Thirteen Dividend Growth Stocks Growing Dividends Last Week

 Welcome to my latest weekly review of dividend increases. 

As part of my monitoring process, I review dividend increases that occured over the past week. 

I then narrow my attention down to the companies which both raised dividends last week AND have at least a ten year track record of annual dividend increases under their belt.

A company that can grow dividends for many years in a row is usually one with strong competitive advantages, and ability to reinvest and high rates of return. Those types of quality companies can manage to grow the business, while also generating a rising stream of cashflows to share with shareholderds. 

Hence, I tend to keep a close look at companies that have increased dividends for many years in a row. Reviewing recent dividend increases is an extension of that process.

This of course is just one step of the review and monitoring process that I follow. However, it is also good snapshot of the the process I use to quickly decide if a company is worth putting on the list for further research, or discarded.

I tend to look for dividend increases, which are supported by growth in earnings per share. Without that, future dividend growth will be limited.

I also like to review changes in dividend growth, relative to the historical average, to get clues as to where the winds are blowing. Dividend increases are a good signal from managements, which are keenly aware of the competitive dynamics in their industries. As a result, those dividend increases represent a good signaling mechanism as to howt those management teams are expecting the business to perform in the near term.

Last but not least, it is important to determine whether the valuation is attractive or not. This should usually be done at the end. Valuation only matters of course if the business is determined to be of sound quality fundamentally speaking, in the previous steps.

Over the past week, there were thirteen companies that both raised dividends to shareholders AND also have a minimum of ten year track record of annual dividend increases. You can see the companies, and my review of them below:

Note that I look at forward returns as a function of:

1. Dividend Yields

2. Growth in Earnings per Share

3. Change in valuation

The first two items are what drives most of long-term total returns in equities over the long run. The change in valuation matters the least in the long run.

However, in the short run, changes in valuation matter much more than growth in earnings per share and dividends. By "short-run" I mean periods of less than say 5 - 10 years or so. This is where in the short-run, earnings multiples can go really high if the market is euphoric OR really low if the market is depressed. One can potentially take advantage of these opportunities in the short-run.

However, the real wealth is built by investing in a good business, at a good price, that keeps growing earnings, dividends and intrinsic value over time.

This mirrors Warren Buffett's quote that in the short-run, the market is a voting machine, but in the long-run, it is a weighting machine. 

Thank you for reading!

Stocks that leave the Dow tend to outperform after their exit from the average

Note: Article was originally posted in August 2020

The Dow Jones Industrials average is the oldest continuously updated stock index in the US. It was launched in 1896 by Charles Dow, who included 12 companies. The number of companies was later increased to 20 and finally in 1928 the number was increased to 30 companies.

It tracks the performance of 30 blue chip companies, which are representative of the US economy. Its holdings are selected by a five-member index committee at Standard & Poor’s/Dow Jones. This committee is basically comprised of the best stock pickers in the world, since they have managed to do better than most mutual fund managers and individual investors. They have done better than Buffett over the past 10 – 15 years as well.

The index made news in August 2020, when it was announced that it would drop three members of the index, following the stock split in Apple’s shares. Since the index is weighted by the share prices of its components, Apple’s stock split reduced it technology exposure.

As a result, the index committee is replacing Exxon Mobil (XOM), Pfizer (PFE) and Raytheon (RTX) with Salesforce.com (CRM), Honeywell International (HON) and Amgen (AMGN).

A lot of investors believe that indices such as Dow Jones do better over time, because of new members. In reality, the opposite has been the case.

I recently read a study that shows how the companies that have been deleted from the Dow Jones Industrials Index between 1929 and 2006 have actually done much better than the companies that were added to the index. The study is titled " The Real Dogs of the Dow"

This study reminded me of the study of the original 500 members of the S&P 500 from 1957. This study had found that if someone had only invested in the original 500 members of the S&P 500 from 1957, they would have done better than the index themselves. That's because the companies that were added did worse than the companies that were removed from the index. You may read more about this study and my analysis here.

This study also reminded me of the Corporate Leaders Trust, a mutual fund that was started in 1935 with a portfolio of blue chip stocks that stayed constant in time. This mutual fund did better than S&P 500 since the 1970s. You can read my review of the Corporate Leaders Trust here.

This is due to the principle of reversion to the mean. The reversion to the mean hypothesis states that companies taken out of the Dow may not be in as bad of a situation as expected. It also suggests that the companies that replace them may not be as great as their current record suggests.

As a result the stock of the deleted company may be too cheap, while the stock of the added companies may turn out to be too expensive. As a result, companies that were deleted from the Dow may deliver better results than companies that were added to the Dow.

This is somewhat counter-intuitive. But it makes sense. The companies that are likely to be deleted are the ones that have suffered for a while, and they are down on their fortunes. As a result, investor expectations are low, which means that these shares are low too, as they are priced for the end of the world. The nice thing about such companies is that if the world doesn’t end, and they do just a little bit better, they can reward their shareholders handsomely. That’s because you will likely experience an expansion in the P/E, at the same time earnings and dividends are rising too.

On the other hand, the companies that are recently added to the index tend to have done very well. They are promising companies of the future. As a result, they sell at premium valuations. However, if these companies fail to live up to their lofty expectations, their returns may suffer, because investors may be willing to pay a lower P/E multiple. If profits do not grow as expected as well, it is likely that investors would also suffer from that as well.

As I mentioned above, I found a study that analyzed the substitutions in the Dow Industrials Index between 1928 and 2005.  The results were in line with what my expectations would be based on my research on the Corporate Leaders Trust and the Performance of the Original Members of S&P 500.

Over this period, there were 50 additions and deletions. In 32 of 50 cases, the deleted stock did better than the added stock.

Figure 1 shows that, with the exception of the 1990s, the Deletion portfolio consistently outperformed the Addition portfolio over the 76-year period.

Figure 2 shows the ratio of the average deletion wealth to the average addition wealth each day over a ten-year horizon. The deleted stocks outpace the added stocks for approximately five years after the substitution date. Then their relative performance stabilizes

Table 4 summarizes the average levels of wealth for the Deletion and Addition stocks at 250- day intervals (approximately 1 year) over the five-year period following the substitution dates.

For example, the deleted stocks showed, on average, a 19.30% increase in value 250 trading days after the publication date, while the added stocks showed an average increase of only 3.37%. The differences in average wealth grow increasingly pronounced as the horizon lengthens.

The study had a fascinating conclusion.

