The Next Generation of Dividend Kings: 3 Stocks to Watch
Key PointsExxonMobil is an industry juggernaut, firing on all cylinders.
Dividend Kings are companies that have raised their dividends for at least 50 consecutive years. ExxonMobil (XOM), Atmos Energy (ATO), and Chevron Corporation (CVX) are among the next-generation Dividend Kings to watch in the energy sector.
ExxonMobil recently announced a dividend hike, its 44th in a row, bringing the quarterly amount to $4.28 per share, yielding about 2.3% at the stock's current share price. The company generated $19.1 billion in free cash flow in Q3 2026 and paid out only $4.3 billion in dividends, demonstrating its ability to continue increasing dividends despite fluctuations in commodity prices.
Atmos Energy, a utility stock, has paid and raised its dividend for 42 consecutive years. The company's revenue is generated from gas distribution and consumption, providing stable income streams due to consistent household energy needs. Analysts expect Atmos Energy's earnings to grow by an average of 7% annually over the next three to five years, potentially leading to Dividend King status while maintaining a reasonable payout ratio.
Chevron has the longest road ahead to becoming a Dividend King, having raised its dividend for the 39th year in a row. However, its current yield is the highest among the three stocks, standing at just over 3%. Chevron's business benefits from higher oil prices, generating $14.2 billion in adjusted free cash flow in Q3 2026 and paying out $3.5 billion in dividends.
The company is also working on improving its balance sheet by paying down debt. Chevron anticipates long-term growth from its stakes in offshore fields in Guyana and the Permian Basin, ensuring its continued ability to increase dividends.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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