Printed on April twentieth, 2026 by Bob Ciura
The Dividend Kings are a choose group of 58 shares which have elevated their dividends for at the very least 50 consecutive years.
We imagine the Dividend Kings are among the many highest-quality dividend development shares to purchase and maintain for the long run.
With this in thoughts, we created a full checklist of all 58 Dividend Kings.
You may obtain the total checklist, together with essential monetary metrics similar to dividend yields and price-to-earnings ratios, by clicking on the hyperlink beneath:
Annually, we individually overview all of the Dividend Kings.
The latest member of the Dividend Kings checklist is Sonoco Merchandise (SON), which just lately elevated its dividend for the fiftieth consecutive 12 months.
This text will present a extra detailed evaluation of the corporate.
Enterprise Overview
Development Prospects
The corporate has grown earnings-per-share at a charge of 8.6% since 2016. Going ahead, we count on 5% annual earnings-per-share development over the following 5 years.
Sonoco’s future development is predicted to be powered by robust demand for fiber-based packaging, lasting growth in client and industrial markets, and momentum from the corporate’s rising mixture of sustainable and value-added merchandise.
Sonoco Merchandise has an extended historical past of dividend development.
Given the very affordable payout ratio, we mission that dividend development can proceed for years to return. We see the payout reaching $2.71 by 2031.
Aggressive Benefits & Recession Efficiency
A key aggressive benefit for Sonoco Merchandise is that the corporate is normally capable of cross alongside rising uncooked materials and transportation prices to its prospects.
Capacity to cross alongside prices is a bonus as this exhibits that the corporate’s choices are in demand.
Additionally serving to develop the highest and backside traces is Sonoco Merchandise’ historical past of acquisitions.
The Eviosys, Ball Metalpack, Conitex, and Can Packaging purchases are prime examples of rising by way of acquisitions.
Earnings-per-share declined 21% from 2008 to 2009, however Sonoco Merchandise was capable of return to development the next 12 months.
Though the corporate confronted some challenges over the last recession, it maintained its dividend.
The corporate’s income remained strong through the COVID-19 pandemic as effectively, with EPS even surging between 2020 and 2022, because of the important nature of its packaging options.
Over the previous decade the corporate has averaged a forty five% dividend payout ratio, however it’s projected to be a lot decrease than that this 12 months.
Sonoco Merchandise has a really affordable dividend payout ratio of 35% primarily based off our expectations for 2026. As such, Sonoco Merchandise’ dividend seems secure.
Valuation & Anticipated Returns
SON inventory trades for a price-to-earnings ratio of 9.6. That is beneath our honest worth estimate of 11.
SON inventory has a 10-year common P/E ratio of 13.9, however the a number of falls to 10.8 when taking a look at simply final 5 years. We have now lowered our 2031 goal P/E to 11 from 12, as this higher displays the typical a number of over the medium-term.
Nonetheless, the inventory seems to be undervalued. An increasing P/E a number of might add 2.8% to annual returns over the following 5 years.
Apart from adjustments within the price-to-earnings ratio, future returns shall be pushed by earnings development and dividends. We count on 5% annual earnings development over the following 5 years.
As well as, SON inventory has a present dividend yield of three.8%. Placing all of it collectively, we count on complete annual returns of 11.0% over the following 5 years.
Remaining Ideas
Sonoco Merchandise Firm is now anticipated to supply a complete annual return of 11.0% by way of 2031.
Our projected return stems from our anticipated earnings development charge of 5%, the three.8% present yield, and a slight tailwind from a number of growth.
Sonoco Merchandise supplied steerage for 2026 that means development year-over-year and shares nonetheless commerce beneath our honest worth goal.
There’s a lot to love concerning the firm and the inventory, together with the dividend development historical past and the valuation.
We proceed to view shares of Sonoco Merchandise as a purchase because of projected returns and the robust dividend danger rating.
Extra Studying
Moreover, the next Positive Dividend databases comprise essentially the most dependable dividend growers in our funding universe:
In case you’re searching for shares with distinctive dividend traits, think about the next Positive Dividend databases:
Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to [email protected].
