Dividend stocks have always been a go-to choice for income investors. However, some are shifting away from dividend stocks, opting for other investments that offer higher returns in a shorter timeframe. But that strategy is typically not repeatable - at least not for most traders. 

For those who prefer stability and security, like myself, Dividend Kings almost always make a great addition to one’s portfolio. These are companies with 50 or more years of consistent dividend increases. They often add a sense of stability during times of volatility as investors tend to keep these stocks so long as they continue to pay. Not only that, Dividend Kings have a history of overcoming multiple decades’ worth of headwinds of all sorts. 

So, today, let’s look at three Dividend Kings that have the income and cash flow growth to attract even the most conservative investors - like me.

How I Came Up With The Following Stocks

Using Barchart’s Stock Screener, I selected the following filters to get my list: 

• Cash Flow Growth Last Year (%): At least 1% increase in operating cash flow compared to previous years. Increasing cash flow demonstrates the company’s ability to meet its liabilities, reinvest in opportunities, and, of course, continue to grow its dividend payments.
• EPS Basic Growth Last Year (%): at least 1%. This tells us that the company’s net profit increased over the past year. Higher profits translate to a better chance to grow the dividend.
• Number of Analysts: 16 or more. A higher analyst count strengthens the reliability of the consensus rating.
• Current Analyst Rating: 3.5 (Moderate Buy) to 5 (Strong Buy).
• Watchlist: Dividend Kings.

With these filters set, I ran the screen and got eight results:

To get a list of companies with the highest earnings growth, I arranged the results based on EPS Basic Growth Last Year (%), and will discuss them below.

Abbott Laboratories (ABT)

I've covered Abbott Laboratories a lot, so I'll keep the introductions short. Abbott Laboratories is one of the world’s leading healthcare companies, with a presence in 160 countries. It supplies some of the most prominent brands in the market, like Similac and Ensure. Today, the company produces medical devices and products that cater to different health conditions and age groups.

Abbott’s 2024 EPS came in at $7.67, nearly 134% higher than 2023’s $3.28. Operating cash flow also came in at $8.56 billion, approximately 18% higher year-over-year, demonstrating that the company can generate sufficient cash to support its growth and dividend payouts. Speaking of which, Abbott pays a forward annual dividend of $2.36, which translates to roughly a 1.78% yield. 

ABT stock is rated as a strong buy based on 25 analysts' scores, with an average score of 4.52. 

S&P Global Inc (SPGI)

The second company on this list is S&P Global Inc. S&P Global Inc. is one of the leading financial information and analytics companies, providing transparent and unbiased ratings, benchmarks, and data. The company operates through four segments: S&P Global Ratings, S&P Global Market Intelligence, S&P Global Platts, and S&P Dow Jones Indices.

S&P Global currently pays a 96 cent per share quarterly dividend, which translates to an approx. 0.75% annual yield. Now, I know it’s not the highest out there, but S&P Global has a couple of things going for it. 

First, operating cash flow increased by 53.34% to $5.70 billion in 2024, and full-year EPS grew by 49.82%, which is impressive for a company of its size. 

S&P also consistently beats analyst EPS estimates - at least in its last four quarters. 

Analysts rate SPGI stock as a strong buy with an average score of 4.79. Frankly, that’s not a surprise; it has been rated as a strong buy as far as I can remember. 

Parker-Hannifin Corp (PH)

The last company is Parker-Hannifin Corp, a leader in motion and control management technologies, operating in over 43 countries worldwide. The company specializes in engineering solutions across various industries, including aerospace, industrial manufacturing, automation, and others.

Parker-Hannifin’s operating cash flow grew by 13.57% to $3.38 billion and reported a 36.35% increase in its bottom-line growth to $22.13 per share. 

The company pays $1.80 quarterly, which translates to $7.20 annually and translates to an approximate 1.07% yield. 

Like with the other stocks on this list, PH is rated as a strong buy with an average score of 4.63. And, like the other two, PH stock has mostly recovered from the market chaos in 2024 - proving that quality companies with solid income growth and dependable cash flow can weather volatility and continue delivering long-term value to shareholders.

Final Thoughts

These three Dividend Kings provide a stable source of income, even in the face of market headwinds. Their consistency alone is a strong indicator of the company’s ability to thrive over the years. But remember, nothing in life is permanent - except, as they say, death and taxes. Past results do not guarantee similar results in the future. That said, investing in quality company names - and following them is never a bad idea.

On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.