These 2 Dividend Kings Are My Top Buys for April 2026

If a company raises its dividend annually for at least 50 consecutive years, it's crowned as a Dividend King. It's incredibly difficult to join that elite list, since a company would need to consistently raise its payout through wars, recessions, and other difficult situations.

Those Dividend Kings definitely aren't the market's fastest-growing stocks, but they're reliable investments for uncertain times. Let's take a closer look at two of them -- American States Water (NYSE: AWR) and Coca-Cola (NYSE: KO) -- and see why they're great buys today.

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American States Water

American States Water is a regulated utility that owns Golden State Water, Bear Valley Electric, and American States Utility. Golden State Water, its main source of revenue, serves 265,100 customer water connections in 80 communities in California. Bear Valley Electric distributes electricity to 24,900 customer connections in the City of Bear Lake and its surrounding areas. American States Utility provides contract-based water operations, maintenance, and construction management services in over a dozen military bases.

Most investors own American States Water for stability and income instead of growth. It's raised its dividend annually for 72 consecutive years, pays a forward yield of 2.7%, and has a trailing payout ratio of 58%, giving it plenty of room for future increases.

From 2015 to 2025, its EPS more than doubled from $1.60 to $3.37, driven by ongoing investments in its water infrastructure, approvals for higher customer rates, and growth in its contracted military services. At $75, it still looks reasonably valued at 22 times its trailing earnings -- and it will remain a top defensive stock to hold in this turbulent market.

Coca-Cola

Coca-Cola, which has raised its dividend for 64 consecutive years, is another top defensive play. It pays a forward yield of 2.7%, and it has a sustainable payout ratio of 67%. It's the world's largest beverage maker, serving 2.2 billion drinks daily in over 200 countries and territories.

Coca-Cola generates stable profits and plenty of cash for dividends because it sells only high-margin concentrates and syrups. Its independent bottling partners actually produce and distribute the finished beverages. To address declining soda consumption worldwide, Coca-Cola diversified its portfolio with more brands of bottled water, teas, fruit juices, energy drinks, coffee, and even alcoholic beverages. It also refreshed its flagship sodas with new flavors, healthier versions, and smaller serving sizes to attract younger consumers.

From 2015 to 2025, Coca-Cola's EPS grew from $1.67 to $3.04, even as it weathered the pandemic, inflation, geopolitical conflicts, and other intense headwinds. It isn't a screaming bargain at 25 times trailing earnings, but it could remain a top safe-haven stock.

Leo Sun has positions in Coca-Cola. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.