Sunday, April 24, 2022

Eight Dividend Growth Stocks Raising Distributions

I review the list of dividend increases every week, as part of my monitoring process. I usually focus my attention on the companies with a ten year streak of annual dividend increases, and then review each company using my criteria. I am always on the lookout for new ideas, and to determine if my existing holdings are working. I also want to be ready to act quickly, when the right time arrives.

This exercise helps me to evaluate companies I already own, and see how they are doing. This is a helpful piece of the puzzle, that would be helpful when/if I decide to add to these companies at the right price.

This exercise also helps me identify companies for further research. A large part of the time is spent reviewing companies, screening for companies, and trying to learn more about companies, their business, etc. 

It is not glamorous at all, but dull and boring. 

But it does pay dividends.

Over the past week, there were several companies raising dividends. The companies include:

This of course is just a list, not a recommendation.

I also wanted to mention Lindt & Spr√ľngli, which raised its annual dividend by 9.09% to 1,200 Swiss Francs/share. This is the 27th year in a row that the company has increased the annual dividend. It is traded on the Swiss stock market, although the stock is also traded as an ADR on the OTC market in the US. The stock is expensive based on absolute share price and based on valuation however. 

When I review companies, I look at ten year trends in:

1) Earnings per share
2) Dividend payout ratio
3) Dividends per share
4) Valuation

Since I have some experience evaluating dividend companies, I also modify my criteria based on the environment we are in and the availability of quality companies. If I see a company with a strong business model and certain characteristics that I like, I may require a dividend streak that is lower than a decade. I have also found success in looking beyond screening criteria by purchasing stocks a little above the borders contained in a screen.

It is important to be flexible, without being too lenient.

You may like this analysis of Johnson & Johnson (JNJ) as an example of how I review companies.

I would expect further dividend increases next week from Apple (AAPL), Ameriprise Financial (AMP) and W.W. Grainger (GWW). 

Relevant Articles:

Companies discussed in this post: BHB, DGICA, DGICB, JNJ, LAD, NDAQ, SO, STBA, TRV

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