Motley Fool Picks 3 Dividend Kings for Defense as Inflation and Gas Prices Stay High
Updated
Updated · The Motley Fool · May 26
Motley Fool Picks 3 Dividend Kings for Defense as Inflation and Gas Prices Stay High
2 articles · Updated · The Motley Fool · May 26
Three Dividend Kings—PepsiCo, Black Hills and Colgate-Palmolive—were highlighted as defensive stock picks for investors wary of inflation, rate uncertainty and higher fuel costs.
50-plus years of consecutive dividend increases underpin the call, signaling businesses that have kept raising payouts through downturns rather than avoiding volatility entirely.
PepsiCo offers the highest yield of the three at 3.9%, ahead of Coca-Cola's 2.6%, with its snacks business tied to a global market projected to grow from $719 billion in 2024 to $922 billion by 2030.
Black Hills yields 3.7% after 56 straight annual increases and serves more than 1 million utility customers; its planned NorthWestern tie-up would lift the combined base above 2 million across eight states.
Colgate-Palmolive yields 2.3% after 63 years of dividend growth, and its latest quarter delivered $5.3 billion in sales even as management warned of rising packaging and material costs.
Are 'safe' utility dividends at risk from growing regulatory pressure on profits?
In an AI-driven economy, are Dividend Kings a better defensive bet than healthcare?