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
-
I review the list of dividend increases every week, as part of my monitoring process. I typically focus my attention to companies that have...
-
I am a big fan of frugality. I believe that frugality is all about the most efficient use of scarce resources. This could mean thinking outs...
-
I review the list of dividend increases every week, as part of my monitoring process. It's one of my processes to monitor existing holdi...
-
I am a big fan of Dividend Growth Investing. I like the mental model of Dividend Growth Investing, where a rising stream of annual dividend ...
-
Several of the large banking institutions in the US passed the Stress Tests imposed by the Federal Reserve. As a result, they announced thei...
-
The best decision I ever made was to invest in my own financial education. Everything I have done is easily achieved by anyone else with a ...
-
Warren Buffett's investment in Coca-Cola (KO) is really fascinating. He started buying it in 1988 after the 1987 Stock Market crash. Buf...
-
I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me monitor existing companies, and...
-
I review the list of dividend increases each week, as part of my monitoring process . I follow this process in order to monitor existing in...
-
There is some news around the consumer staples, which is a popular bread and butter sector for many dividend growth investors. It looks like...