I review the list of dividend increases every single week, as part of my monitoring process. This exercise helps visualize what key drivers I look for in dividend growth stocks, and also how I review them for fundamentals and valuation.
Ultimately, returns are a function of:
1. Dividends
2. Earnings Per Share Growth
3. Change in valuation
As a long-term investor, I look for companies that grow earnings and dividends, and try to acquire them at a good price. Afterwards, the goal is to sit back, and let the power of compounding do the heavy lifting for me.
I expect to be wrong 40% - 60% of the time, but I do expect that I will be right on the remainder. The remainder of winners will more than compensate for any losers, and then some. I rarely know which of the companies will be the biggest successes, which is why I take a lot of shots, I diversify, and I hold for as long as possible. I also manage risk by limiting downside, but letting the upside grow with as little limitation on my end as possible.
Anywho, over the past week, there were five dividend growth companies which both raised dividends and also have managed to increase dividends annually for at least ten years in a row. The companies include:
Bank OZK (OZK) operates as a full-service Arkansas state-chartered bank that provides retail and commercial banking services in the United States.
Bank OZK raised quarterly dividends by 2.30% to $0.45/share. The bank has raised dividends for 61 consecutive quarters and 27 consecutive years. Over the past decade, this dividend champion has managed to grow dividends at an annualized rate of 12.90%.
The new payment is 9.75% higher over the dividend paid during the same time last year.
The bank earned $2.10/share in 2015 and managed to grow it to $6.16/share in 2024.
The company is expected to earn $6.34/share in 2025.
The stock sells for 8.08 times forward earnings and has a dividend yield of 3.51%.
Farmers & Merchants Bancorp, Inc. (FMAO) operates as the bank holding company for The Farmers & Merchants State Bank that provides commercial banking services to individuals and small businesses in Northwest Ohio, Northeast Indiana, and Southeast Michigan.
Farmers & Merchants Bancorp (FMAO) raised quarterly dividends by 2.80% to $0.2275/share. This is teh 20th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 7.70%.
The bank managed to grow earnings from $1.12/share in 2015 to $1.90/share in 2024.
The company is expected to earn $2.27/share in 2025.
The stock sells for 11.15 times forward earnings and has a dividend yield of 3.60%.
RPM International Inc. (RPM) provides specialty chemicals for the construction, industrial, specialty, and consumer markets. It operates in four segments: CPG, PCG, Consumer, and SPG.
RPM raised quarterly dividends by 5.90% to $0.54/share. This is the 52nd consecutive year that this dividend king has increased its cash dividend. Over the past decade, the company has managed to grow dividends at an annualized rate of 6.80%.
"In an era of extremely low interest rates on savings account and other interest-bearing investment options, RPM’s dividend growth—coupled with an appreciating stock price—yield a total return that makes the company attractive to both institutional and individual investors.
Since initiating its focus on an annually growing dividend in 1973 to drive long-term value for shareholders, $RPM has grown from $25 million in annual sales to more than $7.4 billion, while delivering $3.8 billion in after-tax capital through its cash dividend program."
The company earned $2.70/share in 2016 and grew profits to $5.38/share in 2025.
The company is expected to earn $5.68/share in 2026.
The stock sells for 20.59 times forward earnings and has a dividend yield of 1.85%.
Starbucks Corporation (SBUX) operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development.
Starbucks raised quarterly dividends by 1.60% to $0.62/share. This is the 15th consecutive annual dividend increase for this dividend achiever.
This is also the smallest dividend increase ever for Starbucks. Over the past decade, the company has managed to grow dividends at an annualized rate of 15.50%.
The company managed to grow earings from $1.84/share in 2015 to $3.32/share in 2024.
The company is expected to earn $2.17/share in 2025.
The stock sells for 39.84 times forward earnings and has a dividend yield of 2.87%.
Trinity Bank, N.A. (TYBT) provides personal and business banking products and services in Texas.
Trinity Bank raised its semi-annual dividends by 5.30% to $1/share. This represents the 13th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 10.80%.
The company grew earnings from $2.91/share in 2014 to $7.83/share in 2024.
The stock sells for 12.26 times earnings and yields 2.20%.
I honestly love how they show the dividends paid over the past 13 years, and totaled it in the press release. For reference, stock was at around $26.50/share at the end of 2011.
Relevant Articles:
- Three Dividend Growth Stocks In The News
