Last week, there was only one dividend increase from a company that has managed to grow dividends for a decade. The culprit was Lindsay Corporation (LNN).
Lindsay Corporation, (LNN) provides water management and road infrastructure products and services in the United States and internationally. The company operates through two segments, Irrigation and Infrastructure. Lindsay Corporation hiked its quarterly dividend by 3.20% to 32 cents/share. This marked the 18th consecutive annual dividend increase for this dividend achiever.
During the past decade, the company has managed to grow distributions at an annualized rate of 14.90%. The rate of dividend growth has slowed down to 3.20% over the past five years.
Earnings per share went from $1.98 in 2010 to an estimated $2.75 in 2020. That doesn't strike as a terribly exciting growth, particularly given the fact that earnings estimates are probably on the very optimistic side. Given the rapid deterioration in economic fundamentals, it is difficult to forecast anything today, let alone earnings per share.
Nevertheless, I find it fascinating that this company is selling for 36.80 times forward earnings, which is way too high. The stock yields 1.25%. I would not be interested in the stock at this time, given the slow rate of dividend growth and the high valuation.
While the past week has been slow on dividend increases, I would be watching out for dividend hikes on the following companies:
Procter & Gamble (PG) - PG hiked dividends by 6%.
Johnson & Johnson (JNJ) - JNJ hiked dividends by 6.30%
Exxon (XOM)
Ameriprise Financial (AMP)
Sonoco (SON) - kept dividends unchanged
W.W. Grainger (GWW)
Traveler's (TRV) - Traveler's hiked dividends by 4% to 85 cents/share.
Unilever (UL) - kept dividends unchanged
Costco (COST) - Costco hiked dividends by 7%
IBM (IBM)
Magellan Midstream Partners (MMP)
Relevant Articles:
- Four Dividend Increases From Last Week
- Two Companies Escaping the Quarantine on Dividend Hikes
- Dividend Investing and Covid-19 Disruptions
- Three REITs Delivering Fresh Dividend Growth To Shareholders
Popular Posts
-
Realty Income (O) stock reached an all-time-high of $82.29/share in February 2020, or about five years ago. Today, the stock is selling at $...
-
I review the list of dividend increases every week as part of my monitoring process. Dividend increases provide signaling value to me in my ...
-
I came upon an interesting story about another dividend investor, this time a famous actor. This is Sean William Scott, who starred in such ...
-
I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me monitor existing positions. I a...
-
I am a big fan of diversification. That doesn't just mean owning a lot of companies however. It means spreading the risk. You need to un...
-
I review the list of dividend increases every week as part of my monitoring process. Dividend increases provide signaling value to me in my ...
-
I tend to focus my attention on companies that regularly increase dividends to shareholders . A long history of annual dividend increases is...
-
As a shareholder, there are two ways to make profits from a stock. The first way is when you sell your stock for a gain, after it has incre...
-
I was reviewing my old files and re-visited an interesting paper from Standard & Poor's from a few years ago about the importance of...
-
The past few months have been difficult for many investors. Stocks are down from their all time highs, reached just a few months ago. It is ...