These Dividend Kings Are Your Best Friend When the Market Is a Real Pain

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The stock market is facing a lot of headwinds as inflation continues to mount its ugly head. Interest rates will likely continue to rise, which could lead to further volatility. High-quality companies, such as The, are a good choice for investors seeking safe income during times like these. Dividend KingsWhichAll of them have increased their dividends over 50 years consecutively.

This article will focus on three high-dividend stocks, which offer shareholders generous yields exceeding 4% and regular dividend increases every other year.

Altria Group: Turn a new leaf

Altria (MOIt is a giant in consumer staples. It is the sole distributor of Marlboro cigarettes in the United States. Altria also owns a 10% stake in Anheuser-Busch Inbev, the global beer giant.BUD) , in addition to large stakes in Juul, a vaping products manufacturer and distributor, as well as cannabis company Cronos Group (CRON) .

Altria reported its fiscal first-quarter results in April. Adjusted diluted earnings per share increased 4.7% year-overyear to $1.12. The net revenue was $5.9B, which is 2.4% less than the October 2021 sale of the wine company. Reported diluted earnings per shares were $1.08 which is up 40.3% year over year. Year-over-year, revenue decreased 1.2% to $4.82 trillion. Altria also reported that it had approximately $1.2 billion left under its existing $3.5 billion share purchase program, which will be completed by December 31. Full-year 2022 adjusted and diluted EPS guidance was also confirmed by Altria at $4.79 to $4.93.

Altria is in a transition period. Although the U.S. has seen a decline in smoking, it has recently rebounded some. Altria has made significant investments in new products to meet changing consumer preferences to offset the long-term negative trend. Altria is also heavily investing in share repurchases in order to continue EPS growth and increase dividend-per-share. Altria invested billions into Canadian marijuana producer Cronos group for a 55% equity interest (including warrants), as well as a 35% equity position in Juul Labs, an electronic vapor manufacturer. These segments are Altria’s long term growth catalysts.

The company’s stated dividend policy is to distribute 80% its adjusted earnings-per share in the near term. Altria stock offers a mix of dividend growth and yield, with a 8.5% dividend yield.

Federal Realty Investment Trust: Paying the Rent

Federal RealtyFRTThe Real Estate Investment Trust or REIT is () Federal Realty’s business model is to rent out properties that are real estate to tenants. FRT, a retail REIT, is concentrated in densely populated, high-income coastal markets in the U.S. and can charge more per sq foot than its competitors.

Federal Realty reported May’s first quarter earnings. FFO per share was $1.50. This is an increase of $1.17 from the previous quarter. The total revenue grew 17.7% to $256.77 million year-over. The net income available to common shareholders was $0.63, an increase from $0.60 during the year-ago period.

Federal Realty maintained record levels of leasing during the quarter with 119 signed leases covering 444,398 sq feet of comparable space. The trust’s portfolio was 91.2% fully occupied and 93% leased during the quarter. This is an increase of 170-basis point and 190 basis points respectively, year-overyear. However, the trust retained a 250-basis point spread between occupied & leased. Moreover, small shop leased rate was 88.7%, up by 130-basis points quarter-over-quarter. Federal Realty reported 14.5% growth in its first-quarter comparable property operational income.

The company also raised its 2022 earnings-per-share guidance to $2.36-$2.56 compared to $2.30-$2.50, and FFO per-diluted share guidance from $5.75 to $5.95 to $5.85-$6.05. Federal Realty will continue to grow with higher rent rates on new leases as well as its impressive development pipeline, which will help expand its asset base. As it redevelops parts of its portfolio, margins are expected to increase slightly and same-center revenues to continue moving higher.

Federal Realty’s competitive advantage is its strong development pipeline, the focus on high income, high density areas, and decades-long experience in managing a high-quality REIT. These characteristics allow Federal Realty to excel and even grow during recessions.

Federal Realty’s payout ratio is stable over the last decade. It has generally been in the 70% to 80% range. The company is a REIT and distributes a large percentage of FFO to shareholders. Federal Realty’s dividend payout is considered safe and should be increased for many more years. Current shares yield 4.4%

Get Leggett & Platt

Leggett & Platt (LEGThe company is an engineered product manufacturer. Products include furniture, bedding components and store fixtures. Die castings are also available.

Leggett & Platt reported its first-quarter earnings results on May 2. The company reported revenue of $1.32 trillion for the quarter. This is 15% more than the prior year. The consensus estimate of $60 million was exceeded by revenues.

Leggett & Platt generated EPS of $0.79 during the first quarter, which set a new record for a first quarter. Leggett & Platt’s EPS for the quarter also beat the analyst consensus estimate by $0.23.

Management reiterated its revenue guidance for this fiscal year. The company projects revenues between $5.3 billion and $5.6 billion. This would indicate a growth of 4%-10%. Leggett & Platt grew its EPS by 14% annually between 2009 and 2019, which is a highly compelling growth rate. In the long run, Leggett & Platt will likely continue to deliver EPS growth through a combination of organic sales increases, acquisitions, and ongoing share repurchases.

Leggett & Platt is a company that has performed very well in the past, both in terms of generating earnings growth, as well as when it comes to its decades-long dividend growth track record. Going forward, we believe Leggett & Platt’s EPS growth rate will be substantially lower, but the company’s EPS should still continue to grow in the long run.

Leggett & Platt has increased its dividend for 50 years. The dividend seems safe, with a 2022 expected payout rate below 65%. The current yield of shares is 4.8%

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