Dividend Growth Investor Newsletter

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Monday, October 25, 2021

Twelve Companies Rewarding Shareholders With Regular Dividend Increases

 As part of my monitoring process, I review the list of dividend increases every week. This exercise helps me monitor the progress of existing holdings. It also helps me identify companies for further research. I use this process in conjunction with my screening process.

As part of this process, I look at the companies that raised dividends over the past week. I narrow my focus on companies with an established track record of annual dividend increases. I look for companies that have managed to increase for at least a decade.

I then review the company’s most recent dividend increase, and compare it to the ten year average for perspective.

I also look at the growth in earnings, along with estimated earnings for this year. It is helpful to gain an understanding if the company has been able to grow dividends due to growth in the business. If growth is achieved through expanding the payout ratio, I am generally not interested in such a company.

Last but not least, I review valuation. This includes P/E ratios, dividend yields, but also compare that with historical dividend growth and trends in earnings per share. As you can see, I have come to the conclusion that valuation is more art than science.

During the past week, there were several companies that raised dividends. Each company has at least a ten year track record of annual dividend increases: The companies include:

Company

Symbol

New Dividend

Old Dividend

Raise

Years Annual Dividend Increases

Ten Year Annualized Dividend Growth

Forward P/E

Dividend Yield

1st Source Corporation

SRCE

0.31

0.28

10.71%

35

7.38%

11.01

2.56%

American Electric Power Company, Inc.

AEP

0.78

0.74

5.41%

12

5.20%

18.2

1.42%

Brown & Brown, Inc.

BRO

0.1025

0.0925

10.81%

28

8.32%

31.28

0.62%

Heritage Financial Corporation

HFWA

0.21

0.2

5.00%

11

13.22%

9.15

3.43%

HP Inc.

HPQ

1

0.7752

29.00%

12

16.67%

8.19

2.54%

Hubbell Incorporated

HUBB

1.05

0.98

7.14%

14

9.93%

22.11

2.05%

Lincoln Electric Holdings, Inc.

LECO

0.56

0.51

9.80%

26

13.35%

23.8

1.54%

Magellan Midstream Partners, L.P.

MMP

1.0375

1.0275

0.97%

21

10.95%

12.13

8.09%

Middlesex Water Company

MSEX

0.29

0.27

7.41%

49

3.72%

46.34

1.09%

Prosperity Bancshares, Inc.

PB

0.52

0.49

6.12%

24

11.49%

13.59

2.75%

Stepan Company

SCL

0.335

0.305

9.84%

54

8.71%

19.19

1.10%

Tompkins Financial Corporation

TMP

0.57

0.54

5.56%

35

4.68%

13.23

2.65%

UFP Industries, Inc.

UFPI

0.2

0.15

33.33%

10

14.13%

11.23

0.98%

As usual, this list is not a recommendation. It just includes a group of companies that have raised dividends last week. These are the types of companies I review, before deciding if I want to put on my list for review or not.

Relevant Articles:

Five Dividend Growth Stocks Delivering Raises To Shareholders

Six Dividend Growth Stocks Rewarding Shareholders With Raises

- Five Dividend Growth Stocks In the News