Friends, let’s be blunt: The market is on edge. Weak jobs data has ignited fears of a recession. Tech stocks are getting hammered. And everyone is waiting anxiously to see what the Fed will do next.
This uncertainty has created a fantastic opportunity for smart income investors. While the herd is running scared, we can position ourselves to profit from the coming Fed pivot. How? By loading up on rock-solid Dividend Kings – those legendary companies that have increased their payouts for at least 50 consecutive years.
These aren’t just any dividend stocks – they’re the elite. The cream of the crop. Companies with the financial strength and commitment to shareholders to keep those dividends flowing, recession or no recession. And when the Fed starts cutting rates later this year, as everyone expects, their share prices are poised to SOAR.
Here are 3 Dividend Kings to buy NOW before the rest of the market catches on:
1. Air Products & Chemicals (APD) – Riding the Green Hydrogen Wave
Air Products and Chemicals is one of just a handful of companies that dominate the industrial gas industry. They produce and distribute essential gases like hydrogen, helium, oxygen, and nitrogen to a wide range of clients, from health care to manufacturing. This market is highly consolidated and growing, giving Air Products significant pricing power. It’s a classic “boring but beautiful” business.
But here’s where things get REALLY interesting: Air Products is making a big bet on GREEN HYDROGEN. They’ve pledged over $30 BILLION to green hydrogen and carbon capture projects, positioning themselves to ride a massive wave in the coming energy transition.
As Chris Tidmore at Vanguard put it, “Bond funds offer significant time savings over building and managing portfolios of individual bonds yourself.” That’s the same kind of logic you can apply to owning a best-in-class Dividend King like APD. You get a slice of a rock-solid business with a growing dividend AND a huge new green energy opportunity.
Action to take: APD currently yields about 2.9%, a bit lower than some other Dividend Kings, but don’t be fooled – this company has a history of strong dividend growth. Buy it now before those green hydrogen projects start paying off big time.
2. Johnson & Johnson (JNJ) – The Healthcare Giant Just Got a Major Makeover
You know Johnson & Johnson: The Band-Aid company. Tylenol. Baby shampoo. But this healthcare giant has a NEW LOOK. They spun off their consumer products division last year, streamlining their business into two focused segments: Pharmaceuticals and medical devices.
This move is designed to unlock growth potential and drive financial performance – and make JNJ’s dividend EVEN MORE rock-solid. As Motley Fool contributor Matt DiLallo puts it, Johnson & Johnson is a “financial fortress” with an elite AAA credit rating.
They just raised their dividend for the 62nd consecutive year, and with their strong balance sheet and focus on innovation, that dividend is poised to keep growing for years to come.
Action to take: JNJ yields 3.1% – not bad at all – and offers a great combination of safety, growth, and a compelling turnaround story. Don’t miss out – buy it now.
3. Coca-Cola (KO) – Still the King of Beverages
Let’s face it, people love their Coke. This iconic brand has been around for over 130 years, and Coca-Cola’s global reach and massive distribution network are unmatched in the industry. They’re also a Dividend King, with an unbelievable 62 consecutive years of dividend increases.
As my friend Matt DiLallo writes, Coca-Cola has “plenty of pop” to continue pushing its dividend higher. The company is generating strong cash flow and aims to grow its earnings per share at a steady rate. While KO’s yield is a respectable 3%, its real strength is its commitment to dividend growth and its unwavering dominance of the beverage market.
Action to take: If you believe in long-term value investing, KO is a no-brainer. Buy it now and enjoy a steady stream of growing income for years to come.
Don’t Wait for the Market to Catch Up
Income is king in a volatile market, and these Dividend Kings are the crown jewels of any income portfolio. Buy them now before the market catches on to their potential.
Tomorrow, we’ll tackle another exciting sector – Business Development Companies (BDCs). These funds are throwing off HUGE yields, and Wall Street doesn’t want you to know about them. Don’t miss it!