Adding dividend stocks to your portfolio can be a game-changer. These stocks not only offer potential for long-term appreciation but also provide passive income in the form of regular dividend payments. Whether the market is up or down, these dividends act as a buffer, giving you returns even when the stock price takes a dip. And if you’re looking for reliable dividend payers, the Dividend Kings are a great place to start. These are companies that have increased their dividend payments for 50 consecutive years or more, showing a strong commitment to rewarding shareholders.
With just $500—or even less—you can pick up shares in the following three Dividend Kings, all of which offer a mix of stability, growth, and dependable income.
Coca-Cola (KO) – A Dividend Giant with Global Reach
Coca-Cola’s dividend track record is as iconic as its brand. With over 60 years of consecutive dividend increases, the company pays $1.94 per share annually, yielding about 3%. Its free cash flow of over $3 billion provides ample support for continued dividend growth.
Coca-Cola isn’t just about its namesake soda. The company offers a diverse portfolio of more than 200 brands, including Minute Maid juices and Dasani water. It serves over 2.2 billion drinks daily across 200 countries and territories. This global footprint and product diversity have driven steady growth. Its water, sports, and tea categories alone boast 12 billion-dollar brands.
For investors, Coca-Cola’s long-term growth, broad product appeal, and strong dividend history make it a staple in any dividend portfolio.
Johnson & Johnson (JNJ) – Riding a New Wave of Growth
Johnson & Johnson isn’t just a Dividend King; it’s a legend, having increased its dividend payments for over 60 years. The company currently pays an annual dividend of $4.96 per share, yielding about 3.3%, well above the S&P 500 average of 1.3%. With free cash flow exceeding $19 billion, J&J has the resources to keep growing those dividends for years to come.
What makes J&J even more compelling is its recent transformation. By spinning off its lower-growth consumer health business, the company has doubled down on its high-potential pharmaceutical and medtech segments. In the most recent quarter, both units reported operational sales growth of over 6%. Key pharmaceutical brands posted double-digit revenue growth, while its medtech division now leads in several high-growth cardiovascular markets.
Investing in J&J gives you the security of consistent dividend income while also allowing you to benefit from the company’s renewed focus on innovation and growth.
Abbott Laboratories (ABT) – A Diversified Healthcare Powerhouse
Abbott Laboratories is another Dividend King with a 50-plus-year history of increasing payments. The company pays $2.20 per share annually, yielding 1.9%, and its robust free cash flow ensures it can maintain this trajectory.
What sets Abbott apart is its diversified healthcare business, spanning medical devices, diagnostics, nutrition, and established pharmaceuticals. This diversification cushions the company against challenges in any single segment. For instance, while declining COVID-19 testing has weighed on its diagnostics revenue, its medical devices unit grew over 11% in the last quarter, helping overall revenue climb by 5% to more than $10 billion.
Abbott’s steady innovation keeps it ahead of the curve. The recent launch of Lingo, a continuous glucose monitoring system aimed at wellness and nutrition, highlights the company’s forward-thinking approach. Buying Abbott shares means you’re investing in a resilient, innovative healthcare company while earning passive income.
Whether you’re just starting to build a dividend-focused portfolio or looking to strengthen your existing one, Johnson & Johnson, Abbott Laboratories, and Coca-Cola offer a combination of income stability and growth potential. These Dividend Kings have proven themselves over decades and remain top choices for investors seeking dependable returns.
