Start the New Year Off With Passive Income: 3 Dividend Kings to Buy Now

The article recommends adding Dividend Kings to portfolios for steady passive income and downside mitigation, highlighting Coca‑Cola, Abbott Laboratories and Target for their long records of payout increases: Coca‑Cola (130+ years, 60+ consecutive years of raises) pays $2.04 per share (2.9% yield); Abbott (53 years of raises) pays $2.36 (1.9% yield) across diversified medical-device, nutrition, diagnostics and pharma businesses; and Target (54 years of raises) yields 4.9% at $4.56 per share while trading at about 12x forward earnings amid a management transition to COO Michael Fiddelke. The piece notes these yields exceed the S&P 500’s and flags the author’s and Motley Fool’s positions in the names and that Coca‑Cola was not included on Motley Fool’s current Stock Advisor top‑10 list.

Analysis

The article highlights Dividend Kings as a source of passive income and downside mitigation, profiling Coca-Cola (KO), Abbott Laboratories (ABT) and Target (TGT). Coca-Cola is noted for a 130+ year history, 60+ consecutive years of dividend increases, and a $2.04 annual payout equating to a 2.9% yield. Abbott is described as a diversified healthcare leader across medical devices, nutrition, diagnostics and established pharmaceuticals, paying $2.36 for a 1.9% yield with 53 years of raises. Target is presented as a recovery/value candidate trading at roughly 12x forward earnings, yielding $4.56 or 4.9%, with a planned CEO transition to COO Michael Fiddelke and 54 years of dividend increases.

The piece frames these names as core dividend candidates because their yields exceed the S&P 500 and their long payout histories imply commitment to capital returns. Coca-Cola and Abbott are positioned as defensive income plays — brand moat and healthcare demand — while Target is a higher-yield, operational-recovery trade subject to execution risk. The article discloses the author holds Target and Motley Fool recommends Abbott and Target, and notes Coca-Cola was not included in the outlet’s current Stock Advisor top-10 list.

Implications for investors are that income and valuation trade-offs are central: KO and ABT offer lower-yield, lower-volatility income, while TGT offers higher yield and potential upside at the cost of operational uncertainty and leadership change. Given the article’s mildly positive sentiment and low market-impact score, monitor dividend coverage, free cash flow and Target’s operational KPIs, and treat the published positions as a potential bias when sizing allocations.

Key Decisions for Investors

• Consider adding Coca-Cola as a defensive core income holding given 60+ years of raises and a 2.9% yield, but confirm dividend coverage and free-cash-flow trends before increasing exposure
• Use Abbott to diversify into healthcare income exposure given its four specialty areas and 53-year raise streak, while monitoring segment-level performance for signs of earnings risk
• Treat Target as a tactical recovery/value income trade at ~12x forward earnings with a 4.9% yield, size positions modestly due to recent operational issues and the imminent CEO transition, and watch same-store sales and margin recovery
• Factor in the disclosure that the author holds Target and Motley Fool recommends ABT and TGT when assessing conviction level, and monitor company filings for any changes to dividend policy or cash-flow guidance