Dividend Aristocrats for 2019 Revealed

The S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years in a row. The index is equally weighted, and rebalanced every quarter.

To qualify for membership in the S&P 500 Dividend Aristocrats index, a stock must satisfy the following criteria:

1. Be a member of the S&P 500
2. Have increased dividends every year for at least 25 consecutive years
3. Meet minimum float-adjusted market capitalization and liquidity requirements defined in the index inclusion and index exclusion rules below.

The group of companies in the Dividend Aristocrats index tend to generate reliable dividend income, and provide the potential for strong total returns. The list is well diversified across sectors.

There are 57 companies in the Dividend Aristocrats index for 2019. There were no companies removed from the list in 2018.

The four new additions include Chubb Limited (CB), Caterpillar (CAT), People's United Financial (PBCT) and United Technologies (UTX).

The 2019 Dividend Aristocrats are listed below:

Symbol	Name	Sector	Years of Annual Dividend Increases	10 year Dividend Growth	Dividend Yield
MMM	3M Co	Industrials	60	10.52%	2.72%
ABT	Abbott Laboratories**	Health Care	46	11.89%	1.77%
ABBV	AbbVie Inc.	Health Care	46	13.18%	5.45%
AFL	AFLAC Inc	Financials	36	8.04%	2.18%
APD	Air Products & Chemicals Inc	Materials	37	9.60%	2.82%
ADM	Archer-Daniels-Midland Co	Consumer Staples	43	9.93%	2.98%
T	AT&T Inc	Communication Services	35	2.26%	6.89%
ADP	Automatic Data Processing	Information Technology	44	10.05%	2.26%
BDX	Becton Dickinson & Co	Health Care	47	10.23%	1.25%
BF.B	Brown-Forman Corp B	Consumer Staples	35	8.10%	1.41%
CAH	Cardinal Health Inc	Health Care	23	17.52%	3.81%
CAT	Caterpillar Inc	Industrials	25	7.71%	2.63%
CVX	PBCT	Energy	32	5.88%	3.98%
CB	Chubb Ltd	Financials	25	10.20%	2.19%
CINF	Cincinnati Financial Corp	Financials	58	3.20%	2.61%
CTAS	Cintas Corp	Industrials	36	16.12%	1.09%
CLX	Clorox Co	Consumer Staples	41	8.02%	2.59%
KO	Coca-Cola Co	Consumer Staples	56	7.46%	3.17%
CL	Colgate-Palmolive Co	Consumer Staples	55	7.85%	2.58%
ED	Consolidated Edison Inc	Utilities	45	2.03%	3.81%
DOV	Dover Corp	Industrials	63	9.72%	2.19%
ECL	Ecolab Inc	Materials	27	12.17%	1.16%
EMR	Emerson Electric Co	Industrials	62	4.69%	2.90%
XOM	Exxon Mobil Corp	Energy	36	7.62%	4.38%
FRT	Federal Realty Invt Trust	Real Estate	51	4.95%	3.08%
BEN	Franklin Resources Inc	Financials	39	13.18%	3.46%
GD	General Dynamics	Industrials	27	10.48%	2.17%
GPC	Genuine Parts Co	Consumer Discretionary	62	6.33%	2.89%
GWW	Grainger W.W. Inc	Industrials	47	13.21%	1.84%
HRL	Hormel Foods Corp	Consumer Staples	53	15.02%	1.98%
ITW	Illinois Tool Works Inc	Industrials	44	11.25%	2.91%
JNJ	Johnson & Johnson	Health Care	56	7.03%	2.71%
KMB	Kimberly-Clark	Consumer Staples	47	6.20%	3.70%
LEG	Leggett & Platt	Consumer Discretionary	47	4.00%	3.71%
LIN	Linde plc	Materials	25	8.20%	2.02%
LOW	Lowe's Cos Inc	Consumer Discretionary	56	18.36%	2.00%
MKC	McCormick & Co	Consumer Staples	33	8.98%	1.84%
MCD	McDonald's Corp	Consumer Discretionary	43	9.94%	2.60%
MDT	Medtronic plc	Health Care	41	11.88%	2.26%
NUE	Nucor Corp	Materials	46	1.50%	2.61%
PNR	Pentair PLC	Industrials	43	4.44%	1.75%
PBCT	People's United Financial	Financials	26	1.80%	4.27%
PEP	PepsiCo Inc	Consumer Staples	46	8.03%	3.28%
PPG	PPG Industries Inc	Materials	47	5.94%	1.82%
PG	Procter & Gamble	Consumer Staples	62	6.25%	2.97%
ROP	Roper Technologies, Inc	Industrials	26	18.99%	0.65%
SPGI	S&P Global	Financials	45	8.56%	1.19%
SHW	Sherwin-Williams Co	Materials	40	9.41%	0.82%
AOS	Smith A.O. Corp	Industrials	25	19.94%	1.84%
SWK	Stanley Black & Decker	Industrials	51	7.43%	2.09%
SYY	Sysco Corp	Consumer Staples	49	5.05%	2.44%
TROW	T Rowe Price Group Inc	Financials	32	11.30%	3.00%
TGT	Target Corp	Consumer Discretionary	51	15.43%	3.51%
UTX	United Technologies	Industrials	25	7.74%	2.47%
VFC	VF Corp	Consumer Discretionary	46	12.49%	2.40%
WBA	Walgreens Boots Alliance Inc	Consumer Staples	43	15.01%	2.44%
WMT	Wal-Mart	Consumer Staples	45	8.30%	2.19%

