3 Ultra-Reliable Dividend King Stocks That Should Increase Their Payouts to All-Time Highs in 2025, Even if There's a Stock Market Sell-Off

Core Viewpoint - Investing in high-quality, dividend-paying companies, particularly during market downturns, can provide significant benefits, with Dividend Kings like Walmart, Colgate-Palmolive, and Kimberly-Clark being highlighted as recession-resistant options poised for dividend increases in 2025 [2]. Group 1: Walmart - Walmart's stock saw a remarkable 71.9% increase in 2023, following a period of underperformance, and is generating record revenue with improved operating margins [3][4]. - On February 20, 2024, Walmart announced a 9% dividend increase, the highest in over a decade, and is expected to announce another significant raise due to a reasonable payout ratio of 33.2% [5]. - Analyst estimates for fiscal 2026 project earnings per share at $2.76, reflecting an 11.3% increase from fiscal 2025, although the stock's forward P/E ratio of 36.6 indicates it has become expensive [6][7]. Group 2: Colgate-Palmolive - Colgate-Palmolive benefits from strong brand diversification, with notable brands including Speed Stick and Hill's, and reported a 3.7% increase in organic volume and a 6.8% rise in organic sales in the latest quarter [8][9]. - The company has a geographically diversified revenue stream, with only 20% of sales coming from North America, and Hill's brand contributing 22% to revenue [9][10]. - Colgate-Palmolive has paid uninterrupted dividends since 1895, increasing them for 61 consecutive years, with a current yield of 2.2% and a forward P/E of 23.4, making it a solid choice for risk-averse investors [11][12]. Group 3: Kimberly-Clark - Kimberly-Clark operates in various consumer staples sectors and is considered recession-resistant, but it faces pricing and volume pressures, with only 1% volume growth and a 2% increase in net prices, leading to a total consolidated growth decline of 2% [13][14]. - The stock has decreased by 4.4% over the past five years, with sales and operating income growth of only 6.8% and 5.8%, respectively, resulting in a current yield of 3.8% and a forward P/E of 17 [15]. - Despite the lack of growth, Kimberly-Clark is viewed as a valuable source of passive income, appealing to investors focused on dividend income rather than capital gains [16].