Eaton Corporation plc (ETN) operates as a power management company worldwide. This dividend company has paid dividends since 1923 but is the type of company that does not raise them every year. For example, in the past two decades the company kept annual dividends unchanged in 1999, 2000, 2002 and 2009. I recently initiated a position in the company, and just now managed to get some time to do a write up about it.
Over the past decade this dividend growth stock has delivered an annualized total return of 10.70% to its shareholders. Future returns will be dependent on growth in earnings and dividend yields obtained by shareholders.
The company has managed to deliver an 11.80% average increase in annual EPS over the past decade. Eaton is expected to earn $4.60 per share in 2014 and $5.34 per share in 2015. In comparison, the company earned $3.90/share in 2013.
The annual dividend payment has increased by 13.80% per year over the past decade, which is higher than the growth in EPS. I would expect the dividend growth rate to be closer to 10% for the near future.
Currently, Eaton is attractively valued at 15.30 times forward earnings, and has a dividend yield of 2.80%. I initiated a position in the company in the past month. I would be looking forward to adding to my position in the company in the coming years, subject to availability of funds, opportunity cost and valuation.
Full Disclosure: Long ETN
Review the full analysis at Seeking Alpha
- Two and a half purchases I made this week
- Ten Dividend Seeds I Planted for Long Term Income
- 14 Dividend Growth Stocks I Bought On the Dip Last Week
- Does diversification lead to lower quality of investments in a dividend portfolio?
- How to stay motivated on your road to financial independence
The S&P Dividend Aristocrats index is an elite group of companies, members of the S&P 500, which have managed to increase dividends ...
The list of dividend champions includes companies which have managed to increase dividends every single year for at least 25 years in a row...
As part of my monitoring process, I review the list of dividend increases every week. I usually focus my attention to companies that have r...
In a previous article I discussed that I am on track to have my dividend income cover my expenses sometime around 2018 . I received a few qu...
Last week, I shared the 2017 list of dividend aristocrats . The most common question I received focused on which companies are attractively ...
I just received notification that low cost broker Loyal3 is shutting down, effective May 22 2017. Loyal3 was a decent commission free alte...
John Bogle is an investing legend. He is the founder of Vanguard Group, a $4 trillion dollar mutual fund powerhouse. Vanguard is credited fo...
This guest post has been written by Mike McNeil, passionate investor, founder of Dividend Stocks Rock and author of The Dividend Guy Blo...
Successful dividend growth investing relies on finding companies at an attractive price which can grow earnings and dividends over time. A...
Raytheon Company (RTN) develops technologically integrated products, services, and solutions worldwide. It operates through five segments: I...