A portfolio consisting of stocks removed from the Dow Jones Industrial Average has outperformed a portfolio containing the stocks that replaced them. This finding contradicts the efficient market hypothesis since changes in the composition of the Dow are widely reported and well known. Our explanation for this anomaly is the market’s insufficient appreciation of the statistical principle of regression to the mean, an error that has been previously identified in a variety of contexts and is no doubt present in a great many other contexts.

This is fascinating research, which spans a period of close to 80 years. The main point behind this research is reversion to the mean. Basically, a trend can only go so far, until it is reversed. It goes in both directions of course.

I went ahead and obtained a listing of all the additions and deletions for Dow Jones since 2004. I then compared the five-year performance for an investor who bought the deletions of the Dow and for an investor who bought the additions to the Dow. For companies that were bought out, I basically stopped the clock at the acquisition date.

I did not calculate anything past 2019, since the information is still new.

I present to you the data below. Again, please understand that I am one person who did this data analysis using free resources, such as dividendchannel.com. My data may be incomplete, or missing fields. I am not pulling it from an academic database, like all the other researchers.

Out of 14 substitutions, the deletions did better on only 4 occasions. The additions did better on 10 occasions. The total wealth for putting $10,000 in each deletion was $180,609 versus $227,540 for putting $10,000 in each of the additions.

The most interesting factor for me however was that since the research was published in 2005, I have found that the opposite has been the case.

In other words, the companies that were deleted did not do as well as the companies that were added to the list. Perhaps this is due to the way that things move faster these days in the globalized economy. The pace of change is faster, and the level of obsolescence is increasing as well. This just goes to show that success in investing is not going to be based on some simple formula that we can copy and paste and generate instant riches.

Another interesting piece of information relates to International Business Machines (IBM). The company was replaced by AT&T on March 14, 1939. I do not believe researchers were even able to find a reason behind the decision.

IBM did not get back into the index until June 29, 1979. At that point, the stock had increased in value by 562 times, which is incredible. AT&T stock had barely tripled over that 40-year period. You may read this excellent article on Dow Jones 22,000 point mistake.

Source: Global Financial Data

I am mentioning this part in order to show that a large portion of the 1939 – 1979 outperformance of deleted companies over the added companies could be attributed to this decision.

By the time IBM was added to the index, it stopped growing. Chrysler was removed because it was very close to going under in 1979. It would have gone bankrupt, had it not been for Lee Iacocca, and a $1.2 billion bailout by the US Government. The stock went as low as $2/share in 1979, before rebounding all the way up to $50/share before the 1987 stock market crash.

This information comes from the book " Beating the Dow".

In conclusion, based on this study, someone who bought the companies that were deleted from Dow Jones Industrials Average between 1928 and 2005 would have done better than Dow Jones Industrials Index. That's because the companies that were deleted ended up delivering a better performance than the companies that were added over this 77 year period. 

However, strategies and edges on Wall Street are not carved in stone. Things do change, either permanently or stay irrational for far longer than a follower of the strategy may remain solvent. 

For example, if you look at performance of US Stocks versus International, US Small versus Large Cap, and Value versus Growth, you can see that they are generally cyclical. Those cycles can last many decades however. These long cycles may fool market participants that they are seeing a trend. Check the charts on this article " Dividends Are The Investors' Friend"

It is also possible that the excellent results of this reversion to the mean strategy may have been due to a fluke in the 1939 removal of IBM, which turned out to be a very successful corporation. It was further compounded by the removal of Chrysler, which turned out to rebound. What happened in 1979 with Chrysler may have caused an investor to buy General Motors in 2009, believing that they would experience the same type of turnaround. However, if you bought General Motors in 2009, you lost your entire nest egg. Again, history does not repeat, it just rhymes. This is why you have to learn from history, but you also have to realize that the same thing happening twice over a span of 30 years may have a totally different outcome. 

Update: November 17, 2025

It looks like the three additions have not done as well as Dow Jones Industrials Average since August 28, 2020 (the date changes took place). 

It also looks like the three deletions did much better than Dow Jones Industrials Average since August 28, 2020:

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Eight Companies Raising Dividends Last Week

I review the list of dividend increases weekly, in an effort to monitor the existing dividend growth investing universe from a different angle. This piece fits perfectly with my existing system of screening for and monitoring existing holdings. Dividend increases have signaling power, which can help observe managements assessment of the business environment. It takes a trained eye to study and decipher the tea leaves however. And just like any other type of indicator, it is never going to be 100% foolproof.

As part of my monitoring process, I do focus only on the more established dividend growth companies. This means that I focus on the companies that have at least a ten year track record of annual dividend increases under their belts. 

Over the past week, there were eight companies in the US that raised dividends and also have a ten year track record of annual dividend increases. The companies include:

Aflac Incorporated (AFL) provides supplemental health and life insurance products. The company operates in two segments, Aflac Japan and Aflac U.S. 

The company raised its quarterly dividends by 5.20% to $0.61/share. This is the 43rd year of consecutive annual dividend increases for this dividend aristocrat. Aflac has managed to grow dividends by 10.45%/year over the past decade.

Between 2015 and 2024, Aflac has managed to grow earnings from $2.94/share to $9.68/share.

The company is expected to earn $7.49/share in 2025.

The stock sells for 15.30 times forward earnings and a dividend yield of 2.13%.

Assurant, Inc. (AIZ) provides protection services to connected devices, homes, and automobiles in North America, Latin America, Europe, and the Asia Pacific. It operates in two segments, Global Lifestyle and Global Housing. 

The company hiked quarterly dividends by 10% to $0.88/share. This is the 21st consecutive annual dividend increase for this dividend achiever. Over the past decade, the company managed to grow dividends at an annualized rate of 10.82%.

Between 2015 and 2024, the company raised quarterly dividends by $2.08/share to $14.55/share.

The company is expected to earn $19.59/share in 2025.

The stock sells at 11.70 times forward earnings and yields 1.54%.

Automatic Data Processing, Inc. (ADP) provides cloud-based human capital management (HCM) solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). 

The company raised quarterly dividends by 10.40% to $1.70/share. This marks the 51st consecutive year in which this dividend king raised dividends. ADP has managed to grow dividends at an annualized rate of 12.76% over the past decade.

Between 2016 and 2025, the company has managed to grow earnings from $3.27/share to $10.02/share.

The company is expected to earn $10.91/share in 2025.

The stock sells for 23.20 times forward earnings and yields 2.70%.

Farmers & Merchants Bancorp (FMCB) operates as the bank holding company for Farmers & Merchants Bank of Central California that provides various banking services to businesses and individuals in the United States.

The company raised quarterly dividends by 1% to $5.05/share. This is the 60th consecutive year of annual dividend increases for this dividend king. Over the past decade, the company has managed to grow dividends at an annualized rate of 3.40%.

