I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me monitor existing companies, and also potentially identify companies for further research.
In my reviews, I focus on companies that have managed to increase dividends for at least ten consecutive years. I also drill down on understanding whether dividend growth was supported by rising earnings per share. In addition, I want to compare the most recent dividend increase to the historical average.
Last but not least, I want to look at valuation. Valuation is part art, part science. It takes into consideration the current P/E, and dividend yield, along with growth in earnings and dividends, and then making an extrapolation about the future.
During the past week, there were four companies that announced increases in their quarterly dividends, which also have a ten year minimum streak of consistent annual dividend increases. The companies include:
Enterprise Products Partners L.P. (EPD) provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. It operates in four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services.
Enterprise Products Partners raised its quarterly distribution to $0.545/unit. This is a 3.80% increase over the distribution paid during the same time last year. This dividend champion has increased annual distributions to partners since 1998.
Over the past decade, EPD has managed to boost distributions at an annualized rate of 3.73%.
The partnership yields 6.80%.
Marsh & McLennan Companies, Inc. (MMC) is a professional services company, which provides advisory services and insurance solutions to clients in the areas of risk, strategy, and people worldwide. It operates through Risk and Insurance Services, and Consulting segments.
The company raised quarterly dividends by 10.40% to $0.90/share. This is the 16th year of consecutive annual dividend increases for this dividend achiever. The company has managed to boost dividends at an annualized rate of 11.28% over the past decade.
Between 2015 and 2024, earnings per share increased from $3.01 to $8.25.
The company is expected to earn $9.58/share in 2025.
The stock sells for 22.40 times forward earnings and yields 1.70%.
Ryder System, Inc. (R) operates as a logistics and transportation company worldwide. It operates through three segments: Fleet Management Solutions (FMS), Supply Chain Solutions (SCS), and Dedicated Transportation Solutions (DTS).
Ryder raised its quarterly dividends by 12.30% to $0.91/share. This is the 21st consecutive year of dividend increases for this dividend achiever. The company has managed to boost dividends at an annualized rate of 8.15% over the past decade.
Between 2015 and 2024, earnings per share increased from $5.75 to $11.28.
The company is expected to earn $12.88/share in 2025.
The stock sells for 13.70 times forward earnings and yields 1.84%.
Unum Group (UNM) provides financial protection benefit solutions in the United States, the United Kingdom, and Poland. It operates through Unum US, Unum International, Colonial Life, and Closed Block segment.
The company raised quarterly dividends by 9.5% to $0.46/share. This is the 17th consecutive annual dividend increase for this dividend achiever. The company has managed to boost dividends at an annualized rate of 9.79% over the past decade.
Between 2015 and 2024, earnings per share increased from $3.51 to $9.49.
The company is expected to earn $8.90/share in 2025.
The stock sells for 9 times forward earnings and yields 2.30%.
Relevant Articles:
- Nine Dividend Achiever Banks Raising Dividends After Passing the Fed's Stress Tests
