▌Top Stocks · DIVIDEND KINGS·Updated September 23, 2026
Inside Our Top Dividend Kings Stock Picks for September 2026
Our seven-stock Dividend Kings countdown spans industrials, healthcare, beverages, restaurants and household staples, with four lower-ranked names available in the free portion.
Top Stocks · DIVIDEND KINGSUpdated September 23, 2026
Dividend Kings are being recast as a quality-and-resilience trade rather than a sleepy income bucket. Investors still value companies with 50-plus years of annual dividend increases, but higher rates have made payout ratios, cash-flow durability, balance-sheet strength and valuation more important. That scrutiny is helping income strategies attract attention after a long period in which growth stocks dominated. A recent market review highlighted 2026 as a stronger year for dividend-oriented strategies, with the average dividend strategy outperforming the U.S. broad market during the first half.
The universe is not monolithic. Consumer staples companies such as Coca-Cola, Procter & Gamble and Colgate-Palmolive offer brand power, everyday demand and pricing exposure. Healthcare names bring defensive characteristics, while industrials and materials can add cyclical upside without abandoning a long dividend record. Restaurants introduce a franchise-driven consumer model, and higher-yielding or recently restructured companies may offer more upside but also more risk. Understanding those sub-segments matters because resilience, growth and valuation do not appear in equal measure across the theme.
This seven-stock collection is presented as a countdown, moving from #7 to #1. The ranking gives priority to depth of exposure to the Dividend Kings theme and then considers business fundamentals, including profitability, growth, valuation, earnings consistency and analyst sentiment. The result is a mix of industrial technology, healthcare, beverages, household products and restaurants, with each company offering a different way to approach durable income and compounding.
Methodology brief: We screened US-listed companies with market capitalizations above $500 million that fit the Dividend Kings theme, then ranked them first by the depth of their business exposure and second by fundamentals. The comparison uses our composite quality grades, profitability, revenue and earnings growth, valuation ratios, recent earnings performance and analyst consensus. This is a countdown: the strongest overall pick appears at #1, but the ordering is not a dividend-yield ranking. The list is designed to distinguish direct thematic exposure from businesses whose fundamentals may be steadier or more attractive at a given valuation.
What they do. The company supplies technology, software and industrial equipment across final control, measurement and analytical, discrete automation, safety and productivity, control systems and software, and test and measurement. Its portfolio includes valves, instrumentation, automation systems, plant-control software and professional tools sold to process, hybrid and discrete industries across global markets. That breadth gives Emerson exposure to industrial operating systems rather than a single end product.
Why it fits. Emerson brings the industrial side of the Dividend Kings theme, complementing the more defensive consumer and healthcare names in this list. Its control valves, measurement devices, automation products and software support production, safety and infrastructure processes, giving the company a more specialized form of business exposure than a traditional staple. That industrial positioning can add cyclicality, but it also broadens the theme beyond consumer demand.
Numbers that matter. Emerson generated a 53.2% gross margin, a 26.92% operating margin and a 13.83% net margin. Revenue grew 7% year over year, while earnings growth reached 23%, a favorable combination for a cyclical industrial company. The trailing P/E was 33.7396 versus a forward P/E of 21.0526, suggesting that the market is valuing a meaningful improvement in future earnings. Return on equity was 12.8% and return on assets was 6.9%.
Recent momentum. Emerson has beaten estimates in 6 of the last 7 reported quarters. In the latest reported quarter, it posted EPS of $1.71 against an estimate of $1.68, a 1.8% surprise. Analyst sentiment consists of 3 Buy ratings, 6 Holds and 1 Sell, with an average target of $172.6293, so the consensus is constructive but not unanimous.
What they do. Abbott develops and sells healthcare products through established pharmaceuticals, diagnostics, nutrition and medical devices. Its offerings range from laboratory and point-of-care testing systems to pediatric and adult nutrition, cardiovascular devices, diabetes-care products and generic pharmaceuticals. This portfolio gives Abbott several healthcare revenue streams and exposure to both recurring clinical needs and technology-enabled medical care.
Why it fits. Abbott represents the healthcare-resilience branch of the theme. Diagnostics, nutrition, medical devices and established medicines serve needs that are less dependent on discretionary consumer spending than many other industries. The company also offers greater product diversification than a single-category healthcare business, although its combination of device, diagnostic and pharmaceutical exposure means investors must assess multiple operating trends rather than one simple demand driver.
Numbers that matter. Abbott reported a 56.8% gross margin, a 14.71% operating margin and an 11.65% net margin. Revenue grew 13% year over year, but earnings growth was negative 47.5%, showing a sharp disconnect between top-line expansion and bottom-line performance in the latest comparison. The trailing P/E was 33.5566 and the forward P/E was 17.0068. Return on equity was 10.58%, while return on assets was 5.33%.
Recent momentum. Abbott has beaten estimates in 3 of the last 7 reported quarters. Its latest reported quarter produced EPS of $1.31 versus an estimate of $1.28, a 2.3% beat, but the broader record is less consistent than several other names here. The analyst snapshot shows 4 Buys and 7 Holds, with no Sell count reported, and an average target of $120.2636.
