Three Prominent Dividend Kings to Consider for 2026
The Dividend Kings are a distinguished group comprising just 56 stocks known for increasing their dividends for at least 50 years consecutively. This remarkable track record underscores their reliability and appeal for income-focused investors.
These companies offer regular dividend increases, even during challenging economic conditions, making them attractive for long-term passive income strategies. In this article, we delve into three Dividend Kings known for exceptional dividend yields that exceed the S&P 500 average, and are expected to continue raising their dividends for years to come.
1. Becton Dickinson & Co. (NASDAQ: BDX)
Becton, Dickinson & Co., often referred to as BD, stands as a global frontrunner in the medical supply sector. Established in 1897, this company boasts a workforce of around 75,000 across 190 countries, generating approximately $20 billion in annual revenue. Remarkably, about 43% of these revenues come from international markets.
Recently, BD reported its financial performance for the fourth quarter and fiscal year 2025. During this quarter, the company experienced an impressive revenue growth of 8.3%, totaling $5.89 billion, although this figure fell short of estimates by $20 million.
The adjusted earnings per share for the quarter reached $3.96, marking an increase from $3.81 in the previous year and surpassing expectations by $0.05. Over the fiscal year, revenue climbed by 8.2% to $21.8 billion, with adjusted earnings per share rising to $14.40 compared to $13.14 in FY 2024.
Looking ahead, BD projects modest revenue growth for fiscal year 2026, at a low single-digit rate. Adjusted earnings per share are anticipated to fall between $14.75 and $15.05, signifying a 3.5% increase from FY 2025. One of BD's key strengths lies in the high demand for its products; medical devices and healthcare offerings remain essential even during economic downturns.
BD has proudly raised its dividend for 54 consecutive years, highlighting its commitment to returning value to shareholders.
2. H2O America (NASDAQ: HTO)
Previously known as SJW Group, H2O America is a vital water utility firm focused on producing, purchasing, storing, purifying, and distributing water to a broad customer base across California and parts of Texas. The company generates around $670 million in annual revenue and has an additional real estate division focused on residential and warehouse developments in California and Tennessee.
In a strategic move, H2O America announced its acquisition of Quadvest for $540 million. This acquisition enhances the company's presence in the Houston area, adding crucial assets such as 50,500 active connections and nearly 91,000 connections that are either under contract or in development.
On October 28th, 2025, H2O America disclosed its third-quarter results, highlighting a 6.9% revenue growth to $240.6 million, which exceeded estimates by $2.1 million. The company's earnings per share reached $1.27, up from $1.18 in the same period last year, exceeding expectations by $0.09.
Notably, the increase in water rates contributed $21.2 million to revenue, while operational expenses climbed 6% year-over-year. H2O America's ability to cater to regions with rapid population growth, particularly Silicon Valley and Central Texas, provides a significant competitive edge, ensuring it can effectively meet increasing infrastructure needs.
Like BD, H2O America has increased its dividend for an impressive 57 consecutive years.
3. Stepan Co. (NYSE: SCL)
Stepan Company is a recognized manufacturer of both basic and intermediate chemicals, primarily surfactants, polys, and specialty products. These offerings cater to diverse markets, providing stability across varying economic conditions. The surfactants segment constitutes approximately 68% of total sales.
On October 29th, 2025, Stepan posted its third-quarter earnings, revealing adjusted earnings per share of 48 cents, although this figure lagged behind estimates by 13 cents. Despite a revenue increase of 8% year-over-year to $590 million, it fell short of projections by $3.5 million. Notably, the net sales for surfactants increased to $422 million, reflecting a 10% growth compared to the previous year.
The likeliest challenges for Stepan include rising raw material prices and other operating costs, impacting overall profitability. Despite these hurdles, the company has managed to deliver a 2.6% dividend boost, marking the 58th consecutive year of such increases.
Frequently Asked Questions
What are Dividend Kings?
Dividend Kings are stocks that have consistently raised dividends for at least 50 consecutive years, indicating reliability and stable performance.
Why are Becton Dickinson & Co.'s dividends significant?
Becton Dickinson has increased dividends for 54 years, demonstrating its commitment to distributing income back to shareholders even during economic downturns.
How does H2O America stand out in the market?
H2O America operates in rapidly growing regions and has a competitive advantage through strategic acquisitions, ensuring it can effectively serve a growing customer base.
What industries does Stepan Co. serve?
Stepan Company provides chemical products for a diverse range of industries, including food, pharmaceuticals, and household goods, ensuring it is not reliant on any single market.
What makes investing in Dividend Kings a wise decision?
Investing in Dividend Kings can provide stability and consistent income growth, making them an attractive choice for long-term investors seeking passive income sources.