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
-
Dollar cost averaging is a process, where the same amount of funds is allocated to preset investment/s at regular intervals of time. It is ...
-
Warren Buffett’s Berkshire Hathaway just received a dividend check for $194 million dollars from Coca-Cola. Berkshire Hathaway owns 400 mil...
-
As an investor, I am aware that I have a lot of blind spots. Someone with a glass half full outlook on life might say that I have a lot of r...
-
I review the list of dividend increases every week, as part of my monitoring process. This exercise helps in monitoring existing positions a...
-
I review the list of dividend increases every week, as part of my monitoring process. This exercise helps in monitoring existing positions a...
-
The Procter & Gamble Company (PG) provides branded consumer packaged goods worldwide. It operates through five segments: Beauty; Groomi...
-
One of my favorite charts shows a listing of eleven consumer goods companies, and the brands that they own. It reinforces my belief that str...
-
The goal of this website is to inspire readers to identify their goals and objectives, and then create a process to achieve them. I shared t...
-
As dividend growth investors , our goal is to buy shares in a company that will shower us with cash for decades to come. One of the importan...
-
I review the list of dividend increases as part of my monitoring process. This exercise helps me monitor existing holdings. It also helps me...