Dividend Kings are exceptional companies that have consistently increased their dividend payouts for more than 50 years. This remarkable track record highlights their resilience and ability to thrive, even during economic downturns, making them highly attractive to investors seeking long-term stability. In this article, we’ll delve into a selection of Dividend Kings that not only offer reliable income but also have potential for capital appreciation.
Methodology Used For These Dividend King Stock Picks
The methodology I used when examining these dividend king stocks can be found below.
- Stocks with uninterrupted dividend growth for 50+ years
- Stocks with upside potential based on 1-year price target
- Recent stock momentum as evidenced by stock price performance outpacing S&P 500 gains in recent periods
- Growth catalysts to unlock future capital appreciation
- Stocks with a Buy or Moderate Buy Rating from analysts
Top Dividend King Stocks to Buy in 2025
1. Nucor (NUE)
Nucor Business Overview
Nucor is North America’s largest and most diversified steel producer. Nucor’s steel is produced in Electric Arc Furnaces (EAF), or mini mills, with an average of 77% recycled content. The use of EAF reduces carbon footprint significantly, and allows Nucor to flex production levels in response to fluctuations in steel demand, which in turn is closely tied to economic activity, thus enabling the company to generate consistent profits through the full steel cycle. As a testimony to its resilience, Nucor has consistently paid and raised dividends for 52 consecutive years with a recent increase in quarterly dividend to 55 cents per share.
From an annualized dividend of $1.62/share in 2021, Nucor has increased its dividend by 36% to $2.20/share in 2025, while repurchasing shares and reducing share count by 23% from 302 million in 2020 to 233 million in 2024. This return to shareholders has been enabled by Nucor’s robust generation of adjusted free cash flow (FCF) of $20 billion from 2020 to 2024.
While reinvesting some $16 billion through CapEx and acquisitions over the last 5 years, Nucor also managed to return over $12 billion of capital to shareholders, via buybacks and dividends. The return to shareholders represented about 57% of net earnings. Nucor plans to continue to return at least 40% of its annual net earnings through dividends and share buybacks.
Why NUE Stock Is A Top Choice
The most recent catalyst was President Trump’s proposal to impose a 25% tariff on imported steel and aluminum that sparked a rally in steel stocks. Even beyond the political developments, Nucor stock is worth watching, as the steelmaker has already completed about two-thirds of its $10 billion investment plan, but is yet to recognize the earnings potential of recently completed projects – giving rise to optimism about the future. These investments are made with the goal of doubling its through-cycle earnings.
Nucor is also well positioned to benefit from its price hikes for its hot-rolled coil (HRC) by 21% to $820/short ton (Feb 17th price) from $675/short ton in July, 2024, thanks to sustained demand from automotive and construction sectors (representing 60% of U.S. steel consumption).
Growth in Nucor’s core business should come from shifting mix to higher margin, value-added end products and targeting higher growth regions and underserved markets. Beyond the core business, Nucor expects to grow in steel-adjacent businesses with attractive FCF profiles.
Nucor remains on track to commission the West Virginia sheet mill (its single largest capital investment) by the end of next year. As this mill ramps up through 2027, it should begin shipping clean and advanced sheet steels for the automotive, construction, and industrial markets. Nucor is also on track to complete its Lexington Rebar Micro Mill in North Carolina by mid 2025. The steel mill with an annual capacity of 430,000 tons will cater to the high- growth Southeast and mid-Atlantic regions.
Nucor’s new melt shop in Arizona, is also scheduled to reach completion in 2025. The melt shop with the capacity to produce 600,000 tons annually will meet the growing demand for steel bar products in the Western region – one of the fastest growing areas in the U.S. The construction of two highly-automated tower manufacturing plants is expected to reach completion this year to serve the high-end growth power transmission and telecommunication markets.
Further opportunities should emerge from the expansion of Nucor’s overhead door portfolio to a broader customer base, as well as the provision of custom-fabricated racking solutions for data centers and warehouses. Its Insulated metal panels business should continue to benefit from growing demand for climate-controlled environments, manufacturing and storage facilities.
2. Emerson Electric Co. (EMR)
Emerson Electric Co. Business Overview
Emerson is a global technology, software and engineering powerhouse providing automation solutions to companies. It has consistently increased its dividends for 68 consecutive years.
The century-old Emerson Electric has streamlined its portfolio in recent years to focus on Industrial technology amid increased adoption of automation in factories.
The portfolio transformation that began in late 2021 has resulted in a structurally improved Emerson aligned to secular growth drivers, and led to exceptional operational performance. This is evident in Emerson’s record gross margins of 50.8% for 2024, up from 41.5% in 2021 before portfolio transformation and adjusted segment EBITDA margin closing 2024 at a record high of 26% vs. pre-portfolio transformation number of 20.9% in 2021. The numbers were great for its recent first quarter as well, with record gross profit margin of 53.5% and adjusted segment EBITDA margins of 28%.
