2025 is proving to be a tough year. The S&P is down about 1% since the first trading day of the year, while the Dow fared slightly better. The recent jobs report pointed to a strong economy, but this good news translates to bad news for stock, as analysts now expect that there may not be any more rate cuts in 2025.
To me, that means I can take advantage of the near-term volatility and pick up cheap, quality stocks to add to my portfolio. So, let’s look at the elite Dividend Kings lists to find which companies are suffering the most from the bearish market - and appear to be making a try for a reversal.As a quick refresher, a Dividend King is a company that has increased their dividend for at least the last 50 consecutive years. Unlike a Dividend Aristocrat, the Kings don’t need to be S&P 500 listed.
How I Came Up With The Following Stocks
To start this analysis, on Sunday, January 12, 2025, I went to Barchart’s Stock Screener and entered the following filters:
- 14-Day Relative Strength Index: Less than 30%. The relative strength index, or RSI, uses a 100-point system, which indicates if a stock is oversold (30 and below) or overbought (70 and above). I’m looking for Dividend Kings well into oversold territory.
- Annual Dividend Yield: Left blank.
- Current Analysts Rating: 4 (Moderate Buy) to 5 (Strong Buy). Despite bearish market movements, the stocks appearing in this analysis still have Wall Street’s approval.
- Percent from Low: Within 1% of 1-year low. This convenient filter lets me find stocks trading near their recent 52-week lows.
- Watchlists: Kings. This is my personal watchlist of the Dividend Kings.
This analysis yielded three companies, making it perfectly fitting for my usual stock list. I then waited to see if these companies are actually on the rebound (and potentially write about them)- and they are. So, I’ve arranged the results from highest to lowest analyst score, and we’ll start with the top one:
California Water Service Group Holding (CWT)
California Water Service Group Holding, or Cal Water, is one of the largest water utility companies in the US. The company is heavily regulated and serves residential, commercial, industrial, and public sector customers in California, Hawaii, New Mexico, Texas, and Washington.
Cal Water is one of the most trusted and stable utility dividend stocks, with 58 years of increases. Today, it pays $1.12 annually, translating to a 2.65% yield. It’s also closed at 1.59% above its recent 52-week low, which—coupled with the fact that analysts are still optimistic about the stock with their moderate buy rating—might present an excellent buying opportunity for both dividend income and capital appreciation.
If that’s not enough, CWT stock is significantly oversold, registering a 22.43 14-day RSI on Monday, January 13, 2025. Though, it would appear a reversal might be in sight with the stock up over 8% in premarket trading.
MSA Safety (MSA)
Nearly every operational industry has to contend with hazard control and safety issues, and companies like MSA Safety meet these needs. MSA Safety is a global company that designs, develops, and manufactures safety products like personal protective equipment (PPE), gas detection systems, respiratory protection, fall protection, and firefighter gear.
MSA stock had a rocky 2024, and recently registered a new 52-week low at $156.30. On January 10, 2025, the stock registered a 14-day RSI of ~27, and now appears to be rebounding. This can be an excellent opportunity to catch this Dividend King on a bargain and gain from its recovery.
MSA Safety has increased dividends for 54 straight years, with May 2025 expected to be the 55th. The company pays $2.04 annually, reflecting a 1.28% yield.
PPG Industries (PPG)
PPG Industries, one of the world’s top paints, coatings, and specialty materials manufacturers, did not have a great 2024. Q3 2024 earnings missed estimates by 2 cents, and softer demands led to softer revenue by a 1% decrease year-on-year (YOY). The top-line miss was mainly due to its Industrial Coatings segment, down 6% YOY.
All this culminated in an oversold RSI level of ~26 on January 3, 2025, and a new 52-week low at $113.00 on January 13.
Despite that, analysts still see the light for PPG stock at the end of the tunnel. Analysts' scores are split evenly between 11 strong buy and 11 hold ratings, resulting in an average score of 4.0 and a moderate buy consensus recommendation. Meanwhile, PPG Industries continues to offer a healthy 2.4% yield based on a $2.72 annual dividend rate.
Final Thoughts
If you’re like me and bottom-pick as a trading strategy, these three Dividend Kings offer significant value through their steeply discounted prices and decent dividend yields. However, things can turn quickly, so always stay on top of market news. Due diligence may be tedious, but worth it!
