Why These Dividend Kings Could Outperform as Inflation Cools Down
Three well-known Dividend Kings—Federal Realty Trust, Hormel Foods, and Target—could see stronger performance as inflation eases. These companies have each raised their dividends for at least 50 consecutive years. Investors often rely on such stocks for steady, long-term returns in their portfolios.
Dividend Kings are businesses that have increased their payouts annually for half a century or more. Among them, Hormel Foods leads with 60 straight years of dividend growth, including its most recent rise in November 2025. Federal Realty Investment Trust follows closely, with 58 consecutive annual increases after its August 2025 hike. Target, while newer to the list, has grown its dividend by nearly 12% per year over the past decade—a faster rate than both competitors.
A shift toward lower inflation may boost these companies in different ways. Hormel Foods could see improved profitability, allowing for larger dividend increases. Federal Realty Trust might benefit from a higher valuation, leading to moderate share price growth. Meanwhile, Target’s turnaround could gain momentum, with stronger cash flow supporting both dividend growth and potential stock appreciation.
If inflation continues to decline, these Dividend Kings may deliver stronger returns through higher dividends and share price gains. Federal Realty Trust’s valuation could expand, Hormel Foods’ payouts might grow faster, and Target’s recovery could accelerate. Each company’s long track record of dividend increases adds to their appeal for long-term investors.
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