Dividendy
Dividend Kings: 50 Years of Uninterrupted Dividend Growth
Key takeaways
- Dividend Kings are companies that have increased their dividend without interruption for at least 50 years — through oil shocks, financial crises, recessions, and a pandemic.
- The club has roughly 50 members (the count changes over time); all are American and listed on the NYSE or Nasdaq.
- Typical representatives: Procter & Gamble, Coca-Cola, Johnson & Johnson, Colgate-Palmolive, 3M.
- Dividends from these shares are taxed at 15% in the Czech Republic; US withholding tax also applies (typically 15% thanks to the CZ-US tax treaty).
- Dividend Kings are not a guarantee of future returns — their valuations tend to be higher and dividend growth slower.
Dividend Kings are companies that have increased their dividend every year for at least 50 consecutive years — they have been through oil shocks, financial crises, recessions, and a pandemic, and never once cut the dividend.
What Sets Them Apart from Dividend Aristocrats
Dividend Aristocrats meet the threshold of 25 years of uninterrupted dividend growth. Dividend Kings go further — 50 years and more. These are roughly 50 companies (the number changes over time), all of which are American. The conditions for entry into this exclusive club are not formally codified by any exchange — it is an unofficial title tracked by analysts and the media. An overview of aristocrats is in the article dividend aristocrats.
Typical Representatives and Their Profiles
- Procter & Gamble — consumer goods (Gillette, Pampers, Ariel); more than 65 years of dividend growth.
- Coca-Cola — beverages; over 60 years of uninterrupted increases.
- Johnson & Johnson — healthcare and consumer products; more than 60 years.
- Colgate-Palmolive — oral hygiene; over 60 years.
- 3M — industrial conglomerate; historically over 60 years (check current status).
Taxes on Kings' Dividends for Czech Investors
Dividends from US shares pass through two layers of tax. At the US level, a 15% withholding tax is deducted, thanks to the double-taxation treaty between the Czech Republic and the US (the standard rate is 30%; the treaty reduces it). In the Czech Republic you then pay a further 15% on the received dividend, but the withholding tax paid in the US can be credited against the Czech tax liability. The effective tax burden depends on correctly applying the credit — see the guide ETF taxes in the Czech Republic. The time test never applies to dividends.
How to Include Them in a Portfolio
Direct purchase of individual Kings makes sense only if you are willing to monitor their fundamentals and diversify across at least 10–15 names. The alternative is ETFs focused on dividend aristocrats or dividend yield — for example the SPDR S&P U.S. Dividend Aristocrats UCITS ETF or the ProShares S&P 500 Dividend Aristocrats ETF. An overview of options is in the ETF database.
This article is not tax advice. Foreign dividend taxation is described in detail in the guide ETF taxes in the Czech Republic.
FAQ
What are Dividend Kings?
Companies that have increased their dividend without interruption for at least 50 consecutive years. These are roughly 50 US companies — among them Procter & Gamble, Coca-Cola, and Johnson & Johnson.
How do Dividend Kings differ from Aristocrats?
Dividend Aristocrats have increased their dividend for at least 25 years. Dividend Kings have surpassed the 50-year threshold — they are an even more selective group with a longer track record of reliability.
How are dividends from US Dividend Kings taxed in the Czech Republic?
The US side withholds a 15% withholding tax (thanks to the CZ-USA tax treaty instead of the standard 30%). In the Czech Republic you then pay 15% tax on the dividend, but the withheld tax paid can be credited against the Czech liability. The time test does not apply to dividends.
Are Dividend Kings a safe investment?
Historical reliability is high, but does not guarantee the future. Their valuations tend to be above average, dividend growth slow, and concentration in traditional sectors limits exposure to technological growth. They are part of a portfolio, not its entirety.