I review the list of dividend increases every single week, as part of my monitoring process. It's a boring activity, which teaches me lessons that compound over time however. Dividend increases provide a very good signal on how the business is doing. This is helpful information to go along the other criteria I use in reviewing companies of course (did you think there is a one sized fits all magic bullet?)
This activity helps identify companies that are slipping. It also helps identify companies that are doing well, and executing per their plan.
Over the past week, there were several companies that raised dividends. Only three of them have a ten year track record of annual dividend increases under their belt. I am including the key data points I use in my review of companies I look at as well.
HP Inc. (HPQ) provides personal computing, printing, 3D printing, hybrid work, gaming, and other related technologies in the United States and internationally. The company operates through three segments: Personal Systems, Printing, and Corporate Investments.
The company raised dividends by 3.70% to $0.30/share. This is the 15th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 14.26%.
The company's earnings grew from $1.44/share in 2016 to $2.67/share in 2025. This looks promising at first glance, until I see the trend in EPS and notice that HP has not been able to grow EPS for a few years.
The company is expected to earn $3.14/share in 2025.
The stock sells for 7.80 times forward earnings and a dividend yield of 4.80%.
Hormel Foods Corporation (HRL) develops, processes, and distributes various meat, nuts, and other food products to foodservice, convenience store, and commercial customers in the United States and internationally. It operates through three segments: Retail, Foodservice, and International segments.
The company raised quarterly dividends by 0.90% to $0.2925/share. This is the 60th consecutive annual dividend increase for this dividend king. It is also the smallest dividend increase for the past 60 years. Over the past decade, the company has managed to grow dividends at an annualized rate of 8.78%.
The company's earnings grew from $1.30/share in 2015 to $1.47/share in 2024. This lack of EPS growth is the real reason behind the slowdown in dividend growth. Actually, if we go back a few years, you'd notice that EPS has not grown since 2018 and is actually down today from that high point in 2018.
The company is expected to earn $1.37/share in 2025.
The stock sells for 17 times forward earnings and a dividend yield of 5%.
RGC Resources, Inc., (RGCO) sells and distributes natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and the surrounding localities.
The company raised quarterly dividends by 4.80% to $0.2175/share. This is the 22nd consecutive annual dividend increase for this dividend achiever. The company has managed to grow dividends at an annualized rate of 4.92%.
The company's earnings grew from $0.81/share in 2016 to $1.29/share in 2025.
The company is expected to earn $1.31/share in 2026.
The stock sells for 17.20 times forward earnings and a dividend yield of 3.72%.
Relevant Articles:
- Eight Companies Raising Dividends Last Week
