Even the most dependable dividend stocks can fall close to their lows. That is what makes this setup interesting. When a stock with a long history of rewarding shareholders trades near its year-to-date low, it can present a potential entry point for investors willing to look past short-term weakness. The problem? Stocks are among the only markets where, when something is “on sale”, people hesitate to buy.
And this is especially true for Dividend Kings, a small group of companies that have raised their dividends for at least 50 consecutive years. That kind of consistency doesn't make them risk-free, but it does show a level of durability that only a few public companies have maintained. And when companies like these trade at a discount, their yield, by extension, increases to a point rarely seen in a Dividend King.