Between 2015 and 2024, the company managed to grow earnings from $34.82/share to $121.02/share.

The stock sells at 7.83 times earnings and a dividend yield of 1.96%.

First National Corporation (FXNC) operates as the bank holding company for First Bank that provides various commercial banking services to small and medium-sized businesses, individuals, estates, local governmental entities, and non-profit organizations in Virginia. 

The company hiked quarterly dividends by 9.70% to $0.17/share. This is the 11th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 23.20%. However, that was possible due to re-starting paying dividends again from a very low base in 2014.

Between 2015 and 2024, the company managed to grow earnings from $0.31/share to $1/share.

The company is expected to earn $1.96/share in 2025.

The stock sells for 12.35 times forward earnings and yields 2.82%.

Haverty Furniture Companies, Inc. (HVT) operates as a specialty retailer of residential furniture and accessories in the United States. The company offers furniture merchandise under the Havertys brand name.

The company raised quarterly dividends by 3.10% to $0.33/share. This is the 13th consecutive year of annual dividend increases for this dividend achiever. The company has managed to grow dividends at an annualized rate of 14.69% over the past decade.

Between 2015 and 2024, the company's earnings moved from $1.24/share to $1.22 (they have remained stagnant). The high growth in dividends was only possible due to expanding the payout ratio. Future dividend growth will be limited to what earnings growth will be, if any.

The company is expected to earn $1.17/share in 2025.

The stock sells at 19.36 times forward earnings and a dividend yield of 5.85%.

Spire Inc. (SR) engages in the purchase, retail distribution, and sale of natural gas to residential, commercial, industrial, and other end-users of natural gas in the United States. The company operates through three segments: Gas Utility, Gas Marketing, and Midstream. 

The company increased quarterly dividends by 5.10% to $0.825/share. This is the 23rd consecutive year of annual dividend increases for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 5.55%.

Between 2016 and 2025, the company managed to grow earnings from $3.26/share to $4.39/share.

The company is expected to earn $5.20/share in 2026.

The stock sells for 16.70 times forward earnings and a dividend yield of 3.79%.

Tyson Foods, Inc. (TSN) operates as a food company worldwide. It operates through four segments: Beef, Pork, Chicken, and Prepared Foods.

The company raised quarterly dividends by 2% to $0.51/share. This is the 14th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to raise dividends at an annualized dividend growth of 19.75%.

Between 2016 and 2025, earnings dropped from $4.59/share to $1.33/share.

The company expects to earn $3.90/share in 2026.

The stock sells for 13.80 times forward earnings and a dividend yield of 3.78%. 

Relevant Articles:

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Agony & Ecstasy - The Risks and Rewards of a Concentrated Stock Position

One of the best reads is "Agony & Ecstasy" by JP Morgan from 2014. 

It found that 40% of all stocks experienced catastrophic declines, when defined as a 70% decline from peak value with minimal recovery. This was lowest for Consumer Staples and Utilities.

The median stock did worse than the stock market.

Two-thirds of all excess returns vs. the Russell 3000 were negative, and for 40% of all stocks, returns were negative in absolute terms.

The right tail is ~7% of the universe and includes companies that generated excess returns.

Consumer Staples seemed to offer the best risk/reward of any other sectors. They offered the smallest %-age of failures, and an above percentage of companies that generate excess returns. Long-term Dividend Growth Investors are familiar with consumer staples sector, as it has overwhelmingly generated long track records of annual dividend increases. Historically, up to this point at least.

This study is one of the best reasons against the mantra to concentrate a portfolio.

Diversification would have provided protection for preserving family wealth.

A partial list of exogenous factors that can put companies at risk and which are outside management control

Diversification is a healthy admission that you can be wrong for reasons you can’t predict.

Thirteen Cash Machines Hiking Dividends Last Week

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:

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.

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. 

19 Dividend Growth Stocks Raising Dividends Last Week

I track the dividend investing universe for dividend increases every single week. This exercise helps me monitor existing holdings, and potentially identify companies for further research.

Dividend increases are important according to the dividend signaling theory. Dividend increases provide key information to the trained eye about the fundamental picture of the company, its business prospects and management sentiment.

As a Dividend Growth Investor, I typically focus my attention on the companies that raise dividends for at least ten years in a row. This is a requirement that helps me weed out a lot of the cyclical names that were simply present during a portion of an economic cycle. This requirement helps me focus on the companies that have the underlying economics to potentially keep delivering through the ups and downs of a typical cycle.

Over the past week, there were 49 companies that raised dividends. Nineteen of them also have a ten year track record of annual dividend increases under their belts. The companies include:

Just because a company raised dividends last week AND has a ten year track record of annual dividend increases, does not make it an automatic buy. It merely may put it on my list for further research.

The next step in the process would be to review trends in earnings per share, in order to determine if the dividend growth is on strong ground. Rising earnings per share provide the fuel behind future dividend increases.

This should be followed by reviewing the trends in dividend payout ratios, in order to check the health of dividend payments. A rising payout ratio over time shows that future dividend growth may be in jeopardy. There is a natural limit to dividends increasing if earnings are stagnant or if dividends grow faster than earnings.

Obtaining an understanding behind the company’s business is helpful, in order to determine how defensible the dividend will be during the next recession. Certain companies are more immune to any downside, while others follow very closely the rise and fall in the economic cycle.

Of course, valuation is important, but it is more art than science. P/E ratios are not created equal. A stock with a P/E of 10 may turn out to be more expensive than a stock with a P/E of 30, if the latter is growing earnings and the former isn’t. Plus, the low P/E stock may be in a cyclical industry whose earnings will decline during the next recession, increasing the odds of a dividend cut. The high P/E company may be in an industry where earnings are somewhat recession resistant, which means that the likelihood of dividend cuts during the next recession is lower.

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The Performance of the Average Investor - Myth vs Reality

You've probably seen this chart, comparing the returns of the "average investor" to that of various other asset classes.

The conclusion this chart tries to convey is that the performance of the "average investor" is awful.

This is a useful conclusion, because this "study" is sold to financial advisors to use in their marketing materials. If you convince investors that they don't know what they are doing, you can generate fees for a long time. Companies like JP Morgan simply reprint the results.

The fun part is that the majority of people who quote this study, do not know how it is calculated.  Nor where it came from. Or even reviewed the paper it came from (it's hard to obtain, and you need to pay for it).

Have you ever stopped to think for yourself, how exactly did they calculate the performance of the average investor?

Also, how did they determine who the average investor is?

