Top 3 Dividend Kings with Significant Growth Prospects at Affordable Prices

In the turbulent world of Wall Street, it's not all about the juggernauts like Apple and Nvidia. Sometimes, a more defensive strategy is required. That's where dividend stocks come in, offering a steady income stream that can be particularly beneficial in uncertain times.

Navigating the hundreds of choices can be overwhelming, but a smart starting point is to inspect the Dividend Kings list. Dividend Kings are companies that have consistently paid and increased their dividends for at least the past 50 years. This assures us that we're dealing with financially robust firms that are prudent in their actions and capable of growing their business.

However, these companies are usually pricey, resulting in modest yields. In recent times, with the market taking a tumble, there's a chance to snap up some bargains. Here's a peek at the three cheapest Dividend Kings in the market today.

How I Selected the Lowest-Priced Dividend Kings

To examine this list, I simply navigated to our website's Stock Screener and implemented the following filters:

Watchlists: Dividend Kings
Annual Dividend Yield: Blank
Current Analyst Rating: 4.5 to 5 (Strong Buy)
P/E Ratio TTM: 30 and below

This search yielded six companies representing the cheapest Dividend Kings today, and I've narrowed it down to the top three based on the lowest P/E ratios. Let's delve into each company, beginning with the top pick:

Tennant Company (TNC)

Tennant Company, a company founded in 1870, is based in Minnesota and is a global leader in designing, manufacturing, and marketing cleaning equipment and technology. They specialize in industrial and commercial-grade cleaning machines, including scrubbers, sweepers, and similar equipment. This allows them to cater to diverse industries like manufacturing, healthcare, retail, education, and logistics.

Tennant has made its mark by incorporating robotic cleaning equipment and IoT-enabled machines into its product line, making them future-proof. One of their innovations is the use of electrolysis to create a cleaning solution with microscopic bubbles that enhances cleaning power. The result? Plain water post-use, with no harmful residues, which has earned them numerous environmental awards.

TNC pays dividends every quarter, totaling approximately $1.18 annually, which translates to around a 1.6% yield. Tennant has increased its dividends for 53 consecutive years, with an increase of 29.55% in the last five years alone, making it a core member of the Dividend Kings. Thanks to recent market volatility, this could be a prime time to build a position. With a P/E ratio (ttm) of 11.04, TNC is significantly cheaper than the industry average of 21.92.

Becton Dickinson and Company (BDX)

Becton, Dickinson and Company (BD) is a leading global medical technology firm. Their services range from the development, manufacturing, and distribution of medical devices, diagnostic instruments, and reagents to a diverse clientele, including healthcare institutions, physicians, clinical laboratories, life science researchers, and the pharmaceutical industry.

BD's company is divided into three segments:

BD Medical: produces needles, catheters, and syringes,
BD Life: offers diagnostic tools for infectious diseases and cancer,
BD Interventional: focuses on surgical and vascular products.

One of BD's flagship systems, the BD FACSAria, is widely used in laboratories worldwide and can process thousands of cells per second. This is crucial for developing targeted therapies and understanding complex diseases. 2025 promises further development, with software and automation being integrated to facilitate even faster data analysis.

BD has increased its dividends for 53 consecutive years, with its latest raise boosting its annual payout to $4.16. This translates to around a 2% yield. The stock is also trading at around 14.74 times its trailing twelve-month earnings, which is low compared to the healthcare sector's 17.02.

California Water Service Group Holding (CWT)

California Water Service Group, a holding company established in 1926, provides water utility and other related services in California, Washington, New Mexico, Hawaii, and Texas. They currently serve around 2 million people across 100 communities. Cal Water's 2024 investments focused on infrastructure to address droughts and retrofit aging systems.

Cal Water is a significant Dividend King and has increased its dividends for 58 years. Its annual dividend is $1.20, representing a yield of approximately 2.3%. Compared to the utility sector's average P/E of 18.28, CWT stock can be seen as cheap with a P/E of 15.22.

In uncertain times, dividend stocks offer a steady income stream, which can be particularly beneficial for personal-finance management.
To find cheap Dividend Kings, one can use a Stock Screener and set filters for Dividend Kings, no specific Annual Dividend Yield, a current analyst rating of 4.5 to 5, and a P/E Ratio TTM of 30 and below.
Tennant Company, founded in 1870 and based in Minnesota, is a global leader in cleaning equipment and technology, catering to various sectors like manufacturing, healthcare, retail, education, and logistics.
Becton, Dickinson and Company is a leading medical technology firm that provides products and services to healthcare institutions, physicians, clinical laboratories, life science researchers, and the pharmaceutical industry.
California Water Service Group, a holding company established in 1926, provides water utility and related services in several states while focusing on infrastructure to address droughts and retrofit aging systems.
Navigating hundreds of dividend stock choices can be overwhelming, but a prudent strategy is to inspect lists such as the Dividend Kings, which specializes in companies that have consistently paid and increased their dividends for at least 50 years.
In the world of finance and investing, staying informed about general-news, education-and-self-development, sports, and entertainment can help provide a well-rounded perspective on the market and the economy.