Pages

Pages

Monday, August 23, 2021

Six Dividend Growth Stocks Rewarding Shareholders With Raises

I review the list of dividend increases every week, as part of my review process. This is one notification that pushes me to review developments around companies I own. It also helps me observe companies for future research. 

I usually focus my attention on companies that have managed to increase dividends for at least a decade.

Monro, Inc. (MNRO) provides automotive undercar repair, and tire sales and services in the United States.

Monro raised its quarterly dividend by 18.20% to 26 cents/share. This marked the 16th year of consecutive annual dividend increases for this dividend achiever

During the past decade, the company managed to grow dividends at an annualized rate of 13.60%.

Between 2012 and 2021, the company’s earnings went from $1.69/share to $1.01/share.

The company is expected to earn $2.07/share in 2021. 

The stock is selling for 26.87 times forward earnings and yields 1.87%

Stock Yards Bancorp, Inc. (SYBT) operates as the holding company for SYB that provides various banking products and services in Louisville, Indianapolis, and Cincinnati. It operates in two segments, Commercial Banking and WM&T.

Stock Yard Bancorp raised its quarterly dividend by 3.70% to 28 cents/share. This marked the twelfth year of consecutive annual dividend increases for this dividend achiever. During the past decade, the company has managed to grow dividends at an annualized rate of 8.90%.

The company managed to grow earnings from $1.14/share in 2011 to $2.59/share in 2020.

The company is expected to earn $3.63/share in 2021

The stock sells for 14.22 times forward earnings and yields 2.17%.

Cboe Global Markets, Inc. (CBOE) operates as an options exchange worldwide. It operates through five segments: Options, North American Equities, Futures, European Equities, and Global FX.

Cboe raised its quarterly dividend by 14.30% to 48 cents/share. This marked the 11th consecutive year that this dividend achiever has raised its dividend. Over the past decade, the company has managed to grow dividends at an annualized rate of 22.80%/year.

CBOE managed to grow earnings from $1.52/share in 2011 to $4.27/share in 2020.

The company is expected to earn $5.62/share in 2021.

The stock sells for 23.09 times forward earnings and yields 1.48%.

Dillard's, Inc. (DDS) operates retail department stores in the southeastern, southwestern, and midwestern areas of the United States.

Dillard’s raised its quarterly dividend by 33.30% to 20 cents/share. This marked the 11th year of consecutive annual dividend increases for this dividend achiever. Dillard’s has managed to grow dividends at an annualized rate of 14.10% over the past decade.

The company earned $8.52/share in 2012, but it’s earnings per share ended up declining gradually over the past decade, despite reducing the number of shares outstanding in half during the time period. Dillard’s lost $3.16/share in 2021, which is not surprising given the Covid-19 pandemic that affected a lot of brick and mortar retailers.

The company is expected to earn $7.64/share in 2021.

The stock is selling for 26.24 times forward earnings and yields 0.40%.

American Financial Group, Inc. (AFG) provides specialty property and casualty insurance products in the United States.

The company raised its annual dividend by 12% to $2.24/share. This marked the 16th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 12.40%.

Between 2011 and 2020, the company managed to grow earnings from $3.32/share to $8.20/share.

The company is expected to earn $9.22/share in 2021

The stock sells for 14.83 times forward earnings and yields 1.46%.

MGE Energy, Inc (MGEE) operates as a public utility holding company primarily in Wisconsin. It operates through five segments: Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; Transmission Investments; and All Other.

The board of directors of MGE Energy, Inc. increased the regular quarterly dividend rate approximately 5% to $0.3875 per share

This dividend increase marks the company's 46th consecutive year of increasing its dividend.

Between 2011 and 2020, this dividend champion managed to grow earnings from $1.76/share to $2.60/share.

The company is expected to earn $2.94/share in 2021.

The stock is selling for 28.05 times forward earnings and yields 1.79%.

Relevant Articles: