One of the Best Dividend Monarchs to Invest in Now

From Yahoo Finance: 2025-04-16 11:17:00

S&P Dow Jones Indices introduced the Dividend Monarchs Index, spotlighting US companies with 50 consecutive years of dividend growth. The index, an evolution of the Dividend Aristocrats Index, recognizes a more exclusive group of long-term dividend payers with strong performance and resilience. As of April 2023, over $40 billion in ETF assets tracked these indices.

Dividend Monarchs must meet specific criteria set by S&P to qualify for the index, including being part of the Composite 1500, having a market capitalization of at least $2 billion, and consistently growing dividends for five decades. Companies that meet these requirements demonstrate strong profitability and financial stability, outperforming the market in return on equity and earnings consistency.

The Coca-Cola Company (KO), a Dividend Monarch, reported a 6.5% increase in revenue to $11.5 billion in Q4 2024, with organic revenue rising by 14%. The company’s profitability remains strong, with consistent profit margins above 20% over the past five years. KO also announced a 5.2% dividend increase in February, marking its 63rd consecutive year of dividend growth.

Despite KO’s solid performance, there are potentially more promising, deeply undervalued dividend stocks. While KO ranks 3rd on the list of best Dividend Monarchs to invest in, some undervalued stocks may offer higher returns within a shorter timeframe. Investors seeking such opportunities can explore the report on dirt cheap dividend stocks for more insights.



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