I review the listings of dividend increases every week, as part of my monitoring process. This exercise helps me review existing holdings and also identify companies for further research.
I focus my attention on the companies that have managed to increase dividends for at least ten years in a row, in order to identify consistent dividend growth companies.
This exercise is also helpful, because it shows the quick review I do before deciding if a company is worth a more thorough review. Notably, this exercise results in three outcomes:
1) Company is not attractive from a fundamentals perspective. So I basically do nothing.
2) Company is attractive from a fundamentals perspective, but seems overpriced. So I basically put it on a list for potential acquisitions, assuming my ideal price hits. I try to familiarize with these companies during downtime, in order to be able to act if/when they become attractively priced.
3) Company is attractive from a fundamentals perspective and seems attractively priced today. I would prioritize this company for research today. Depending on findings, there is a high chance I may add it if I understand it well.
This is just a general framework I use when evaluating dividend growth stocks in general. That applies for screening companies as well as more manual processes such as reviewing the list of dividend increases every week.
The list of ten companies listed below includes the companies that raised dividends last week, and also have a ten year track record of annual dividend increases.
ChoiceOne Financial Services, Inc. (COFS) operates as the bank holding company for ChoiceOne Bank that provides banking services to corporations, partnerships, and individuals in Michigan.
The company raised quarterly dividends by 3.80% to $0.27/share. This was the 12th consecutive annual dividend increase for this dividend achiever. The company has managed to increase dividends at an annualized rate of 8.30%/year during the past decade.
The company managed to grow earnings from $1.40/share in 2013 to $3.15/share in 2022. ChoiceOne Financial Services is expected to earn $2.79/share in 2024.
The stock sells for 8.96 forward earnings and yields 4.19%.
Graco Inc. (GGG) designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide.
The company increased quarterly dividends by 8.50% to $0.255/share. This was the 26th consecutive annual dividend increase for this dividend champion. The company has managed to increase dividends at an annualized rate of 10.80%/year during the past decade.
The company has also managed to grow earnings from $1.15/share in 2014 to $2.73/share in 2023. Graco is expected to earn $3.03/share in 2024.
The stock sells for 26.66 times forward earnings and yields 1.16%.
Merck & Co., Inc. (MRK) operates as a healthcare company worldwide. It operates through two segments, Pharmaceutical and Animal Health.
The company increased quarterly dividends by 5.50% to $0.77/share. This was the 12th consecutive annual dividend increase for this dividend achiever. The company has managed to increase dividends at an annualized rate of 5.10%/year during the past decade.
The company has also managed to grow earnings from $1.49/share in 2013 to $4.73/share in 2022. Graco is expected to earn $8.44/share in 2024.
The stock sells for 12.14 forward earnings and yields 2.98%.
McCormick & Company, Incorporated (MKC) manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry. It operates in two segments, Consumer and Flavor Solutions.
The company increased quarterly dividends by 7.70% to $0.42/share. This marks the 38th consecutive year that the Company has increased its quarterly dividend. This dividend aristocrat has managed to increase dividends at an annualized rate of 9.10%/year during the past decade.
Brendan M. Foley, President & CEO, said, "With our relentless focus on growth, performance and people, and the continued execution of our proven strategies, we are well positioned to deliver sustainable long-term growth and build shareholder value. We remain committed to our long history of returning cash to shareholders and I am pleased to announce another dividend increase."
The company managed to grow earnings from $1.47/share in 2013 to $2.54/share in 2022. McCormick is expected to earn $2.64/share in 2024.
The stock sells for 24.56 times forward earnings and yields 2.55%.
Raymond James Financial, Inc. (RJF) is a diversified financial services company, provides private client group, capital markets, asset management, banking, and other services to individuals, corporations, and municipalities in the United States, Canada, and Europe.
The company increased quarterly dividends by 7.10% to $0.45/share. This was the 11th consecutive annual dividend increase for this dividend achiever. The company has managed to increase dividends at an annualized rate of 14.60%/year during the past decade.
The company managed to grow earnings from $2.27/share in 2014 to $8.16/share in 2023. Raymond James Financial is expected to earn $9.27/share in 2024.
The stock sells for 11.34 times forward earnings and yields 1.67%.
RGC Resources, Inc. (RGCO) operates as an energy services company. It sells and distributes natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and the surrounding localities. The company also provides various unregulated services.
The company raised quarterly dividends by 1.30% to $0.20/share. The Company has now increased the annual dividend 20 consecutive years.
The company managed to grow earnings from $0.67/share in 2014 to $1.14/share in 2023. RGC Resources is expected to earn $1.07/share in 2024.
The stock sells for 16.40 times forward earnings and yields 4.32%.
There were also four Canadian Banks that increased dividends over the past week as well. Each has managed to raise annual dividends for a decade as well. The numbers listed are in Canadian Dollars.
Canadian Imperial Bank of Commerce (CM) provides various financial products and services to personal, business, public sector, and institutional clients in Canada, the United States, and internationally. The company operates through Canadian Personal and Business Banking; Canadian Commercial Banking and Wealth Management; U.S. Commercial Banking and Wealth Management; Capital Markets and Direct Financial Services; and Corporate and Other segments.
The bank raised quarterly dividends by 3.40% to $0.90/share. This was also a 5.88% increase over the dividend paid during the same time last year. It's also the 13th consecutive year of annual dividend increases for this Canadian Dividend Achiever.
Over the past decade, the company has managed to grow dividends at an annualized rate of 6.12%.
It has also managed to grow earnings from $3.94/share in 2014 to $5.16/share in 2023. Canadian Imperial Bank of Commerce is expected to earn $6.66/share in 2024.
The stock is selling for 8.42 times forward earnings and yields 6.42%
National Bank of Canada (NA) (NTIOF in US) provides various financial products and services to retail, commercial, corporate, and institutional clients in Canada and internationally. It operates through four segments: Personal and Commercial, Wealth Management, Financial Markets, and U.S. Specialty Finance and International.
The bank raised quarterly dividends by 3.90% to $1.06/share. This was also a 9.27% increase over the dividend paid during the same time last year. It's also the 14th consecutive year of annual dividend increases for this Canadian Dividend Achiever.
Over the past decade, the company has managed to grow dividends at an annualized rate of 8.90%.
It has also managed to grow earnings from $4.32/share in 2014 to $9.42/share in 2023. National Bank of Canada is expected to earn $9.41/share in 2024.
The stock is selling for 9.56 times forward earnings and yields 4.50%
Royal Bank of Canada (RY) operates as a diversified financial service company worldwide.
The bank raised quarterly dividends by 2.20% to $1.38/share. This was also a 4.55% increase over the dividend paid during the same time last year. It's also the 13th consecutive year of annual dividend increases for this Canadian Dividend Achiever.
Over the past decade, the company has managed to grow dividends at an annualized rate of 7.76%.
It has also managed to grow earnings from $6.03/share in 2014 to $10.51/share in 2023. Royal Bank of Canada is expected to earn $11.72/share in 2024.
The stock is selling for 10.47 times forward earnings and yields 4.49%
The Toronto-Dominion Bank (TD) provides various financial products and services in Canada, the United States, and internationally. It operates through four segments: Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking.
The bank raised quarterly dividends by 6.30% to $1.02/share. It's also the 13th consecutive year of annual dividend increases for this Canadian Dividend Achiever.
Over the past decade, the company has managed to grow dividends at an annualized rate of 7.76%.
It has also managed to grow earnings from $4.15/share in 2014 to $5.61/share in 2023. The Toronto-Dominion Bank is expected to earn $8.26/share in 2024.
The stock is selling for 10.02 times forward earnings and yields 4.93%