After all, if you look at all investors, they should in theory have overall returns that are close to what the total of all assets generated (minus fees, taxes etc)

Even if a lot of investors lose money to overtrading, and dumb stock picks, there have to be other investors out there to offset that foolishness, at least to some portion.

And to add insult to injury, a lot of these "average investors" out there also have a financial advisor too.

Something just doesn't add up.

By the way, it is easy to lead people to conclusions, if you compare apples to oranges

1. From my research, the study looks at mutual fund flows and compares the returns of someone who essentially dollar cost averages monthly over a 20 year time frame (e.g. 2002-2022) to someone who invested a lump sum amount (e.g in 2002)

You can run the numbers yourself for any investment, but if you bought $100 worth of S&P 500 every month between 2002 and 2022, your end results would be less than someone who simply put $24,000 in S&P 500 at the start of 2002.

In one of the rebuttals of the study, someone found out that the performance of the "average investor" was very similar to that of someone who simply dollar cost averaged every month for the 20 years. This is why many believe that the performance of average investor is mostly an attempt to compare apples to oranges, in order to "prove" how inadequate the average investor is.

2. Comparing the fund flows for all asset classes also does not provide a useful comparison.

That's because certain asset classes like money market mutual funds are used like a savings account for example. The goal of that money should not be compared to performance of say S&P 500. That's an apples to oranges comparison.

Note, that doesn't mean that the so called behaviour gap does not exist (meaning that the average investor does worse than their benchmark). But it should not be as pronounced and as starkingly high.

There are other organizations out there that have attempted to calculate average returns. Morningstar being one of them. While there is a behaviour gap accross many asset classes (stocks/bonds etc), it is not that high if you try to be objective in how you setup your population, and make apples to apples comparisons.

Conclusion: 

You need to trust, but verify.

Overall, I belive that the personal investor of today has the right tools to build the right portfolios to suit their needs. Information is abundant, commissions are pretty much non-existent, and a lot of communities (e.g. Dividend Growth Investors) are aware of the benefits of long-term investing, minimal turnover, diversification, simple tax planning etc. The important thing to do is to educate yourself, as your money is on the line. Nobody cares more about your money than you do.

Note that this posts represents the personal opinions of the author. It is based on research information available on the internet.

Twenty Dividend Growth Stocks Raising Distributions Last Week

I review the list of dividend increases every week as part of my monitoring process. Dividend increases provide very good signaling power. The important skill is to be able to evaluate each increase, in order to determine any aberrations.

Over the past week, there were 36 companies that raised dividends in the US. Twenty of them also have a track record of at least ten consecutive annual dividend increases.

I compiled the data for each one of those 20 companies to show dividend streak in years, as well as the comparison of latest dividend increase to the ten year average. In addition, readers can see the forward P/E as well as teh dividend yield, based on the new distribution. 

The companies include:

Note that this table shows the dividend increases relative to the prior dividend payment. Typically, for most situations, this is a good gauge for year over yar increases. In some cases however, such as Comfort Systems, this understates dividend increases. As a matter of fact the new dividend for Comfort Systems is over 71% higher than the dividend paid during the same time last year. They've had 4 quarterly dividend increases in a row in the past 12 months or so.

This is a long-winded way of stating that this list is not going to provide all the data points for your research. It's simply a data point in the monitoring process. You need to do more reviews from it.

In my initial reviews, I typically look for:

1. Dividend Streak

2. Trends in earnings per share

3. Trends in dividends per share

4. Trends in payout ratios

5. Trends in shares outstanding

6. Valuation

7. Understanding business type

Also note that if you want to calculate the forward dividend payout ratio, you can do so pretty easily using the Forward P/E and Dividend Yield. For example, a Forward P/E of 20 is equivalent to an earnings yield of 5%.  If the dividend yield is 2.50%, then the payout ratio is a function of the dividend yield over the earnings yield, or a payout ratio of 50%.

Alternatively, one can also convert the dividend yield into a price to dividend ratio. A dividend yield of 2.50% is equivalent to a price to dividend ratio of 40. If the price to earnings ratio is 20, then the forward payout ratio is a function of the price earnings ratio over the price to dividend ratio, or a payout ratio of 50%.

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Four Dividend Growth Companies Raising Dividends Last Week

I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me monitor the dividend growth investing universe. This helps me monitor existing positions, and potentially uncover companies for further research.

I focus on those companies that have managed to increase dividends for at least a decade. Over the past week, there were four companies in the US that raised dividends, which also have a ten year track record of annual dividend increases under their belt. The companies include:

Agree Realty Corporation (ADC) is a publicly traded real estate investment trust that is involved in the acquisition and development of properties net leased to industry-leading, omni-channel retail tenants.

The REIT hiked monthly dividends to $0.262/share. This is the 13th consecutive annual dividend increase for this dividend achiever. Over the past five years, the company has managed to grow dividends at an annualized rate of 6%.

Between 2015 and 2024, the REIT grow FFO/share from $2.40 to $3.78.

Agree Realty is expected to generate $4.25/share in FFO in 2025.

The stock sells for 17.65 times forward FFO and a dividend yield of 4.20%

A. O. Smith Corporation (AOS) manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. 

The company increased quarterly dividends by 5.90% to $0.36/share. This is the 32nd year of annual dividend increases for this dividend aristocrat. Over the past five years, the company has managed to grow dividends at an annualized rate of 7.60%.

Between 2015 and 2024, the company managed to grow earnings from $1.59/share to $3.65/share.

The company is expected to earn $3.84/share in 2025.

The stock sells for 18.20 times forward earnings and a dividend yield of 2.07%

Lincoln Electric Holdings, Inc. (LECO) designs, develops, manufactures, and sells welding, cutting, and brazing products in the United States and internationally. It operates in three segments: Americas Welding, International Welding, and The Harris Products Group. 

The company increased quarterly dividends by 5.30% to $0.79/share. This is the 30th consecutive annual dividend increase for this dividend champion. Over the past five years, the company has managed to grow dividends at an annualized rate of 8.60%.

Between 2015 and 2024, the company grew earnings from $1.70/share to $8.15/share.

Lincoln Electric is expected to earn $9.71/share in 2025.

The stock sells for 24.20 times forward earnings and a dividend yield of 1.34%.

IDACORP, Inc. (IDA) engages in the generation, transmission, distribution, purchase, and sale of electric energy in the United States. 

The company increased quarterly dividends by 2.30% to $0.88/share. This is the 13th consecutive annual dividend increase for this dividend achiever. Over the past five years, the company has managed to grow dividends at an annualized rate of 5.50%.

Earnings grew from $3.88/share in 2015 to $5.50/share in 2024.

The company is expected to earn $5.85/share in 2025.

The stock sells for 23.23 times forward earnings and a dividend yield of 2.53%.

Relevant Articles:

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- Three Dividend Growth Stocks In The News

- Two Dividend Growth Companies With Raises Last Week

Four Dividend Growth Companies Announcing Raises Last Week

I review the list of dividend increases as part of my monitoring process. This exercise is one of the steps to check on existing holdings. It's also one of the steps to check on companies for further research. The data points I illustrate for each company below are the types of data points I use to review companies.

I typically focus my attention on companies that have managed to grow dividends for at least ten years in a row. However, a long streak of consecutive annual dividend increases is just a first step, that merely puts a company on my review list. The next step involves reviewing the most recent dividend increase with the historical record - 5 or 10 years. This is also followed by a review of earnings, payout ratios and other fundamentals, in an effort to determine the likelihood of the dividend growing in the future, and the relative safety of said dividend.

Over the past week, there were four companies that announced dividend hikes. Each of these companies has also managed to increase dividends for at least ten years in a row. The companies include:

Avient Corporation  (AVNT) operates as a formulator of material solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It operates in two segments, Color, Additives and Inks; and Specialty Engineered Materials.

Avient raised quarterly dividends by 1.90% to $0.275/share.This is the 15th consecutive year of dividend icnreases for this dividend achiever.

Over the past decade, the company has managed to grow dividends at an annualized rate of 10.44%.

Between 2015 and 2024, the company managed to grow earnings from $1.65/share to $1.86/share.

The company is expected to earn $2.80/share in 2025.

The company is selling at 10.85 times forward earnings a a dividend yield of 3.62%.

The lack of earnings growth explains the slow dividend raises. While P/E is low and the yield is high, the expected returns are going to be low, until earnings per share growth accelerates. At this pace dividend payments will not keep up with inflation.

Northwest Natural Holding Company (NWN) provides regulated natural gas distribution services to residential, commercial, and industrial customers in the United States. 

Northwest Natural raised quarterly dividends by 0.50% to $0.4925/share. This is the 70th consecutive year of dividend increases for this dividend king. Over the past decade, the company has managed to grow dividends at an annualized rate of 0.53%.

Between 2015 and 2024, the company managed to grow earnings from $1.96/share to $2.03/share.

The company is expected to earn $2.91/share in 2025.

The company is selling at 15.32 times forward earnings a a dividend yield of 4.40%.

The lack of earnings growth explains the very slow rate of dividend increases. While the company does have a long and impressive streak of dividend increases, the rates of increase are nominal, and do not keep up with inflation. As a result, the expected returns are going to be limited in the future to dividend yield at start of investment. Unless earnings increase in the future, dividend growth will be nominal, until the dividend payout ratio increases by too much, at which point we may get a higher risk of a dividend cut. One could potentially expect higher returns if they can find the stock at a much higher starting yield.

Lockheed Martin Corporation (LMT) is an aerospace and defense company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. The company operates through four segments: Aeronautics; Missiles and Fire Control (MFC); Rotary and Mission Systems (RMS); and Space. 

Lockheed Martin increased quarterly dividends by 4.50% to $3.45/share. This is the 23rd consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 8.20%.

This is also the smallest dividend increase in 23 years as well.

Between 2015 and 2024, the company managed to grow earnings from $11.62/share to $22.39/share.

The company is expected to earn $21.92/share in 2025.

The company is selling at 23.04 times forward earnings a a dividend yield of 2.73%.

The rate of dividend growth decelerating is signaling some uncertainty from management. While the stock seems fairly priced, and has managed to grow earnings in the past at a very good rate, the future seems a little cloudy at this point.

THOR Industries, Inc. (THOR) designs, manufactures, and sells recreational vehicles (RVs), and related parts and accessories in the United States, Germany, rest of Europe, Canada, and internationally. 

Thor increased the quarterly dividend by 4% to $0.52/share. This is the 16th consecutive annual dividend increase for this dividend achiever. Over the past decade, it has managed to grow dividends at an annualized rate of 7.30%.

Earnings per share went from $4.89 in 2015 to $4.87 in 2024.

The company is expected to earn $4.08/share in 2025.

The company is selling at 24.35 times forward earnings a a dividend yield of 2.10%.

We have another dividend increaser that has been unable to grow earnings over the past decade, which means that future dividend growth is decelerating. Unfortunately, there is a natural ceiling as to how long a company can grow dividends.

Relevant Articles:

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- Six Dividend Growth Stocks Raising Dividends Last Week

- Eleven Dividend Growth Stocks Raising Dividends Last Week

The human mind cannot comprehend the power of compounding

The human mind cannot comprehend the power of compounding.

Imagine that you retired in 1985 with $100,000 and a paid off home. 

You invested this $100,000 in S&P 500 mutual fund at the end of 1985.

You lived off dividends, Social Security and enjoyed your money.

You spent the dividends, but kept the portfolio invested.

The first year, you generate almost $4,000 in annual dividend income.

This year you are on track to generate over $37,000 in annual dividend income.

You die in 2025 with a portfolio worth $3.2 Million.

97% of that gain in net worth occured in the past 40 years of your life.

You lived a full life, enjoying retirement as well.

If you didn't have anyone to inherit from you, you'd likely be one of those who make headlines for donating millions to charity.

If you do have kids/grandkids, they'd receive a decent inheritance to provide some added cushion.

Ironically, any time I post something like this, someone would state that "they didn't enjoy their money".

This comes from the misunderstanding of compounding, and nature of long-term stock returns.

To put it simply, this individual sees that someone has $3.2 Million at the end, and they now assume that this money was always there, they always had $3.2 Million so in their mind "they should've spent more".

Of course, that person did not have that $3.2 Million until the end of their journey.

If they had "spent more" when they retired in 1985, they'd have run out of money by the late 1980s/early 1990s and would've nothing to show for it.

The reality is that this person enjoyed life, being in charge of their schedule, living in their paid off home, receiving Social Security checks and rising dividend income. Perhaps they even received a corporate pension, but I am not including it, as not many folks today have that (I guess less today than historically speaking).

This basically gets to the point that to most people, having $1 Million means spending $1 Million, which is the opposite of having $1 Million.

To smart investors however, having $1 Million means having a small army of dollar soldiers who work tirelessly for you, 24/7, which provide the income to enjoy your life so you don't have to work. That money provides freedom and piece of mind.

Anywho, this is a fun thought exercise I go through from time to time.

Or as I like to say " I often think about that".

