The 2026 Dividend Kings: The "Almanac Safety Score" Rankings
Investing isn't about finding the highest yield; it's about finding the dividends that will survive the next recession. We apply our proprietary Safety Score to the 50+ companies that have raised payouts for half a century.
🛡️ The Almanac Safety Score
Most "Kings" lists just paste tickers. We grade them. Our algorithmic score (0-100) penalizes "Yield Traps" and rewards "Fortress Balance Sheets."
1. The "Perfect" Kings (Score: 90+)
These companies are the "Sleep Well at Night" foundation. They combine low payout ratios with dominant market positions.
Johnson & Johnson (JNJ)
The ultimate defensive stock. Even after the Kenvue spinoff, JNJ retains its AAA credit rating (higher than the US Government). With a payout ratio under 45%, the dividend is bulletproof.
Lowe's (LOW)
Don't let the low yield fool you. LOW is a "Growth King." It has grown its dividend by ~18% annually over the last 5 years. A payout ratio of 35% means it can double the dividend again easily.
2. The "Danger Zone" (Watch Out)
🚫 3M (MMM) & Walgreens (WBA)
Lesson: A 50-year streak does not protect you from a cut. Both of these former Kings slashed their dividends in 2024/2025 due to litigation and declining earnings.
Current Risk: We are watching Leggett & Platt (LEG) closely. High debt and slow housing demand put its status at risk.
3. The King's Map: Yield vs. Growth
We plotted the top 10 Kings based on Current Yield (Income) vs. 5-Year Dividend Growth Rate (Speed).
Top Right = The "Holy Grail" (High Yield + High Growth). Bottom Left = "Bond Proxies."
4. Old Dogs, New Tricks: The AI Factor
Think these 100-year-old companies are dinosaurs? Think again. The most durable Kings are using AI to widen their moats in 2026.
Lowe's: Project PDR
Lowe's is rolling out AI-powered "Project PDR" cameras to identify theft in real-time without locking up merchandise. This reduces "shrink" (theft) which currently costs retailers billions—directly boosting margins and dividend safety.
Coca-Cola: AI Flavors
Coke isn't just mixing sugar water. They used AI to analyze flavor trends for their "Y3000" release. More importantly, they use AI to optimize delivery routes for 200,000 trucks, saving millions in fuel annually.
5. The King's Calendar: When to Buy?
Even great stocks have bad months. Based on 20-year seasonality trends, here is how to time your entries for maximum yield.
| Season | Sector Focus | Why? |
|---|---|---|
| Q1 (Jan-Mar) | Retailers (Target, Lowe's) | Post-holiday hangovers often drag retail stocks down, offering better entry yields. |
| Q3 (Aug-Sep) | Staples (Coke, Pepsi) | September is historically the market's worst month. Defensive staples often bottom here before the winter rally. |
6. The 2026 Watchlist
| Ticker | Streak | Yield | Safety Score | Verdict |
|---|---|---|---|---|
| Altria (MO) | 56 Yrs | 7.4% | 65/100 | Income Only (No Growth) |
| Target (TGT) | 54 Yrs | 4.2% | 85/100 | Undervalued Buy |
| Parker-Hannifin (PH) | 69 Yrs | 1.1% | 92/100 | Industrial Compounder |
| McDonald's (MCD) | 49 Yrs | ~2.4% | 88/100 | Joining soon (2026/27) |
Disclaimer: This analysis is for educational purposes only. The "Almanac Safety Score" is a proprietary metric based on public financial data. Past performance does not guarantee future results.