As part of its strategy to strengthen its automation focus, Emerson is taking full ownership of AspenTech, in which it already holds a 57% stake. The buyout should close in the first half of 2025 and is expected to boost margins for Emerson. The merger should accelerate Emerson’s industrial software strategy, and support Emerson in designing hardware plus software solutions for its customers as an integrated company. This positions Emerson strategically to support the manufacturing sector, which increasingly prioritizes automation to combat rising labor challenges in the post-pandemic era.
Reaffirming its singular focus on automation, Emerson is also exploring options, including a cash sale, for its non-core Safety & Productivity business segment, which contains operations outside of its automation portfolio. This unit represented $1.4 billion or 8% total sales for fiscal 2024.
Why EMR Stock Is A Top Choice
Recovery in manufacturing and increased investments in U.S. factories should catalyze growth in Emerson’s core segments. EMR continues to see significant opportunities in LNG ( liquefied natural gas) and power sectors, with the potential for over $1 billion in orders in the coming years, due to LNG’s significant role as a transition fuel. Currently, around 70% of the world’s LNG flows through Emerson valves.
Emerson serves a diverse customer base, with top 20 customers representing only 9% of sales and largest customer bringing in $180 million. Core areas of Emerson’s business include Process and Discrete segments.
The Process segment experiences resilient demand with continued strong activity in Energy Security, Energy Transition, Power, Life Sciences and Metals & Mining. The need for automation in capacity expansions and facility modernizations, alongside continuous investments in capital projects tied to secular trends drives the growth. EMR expects its Process and Hybrid businesses to grow mid-single digits for the year, supported by backlog and a resilient funnel.
A meaningful recovery is expected in the second half for Emerson’s lackluster Discrete business segment, which is now expected to grow by low-single digits for the year. Emerson also sees higher synergies from its Test & Measurement business at $200 million vs. prior-expected $185 million by year 3.
For 2025, Emerson reiterated its guidance for adjusted earnings per share of $5.85 to $6.05 vs. $5.49 in 2024, and FCF of $3.2 billion to $3.3 billion vs. $2.9 billion in 2024. This year, Emerson will pay dividends of $1.2 billion and execute share buybacks of $2 billion (of which it already completed a $1 billion buyback in the first quarter).
3. National Fuel Gas Company (NFG)
National Fuel Gas Company Business Overview
National Fuel Gas is a natural gas company with an integrated business model that drives strong returns because of a lower cost structure. NFG operates in the Appalachian Basin that is widely considered as one of the lowest cost natural gas producing basins in North America. Since fiscal 2023, capex is down 14%, while production is up 12%, reflecting NFG’s top capital efficiency trends even among its Appalachian peers.
NFG has a proven track record of returning capital to shareholders with 122 years of consecutive dividend payments and 54 years of consecutive dividend increases. In the last 3 years, NFG has returned more than $590 Million to shareholders in the form of buybacks and dividends.
Why NFG Stock Is A Top Choice
Strength across its businesses, and robust outlook for natural gas prices should drive incremental FCF generation for NFG. The visibility on long-term EPS and FCF growth creates a strong value proposition.
NFG sees FCF from its non-regulated businesses (upstream and gathering businesses) topping $1 billion over the next 3 years, as it believes that the new administration in Washington is “unquestionably supportive of natural gas.” The positive outlook is also reinforced by impressive growth expectations in power demand, from data centers and artificial intelligence.
Natural gas prices for the rest of 2025 are estimated to be around $3.50 and NFG expects $2.77 – $2.81/Mcf in average realized gas prices after hedging. (For reference, average realized natural gas price in the first quarter of 2025 after hedging and transportation costs was $2.53 per Mcf vs. $2.51 in the year-ago period.) These assumptions are behind the company’s raised guidance for 2025. NFG sees 2025 EPS of $6.50 to $7 per share, representing a 17% increase at the mid-point from prior guidance and a 35% increase from fiscal 2024.
Higher rates in its utility business driven by a settlement of a rate case in New York, should improve earnings meaningfully in the utility business by 30% in fiscal 2025 year-on-year. The New York rate settlement that extends through fiscal 2027 will pave the way for two additional rate increases for 2026 and 2027 and provide visibility for continued earnings growth in its New York utility.
NFG’s proposed Tioga Pathway Project is moving according to schedule. The Tioga Pathway Project aims to provide an outlet for Appalachian gas to reach diverse markets. A key milestone for the project would be an environment assessment in the coming months from the FERC (Federal Energy Regulatory Commission). If the FERC provides all permits and clearances, construction is slated to begin in June 2026 with a target in-service date in Fall 2026.
Bottom Line
The Dividend Kings highlighted in this report—Nucor, Emerson Electric, and National Fuel Gas— not only have a proven track record of rewarding shareholders with reliable dividend payouts, but also possess solid growth catalysts that can drive future gains. Whether it’s Nucor’s strategic expansion in the steel industry, Emerson’s laser focus on automation, or National Fuel Gas’ strong positioning in the natural gas space, these Dividend Kings remain attractive choices for investors seeking both income and potential upside.
Please note that I am not a registered investment advisor and readers should do their own due diligence before investing in the stocks mentioned in the article, or any other stock. I am not responsible for the investment decisions made by individuals after reading this article. Readers are asked not to rely on the opinions and analysis expressed in the article and encouraged to do their own research before investing.
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