3 Overlooked Dividend Kings Designed for Steady Earnings in 2026

Setting New Investment Goals for the Year

As the new year begins, many investors are reevaluating their strategies, aiming to be more selective and less swayed by high-yield promises. Instead of following fleeting trends, I turned my attention to Dividend Kings—companies that have consistently raised their dividends for over 50 years, weathering economic downturns, interest rate shifts, and changing markets. Such a remarkable history is rarely coincidental; it usually points to reliable demand, prudent leadership, and robust business models.

With this approach, I asked myself: Which Dividend Kings are currently trading at reasonable valuations?

My Stock Selection Process

To narrow down my picks, I utilized Barchart’s Stock Screener and applied the following criteria:

• Forward Price/Earnings Ratio: Evaluates if a stock is undervalued by comparing its projected earnings to its current price. A forward P/E below the sector average suggests a bargain.
• Analyst Coverage: At least 12 analysts. Broader coverage typically means a more reliable consensus.
• Analyst Ratings: Between 3.5 and 5, indicating a “Moderate” to “Strong Buy.”
• Buy/Sell/Hold Signal: Only stocks with a “Buy” recommendation.
• Dividend Focus: Only companies classified as Dividend Kings.

After screening, eight companies met these standards. I then ranked them from the lowest to highest forward P/E ratio.

Featured Dividend Kings

Becton Dickinson And Company (BDX)

Becton Dickinson And Company is a prominent player in the medical technology sector, producing and distributing products for healthcare, laboratories, and diagnostics. The company’s recent advancements, such as the Phasix™ Mesh hernia prevention initiative, underscore its commitment to innovation and expanding its global reach.

In the latest quarter, Becton Dickinson reported an 8% year-over-year increase in sales, reaching $5.9 billion, and a 23% rise in net income to $493 million. The company offers a forward annual dividend of $4.20, yielding approximately 2%. With a forward P/E of about 14—well below the sector average of 27.10—the stock appears attractively valued.

According to 12 Wall Street analysts, Becton Dickinson is rated a “Moderate Buy.” Barchart’s consensus also signals a buy, indicating strong technical momentum.

Federal Realty Investment Trust (FRT)

Federal Realty Investment Trust stands out in the real estate sector, managing and developing high-quality retail and commercial properties. The company is actively raising funds through strategic asset sales to fuel growth and enhance long-term value.

In its most recent quarter, Federal Realty’s revenue climbed 6.1% year-over-year to $322 million, with net income holding steady at $61 million. The trust pays a forward annual dividend of $4.52, offering a yield of about 4.5%—the highest among these picks. Its forward P/E of 13.6 is also below the sector average of 18.44, suggesting a compelling value.

Nineteen analysts rate Federal Realty as a “Moderate Buy,” which is consistent with Barchart’s buy recommendation.

Nucor Corp (NUE)

Nucor Corp is a leading steel producer with a global reputation for sustainability. The company also provides industrial gases and is well-positioned to benefit from ongoing demand for steel and infrastructure development.

In the latest quarter, Nucor’s sales surged 14% year-over-year to $8.5 billion, while net income soared 143% to $607 million. The company pays a forward annual dividend of $2.24, yielding about 1.3%. The stock trades at 14 times earnings, notably lower than the industry average of 24 times.

Fourteen analysts rate Nucor as a “Strong Buy,” and Barchart’s opinion matches this positive outlook, making it the top-rated stock on this list. Its attractive valuation, strong analyst support, and reliable dividend make Nucor a standout choice.

Conclusion

In summary, these three Dividend Kings are trading at appealing valuations based on forward P/E ratios. Backed by resilient business models and decades of dividend growth, they offer investors a combination of stability, income, and potential for appreciation. For those seeking reliable returns, these stocks are worthy additions to an income-focused portfolio.