Monday, June 14, 2021

Five Dividend Growth Stocks Rewarding Shareholders With Raises

As part of my monitoring process, I review the list of dividend increases evey week, focusing on the companies with at least a ten year track record of annual dividend increases. During the past week, there were several companies that raised dividends, and also have a ten year track record of annual dividend increases. The companies include:

UnitedHealth Group Incorporated (UNH) operates as a diversified health care company in the United States.

The company raised its quarterly dividend by 16% to $1.45/share. This is the 12th consecutive year of annual dividend increases for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 28.10%/year.

Between 2011 and 2020, the company grew earnings from $4.73/share to $16.03/share.

The company is expected to earn $18.59/share in 2021.

The stock sells for 21.60 times forward earnings and yields 1.44%.

Target Corporation (TGT) operates as a general merchandise retailer in the United States.

The company increased its quarterly dividend by 32.40% to 90 cents/share. This is the 50th consecutive year in which Target has increased its annual dividend, making it the latest addition to the dividend kings list. The company has managed to grow dividends at an annualized rate of 12.30% over the past decade. The past 5 years showed a more modest 4.40%/year however.

Between 2012 and 2021, the company grew earnings from $4.28/share to $8.64/share.

The company is expected to earn $12.23/share in 2021.

The stock is selling for 18.95 times forward earnings and yields 1.55%.

Caterpillar Inc. (CAT) manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. 

Caterpillar raised quarterly dividends by 7.80% to $1.11/share. The company has paid higher dividends to shareholders for 27 consecutive years and is a member of the S&P 500 Dividend Aristocrat Index.

Between 2011 and 2019, the company’s earnings went from $7.40/share to $10.74/share, before dipping to $5.46/share in 2020. The company is expected to earn $9.86/share in 2021.

The stock sells for 22.89 times forward earnings and yields 1.97%.

Oil-Dri Corporation of America (ODC) develops, manufactures, and markets sorbent products in the United States and internationally.

Oil Dri increased its quarterly dividend by 3.80% to 27 cents/share. This is the 18th year in a row of annual dividend increases for this dividend achiever.

Between 2011 and 2020, earnings grew from $1.26/share to $2.65/share.

The stock sells for 14.65 times earnings and yields 3.03%.

HEICO Corporation (HEI) designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally.

Heico raised its semi-annual dividend by 12.50% to 9 cents/share. This is the 14th year of consecutive annual dividend increase for this dividend achiever.

Between 2011 and 2020, earnings per share grew from 56 cents to $2.29/share.

The company is expected to earn $2.17/share in 2021.

The stock sells for 66.78 times forward earnings and yields 0.12%.

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