Pages

Pages

Monday, July 19, 2021

Seven Dividend Growth Stocks Rewarding Shareholders With Raises

As part of my monitoring process, I review the list of dividend increases every week This activity helps me to monitor the business performance of any companies I am invested in. It also helps me to identify any hidden dividend gems, and place them on my list for further research.

My reviews are an example of the quick way I use to evaluate companies, before deciding if they are worth a second look later or not.

The companies in today’s article have managed to grow dividends for at least ten years in a row. These companies also announced a dividend increase during the past week. The companies include:

Walgreens Boots Alliance, Inc. (WBA) operates as a pharmacy-led health and beauty retail company. It operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. 

Walgreens Boots Alliance hiked its quarterly dividend by 2.1 percent to 47.75 cents/share. This marked the 46th consecutive annual dividend increase for this dividend aristocrat. Over the past decade, it has managed to increase dividends by 11.50%/year. Lately, the rate of dividend increases has declined to about 2%/year.

Walgreen’s earned $2.94/share in 2011 and is expected to earn $4.80/share in 2021. It looks like Walgreen’s has been unable to grow earnings per share for about 3 – 4 years now.

The stock is selling for 9.59 times forward earnings and yields 4.15%.

Marsh & McLennan Companies, Inc. (MMC) is a professional services company which provides advice and solutions to clients in the areas of risk, strategy, and people worldwide. It operates in two segments, Risk and Insurance Services, and Consulting.  

Marsh & McLennan Companies hiked its quarterly dividend by 15.10% to 53.50 cents/share. This marked the 12th consecutive year of annual dividend increases for this dividend achiever. Over the past decade, the company managed to grow dividends at an annualized rate of 8.60%/year.

Earnings increased from $1.55/share in 2010 to $3.94/share in 2020.

The company is expected to generate $5.65/share in 2021.

The stock sells at 25 times forward earnings and yields 1.51%.

PPG Industries, Inc. (PPG) manufactures and distributes paints, coatings, and specialty materials worldwide. The company raised its quarterly dividend by 9.30% to 59 cents/share. This marked the 50th consecutive year of annual increases in the company’s dividend for this newly minted dividend king.

Between 2011 and 2020, the company managed to grow earnings from $3.44/share to $4.45/share. PPG Industries is expected to earn $8.03/share in 2021.

The stock sells for 21.21 times forward earnings and yields 1.39%.

National Retail Properties (NNN) invests primarily in high-quality retail properties subject generally to long-term, net leases.

The company raised its quarterly dividend by 1.90% to 53 cents/share. The increase in the quarterly dividend marks the 32nd consecutive annual dividend increase for this dividend champion. Over the past decade, the company has managed to grow annual dividends at a rate of 3.20%.

The REIT is expected to generate $2.76/share in FFO in 2021. It earned $1.70/share in FFO in 2011 and grew it to $2.51//share in 2020.

The REIT is selling for 17.50 times forward FFO and yields 4.38%.

Computer Services, Inc. (CSVI) provides core processing, digital banking, managed services, payments processing, print and electronic distribution, and regulatory compliance solutions to financial institutions and corporate entities in the United States.

Computer Services, Inc. hiked its dividend by 8 percent to 27 cents/share. This marked the 50th consecutive year of increased cash dividends paid to shareholders, according to the company.  

I have been unable to verify this claim however, as the company has only been public since 1995, and old annual reports only go back to 2004.

If you go to their 2006 annual report however, and flip to page 20, it states that “The fiscal 2006 cash dividend marks the 17th consecutive year with a dividend increase”.  https://backend.otcmarkets.com/otcapi/company/financial-report/10039/content

They started claiming a 42 year history of annual dividend increases in 2014’s annual report. On the 2013s annual report the claim was for a 24th consecutive year of annual dividend increases.

Between 2012 and 2021, the company has managed to grow earnings from 87 cents/share to $2.10/share.  The company has managed to grow dividends at an annualized rate of 16.20% over the past decade.

The stock is selling for 28.18 times earnings and yields 1.90%.

Duke Energy Corporation (DUK) operates as an energy company in the United States. It operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables.

Duke Energy Corporation hiked quarterly dividends by 2.1 percent to 98.50 cents/share. This marked the 17th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, Duke has managed to boost dividends at an annualized rate of 2.80%.

The company earned $3.83/share in 2011 and is projected to generate $5.18/share in 2021.

The stock is selling for 20.21 times forward earnings and yields 3.76%.

Cummins Inc. (CMI) designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and New Power.

Cummins increased its quarterly dividend by 7.4 percent to $1.45/share.  This dividend achiever has managed to increase annual dividends for 16 years in a row. Over the past decade, Cummins has managed to grow dividends at an annualized rate of 19.70%.

The company managed to grow earnings from $9.55/share in 2011 to $12.01 in 2020.

Cummins is expected to earn $16.11/share in 2021.

The stock sells for 14.81 times forward earnings and yields 2.43%.

Ryder System, Inc. (R ) operates as a logistics and transportation company worldwide. The company operates through three segments: Fleet Management Solutions (FMS), Supply Chain Solutions (SCS), and Dedicated Transportation Solutions (DTS).

Ryder System raised its quarterly dividends by 3.60% to 58 cents/share. This marked the 17th year of consecutive annual dividends for this dividend achiever.

The company is expected to earn $5.92/share in 2021. For comparison, the company earned $3.28/share in 2011, but lost money in 2019 and 2020.

The stock is selling for 11.98 times forward  earnings and yields 3.27%.

Relevant Articles: