Each week I review the list of dividend increases as part of my monitoring process. This exercise is helpful in evaluating how my existing holdings are doing, and also discovering other interesting companies for further research.
For this weeks review, I have included companies that I believe are close to being attractively valued, or are attractively valued. We have a mixture of companies with a wide range of dividend growth records. I believe that each one of those companies has qualitative characteristics that make their dividends safe. The important trick is to then analyze each company, and initiate a position at the right entry valuation.
The companies include:
Franklin Resources, Inc. (BEN) is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It launches equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries. The company raised its quarterly dividend by 11.10% to 20 cents/share. This marked the 37th consecutive annual dividend increase for this dividend champion. Over the past decade, Franklin Resources has managed to raise dividends at a rate of 16.20%/year. Currently, the stock is attractively valued at 14.70 times forward earnings and yields 2%. Check my analysis of the company for more information.
Realty Income Corporation (O) is a publicly traded real estate investment trust. It invests in the real estate markets of the United States. The firm makes investments in commercial real estate.
The company raised its monthly dividend to 20.25 cents/share. This dividend contender has managed to boost dividends for 23 years in a row. Over the past decade Realty Income has managed to raise dividends at a rate of 5%/year.
Currently, Realty Income is selling at 19.60 times forward FFO and yields 4.50%. I believe that the REIT would be more appealing on dips below $49/share.
Abbott Laboratories (ABT) manufactures and sells health care products worldwide. The company raised its quarterly dividend by 1.90% to 26.50 cents/share. This dividend aristocrat has been able to boost dividends for 44 years in a row. This was a slower than normal dividend increase however, so this is something to monitor. Currently, the stock is attractively valued at 17.20 times forward earnings and yields 2.70%.
The Boeing Company (BA), together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital.
Boeing raised its quarterly dividend by a massive 30.30% to $1.42/share. This marked the sixth consecutive annual dividend increase for this dividend angel. Over the past decade Boeing has managed to raise dividends at a rate of 13.80%/year.
Currently, Boeng is slightly overvalued at 21.80 times forward earnings and yields 3.60%. I would consider initiating a position in the company on dips below $142/share.
Full Disclosure: Long O, ABT,
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