Dividend Kings are companies that have increased their dividends for over 50 consecutive years, making them appealing to investors seeking steady income. This article will discuss three such companies with yields above the S&P 500 average.
Automatic Data Processing (ADP)
Automatic Data Processing (ADP) is one of the largest business services outsourcing companies globally. The company provides payroll services, HR technology, and other business operations to over 700,000 corporate clients. Founded in 1949, ADP currently trades with a market cap of $125 billion, generating annual revenue of about $20 billion. In the first quarter of 2024, ADP exceeded expectations with revenue of $4.8 billion and adjusted EPS of $2.33. The company shows steady revenue growth and margin expansion driven by its Professional Employer Organization segment. ADP stock yields 2%.
Colgate-Palmolive (CL)
Colgate-Palmolive has been around for over 200 years, focusing on oral care, personal care, home care, and pet nutrition. Its annual revenue stands at about $20 billion. Despite a slight decline in Q4 2024, the company showed a 4.3% increase in organic sales, marking a record-breaking annual revenue. Colgate-Palmolive has increased its dividend for 63 consecutive years, offering a yield of 2.3%. The company plans to continue boosting sales growth, managing debts, and investing in growth areas.
Sysco Corp. (SYY)
Sysco Corporation is the largest wholesale food distributor in the United States, expanding internationally. It serves over 600,000 locations including restaurants and hotels. In Q2 fiscal year 2025, sales rose 4.5% to $20.2 billion. Sysco continues to expand internationally and effectively manages costs while investing in sales professionals and specialty offerings. It shows strong financial stability and has increased its dividend annually for the past 53 years, with a current yield of 2.9%.
These companies demonstrate consistent growth and reliability, making them attractive for investors seeking steady and safe income. Their long-term dividend growth and stable financial performance verify their status as reliable long-term investments.
