Tuesday, January 21, 2014

The Dividend Kings List for 2014

The dividend kings list includes companies which have managed to raise dividends for at least 50 years in a row. This is a huge accomplishment, since it shows a business model that has endured the destructive forces of several recessions, oil shocks, wars, market crashes and changes in technology. I would strongly encourage every dividend investor to study the success of each of those companies, in an effort to learn about the characteristics that made each company able to afford rewarding shareholders with a raise for over half a century.

There were two companies, which became dividend kings in 2013 – Colgate Palmolive (CL) and Nordson Corp (NDSN). This brings the total number of components to 17, which I believe is a record. There were no deletions in 2013, as no components cut distributions. The two new additions include:

Colgate-Palmolive Company (CL), together with its subsidiaries, manufactures and markets consumer products worldwide. The company operates in two segments: Oral, Personal and Home Care; and Pet
Nutrition. Over the past decade, the company has managed to raise dividends by 11.40%/year. Currently, shares are overvalued at 26.70 times earnings and yield 2.10%. Check my analysis of Colgate-Palmolive for more information on the company.

Nordson Corporation (NDSN) engineers, manufactures, and markets products and systems for dispensing and processing adhesives, coatings, polymers, sealants, biomaterials, fluid management, testing and inspection, surface treatment, and curing. Over the past decade, the company has managed to raise dividends by 8.10%/year. Currently, shares are overvalued at 21 times earnings and yield 1%.

Given the fact that the next companies that are close to the 50 year mark have only raised distributions for 48 years in a row, it looks like there won’t be any additions until sometime in 2016. If there is a change in the list prior to that, it would only be because a component cuts or freezes distributions.

The other components of the index include:

Name Symbol Dividend Streak Yrs 10 year Div Growth 10 year EPS Growth P/E Yield
American States Water AWR 59 5.6% 7.7% 17.35 2.9%
Cincinnati Financial CINF 53 6.4% 6.9% 14.2 3.3%
Colgate-Palmolive Co. CL 50 11.4% 8.9% 26.9 2.1%
Diebold Inc. DBD 60 5.4% -3.5% - 3.4%
Dover Corp. DOV 58 9.8% 15.9% 16.85 1.6%
Emerson Electric EMR 57 7.7% 7.8% 24.66 2.5%
Genuine Parts Co. GPC 57 6.2% 7.0% 18.3 2.6%
Johnson & Johnson JNJ 51 10.8% 6.0% 21.07 2.8%
Coca-Cola Company KO 51 9.8% 9.4% 20.49 2.8%
Lancaster Colony Corp. LANC 51 6.9% 2.5% 21.77 2.0%
Lowe's Companies LOW 51 29.2% 10.0% 23.28 1.4%
3M Company MMM 56 6.8% 9.8% 20.69 2.5%
Nordson Corp. NDSN 50 8.1% 20.1% 20.72 1.0%
Northwest Natural Gas NWN 58 3.7% 3.2% 18.57 4.4%
Procter & Gamble Co. PG 57 10.6% 9.6% 20.33 3.0%
Parker-Hannifin Corp. PH 57 13.4% 23.6% 19.94 1.4%
Vectren Corp. VVC 54 2.5% 1.4% 22.61 4.0%

Again, this list is not a recommendation to buy these shares. Businesses do change over time, as models are subjects to competitive pressures and constant changes in the business environment.

Relevant Articles:

The Dividend Kings List Keeps Expanding
Colgate-Palmolive (CL) Dividend Stock Analysis 2012
Eleven Dividend Kings, Raising dividends for 50+ years
A long streak of dividend growth is an indication of a business with exceptional fundamentals
Complete List of Articles on Dividend Growth Investor

7 comments:

  1. It would be cool to see a valuation column for these securities - a "buy below this price" recommendation.

    ReplyDelete
  2. Very interesting list.

    Have you kept record for say one or two years?

    Would be interesting to have a look back at the yield on american common stocks in particular. Have a feeling we're on low levels from a historical perspective?

    ReplyDelete
  3. Hi Ryan,

    Thanks for stopping by! I do not provide investment recommendations on this site. This blog is for information/entertainment purposes only. I talk about what I think about investments, which may or may not be profitable. I do screen companies using entry criteria, after which I analyze each one by one.

    http://www.dividendgrowthinvestor.com/2011/03/my-entry-criteria-for-dividend-stocks.html

    SWC,

    Thanks for stopping by. I have discussed the dividend kings list before:

    http://www.dividendgrowthinvestor.com/2012/01/eleven-dividend-kings-raising-dividends.html

    http://www.dividendgrowthinvestor.com/2013/01/the-dividend-kings-list-keeps-expanding.html

    I do not look at overall levels of yields/P/E etc. I typically look for individual companies.

    Best Regards,

    DGI

    ReplyDelete
  4. Any opinion on DBD? Since following Dividend Growth investing via the dividend champions they have been unprofitable (neg P/E)...when do they cut?

    ReplyDelete
  5. I last analyzed DBD in 2011:

    http://www.dividendgrowthinvestor.com/2011/10/diebold-dbd-dividend-stock-analysis.html

    I didn't like the trends in EPS. Seems like DPS growth has been running on fumes. No recommendation to buy or sell.

    ReplyDelete
  6. Are the growth columns for expected future growth or CAGR over last decade?

    ReplyDelete

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