The index has generated strong total returns over time past decade. I wanted to note that in 2008, the Dividend Aristocrats index declined by 21.88%. The S&P 500 however declined by 37%. The dividend aristocrats index tends to shine during bear markets and low return environments. However, it also pulls its weight when we are in a bull market too. It is the best of both worlds really.

I first stumbled upon the Dividend Aristocrats index in late 2007, and instantly understood why dividend growth investing is such a powerful wealth generating tool. If someone had invested in the Dividend Aristocrats index after reading my review of the list at the beginning of 2008, they would have tripled their money. An investment in the dividend aristocrats a decade ago, would have resulted in a total return of 350%. In other words, investing $100 in the Dividend Aristocrats list in February 2019 would have turned into $454. The same amount investing in S&P 500 would have turned into $395.

As I gained more experience however, I have gravitated more towards the Dividend Champions list, which was created by Dave Fish. The Dividend Champions list is more complete, as it doesn’t exclude companies due to low liquidity, or due to market capitalization below a certain threshold. In addition, I find that historically, the list of Dividend Champions has followed a more consistent approach than the list of Dividend Aristocrats. Sadly, Dave passed away last year. Luckily, another person has agreed to update it for the time being. You can view the 2019 Dividend Champions List here.

When I review the list of historical changes in the Dividend Aristocrats index, I see some inconsistencies in the way portfolio components are added or removed.

For example, the Dividend Aristocrats index removed Altria in 2007, after it spun-off Kraft Foods and as a result its dividend decreased. It could be argued that the dividend income for the investor was not decreased, because they kept getting a dividend from Altria as well as dividends from Kraft Foods.

The S&P committee seems to have rectified this issue, and have kept both Abbott and Abbvie after legacy Abbott Laboratories split in two companies in early 2013.

Ironically, Dave Fish had Altria listed as a Dividend Champion. However, he didn’t have Abbott nor Abbvie listed as a dividend champion ( they are listed as Dividend Aristocrats however).

Last year, I found out that Cardinal Health (CAH) has only been able to grow dividends for 23 years in a row. This is why it is not on the dividend champions list. The dividend aristocrats list however has a 31 year streak of annual dividend increases listed.

This is why you need to perform your own checks as an investor.

In addition, I wanted to let you know that I would not purchase all companies from either lists blindly. I run my entry criteria screen to come up with a list of companies for further research. Before investing in any individual stock, I research it enough to gain some understanding of the business and its trends in fundamentals.

Relevant Articles:

- Dividend Champions, Contenders & Challengers: The most complete list of US dividend growth stocks available
- Dividend Aristocrats List for 2017
- Dividend Aristocrats for Dividend Growth and Total Returns
- Where are the original Dividend Aristocrats now?
- Historical changes of the S&P Dividend Aristocrats
- Why do I like the Dividend Aristocrats?
- Dividend Aristocrats List for 2016

Twelve Companies Rewarding Shareholders With a Raise

As part of my research, I monitor the list of dividend increases every week. I use this exercise to obtain updates for companies I own. I also use this exercise in order to identify potential ideas for further research. For my blog readers, I use this exercise to show the mental framework I go through, in order to quickly decide if a company is worth researching today, or should be placed on the backburner for now.