What they do. Coca-Cola manufactures and sells nonalcoholic beverages through independent bottling partners, distributors, wholesalers, retailers and its own operating network. Its portfolio spans sparkling soft drinks, water, sports drinks, coffee, tea, juice, dairy and emerging beverages, including brands such as Coca-Cola, Sprite, Fanta, Powerade, Costa, Dasani, smartwater and fairlife. Concentrates, syrups and fountain products add another route to market beyond packaged beverages.
Why it fits. Coca-Cola is one of the clearest consumer-staples expressions of the Dividend Kings theme. A global beverage system, a broad collection of recognizable brands and exposure to both packaged and fountain channels give it multiple ways to reach consumers. The business is defensive in the sense that beverages are everyday purchases, while its brand portfolio and distribution structure provide a foundation for pricing and geographic diversification.
Numbers that matter. Coca-Cola produced a 61.9% gross margin, a 34.87% operating margin and a 28.56% net margin. Revenue increased 6.7% year over year and earnings grew 16.9%, while return on equity was 42.05% and return on assets was 9.4%. The trailing P/E was 26.6096 and the forward P/E was 24.8756, a premium that reflects the profitability and defensiveness of the franchise.
Recent momentum. Coca-Cola has beaten estimates in all 7 of the last 7 reported quarters. In the latest reported quarter, EPS came in at $0.97 against an estimate of $0.92, a 5.4% surprise. Analysts included 8 Buys, 3 Holds and 1 Sell, with an average target of $94.6957, making the consensus notably supportive despite the stock’s premium valuation.
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What they do. Johnson & Johnson operates through Innovative Medicine and MedTech. The pharmaceutical business covers areas including oncology, immunology, neuroscience, pulmonary hypertension and cardiovascular and metabolic conditions, while MedTech supplies products for surgery, orthopedics, cardiovascular care, vision and robotic and digital procedures. That combination creates a healthcare platform spanning prescription medicines and devices used by hospitals and clinicians.
Why it fits. Johnson & Johnson provides broad healthcare exposure within the Dividend Kings universe. Innovative Medicine can supply growth through therapeutic areas, while MedTech adds a different demand profile tied to procedures, surgery and long-term clinical infrastructure. The two-segment structure supports the theme’s emphasis on resilience, but it also means investors are balancing pharmaceutical growth and patent-related considerations with device execution.
Numbers that matter. Johnson & Johnson reported a 68.1% gross margin, a 29.19% operating margin and a 21.48% net margin. Revenue grew 6.6% year over year, while earnings growth was negative 0.9%, indicating modest top-line progress but slightly weaker earnings in the latest comparison. The trailing P/E was 31.2973 and the forward P/E was 21.097. Return on equity was 25.74% and return on assets was 8.6%.
Recent momentum. Johnson & Johnson has beaten estimates in 6 of the last 7 reported quarters. Its latest reported quarter delivered EPS of $2.90 against an estimate of $2.84, a 2.1% beat. The consensus included 4 Buys and 13 Holds, with no Sell count reported, and an average target of $277.9091, reflecting a cautious analyst stance despite the company’s profitability.
What they do. Colgate-Palmolive sells consumer products through two main businesses: Oral, Personal and Home Care, and Pet Nutrition. Its brands cover toothpaste, toothbrushes, soaps, skin health, household cleaners and detergents, while Hill’s Science Diet and Hill’s Prescription Diet provide everyday and therapeutic pet nutrition. Products move through traditional and ecommerce retailers, wholesalers, distributors, dentists, veterinarians and pet specialty channels.
Why it fits. Colgate-Palmolive has deep exposure to the household and personal-care side of the Dividend Kings theme. Oral care, cleaning products and pet nutrition are tied to repeat purchasing and brand familiarity, while the pet segment adds a separate source of consumer demand. This is a classic defensive model, though its concentration in staples also makes pricing, volume and consumer trade-down trends important to the investment case.
Numbers that matter. Colgate-Palmolive posted a 60.4% gross margin, a 20.97% operating margin and a 9.68% net margin. Revenue rose 4.9% year over year, but earnings growth was negative 5.5%. The trailing P/E was 34.2717 versus a forward P/E of 21.0526. Return on assets was 15.84%, while the reported return on equity was 267.37%, an unusually high figure that investors should interpret alongside the company’s balance-sheet structure rather than in isolation.
Recent momentum. Colgate-Palmolive has beaten estimates in all 7 of the last 7 reported quarters. The latest reported quarter produced EPS of $0.99 against an estimate of $0.95, a 4.2% surprise. Analysts listed 6 Buys, 7 Holds and 1 Sell, with an average target of $98.80. That combination points to strong execution against estimates, but also to a divided view on valuation and future growth.
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The screen covers US-listed companies with market capitalizations above $500 million that fit the Dividend Kings theme. We ranked the candidates in countdown order, giving the greatest weight first to directness and depth of exposure to the theme, then to business fundamentals. Those fundamentals include composite quality grade, profitability, revenue and earnings growth, trailing and forward P/E ratios, recent earnings surprises and analyst consensus. The ranking is refreshed monthly, so evergreen statistics such as market capitalization, quality grade and consensus are presented in the data lines while spot prices are excluded. The framework is intended to compare business durability and theme relevance, not to forecast short-term trading performance or rank dividend yield alone.
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