Published on April 20th, 2026 by Bob Ciura
The Dividend Kings are a select group of 58 stocks that have increased their dividends for at least 50 consecutive years.
We believe the Dividend Kings are among the highest-quality dividend growth stocks to buy and hold for the long term.
With this in mind, we created a full list of all 58 Dividend Kings.
You can download the full list, along with important financial metrics such as dividend yields and price-to-earnings ratios, by clicking on the link below:
Each year, we individually review all the Dividend Kings.
The newest member of the Dividend Kings list is Sonoco Products (SON), which recently increased its dividend for the 50th consecutive year.
This article will provide a more detailed analysis of the company.
Business Overview
Growth Prospects
The company has grown earnings-per-share at a rate of 8.6% since 2016. Going forward, we expect 5% annual earnings-per-share growth over the next five years.
Sonoco’s future growth is expected to be powered by strong demand for fiber-based packaging, lasting expansion in consumer and industrial markets, and momentum from the company’s growing mix of sustainable and value-added products.
Sonoco Products has a long history of dividend growth.
Given the very reasonable payout ratio, we project that dividend growth can continue for years to come. We see the payout reaching $2.71 by 2031.
Competitive Advantages & Recession Performance
A key competitive advantage for Sonoco Products is that the company is usually able to pass along rising raw material and transportation costs to its customers.
Ability to pass along costs is an advantage as this shows that the company’s offerings are in demand.
Also helping grow the top and bottom lines is Sonoco Products’ history of acquisitions.
The Eviosys, Ball Metalpack, Conitex, and Can Packaging purchases are prime examples of growing through acquisitions.
Earnings-per-share declined 21% from 2008 to 2009, but Sonoco Products was able to return to growth the following year.
Although the company faced some challenges during the last recession, it maintained its dividend.
The company’s revenue remained robust during the COVID-19 pandemic as well, with EPS even surging between 2020 and 2022, due to the essential nature of its packaging solutions.
Over the past decade the company has averaged a 45% dividend payout ratio, but it is projected to be much lower than that this year.
Sonoco Products has a very reasonable dividend payout ratio of 35% based off our expectations for 2026. As such, Sonoco Products’ dividend appears safe.
Valuation & Expected Returns
SON stock trades for a price-to-earnings ratio of 9.6. This is below our fair value estimate of 11.
SON stock has a 10-year average P/E ratio of 13.9, but the multiple falls to 10.8 when looking at just last five years. We have lowered our 2031 target P/E to 11 from 12, as this better reflects the average multiple over the medium-term.
Still, the stock appears to be undervalued. An expanding P/E multiple could add 2.8% to annual returns over the next five years.
Aside from changes in the price-to-earnings ratio, future returns will be driven by earnings growth and dividends. We expect 5% annual earnings growth over the next five years.
In addition, SON stock has a current dividend yield of 3.8%. Putting it all together, we expect total annual returns of 11.0% over the next five years.
Final Thoughts
Sonoco Products Company is now expected to offer a total annual return of 11.0% through 2031.
Our projected return stems from our expected earnings growth rate of 5%, the 3.8% current yield, and a slight tailwind from multiple expansion.
Sonoco Products provided guidance for 2026 that implies growth year-over-year and shares still trade below our fair value target.
There is much to like about the company and the stock, including the dividend growth history and the valuation.
We continue to view shares of Sonoco Products as a buy due to projected returns and the strong dividend risk score.
Additional Reading
Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:
If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:
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