Quick Take: Dividend Kings are companies that have increased their annual dividends for at least 50 consecutive years. Although no major U.S.-listed ETF tracks Dividend Kings exclusively, investors can gain exposure to established dividend-paying companies through funds such as the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) and Schwab U.S. Dividend Equity ETF (SCHD).
Understanding Dividend Kings vs. Dividend Aristocrats
If you’re looking for safety, with yield to boot, look at the Dividend Aristocrats and the Kings.
With the Aristocrats, you’ll find the cream of the crop of stocks, which have raised dividends for more than 25 years. With the Kings, these are the heavyweights, which have been paying dividends for 50, or more years. What makes them even more special is the fact that even in times of economic disarray, inflation, booms, busts, rising interest rates, recessions, and crashes, they’ve still raised their dividends.
If a company can survive all of that – and pay dividends – it’s worth a look.
Companies that have increased dividends for decades often demonstrate financial discipline, established business models, and the ability to generate consistent cash flow. However, a long dividend-growth history does not automatically guarantee financial stability. Investors can evaluate these companies alongside economic moat stocks to identify businesses with durable competitive advantages and potentially sustainable long-term payouts.
There’s just one issue.
At the moment, you won’t find a Dividend King ETF. So, your next best bet for exposure is either to buy an individual King, or bet on an ETF, such as the ProShares S&P 500 Dividend Aristocrats ETF (NOBL), which carries a yield of 2.03% at the moment.
Top Dividend ETFs for Portfolio Defense
1. ProShares S&P 500 Dividend Aristocrats ETF (NOBL)
With an expense ratio of 0.35%, the ETF focuses on the S&P 500 Dividend Aristocrats — high-quality companies that have not just paid dividends but grown them for at least 25 consecutive years, with most doing so for 40 years or more. In fact, some of its top holdings include Caterpillar, Pentair, AbbVie, AFLAC, General Dynamics, Clorox Co., Walmart, Hormel Foods, and dozens more. All of which have a strong dividend-paying history.
2. Schwab U.S. Large Cap Value ETF (SCHV)
With an expense ratio of 0.04%, the Schwab U.S. Large Cap Value ETF (SCHV) holds a portfolio of large cap value stocks, including Berkshire Hathaway (BRK-B), Johnson & Johnson (JNJ), Exxon Mobil (XOM), JP Morgan Chase (JPM), Home Depot (HD), AbbVie (ABBV), Pfizer (PFE), and Merck (MRK) to name a few. We’ve mentioned this particular ETF before. We like it even more because it just caught strong support after a brief pullback.
3. Schwab U.S. Dividend Equity ETF (SCHD)
There’s also the Schwab US Dividend Equity ETF (SCHD). With an expense ratio of 0.06%, the ETF tracks the total return of the Dow Jones U.S. Dividend index. It has holdings in Amgen, AbbVie, Home Depot, Cisco Systems, Broadcom, Chevron, UPS, and Coca-Cola.
Before deploying capital into high-yielding funds, learning how to analyze a balance sheet helps ensure that underlying corporate holdings maintain healthy cash flow coverage and low debt ratios to support continued dividend expansion.
Frequently Asked Questions About Dividend Kings
Q1: What is the main difference between a Dividend Aristocrat and a Dividend King?
A: A Dividend Aristocrat is an S&P 500 company that has increased its dividend payout for at least 25 consecutive years. A Dividend King is an elite designation given to companies that have increased their annual dividend payouts for at least 50 consecutive years, regardless of whether they are in the S&P 500.
Q2: Why isn't there a dedicated Dividend King ETF?
A: There is currently no widely available U.S.-listed ETF that exclusively tracks Dividend Kings. Investors seeking exposure to long-established dividend growers can consider dividend-focused ETFs such as NOBL, which tracks S&P 500 companies with at least 25 consecutive years of dividend increases. However, these funds follow different investment criteria and may not include every Dividend King.
Q3: How do dividend-paying stocks protect portfolios during recessions?
A: Dividend Kings and Aristocrats usually produce essential products and services with predictable consumer demand. Their strong free cash flows and low debt levels allow them to navigate economic downturns better than speculative growth stocks, providing investors with reliable passive income and lower overall volatility.
Q4: Can a Dividend King ever reduce or eliminate its payout?
A: Yes. A company can lose its Dividend King status if it cuts, eliminates, or fails to increase its annual dividend. Financial difficulties, declining cash flow, or excessive debt may lead management to change its dividend policy. Investors should regularly review free cash flow, dividend payout ratios, and debt levels rather than relying solely on past dividend increases.
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Written by Dylan Jovine