Black Monday hit on October 19, 1987, and by the close of trading that day, the Dow Jones Industrial Average had fallen 22%. A drop of that size applied to today's market would equal roughly 11,562 points. Nobody saw it coming, according to market veterans who lived through it.
Nearly 40 years later, a group of 57 companies known as Dividend Kings has not only survived that crash but has continued to raise its dividend payments through every major market disruption since, including the dot-com collapse, the 2007 and 2008 real estate crisis, and the 2020 COVID-19 sell-off, according to a report by Yahoo Finance.
To qualify as a Dividend King, a company must have raised its dividend for at least 50 consecutive years. The group differs from the better-known Dividend Aristocrats in one key way: Dividend Kings do not need to be members of the S&P 500.
Warren Buffett holds 400 million shares of Coca-Cola, which was founded in 1892 and remains one of the most recognized long-term dividend holdings in the country. Kimberly-Clark offers a 4.60% yield after raising its dividend for 53 consecutive years. Colgate-Palmolive has paid dividends since 1895. Procter and Gamble has raised its dividend for 70 straight years. Both Colgate-Palmolive and Procter and Gamble carry Wall Street Buy ratings.
The case for holding these companies is built on consistency. High customer retention, low debt, and steady cash generation have historically produced results far less volatile than the broader market, even when share prices fluctuate with broader selling. Companies that have paid and raised dividends for 50 or more consecutive years have done so through recessions, wars, financial panics, and global health crises.
For retirees and income-focused investors, that track record addresses a specific concern: the risk that dividend income disappears exactly when it is needed most. A company that maintained and grew its payout through a 22% single-day market crash has demonstrated something that a strong balance sheet alone cannot prove.
The five companies identified in the report are all rated Buy by major Wall Street firms. The report describes them as suitable long-term holdings for growth and income investors who can buy and hold for extended periods, and notes that in a dramatic market correction, they would likely hold their ground better than volatile technology stocks.
