I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me to monitor existing holdings and to identify companies for further research.
The past couple of weeks have been slow on the dividend increases front. Last week showed some movement in a few companies that announced dividend hikes to their shareholders. The companies include:
Constellation Brands, Inc. (STZ) produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy.
Constellation Brands raised its quarterly dividend by 11.30% to $0.89/share. This marked the 8th year of consecutive annual dividend increases for this dividend contender. During the past five years, the company has managed to increase distributions at an annualized rate of 10%. The three year annualized dividend growth rate is just 1.90% however.
The company earned $10.33/share in 2014, but ended up losing $0.37/share in 2023. Constellation Brands is expected to earn $11.70/share in 2024.
The stock sells for 19.21 times forward earnings and yields 1.61%.
FedEx Corporation (FDX) provides transportation, e-commerce, and business services in the United States and internationally.
FedEx hiked quarterly dividends by 9.60% to $1.26/share. FedEx has managed to increase annual dividends for three years in a row.
During the past five years, the company has managed to increase distributions at an annualized rate of 18.13%.
Between 2013 and 2022, FedEx has managed to increase earnings from $8.61/share to $14.52/share. The company is expected to earn $14.92/share in 2023.
The stock sells for 15.56 times forward earnings and yields 2.23%.
H.B. Fuller Company (FUL) formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products worldwide. The company operates through three segments: Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Construction Adhesives.
H.B. Fuller raised quarterly dividends by 7.90% to $0.205/share. This represents an 8% increase over the prior quarterly dividend and marks the 54th consecutive year in which this dividend king has increased its dividend. During the past five years, the company has managed to increase distributions at an annualized rate of 4.60%.
Between 2013 and 2022, H.B. Fuller has managed to increase earnings from $1.94/share to $3.37/share.
The company is expected to earn $4.16/share in 2023.
The stock sells for 15.40 times forward earnings and yields 1.28%.
Bank OZK (OZK) provides various retail and commercial banking services.
Bank OZK raised quarterly dividends by 2.90% to $0.35/share. This was a 12.90% increase over the distribution paid during the same time last year. Bank OZK has increased its quarterly cash dividend on its common stock for 27 years in a row.
During the past five years, this dividend champion has managed to increase distributions at an annualized rate of 12.20%.
Between 2013 and 2022, Bank OZK has managed to increase earnings from $1.27/share to $4.55/share. The company is expected to earn $5.69/share in 2023.
The stock sells for 5.85 times forward earnings and yields 3.91%
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