This is a guest contribution by Bob Ciura of Sure Dividend. Sure Dividend helps individual investors build high quality dividend growth portfolios for the long run.
The Dividend Kings are a group of just 55 stocks that have all increased their dividends for at least 50 consecutive years.
Regular dividend increases each year, even during recessions, are critical for dividend growth investors. This makes the Dividend Kings a great source of stocks that can provide long-term passive income.
The Dividend Kings are also appealing because many have high dividend yields. This article will discuss 3 Dividend Kings that have high yields above the S&P 500 average, and should continue raising their dividends each year.
Becton Dickinson & Co. (BDX)
Becton, Dickinson & Co., or BD, is a global leader in the medical supply industry. The company was founded in 1897 and has 75,000 employees across 190 countries. The company generates almost $22 billion in annual revenue, with approximately 43% of revenues coming from outside of the U.S. BD is composed of three segments.
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Products sold by the Medical Division include needles for drug delivery systems, and surgical blades. The Life Sciences division provides products for the collection and transportation of diagnostic specimens. The Intervention segment includes several of the products produced by what used to be Bard.
BDX continues to generate growth this year, even in an uncertain economic climate. In the 2025 first quarter, revenue grew 4.5% to $5.3 billion. On a currency neutral basis, revenue increased 6%. Adjusted earnings-per-share of $3.36 compared favorably to $3.17 in the prior year and was $0.07 above estimates.
For the quarter, U.S. grew 7% while international was up 1.2% on a reported basis. Excluding currency exchange, international revenue was higher by 4.8%. Organic growth was up 0.7% for the period. The Medical segment grew 3.6% organically to $2.76 billion, due to continued gains in Mediation Management Solutions, Medication Delivery Solutions, and Pharmaceutical Systems.
BD showed that it can perform well in less-than-ideal economic conditions during the last recession. The company’s key competitive advantage is that its products are in high demand as medical devices and other healthcare products are still sought out during a recession. People will seek medical care regardless of how the economy is performing. This ability to grow or maintain earnings in any economic climate makes BD a quality company and a consistent dividend growth stock.
In 2024, BD increased its quarterly dividend 9.5% to $1.04, extending the company’s dividend growth streak to 53 consecutive years. The dividend has a compound annual growth rate of 5.2% over the last 10 years and 5.7% over the past five years, solid dividend growth rates that have outpaced the rate of inflation.
PepsiCo Inc. (PEP)
PepsiCo is a global food and beverage company that generates $89 billion in annual sales. The company’s products include Pepsi, Mountain Dew, Frito-Lay chips, Gatorade, Tropicana orange juice and Quaker foods. The company has more than 20 $1 billion brands in its portfolio.
On April 24, 2025, PepsiCo reported first-quarter earnings results. For the quarter, revenue fell 1.8% to $17.9 billion, but this beat expectations by $190 million. Adjusted earnings-per-share came to $1.48 for the quarter as organic sales grew 1% for the first quarter. PepsiCo Beverages North America’s revenue grew 1% for the period even as volume was down 3% thanks to price increases.
Emerging market growth is a continued growth catalyst for PepsiCo. In the first quarter, the International Beverages segment grew 7% as volume improved 3%. Revenues in Europe/Middle East/Africa were up 8%, while Latin America Foods grew sales by 3% year-over-year. PepsiCo provided updated guidance for 2025, with the company still expecting organic sales growth in the low single-digit range.
PepsiCo grew earnings at a rate of 6.4% per year from 2015 to 2024, and by 8.1% per year when looking at just the last five years. This steady growth allows the company to continue raising its dividend each year. In February 2025, PepsiCo raised its dividend by 5.0% to $5.69 starting with the payment that was made in June 2025, extending the company’s dividend growth streak to 53 consecutive years.
PepsiCo is a relatively recession-proof company. Earnings grew during the last recession and it offers a generous dividend yield. The company is expecting to return $8.6 billion in cash to shareholders in the form of dividends and share repurchases in 2025.
Illinois Tool Works (ITW)
Illinois Tool Works is a diversified multi-industrial manufacturer with seven unique operating segments: Automotive, Food Equipment, Test & Measurement, Welding, Polymers & Fluids, Construction Products and Specialty Products. Last year the company generated $15.9 billion in revenue. The company is geographically diversified, with more than half of its revenue generated outside of the United States.
In the 2025 first quarter, revenue came in at $3.8 billion, shrinking 3.4% year-over-year. Sales declined 3.7% in the Automotive OEM segment, the largest out of the company’s seven segments. Net income equaled $700 million or $2.38 per share. The company’s steady profitability allows it to repurchase shares. In the first quarter, ITW repurchased $375 million of its shares.
Moving forward, growth can come from a variety of sources, both organically and through acquisitions. The balance sheet is in good shape, allowing for some flexibility from a capital allocation standpoint. Moreover, attractive returns can be achieved without venturing outside Illinois Tool Works’ existing core competencies. Illinois Tool Works can continue to invest in its sales networks, R&D, and manufacturing capacity, while cost-cutting measures could continue to boost margins.
Illinois Tool Works’ industry is not glamorous or one with outstanding growth rates, but the company has established itself as a major player that continues to grow profitably. Its experienced management and strong fundamentals, such as an above-average return on capital, function as competitive advantages.
Illinois Tool Works reaffirmed its 2025 guidance, still expecting full-year GAAP EPS to be $10.15 to $10.55. Consistent earnings provide shareholders with regular dividend increases. ITW has increased its dividend for 61 years in a row. Today the dividend payout ratio sits at 58% of expected earnings for 2025, indicating a safe payout.
Disclosure: No positions in any stock mentioned
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