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Monday, August 16, 2021

Five Companies Rewarding Shareholders With a Raise

I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me review existing holdings and identify companies for future research.

I focus my attention on the companies with a ten year track record, in order to identify companies that can deliver dividend increases for longer than a typical length of the average economic cycle.

I am looking for companies that can grow earnings and dividends, even during a recession.

The companies that have a ten year streak of annual dividend increases, which also raised dividends last week include:

Badger Meter, Inc. (BMI) manufactures and markets flow measurement, quality, control, and communication solutions in the United States, Asia, Canada, Europe, Mexico, the Middle East, and internationally.

The company raised its quarterly dividend by 11.10% to 20 cents/share. This marks the 29th consecutive year of increasing the dividend. Over the past decade, this dividend champion has managed to grow dividends at an annualized rate of 10.40%.

“Today’s 11% dividend increase marks the company’s 29th consecutive year of increasing its dividend, and is a true testament to our legacy of consistently rewarding our shareholders. Dividends are an important element of the Company's balanced and disciplined approach to capital allocation, and a reflection of the strong confidence that Badger Meter has in our ability to continue to generate and grow our earnings and cash flow both organically and via acquisition,” said Kenneth C. Bockhorst, Chairman, President and Chief Executive Officer. (press release)

Between 2011 and 2020, the company managed to grow earnings from 64 cents/share to $1.69/share.

The company is expected to earn $1.96/share in 2021.

The stock is selling for 53.38 times forward earnings and yields 0.69%.

Broadridge Financial Solutions, Inc. (BR) provides investor communications and technology-driven solutions for the financial services industry worldwide.

The company increased its quarterly dividend by 10.30% to 64 cents/share. The annual dividend has increased for the 15th consecutive year.

Over the past decade, Broadridge has managed to boost dividends at an annualized rate of 14.40%.

Between 2012 and 2021, this dividend achiever has managed to grow earnings from 97 cents/share to $4.65/share.

The company expects to earn $6.45/share in 2021.

The stock is selling for 26.81 times forward earnings and yields 1.48%.

International Bancshares Corporation (IBOC) is a multibank financial holding company that provides commercial and retail banking services.

The company raised its semi-annual dividend by 9.10% to 60 cents/share. This marked the 12th consecutive annual dividend increase for this dividend achiever.

Over the past decade, the company has managed to boost dividends at an annualized rate of 11.80%.

Between 2011 and 2020, the company managed to boost earnings from $1.69/share to $2.62/share.

The stock sells for 11.83 times trailing earnings and yields 2.81%.

Nordson Corporation (NDSN) engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. It operates through two segments, Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS).

Nordson raised its quarterly dividend by 30.80% to 51 cents/share. This represents the 58th consecutive year of annual dividend increases for this dividend king.

Over the past decade, the company has managed to increase dividends at an annualized rate of 14.60%.

Between 2011 and 2020, Nordson managed to grow earnings from $3.25/share to $4.27/share.

The company is expected to earn $7.53/share in 2021.

STERIS plc (STE) provides infection prevention and other procedural products and services worldwide. It operates in three segments: Healthcare, Applied Sterilization Technologies, and Life Sciences.

The company raised its quarterly dividend by 7.50% to 43 cents/share.  This marked the 17th consecutive annual dividend increase for this dividend achiever.

Over the past decade, Steris has managed to increase dividends at an annualized rate of 11.50%.

The stock is selling for 30.10 times forward earnings and yields 0.90%

Between 2012 and 2021, the company managed to grow earnings from $2.31/share to $4.63/share.

The company is expected to earn $7.72/share in 2021.

The stock is selling for 28.26 times forward earnings and yields 0.79%.


Relevant Articles:

Seven Companies Demonstrating A Commitment to Shareholder Returns

44 Dividend Champions For Further Research

Nine Companies Delivering Solid Dividend Growth

- Seven Dividend Growth Stocks Rewarding Shareholders With Raises