Five Dividend Growth Stocks Raising Dividends Last Week

I review the list of dividend increases every single week, as part of my monitoring process. This exercise helps visualize what key drivers I look for in dividend growth stocks, and also how I review them for fundamentals and valuation. 

Ultimately, returns are a function of:

1. Dividends

2. Earnings Per Share Growth

3. Change in valuation

As a long-term investor, I look for companies that grow earnings and dividends, and try to acquire them at a good price. Afterwards, the goal is to sit back, and let the power of compounding do the heavy lifting for me.

I expect to be wrong 40% - 60% of the time, but I do expect that I will be right on the remainder. The remainder of winners will more than compensate for any losers, and then some. I rarely know which of the companies will be the biggest successes, which is why I take a lot of shots, I diversify, and I hold for as long as possible. I also manage risk by limiting downside, but letting the upside grow with as little limitation on my end as possible.

Anywho, over the past week, there were five dividend growth companies which both raised dividends and also have managed to increase dividends annually for at least ten years in a row. The companies include:

Bank OZK (OZK) operates as a full-service Arkansas state-chartered bank that provides retail and commercial banking services in the United States.

Bank OZK raised quarterly dividends by 2.30% to $0.45/share. The bank has raised dividends for 61 consecutive quarters and 27 consecutive years. Over the past decade, this dividend champion has managed to grow dividends at an annualized rate of 12.90%.

The new payment is 9.75% higher over the dividend paid during the same time last year.

The bank earned $2.10/share in 2015 and managed to grow it to $6.16/share in 2024.

The company is expected to earn $6.34/share in 2025.

The stock sells for 8.08 times forward earnings and has a dividend yield of 3.51%.

Farmers & Merchants Bancorp, Inc. (FMAO) operates as the bank holding company for The Farmers & Merchants State Bank that provides commercial banking services to individuals and small businesses in Northwest Ohio, Northeast Indiana, and Southeast Michigan.

Farmers & Merchants Bancorp (FMAO) raised quarterly dividends by 2.80% to $0.2275/share. This is teh 20th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 7.70%.

The bank managed to grow earnings from $1.12/share in 2015 to $1.90/share in 2024.

The company is expected to earn $2.27/share in 2025.

The stock sells for 11.15 times forward earnings and has a dividend yield of 3.60%.

RPM International Inc. (RPM) provides specialty chemicals for the construction, industrial, specialty, and consumer markets. It operates in four segments: CPG, PCG, Consumer, and SPG. 

RPM raised quarterly dividends by 5.90% to $0.54/share. This is the 52nd consecutive year that this dividend king has increased its cash dividend. Over the past decade, the company has managed to grow dividends at an annualized rate of 6.80%.

The company clearly states that Dividend Growth Drives Total Returns on its website: 

"In an era of extremely low interest rates on savings account and other interest-bearing investment options, RPM’s dividend growth—coupled with an appreciating stock price—yield a total return that makes the company attractive to both institutional and individual investors.

Since initiating its focus on an annually growing dividend in 1973 to drive long-term value for shareholders, $RPM has grown from $25 million in annual sales to more than $7.4 billion, while delivering $3.8 billion in after-tax capital through its cash dividend program."

The company earned $2.70/share in 2016 and grew profits to $5.38/share in 2025.

The company is expected to earn $5.68/share in 2026.

The stock sells for 20.59 times forward earnings and has a dividend yield of 1.85%.

Starbucks Corporation (SBUX) operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. 

Starbucks raised quarterly dividends by 1.60% to $0.62/share. This is the 15th consecutive annual dividend increase for this dividend achiever.

This is also the smallest dividend increase ever for Starbucks. Over the past decade, the company has managed to grow dividends at an annualized rate of 15.50%.

The company managed to grow earings from $1.84/share in 2015 to $3.32/share in 2024.

The company is expected to earn $2.17/share in 2025.

The stock sells for 39.84 times forward earnings and has a dividend yield of 2.87%.

Trinity Bank, N.A. (TYBT) provides personal and business banking products and services in Texas.

Trinity Bank raised its semi-annual dividends by 5.30% to $1/share. This represents the 13th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 10.80%.

The company grew earnings from $2.91/share in 2014 to $7.83/share in 2024.

The stock sells for 12.26 times earnings and yields 2.20%.

I honestly love how they show the dividends paid over the past 13 years, and totaled it in the press release. For reference, stock was at around $26.50/share at the end of 2011.

Relevant Articles:

- Three Dividend Growth Stocks In The News

- Six Dividend Growth Stocks Raising Dividends Last Week

- Two Dividend Growth Companies With Raises Last Week

- Eleven Dividend Growth Stocks Raising Dividends Last Week

Dividends Matter (A Lot)

Dividends have historically accounted for 33% - 40% of historical annual total returns. 

This is the beauty of averages however.

During long bull markets, dividends are outshined by capital gains. Examples of long bull markets include the ones seen in the 1920s, 1950s and 1960s, 1980s and 1990s and then the 2010s and 2020s.

Investors during those long bull markets see dividends as irrelevant during those periods.

However, during those long cyclical bear market stretches, dividends tend to account for 100% of total returns.

Those long stretches of time include the:

1929 - 1954

1966 - 1982

2000 - 2012

During those long stretches of time, investors are reminded that while annualized total returns are roughly 10%/year, those returns are just averages. You can spend many years with no capital gains to show (in a diversified portfolio), during which time dividends are the only source of return you will get.

This is why I focus my whole strategy around dividends - these payments help me stay invested through the ups and downs, because I get cashflow that comes from corporate profits. These are much more stable and predictable than share prices (in the short and medium and long run).

I went ahead and obtained a chart of S&P 500 index on a real price return basis. It shows the price of the S&P500 index since 1871, but adjusted for inflation.

Source: Multpl.com

Note, the chart above shows the S&P 500 price adjusted for inflation.

You can see that while stock prices have tended to go up over time, there have been long stretches of time when they didn't. Notable examples include the 1910s, when we had the Great War.

The next example is the 1929 - 1954, when we had the Great Depression and World War II.

The third major example is the 1966 - 1982, when we had high inflation, and high interest rates. Some economists refer to the 1970s as a staglation - low economic growth coupled with high inflation.

The last major example is 2000 - 2012, when we had the implosion of the dot-com bubble, the Global Financial Crisis, as well as high inflation (remember the commodities boom, and BRICs?)

Of course, long-term readers know that with stocks, you generate total returns.

Total returns are a function of dividends and capital gains. 

The chart above only shows capital appreciation, adjusted for inflation.

