can tell your grandkids about. “See, kids? Grandpa didn’t lose it all on Beanie Babies.”

1. Colgate-Palmolive: Toothpaste and Triumph

Colgate-Palmolive has been handing out dividends since 1895. 1895! That’s before indoor plumbing was considered a basic human right! And they just raised the quarterly payout by a penny to $0.53. A penny! They’re playing it modest, folks. But that’s 63 straight years of increases. Sixty-three! I’m starting to suspect they have a deal with the Fountain of Youth.

They mostly sell things you use every day – toothpaste, soap, dish soap, the stuff that keeps society from dissolving into a sticky, smelly mess. Brands like Colgate, Irish Spring, Palmolive – you know ’em. They’re like the reliable character actors of the consumer goods world. Not flashy, but always delivering. And that dependability translates into a mountain of free cash flow (FCF) – about $3.6 billion last year. Enough to pay out $1.8 billion in dividends and still have enough left over to buy a small island. Or maybe just a really nice yacht. I’m not judging.

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At the current rate, you’re looking at a 2.4% dividend yield. That’s about double the S&P 500’s 1.2%. Think of it as getting paid extra for just…existing. And who doesn’t like that?

2. American States Water: The Utility That Keeps on Giving

American States Water has been divvying up the cash since 1931. And they’ve raised payouts annually for 71 straight years. 71! That’s longer than the average lifespan of a fruit fly! Last July, they bumped the quarterly payout by 8.3% to $0.504 a share. These people are practically begging you to invest.

They’re a utility company, which, let’s be honest, isn’t the sexiest business. But it’s reliable. They have a monopoly on water and electricity in California and on some U.S. military bases. A monopoly! That’s like winning the lottery without buying a ticket. People need water. They need electricity. It’s not a discretionary purchase like, say, a solid gold toilet seat.

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This stability translates into a payout ratio of 58%. Meaning they cover their dividends easily. They’re not stretching to give you a few pennies. The company’s stock has a 2.7% dividend yield – about 1.5 percentage points higher than the S&P 500. That’s like getting a free appetizer with your investment. And who doesn’t like a free appetizer?

So, there you have it. Two companies that are consistently rewarding shareholders. Are they going to make you rich overnight? Probably not. But they’ll provide a steady stream of income, and in this crazy world, that’s worth more than all the gold in Fort Knox. Now, if you’ll excuse me, I need to go polish my dividend portfolio. It’s a messy job, but someone’s gotta do it.

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2026-03-18 10:32