Twenty Companies Spreading Holiday Cheers To Shareholders

As part of my review process, I evaluate dividend increases every week. This process helps me to see how my portfolio holdings are doing. It also helps me to uncover and review new candidates for my portfolio.

I look for dependable dividends from companies with a minimum ten-year streak of annual dividend increases, fueled by earnings growth. I look for dependable dividends from companies with dependable earnings, and solid competitive advantages, which I can acquire at attractive valuations.

During the past week, the following companies increased dividends to shareholders. Each company has a ten year streak of annual dividend increases. I review the latest dividend increase relative to the ten year average, and the growth in earnings per share over the past decade. Last but not least, I discuss current valuation. The companies include:

Company Name	Ticker	New Dividend	Previous Dividend	Dividend Increase	Consecutive Annual Dividend Increases	Annualized Dividend Growth Last 5 years	Forward P/E	Dividend Yield
Abbott Laboratories	ABT	0.59	0.55	7.27%	53	12.74%	24.25	2.08%
Amgen Inc.	AMGN	2.38	2.25	5.78%	13	10.04%	13.82	3.52%
Alexandria Real Estate Equities, Inc.	ARE	1.32	1.3	1.54%	14	6.01%	10.85	5.14%
Broadcom Inc.	AVGO	0.59	0.53	11.32%	14	19.25%	36.07	1.05%
Balchem Corporation	BCPC	0.87	0.79	10.13%	16	11.07%	40.35	1.98%
Bristol-Myers Squibb Company	BMY	0.62	0.6	3.33%	16	7.34%	61.34	4.45%
Edison International	EIX	0.8275	0.78	6.09%	21	4.04%	16.58	4.04%
The Ensign Group, Inc.	ENSG	0.0625	0.06	4.17%	22	4.74%	25.94	0.18%
Erie Indemnity Company	ERIE	1.365	1.275	7.06%	34	7.21%	36.91	1.30%
Eli Lilly and Company	LLY	1.5	1.3	15.38%	10	14.97%	60	0.76%
Mid-America Apartment Communities, Inc.	MAA	1.515	1.47	3.06%	15	8.70%	17.77	3.85%
Mondelez International, Inc.	MDLZ	0.47	0.425	10.59%	12	11.42%	17.75	3.04%
Nucor Corporation	NUE	0.55	0.54	1.85%	52	6.06%	14.75	1.76%
Realty Income Corporation	O	0.264	0.2635	0.19%	30	3.01%	13.25	1.91%
Pfizer Inc.	PFE	0.43	0.42	2.38%	14	3.82%	8.75	6.72%
SEI Investments Company	SEIC	0.49	0.46	6.52%	33	7.47%	19.55	1.14%
Stryker Corporation	SYK	0.84	0.8	5.00%	31	9.80%	31.07	0.90%
The Toro Company	TTC	0.38	0.36	5.56%	16	11.20%	21.2	1.72%
WD-40 Company	WDFC	0.94	0.88	6.82%	15	8.98%	49.77	1.41%
Zoetis Inc.	ZTS	0.5	0.43	16.28%	11	24.37%	30.32	1.12%

This is a list of companies for further review. Most seem attractive as businesses, but that doesn’t mean that they should be invested in at any price, regardless of valuation.

Also note that this list shows the dividend increase versus the last dividend payment. Some companies, like Realty Income for example, tend to raise dividends several times per year. Hence, while the new dividend payment looks like a very small raise versus the last dividend paid, year over year it is a more respectable 2.90%. This is where it is important to use this only as a starting point in your research. You need to crunch those numbers and follow the data when it comes to reviewing each company of potential interest.

The next step is to check each business, in order to determine if it is worth further review. I would look at ten year trends in earnings per share, dividends per share, payout ratios, shares outstanding. I would try to understand what the business does, and make an assessment if the good times would continue, so that I can expect higher earnings, dividends and intrinsic values over time. I would look at the valuation relative to earnings and dividend growth, in order to determine if the business is fairly valued, if it looks promising too. 

For a sample review of Hormel Foods (HRL) check this out.

Of note this week to me at least was Abbott Laboratories press release, which celebrated the story of Grace Groner.

I have previously discussed the inspiring story of Grace Gronner, who turned $180 into a portfolio worth $7.2 Million, which generated close to $20,000 in monthly dividend income by the end.

As we celebrate 101 years of dividend payouts, we’re remembering one the earliest Abbott investing success stories, that of Grace Groner, who worked as a secretary at Abbott for over 40 years. In 1935, Groner bought three shares of Abbott stock for $60 each. She consistently reinvested her dividend payments and quietly amassed a $7.2 million fortune. Groner passed away in 2010, at the age of 100, and it was only then that her multi-million-dollar estate was discovered.

Groner left her entire estate to a foundation she had set up years before her death to fund internships, international study and service projects for students at her alma mater, Lake Forest College. Groner’s initial $180 investment in Abbott stock, compounded over the years by stock splits and dividend reinvestments, enabled her to leave a legacy that will live on for many years to come. Over the years, the Grace Elizabeth Groner Foundation has helped many college students pursue service-learning opportunities benefitting at least 25 Lake County, national and international non-profit organizations.

Source:  Press Release

Relevant Articles:

- Ten Dividend Growth Stocks Raising Dividends

- Seven Dividend Growth Companies Increase Dividends Last Week

- How Grace Groner Turned $180 in $7 Million by Investing in Dividend Growth Stocks

- The Powerful Concept of Covering Expenses With Dividends