Looking to Generate Passive Income? Consider These 3 Rock-Solid Dividend King Stocks

In the stock market over a long-term time horizon can be an excellent way to compound your savings

However, the path toward unlocking significant gains can be marked by numerous ups and downs

Risk-averse investors or those nearing retirement may prefer dividend stocks over growth stocks, as they offer passive income regardless of the broader market's performance

But dividends aren't guaranteed

In fact, some companies will cut their dividends if fits fall, or irregularly raise their dividends even when the company is expanding

Dividend Kings are in a league of their own when it comes to dividend reliability

These are companies that have raised their dividends every year for at least 50 consecutive years

Given this impressive track record, Dividend Kings are a good starting point for investors seeking to enhance their passive income

Image source: Getty Images

Shifting to higher-margin automation is working for Emerson Electric Lee Samaha (Emerson Electric): Dividend Kings, such as Emerson Electric, have a ud record of increasing dividends for over 55 years, for many reasons

One of them is a demonstrable ability to sustain and grow the earnings necessary to increase dividends over time

As such, when you buy a Dividend King, you are not just buying a dividend-paying stock; you are buying a stock with a ven track record of growth

The interesting thing Emerson Electric is that it's a significantly different company from what it was just a few years ago, but its growth spects are arguably even stronger

The company has been restructured to focus on long-term growth opportunities arising from cess and industrial automation, industrial software, and adjacent, such as automated test & measurement

Those are impressive numbers, and ones that support significant dividend growth in the coming years

Given that Emerson's three-month trailing orders are currently growing in the mid-single-digit range in an economy plagued by uncertainty, its longer-term growth aspirations look achievable, and this Dividend King's dividend looks set to grow for a long time yet

With such a dominant slate of brands and a smaller, more focused company, Kenvue seemed a coiled spring for steady growth

However, that has not been the case

Revenue and margin growth have been nonexistent as Kenvue has struggled to offset inflation pressures with price hikes and higher sales volume

KVUE data by YCharts Despite the poor results, Kenvue does have some noteworthy qualities that could be attractive to income investors

Kenvue is ly to modestly boost its dividend later this month to keep the streak a

And finally, Kenvue sports a reasonable valuation -- with a forward price-to-earnings ratio of 18

Kenvue isn't the kind of company that will "wow" investors with a breakneck growth rate and innovation

However, it has a strong portfolio of brands that should support modest dividend growth over time

Put utility stock American States Water to work and watch a tide of dividends flow in Scott Levine (American States Water): Water utility stocks American States Water are rarely the source of sizzling headlines, but sometimes boring can be beautiful

Between these two es, the company generates steady revenue and highly predictable fits

With the resulting insight into future cash flows, management is consequently able to responsibly budget for future capital expenditures, such as infrastructure upgrades and dividends

AWR Total Dividends Paid (Annual) data by YCharts

Over the past 10 years, American States Water has consistently generated ample operational cash flow to source its dividend payments

And that's not the only indication that the dividend is secure

With a 70-year streak of returning an increasing amount of capital to holders and a resilient model, American States Water should shine brightly on the radars of investors looking for stalwart dividend stocks

Daniel Foelber has no position in any of the stocks mentioned

Lee Samaha has no position in any of the stocks mentioned

Scott Levine has no position in any of the stocks mentioned

The Motley Fool has positions in and recommends Emerson Electric and Kenvue

The Motley Fool has a disclosure policy.