In general, I look for companies that have at least a ten year history of annual dividend increases under their belts. I do sometimes look at companies with shorter track records, but I have to really like the business model. I also rarely have a "full position" in companies with shorter track records.
For the purposes of this review this week, I focused on the two companies which declared a dividend increase last week. A third company, Carlisle (CSL) announced their intention to increase dividends for the 44th year in a row in September. However, they didn't specify the amount of dividend increase, which is why I am not going to review them in detail today. I may in September, if they follow through on their word.
The two sweet dividend increases over the past week include:
The Hershey Company (HSY) manufactures and sells confectionery products. The company operates through two segments, North America; and International and Other.
Hershey delivered a sweeet dividend increase of 4% to 80.40 cents/share. This marked the 11th year of consecutive annual dividend increases for this dividend achiever.
Over the past decade, Hershey has managed to increase dividends at an annualized rate of 9.65%.
Hershey has managed to grow earnings from $2.21/share in 2010 to $5.46/share in 2019.
The company is expected to generate $5.86/share in 2020.
The stock is overvalued at 24.85 times forward earnings. Hershey yields 2.20%.
The J. M. Smucker Company (SJM) manufactures and markets food and beverage products worldwide. It operates in four segments: U.S. Retail Pet Foods, U.S. Retail Coffee, U.S. Retail Consumer Foods, and International and Away From Home.
J.M. Smucker raised its quarterly dividend by 2.30% to 90 cents/share. This marked the 23rd year of consecutive annual dividend increases for this dividend achiever.
Over the past decade, J.M Smucker has managed to increase dividends at an annualized rate of 9.70%.
The company is expected to earn $6.53/share - $6.93/share in 2021.
The stock seems attractively valued at 16.60 times forward earnings. J.M. Smucker yields 3.30%.
Relevant Articles:
- Five Dividend Growth Stocks Rewarding Shareholders With Raises
- Two Cheap Dividend Stocks Raising Dividends Last Week
- My Favorite Exercise As A Dividend Growth Investor
- Let dividends do the heavy lifting for your retirement
