I’ve Got Royalty on the Brain

And how could I not?

After exploring Brighton Beach and Bristol, and then Cornwall all the way to St. Ives and Penzance, I wrapped up my Great Britain trip with a couple days in London.

This was my first time in the country, so I had to hit all the popular tourist spots—Buckingham Palace, Westminster Abbey, and the Tower of London. Nearly all the must-visit hot spots in London are connected to the royal family.

I am now back sitting in my temporary office in Baltimore, and I’ve got a different kind of royalty on my mind—dividend royalty.

And even here there is a hierarchy of sorts, as there are two levels of dividend royalty:

Dividend Aristocrat: Any S&P 500 company with at least 25 consecutive years of dividend increases.
Dividend King: Any publicly traded company with at least 50 consecutive years of dividend increases.

I’ve been tracking the two lists for over 15 years and am very familiar with the names on the list. But I still check-in every quarter to see if there have been additions—and sometimes deletions.

If a company fails to boost its dividend during the year, it’s dropped from the list.

This week, I focused on the Dividend Kings list because it has two new additions for 2026 so far. Let’s see if either of them should be added to our watchlist.

The King Gets New Relatives

First up is water treatment company Pentair (PNR).

I’ll admit I knew nothing about this company before it was added to the Dividend Kings list. It had just never made it onto my radar.

It’s a UK-based company that supplies pool equipment, water treatment and filtration, and industrial pumps and fluid management systems.

Shares are down 36% so far this year and hit a new 52-week low of $57.60 last month. The cause? Its preliminary second-quarter results came in below analyst expectations. That was compounded by a sharp downward guidance revision and the surprise resignation of its CEO who only lasted four months.

The company operates through three business segments—Flow, Water Solutions, and Pool—and all eyes are on Pool.

Major partners have been destocking pool equipment inventory. This move wiped out an estimated $170 million in quarterly sales. Management labeled this a cyclical issue, but analysts question if this is a sign of deeper demand weakness.

I don’t mind betting on a turnaround play if we get paid to wait with a worthwhile dividend yield. That’s not the case here. Even after the big slide in shares, the stock yields just 1.6%. Which, unfortunately, is not worth our time.

The other addition was global packaging manufacturer Sonoco Products (SON).

The company was started back in the late 1800s producing a cone-shaped paper carrier for winding and transporting yarn. These were typically made of wood, as paper was the innovation of the time.

Although rigid paper packaging similar to those original yarn cones is still in the portfolio, the company also offers metal packaging and customized plastic solutions.

Shares are up 27% year to date fueled by its big acquisition of Eviosys, a top global metal packaging producer. The purchase adds a powerful growth engine to the company.

Sonoco currently pays out $2.16 annually for a yield of 3.8%, which does not meet my 3.5% minimum.

I am intrigued by this company. It has a lower yield, but it also has 50 years of stable dividend growth. And although not a true consumer staples play, I would argue that packaging has a secure place in any version of the future. I will add this one to my watchlist and dig in a little deeper.

More “Royalty” Hopefuls Could Be Coming Soon

I also like to take my analysis of dividend royalty one step further. That means looking at companies that could hit Aristocrat status if they raise their next dividend payment.

First up is building products manufacturer Carlisle Companies (CSL). It specializes in materials used in roofing and building envelopes, i.e., the outer shell of a building that controls moisture, air, and energy flow.

The company pays a hefty $1.10 quarterly dividend, but that’s a yield of just 1.1% as shares trade around $370. Shares are up 13% year to date and I don’t see any reason for them to drop and give us an entry point.

Next up is McDonald’s (MCD). I don’t need to tell you what this company does. Everyone has had at least one Big Mac or McFlurry in their life. Mickey D’s has been selling hamburgers since 1948 and a public company since 1965.

I’ve never added MCD to my portfolio or watchlist because its dividend yield was just too low. But that could change by the end of the year. Shares are down 12.5% year to date, and a yield creeping towards 3%. If investors push shares down a little more, I’ll be diving deeper into the story to see if there’s an opportunity.

Lastly, there’s global medical technology company Medtonic (MDT). For the fiscal year ending January 31, 2026, it delivered the highest annual revenues growth in 10 years. Yet, shares are down 9.7% year to date, pushing its dividend yield to 3.3%.

I will take the time to dig in specifically on the company’s offerings, but I’ve already spotted a big red flag in my initial research… its dividend payout ratio is 76%!

This was the highest of every company I looked at today. And it’s the most worrying because a medical technology company needs to reinvest its profits back into the business. Again, I need more information, but a payout ratio that high for so little yield just isn’t worth it.

Keep in mind that 50 years of dividend success doesn’t necessarily mean stability for another 50. Members of dividend royalty is another place to look for potential stocks that might not show up on the screeners that I normally use.

For more income, now and in the future,