I see that chart quite often on the interwebs, as an effort by someone to scare people out of owning stocks. It's easy to try and deceive others, by showing biased data, which shows only half of the picture. 

If you show an inflation adjusted total returns chart on S&P 500, you see a much different picture.

The thing is, it is not easy to find a total returns inflation adjusted chart on the S&P 500 since 1871. Which is odd, because the data for it exists.

So, I went ahead and made a chart of the inflation adjusted total returns of S&P 500 since 1871.

Source: Shillerdata.com 

Note the chart above shows the real total returns for S&P 500 from a base of $115 in January 1871.

You can see that when you adjust for dividends, the chart of total returns is much smoother. 

For example, that 1929 peak is not as scary. If you invested in stocks at the very highs in 1929, and you reinvested your dividends, you broke even by 1936/1937. That's just 7-8 years, versus the 25 years you often see quoted around everywhere.

This data and graphs are mostly a reminder to stay invested in diversified portfolios for the long run. One needs to keep costs, taxes, fees, turnover low, and stay invested.

To me, it is a reminder to keep investing for the dividend, and ignore the share prices.

Dividends are much easier to predict, forecast and rely on, because they come from cashflows. They are always positive source of returns, and they tend to grow at or above rate of inflation in the long run. This makes them an ideal source of income for retirees.

In the accumulation phase, this means adding to my portfolio and reinvesting dividends, until dividend income exceeds expenses. 

In the retirement phase, this means taking dividends in cash and spending them, leaving anything left over to reinvest.

I do not want to be in a situation where I have to sell stock, because that way I may deplete my portfolio. A negative sequence of return risk at the onset of withdrawals can easily deplete a portfolio that relies of stock sales.

Now historically, a large portion of total returns came from dividends. So those who lived off portfolios (even S&P 500 market index types) didn't actually have to sell stock in most cases. That did change in the 1990s, with the dot-com bubble, and the proliferation of buybacks over dividends.

The real risk today is that you may experience long sideways market without the cushion of dividend payments, given that they are much lower today than in previous decades. We are in uncharted territory.

As we saw in the 1970s and 2000s, buybacks can reduce shares outstanding and lift EPS. However, if the P/E valuation mutliple shrinks, then you are setting money on fire with the buyback. I am giving buybacks the benefit of the doubt here, because I am not even going to mention that many buybacks were initially implemented as a way to offset the dillution from equity compensation to employees. Which should be reducing EPS.

The other real risk today is that in order to generate starting yields above 1%, which is what S&P 500 offers, one needs to create a portfolio that looks different than S&P 500. It is quite possible to build a portfolio that yields say 3% on average today, which would grow dividends at or above rate of inflation over time. 

However, you risk that your total returns may end up to be different than S&P 500. 

A) Which could turn out to be having better returns in some of the situations, where we may experience a prolonged bear market. 

B) However it cold turn out to also be having worse returns in some of the situations, where we may experience a prolonged bull market.

Happy Coca-Cola Dividend Day Warren Buffett

Warren Buffett’s Berkshire Hathaway just received a  dividend check for $204 million dollars from Coca-Cola.

Berkshire Hathaway owns 400 million shares of Coca-Cola (KO), which are projected to generate $816 million in annual dividend income. 

This comes out to roughly $2,235,616.43 in dividend income per day, $93,150.68 dollars in dividend income per hour, $1,552.51 dollars in dividend income for Berkshire Hathaway every minute, or almost $25.87 every single second. 

Those shares have a cost basis of $1.29 billion dollars, and were acquired between 1988 – 1994. This comes out to $3.25/share. The annual dividend payment produces an yield on cost of over 62.77%. This means that Berkshire receives its original cost back every other year in dividends alone, while still retaining full ownership of its shares. This is why I believe that Warren Buffett is a closet dividend investor.

Since 1994, Buffett has received $29.27/share in total dividend income from Coca-Cola.

That is $11.708 billion in dividend income, against a total cost of $1.299 billion, which was allocated to buy stakes in other businesses and shares.

His Coca-Cola stock is worth $26.50 billion today. Given the fact that Coca-Cola has also repurchased stock over the years, it also means that his ownership in Coca-Cola has increased over time, without adding a single dime.

This is a testament to the power of long-term dividend investing, where time in market is the investors best ally, not timing the market. If you can select a business which is run by able and honest management, which has solid competitive advantages, and which is available at a good price today, one needs to only sit and let the power of compounding do the heavy lifting for them. As Buffett likes to say, time is a great ally for the good business. In the case of Coca-Cola, the past 33 years have been a great time to buy and hold the stock. The company has been able to tap emerging markets in Eastern Europe, Asia, Africa and Latin America like never before. As a result, it has been able to receive a higher share of the worldwide drinks market, which has also been expanding as well. If you add in strategic acquisitions, new product development, cost containment initiatives and streamlining of operations, you have a very powerful force for delivering solid shareholder returns. With dividend investing your are rewarded for smart decisions you have made years before.

If they closed the stock market for a period of 10 years, Buffett would still be earning steady cashflow from his investment in Coca-Cola. This is because ten years from now, the company would likely be earning more than what it is earning today, and would likely be distributing more in dividend income than it is paying to shareholders today. Receiving a huge dividend check every three months is a reminder that you are a shareholder in a real company with real products that are consumed by billions of consumers worldwide. The stock is not a lottery ticket but a partial ownership in a company, which entitles you to a share of the profits being paid out to you as a shareholder in the form of dividends.

At the end of the day, if you identify a solid business, that has lasting power for the next 20 – 30 years, the job of the investor is to purchase shares at attractive values, and hold on to it. This slow and steady approach might seem unexciting initially, but just like with the story of the slow-moving tortoise beating the fast moving hare, the power of compounding would work miracles for the patient dividend investor.

In the case of Warren Buffett's investment in Coca-Cola, he is able to recover his original purchase price in dividends alone, every two years. Even if Coca-Cola goes to zero tomorrow, he has generates a substantial returns from dividends alone, which have flown to Berkshire's coffers, and have been invested in a variety of businesses that will benefit Berkshire Hathaway's shareholders for generations to come.

Currently, Coca-Cola is selling for 22.27 times forward earnings and yields 3.08%. This dividend king has managed to increase dividends for 62 years in a row.  

There were only 46 companies in the US, which have gained membership into the exclusive list of dividend kings, as of early 2025. 

Over the past decade, Coca-Cola has managed to increase dividends by 4.50%/year.  This is much better than the raises I have received at work over the past decade, despite the fact that I have routinely spent 55 - 60 hour weeks at the office.

Relevant Articles:

- Coca-Cola: A wide-moat dividend growth stock to buy and hold
- Warren Buffett Investing Resource Page
- Seven wide-moat dividends stocks to consider
- Warren Buffett’s Dividend Stock Strategy
- The importance of yield on cost

Three Dividend Growth Stocks In The News

I review the list of dividend increases every single week, as part of my monitoring process.

I find it highly educational, because it showcases the process I go through to evaluate companies quickly.

Focusing on the drivers of long-term performance, along with their trends, is extremely helpful in determining if a company is worth following or not.

I usually look at companies with a ten year track record of consistent annual dividend increases. Over the past week, there were three companies that raised dividends, which also have a ten year track record of annual dividend increases. The companies include:

Accenture plc (ACN) provides strategy and consulting, industry and technology and operation services in North America, Europe, the Middle East, Africa, and internationally.

Accenture raised quarterly dividends by 10.10% to $1.63/share. This is the 20th consecutive annual dividend increase for this dividend achiever.  The company has achieved an annualized dividend growth of 10.60% over the past decade.

Earnings grew from $6.58/share in 2016 to $12.29/share in 2025.

The company is expected to earn $13.86/share in 2026.

The stock sells for 17.24 times forward earnings and yields 2.72%.

Accenture seems fairly valued today. It has managed to grow earnings and dividends at a very good rate in the past decade. At this time, there is some uncertainty as to whether AI could disrupt its business. In my opinion it could help its business.

City Holding Company (CHCO) operates as a financial holding company for City National Bank of West Virginia that provides banking, trust and investment management, and other financial solutions in the United States. 

City Holding raised quarterly dividend by 10% to $0.87/share. This is the 14th consecutive annual dividend increase for this dividend achiever. The company has achieved an annualized dividend growth of 6.50% over the past decade.

Earnings grew from $3.54/share in 2015 to $7.91/share in 2024.

The company is expected to earn $8.67/share in 2025.

The stock sells for 14.60 times forward earnings and yields 2.75%.

This is an interesting financial company, which has impressive financial performance over the past decade or so. The valuation is not cheap for a financial company, but it seems like it is a well managed organization. It's one of the few financials that did not cut or suspend dividends during the Global Financial Crisis, albeit it did keep them unchanged for a while.

Honeywell International Inc. (HON) engages in the aerospace technologies, industrial automation, building automation, and energy and sustainable solutions businesses in the United States, Europe, and internationally. 

The company raised quarterly dividends by 5.30% to $1.19/share. This is the 15th consecutive annual dividend increase for this dividend achiever. The company has achieved an annualized dividend growth of 8.90% over the past decade.

Earnings grew from $6.11/share in 2015 to $8.76/share in 2024.

The company is expected to earn $10.57/share in 2025.

The stock sells for 19.70 times forward earnings and yields 2.28%

Honeywell looks like a promising candidate for further research. Unfortunately the rate of growth has been on the decelerating side, while the multiples are not really that low to compensate for it.

Relevant Articles:

- Six Dividend Growth Stocks Raising Dividends Last Week

- Two Dividend Growth Companies With Raises Last Week

- Eleven Dividend Growth Stocks Raising Dividends Last Week

- Three Dividend Growth Stocks Rewarding Shareholders With Raises

Three Dividend Growth Stocks Rewarding Shareholders With Raises

I review the list of dividend increases every single week, as part of my monitoring process. This exercise helps me monitor existing holdings and also to monitor the dividend growth investing universe. Last but not least, it shows how I review companies quickly as well.

I focus on the companies that have managed to grow dividends for at least a decade. Over the past week, there were three notable dividend increases from such companies. The companies include:

Microsoft Corporation (MSFT) develops and supports software, services, devices, and solutions worldwide. 

Microsoft increased quarterly dividends by 9.60% to $0.91/share. This is the 21st consecutive annual dividend increase for this dividend achiever. The company has a ten year annualized dividend growth rate of 10.35%.

The company grew earnings from $2.59/share in 2015 to $13.70/share in 2024.

The company is expected to earn $15.52/share in 2025.

The stock sells at 33.37 times forward earnings and yields 0.70%. 

Microsoft has been executing well on its business, as evidenced by the growth in earnings per share and the dividend. However, the stock is valued at a premium, rightfully so. That being said, if it ever gets sold off, while fundamentals are not fundamentally impaired, it could be worth a second look.

Philip Morris International Inc. (PM) operates as a tobacco company. The company offers cigarettes and smoke-free products, including heat-not-burn, vapor, and oral nicotine products under the IQOS and ZYN brands; and consumer accessories, such as lighters and matches.

Philip Morris increased quarterly dividends by 8.90% to $1.47/share. This is the 17th consecutive annual dividend increase for this dividend achiever. The company has a ten year annualized dividend growth rate of 3.05%.

The company grew earnings from $4.42/share in 2015 to $4.53/share in 2024.

The company is expected to earn $7.52/share in 2025.

The stock sells at 21.50 times forward earnings and yields 3.60%.

PMI spent a whole decade investing for the future of the tobacco where traditional smoke products may be slowly but surely phased out. It's EPS didn't grow, which is why dividend growth was lackluster. The promise for future earnings per share growth could re-ignite future dividend growth. The latest dividend increase is much higher than the ten year historical average. It's definitely something to note. Another note is the expected growth in near-term EPS. Let's revisit next year and see if it held water.  That being said the stock is not too expensive, provided EPS does start growing going forward. If we get to another decade of stagnant EPS growth however, the stock is expensive.

Texas Instruments Incorporated (TXN) designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States, China, rest of Asia, Europe, Middle East, Africa, Japan, and internationally. The company operates through Analog and Embedded Processing segments. 

Texas Instruments raised quarterly dividend by 4.40% to $1.42/share. This is the 22nd consecutive year of dividend increases for this dividend achiever. The company has a ten year annualized dividend growth rate of 14.87%.

The company grew earnings from $2.86/share in 2015 to $5.24/share in 2024.

The company is expected to earn $5.67/share in 2025.

The stock sells at 31.64 times forward earnings and yields 3.17%.

The company's earnings per share are declining from their peak from a few years back. This is why dividend growth is slowing down relative the the past 5 or 10 years. The stock is valued as if earnings per share will start growing again, and exceed their highs from a few years ago. The rate of dividend increases from management signals some caution ahead however.

Relevant Articles:

- Six Dividend Growth Stocks Raising Dividends Last Week

- Two Dividend Growth Companies With Raises Last Week

- Eleven Dividend Growth Stocks Raising Dividends Last Week

- Twenty Dividend Growth Companies Rewarding Owners With Raises Last Week