"If the goal of investing is to turn today's savings into tomorrow's reliable cash flow, Dividend Kings are about as close as the market gets to surefire. Every member of this elite club has raised its payout for at least half a century, surviving oil shocks, stagflation, tech busts, financial meltdowns and the fastest rate-hiking cycle in modern memory. As such, these names are often treated as the backbone of any "buy once, sleep well" portfolio."
"Universal Corp (UVV) is not a cigarette-maker. It is the world's largest leaf-tobacco merchant that buys raw tobacco from farmers in ~30 countries. It then processes, blends, packs and ships it to the big cigarette manufacturers. Because it never touches retail sales, its revenue moves with global leaf volumes and prices, not with end-market stick sales. This is how it has mostly bucked the trend of a rapid decline in cigarette sales worldwide."
"This conservatism has allowed the stock to trade with exceptional stability over the years. The business itself gushes cash and is growing in the long run. Annual revenue from $2.23 billion in FY 2019 to $2.95 billion in FY 2025. UVV stock has a 5.9% dividend yield with 55 consecutive years of dividend increases. Its forward payout ratio is 71.15%, which is exceptional for a stock yielding this high."
Dividend Kings are companies that have increased their dividends for at least fifty years, maintaining payouts through oil shocks, stagflation, tech busts, financial meltdowns and rapid rate-hiking cycles. These firms provide reliable, rising cash flow and often serve as the backbone of buy-and-hold income portfolios. Universal Corp (UVV) operates as the world's largest leaf-tobacco merchant, buying raw tobacco from farmers in about 30 countries, processing, blending, packing and shipping to major cigarette manufacturers, tying revenue to leaf volumes and prices rather than retail stick sales. UVV pursues conservative purchasing to avoid speculative inventory, has grown revenue from $2.23 billion in FY2019 to $2.95 billion in FY2025, yields 5.9% and has raised dividends for 55 consecutive years.
Read at 24/7 Wall St.
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