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3 Potential Future Dividend Kings to Buy and Hold for Growing Passive Income

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3 Potential Future Dividend Kings to Buy and Hold for Growing Passive Income

The article highlights Air Products and Chemicals (APD), Atmos Energy (ATO), and ExxonMobil (XOM) as companies nearing 'Dividend King' status, each demonstrating robust dividend growth supported by distinct business strategies. Air Products, 43 years into its streak, anticipates stronger dividend increases following a strategic pivot to its core industrial gas business and projected FY2026 earnings growth, despite recent stock underperformance. Atmos Energy, with 38 years of increases, maintains steady dividend growth through its regulated utility operations and consistent earnings guidance. ExxonMobil, having increased dividends for 42 years, continues to prioritize shareholder returns via efficiency initiatives and significant cost synergies from its Pioneer Natural Resources acquisition, underpinning its 3.4% forward yield and future growth.

Analysis

The article highlights Air Products and Chemicals (APD), Atmos Energy (ATO), and ExxonMobil (XOM) as companies nearing "Dividend King" status, each demonstrating over 38 years of consecutive dividend growth. This commitment to consistent shareholder returns positions them as attractive for income-focused investors. Air Products (APD), with 43 years of dividend increases, is undergoing a strategic turnaround, refocusing on its core industrial gas business. Despite a double-digit stock decline since early 2025, analysts project a return to positive earnings growth in FY2026, potentially facilitating more significant dividend increases and a stock rebound. Atmos Energy (ATO), with 38 years of dividend growth, benefits from its regulated natural gas utility business, providing stability and consistent cash flows. The company achieved over 8% annualized dividend growth over the past decade and projects 6-8% earnings growth, with its P/E of 24 aligning with peers. ExxonMobil (XOM) boasts 42 years of dividend growth, consistently prioritizing payouts, including a 4% increase in 2024. The energy major drives efficiency through workforce reductions and expects billions in annual cost synergies from its Pioneer Natural Resources acquisition, supporting mid-single-digit dividend growth and share price appreciation.