If a company increases its dividend every year for at least 50 consecutive years, it earns the title of “Dividend King.” Achieving a place on this elite list is extremely difficult, as businesses must continuously raise payouts through wars, economic recessions, and other challenging environments.
These Dividend King stocks are by no means the fastest-growing stocks in the market, but they are reliable investment choices during uncertain times. Below is a detailed analysis of two of them—American States Water (AWR) and Coca-Cola (KO)—along with an explanation of why they are worth buying at present.
American States Water is a regulated utility company that owns Golden State Water, Bear Valley Electric, and American States Utility. Golden State Water is its primary revenue source, providing water connections to 265,100 customers across 80 communities in California. Bear Valley Electric distributes electricity to 24,900 customer connection points in and around the city of Bear Lake. American States Utility provides contract-based water supply operations, maintenance, and construction management services at over 12 military bases.
Most investors hold American States Water for stability and income, not growth. The company has increased its annual dividend for 72 consecutive years, with a forward dividend yield of 2.7% and a payout ratio of 58% over the past 12 months, leaving ample room for future dividend growth. From 2015 to 2025, thanks to sustained investment in water infrastructure, approved rate increases for customer charges, and growth in military service contracts, its earnings per share (EPS) doubled from $1.60 to $3.37. Currently trading at $75 per share, the stock remains reasonably valued at a trailing price-to-earnings (P/E) ratio of 22, making it a high-quality defensive stock in a volatile market.
Coca-Cola has increased its dividend for 64 consecutive years and is another top-tier defensive stock. Its forward dividend yield is 2.7%, with a sustainable payout ratio of 67%. As the world’s largest beverage producer, the company sells 2.2 billion drinks per day across more than 200 countries and territories.
Coca-Cola is able to generate stable profits and ample cash for dividend payouts because it sells only high-margin concentrate and syrup, while its independent bottling partners handle the actual production and distribution of finished products. To counter the global decline in soda consumption, Coca-Cola has diversified its product portfolio by adding more brands, including bottled water, tea, juices, energy drinks, coffee, and even alcoholic beverages. At the same time, the company has introduced flavor innovations, healthier versions, and smaller serving sizes for its flagship soda products to attract younger consumers. From 2015 to 2025, despite significant headwinds such as the pandemic, inflation, and geopolitical conflicts, Coca-Cola’s EPS grew from $1.67 to $3.04. Although its current trailing P/E ratio of 25 is not particularly cheap, it remains a top-tier safe-haven stock.
Conclusion: American States Water and Coca-Cola have demonstrated their ability to operate steadily through various economic cycles, as evidenced by their decades-long, uninterrupted records of dividend growth. American States Water benefits from its regulated utility nature and stable infrastructure investments, while Coca-Cola responds to changing consumption trends through diversification and product innovation. Against a backdrop of ongoing macroeconomic uncertainty, these two Dividend Kings are high-quality, defensive choices worth considering for investors.