Long-time readers know that I look for a ten year streak of annual dividend increases, in order to identify companies that have withstood a decently long test of time. I also like to see companies that are growing their earnings per share. This shows me that these companies have the ability to continue growing that dividend income stream for shareholders.

I like to review the rate of the most recent dividend increase, and compare it to the five or ten year average. I have found that the most recent dividend increase to be a telling sign of how confident management teams are in the near-term prospects of their business. A slowdown in dividend growth gives me some caution. Too rapid growth all of a sudden can be a turning point towards better business conditions.

Last but not least, I also review valuation. Just like investing is part art, part science, so is the valuation piece. Certain companies have low P/E ratios due to the industry they are in, while others have high P/E ratios due to their growth. I hate overpaying for a decade of future growth for companies, which is why I have the guideline to never pay more than 20 times forward earnings for a security. While I may miss on some future gains, I may also miss overpaying dearly for a pumped-up security that fails to deliver to the hype.

The companies that raised dividends last week include:

California Water Service Group (CWT) provides water utility and other related services in California, Washington, New Mexico, and Hawaii. The company raised its quarterly dividend by 5.30% to 19.75 cents/share. This represents the company's 52nd consecutive annual dividend increase. Over the past decade, this dividend king has managed to grow dividends by 2.20%/year. Between 2008 and 2017, this utility managed to grow earnings from 95 cents/share to $1.40/share. The company is expected to earn $1.22/share in 2018. Right now the stock is overvalued at 40 times forward earnings and yields 1.60%.

Chevron Corporation (CVX) engages in integrated energy, chemicals, and petroleum operations worldwide. The company operates in two segments, Upstream and Downstream. The company raised its quarterly dividend by 6.25% to $1.19/share. This increase puts Chevron on track to make 2019 the 32nd consecutive year with an increase in annual dividend payout. Over the past decade, the company has managed to boost dividends at a rate of 6.70%/year. Earnings per share decreased from $11.67 in 2008 to $4.85/share in 2017. The company is expected to generate $7.88/share in 2018. This dividend champion looks fairly valued at 15 times forward earnings and yields 4%. The main reason I am not so happy about energy companies in general is the lack of earnings growth over the past decade. Of course, if oil prices grow over the next decade, earnings per share will follow and we will have a nice dividend paid to hold on to the shares. Cyclical companies are notoriously difficult to analyze, because their earnings look best when we are close to the top of the economic cycle; their earnings look worst when we are close to the bottom of the economic cycle.

First Interstate BancSystem, Inc. (FIBK) operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States. The company raised its dividends by 10.70% to 31 cents/share. This marked the tenth year of consecutive annual dividend increases for this dividend achiever. Over the past five years, the bank has been able to grow dividends at a rate of 14.90%/year. The company’s earnings went from $2.10/share in 2008 to $2.05/share in 2017. First Interstate BancSystem is expected to earn $2.82/share in 2018. The stock looks attractively valued at 13.90 times forward earnings and yields 3.20%. This bank may be worth adding to my list for further review.

Landmark Bancorp, Inc. (LARK) operates as the bank holding company for Landmark National Bank that provides various financial and banking services. The company raised its quarterly dividend by 5% to 20 cents/share. This marked the 18th year of annual dividend increases for this dividend achiever. Over the past decade, this company has been able to grow distributions by 5%/year. Landmark Bancorp managed to grow earnings from $1.16/share in 2008 to $2.39/share in 2018. The stock is attractively valued at 9.70 times earnings and yields 3.40%. I will add the stock to my list for further research.

MarketAxess Holdings Inc. (MKTX) operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments worldwide. The company raised its quarterly dividend by 21.40% to 51 cents/share. This marked the 11th year of annual dividend increases for this dividend achiever. Over the past five years, MarketAxess has been able to grow dividends by 24.60%/year. The company just announced that it earned $4.57/share in 2018. This is a big step up from the 30 cents/share it earned in 2007. The stock is richly valued at 46.70 times forward earnings and yields 1%. This is definitely the type of company that can generate outstanding returns over time – however it is often richly valued.

S&P Global Inc. (SPGI) provides independent ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide. It operates through three segments: Ratings, Market and Commodities Intelligence, and S&P Dow Jones Indices.  The company raised its quarterly dividend by 14% to 57 cents/share.

"Increasing the dividend demonstrates our confidence and optimism in the continued strength of our cash flow generation and financial position," said Douglas L. Peterson, President and CEO of S&P Global. "Returning cash to shareholders remains a cornerstone of our shareholder value proposition. In 2018, we returned $2.2 billion to shareholders in the form of dividends and share repurchases."

S&P Global has paid a dividend each year since 1937 and is one of fewer than 25 companies in the S&P 500 that has increased its dividend annually for at least the last 46 years. It is a member of the Dividend Aristocrats Index.

In the past decade, it has been able to grow dividends by 7.20%/year. S&P Global managed to grow its earnings from $2.51/share in 2008 to $5.78/share in 2017. The company is expected to earn $8.47/share in 2018. Right now the stock is overvalued at 22.90 times forward earnings and yields 1.20%. S&P Global may be worth a look below $170/share.

Bank of Marin Bancorp (BMRC) operates as the holding company for Bank of Marin that provides a range of financial services primarily to professionals, small and middle-market businesses, individuals, and not-for-profit organizations in California, the United States. The company raised its quarterly dividend by 8.60% to 19 cents/share. This marked the 15th year of annual dividend increases for this dividend achiever. Over the past decade, the bank has been able to boost dividends at an annual rate of 8.20%. This was supported by growth in earnings per share between 2008 and 2018 from $1.16 to $2.33. The stock is selling for 18.80 times earnings, which is a little high for a bank holding company. The stock yields 1.80%. The underlying company is doing well, but the stock may be a better deal on weakness.

SJW Group (SJW) provides water utility services in the United States. It engages in the production, purchase, storage, purification, distribution, wholesale, and retail sale of water. The company raised its quarterly dividend by 7.10% to 30 cents/share. This was the 51st year of annual dividend increases for this dividend king. Over the past decade, the company has managed to boost its dividend at a rate of 3.70%/year. SJW Group managed to grow earnings from 65 cents/share in 2008 to 87 cents/share in 2017. The company is expected to earn $2.01/share in 2018. The stock is overvalued at 29.40 times forward earnings and yields 2%.

Commerce Bancshares, Inc. (CBSH) operates as the holding company for Commerce Bank that provides retail, mortgage banking, corporate, investment, trust, and asset management products and services to individuals and businesses. It operates through three segments: Consumer, Commercial, and Wealth. Commerce Bancshares boosted its quarterly dividend by 10.60% to 26 cents/share. This increase marks the 51st consecutive year that the Company has increased its regular cash dividend per share. The 10-year dividend growth is 4.90%/year. Between 2008 and 2017 earnings per share increased from $1.52 to $2.75. The company is expected to earn $3.80/share in 2019. The stock is selling for 15.80 times forward earnings and yields 1.70%.

Aflac Incorporated, (AFL) American Family Life Assurance Company of Columbus, provides voluntary supplemental health and life insurance products. It operates through two segments, Aflac Japan and Aflac U.S. Aflac raised its quarterly dividend by 3.80% to 27 cents/share. This was the 36th consecutive year of dividend increases for this dividend champion. The rate of the latest increase is much slower than the 8.10% annual increase over the past decade. It is much smaller than the 15.60% annual dividend increase from last year. Earnings per share have grown by 7.30% per year. Analysts expect Aflac to earn $4.08 per share in 2018 and $4.16 per share in 2019. In comparison Aflac earned $3.35/share in 2017

The stock is attractively valued at 11.70 times forward earnings and yields 2.30%.

Cincinnati Financial Corporation (CINF) provides property casualty insurance products in the United States. The company operates in five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments. The company announced a 5.70% increase in its quarterly dividend to 56 cents/share. This dividend king has rewarded shareholders with a raise for 59 years in a row. Over the past decade, it has managed to grow dividends by 3.20%/year. Between 2008 and 2017, the company has managed to grow its earnings from $2.62/share to $3.31/share. The company is expected to earn $3.22/share in 2018. The stock is overvalued at 25.30 times forward earnings. The yield is 2.70%.

Polaris Industries Inc. (PII) designs, engineers, manufactures, and markets power sports vehicles worldwide. The company raised its dividend by 1.70% to 61 cents/share last week. This increase represents the 24th consecutive year of Polaris increasing its dividend. The increase is also below the ten-year average raise of 12.20% year. Between 2008 and 2018, the company managed to grow earnings per share from $1.75 to $5.24. The stock looks attractively valued at 16.50 times earnings. It yields a safe 2.80%. I would need to research this company further, because the slowdown in dividend growth could be indicative of the business being in short-term trouble. On the other hand, this could be a good time to pick up shares of a great company which is experiencing short-term turbulence in its business.

Relevant Articles:

- Two Wide Moat Dividend Stocks to Consider on Dips
- Not all P/E ratios are created equal
- Why do I use a P/E below 20
- Why I don’t do discounted cash flow analysis on dividend stocks
- How to read my stock analysis reports

PepsiCo (PEP) Dividend Stock Analysis

PepsiCo, Inc. (PEP) manufactures, markets, and sells various foods, snacks, and carbonated and non-carbonated beverages worldwide. The company operates in four divisions: PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB), PepsiCo Europe, and PepsiCo Asia, Middle East and Africa (AMEA). The company is a dividend champion, which has increased distributions for 46 years in a row.

Between 2007 and 2017, PepsiCo managed to grow its earnings from $3.41/share to $5.11/share. The 2017 figures include a $2.5 billion provisional net tax expense ($1.73 per share) as a result of the U.S. Tax Cuts and Jobs Act (TCJ Act) passed on December 22, 2017. PepsiCo is expected to earn $5.66 per share in 2018 and $5.96 per share in 2019.

Share buybacks have resulted in the decrease in outstanding shares from 1.645 billion in 2007 to 1.44 billion in 2017. A history of consistent share repurchases is helpful, because it shows that the company is willing to help out long-term holders of stock with increased proportional share of earnings and the business over time.

PepsiCo has a wide moat, due to strong recognizable brands it owns, scale of operations, relationships with retailers and having a distribution network of bottlers that will take billions of dollars to create and replicate. Because of the consumer affinity for branded snacks and beverages that PepsiCo makes, they are less likely to switch to a cheaper product. Hence, PepsiCo is part of a sort of unregulated monopoly, which also has some pricing power.

The company has a solid distribution network, a portfolio of strong brand names, and solid relationships with retailers. This portfolio also includes 22 brands with sales of at least $1 billion for each brand. The market dominance in the snack business of Frito-Lay has resulted in higher margins, relative to competitors.

Frito-Lay generates a quarter of revenues, but close to 45% of profits. PepsiCo beverages accounts for a third of revenues and a quarter of profits while PepsiCo International account for 38% of revenues and also a quarter of profits. The rest is generated by Quaker Foods.

Future growth in earnings will come from international expansion, particularly in emerging markets. The number of servings that consumers abroad consume is much lower than that in North America, which is why I believe there will be years of growth ahead. In addition, I like the fact that the company sells not only beverages, but snacks as well. As an investor, I like to be diversified; hence, I like it when the companies I own are diversified in products and geography. It is estimated that the company achieves significant synergies by operating both a beverage and a snack business.
Earnings can also increase through organic growth for those snacks and beverages, and price increases to offset cost pressures. Strategic cost initiatives to streamline operations, increase productivity and reduce redundancies are another tool to increase shareholder earnings. The distribution networks of the bottlers acquired could be used to push some of PepsiCo's non-beverage products such as snacks and other foods.

Sales of carbonated drinks have been softening, due to increased health awareness by consumers in developed markets. However, PepsiCo has also focused on fast growing non-carbonated soft drinks. The company's innovation in the area has been successful with the introduction of Aquafina, Gatorade and Propel, Lipton teas and Tropicana.

Earnings growth could also come from other strategic acquisitions, as well as product innovations in health and wellness food and beverage section. For example PepsiCo recently completed the acquisition of SodaStream International, bringing in-home carbonated beverages to consumers. This move lets PepsiCo expand its diverse options on to another platform.

The annual dividend payment has increased at a rate of 8.90% per year over the past decade, which is higher than the growth in EPS.

A 9% growth in distributions translates into the dividend payment doubling every eight years on average. If we check the dividend history, going as far back as 1973, we could see that PepsiCo has actually managed to double dividends every six years on average. I would expect future dividend growth to be closer to 5% - 6%/year over the next decade.

In the past decade, the dividend payout ratio increased from 42% in 2007 to a little over 62% in 2017. I generally do not want to see high dividend growth because of expansion in the payout ratio. If we look at forward earnings of $5.66/share, the payout is at 65%, which is still high. A lower payout is always a plus, since it leaves room for consistent dividend growth minimizing the impact of short-term fluctuations in earnings.

Currently, the company is fairly valued at 19.60 times forward earnings and yields 3.40%. It is slightly cheaper than Coca-Cola, which sells for 22.90 times forward earnings and has a current yield of 3.30%.

Relevant Articles:

- How to value dividend stocks
- Successful Dividend Investing Requires Patience
- Dividend Companies Showering Shareholders With More Cash
- Rising Earnings – The Source of Future Dividend Growth

Seven Companies Working Hard For Their Stockholders

As part of my monitoring process, I review the list of dividend increases every week. This is helpful as a method to observe recent developments in companies I own. This process is helpful in identifying companies for further research, which may be exhibiting certain characteristics that look promising.

I usually focus on companies with at least a ten year streak of annual dividend increases, in order to focus my attention to companies that can establish and maintain a streak throughout a full economic cycle.

The next steps involve evaluating the rate of increase relative to the historical average, in an effort to determine consistency. Usually, I end up observing a dividend growth rate that is accelerating or decelerating.

I also try to review trends in earnings, and looks at valuation, in order to determine if a company is worth pursuing further.

There were several companies raising dividends last week. The companies include:

1st Source Corporation (SRCE) operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and investment management services, and insurance to individual and business clients

The company raised its dividend by 8% to 27 cents/share. This marked the 32nd consecutive annual dividend increase for this dividend champion. In the past decade, it has managed to boost dividends at an annual rate of 4.10%.

The company grew earnings from $1.25/share in 2008 to $3.16/share in 2018.

The stock is fairly valued at 14.40 times earnings and yields 2.40%. The company may be worth adding to my list for further research.

Air Products and Chemicals, Inc. (APD) provides atmospheric gases, process and specialty gases, equipment, and services worldwide.

The company raised its quarterly dividend by 5.50% to $1.16/share. This marked the 37th consecutive annual dividend increase for this dividend champion. In the past decade, the company has managed to boost distributions at an annual rate of 9.60%.

Between 2009 and 2018, APD managed to boost its earnings from $2.96/share to $6.78/share. The company is expected to generate $8.17/share in 2019.

The stock is close to overvalued, selling at 19.60 times forward earnings. Air Products & Chemicals yields 2.90%. I own shares in the stock and would love to be able to add on dips below $136/share ( prior year earnings times a P/E ratio of 20)

Comcast Corporation (CMCSA) operates as a media and technology company worldwide. It operates through Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks segments.

Comcast raised its quarterly dividend by 10.50% to 21 cents/share. This marked the 12th year of annual dividend increases for this dividend achiever. The five year dividend growth rate is 14.90%/year

Comcast managed to grow earnings per share from $0.43 in 2008 to $2.55 in 2018.

Comcast seems to have done very well over the past decade. The stock is attractively valued at 13.90 times earnings and spots a dividend yield of 2.40%. I would add the stock to my list for further research.

J.B. Hunt Transport Services, Inc. (JBHT), together with its subsidiaries, provides surface transportation and delivery services in the continental United States, Canada, and Mexico. It operates through four segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), and Truckload (JBT).

The company raised its quarterly dividend by 8.30% to 26 cents/share. This marked the 16th consecutive annual dividend increase for this dividend achiever. Over the past decade, J.B. Hunt has been able to grow distributions at an annual rate of 9.80%/year.

Earnings per share great between 2008 and 2017 from $1.56 to $6.18. The company is expected to generate $6.26/share in 2019.

The stock is attractively valued at 16.70 times forward earnings, and yields 1%. I will place it on my list for further research.

Kimberly-Clark Corporation (KMB), together with its subsidiaries, manufactures and markets personal care, consumer tissue, and professional products worldwide. It operates through three segments: Personal Care, Consumer Tissue, and K-C Professional.

The company raised its quarterly dividend by 3% to $1.03/share. This marked the 47th consecutive annual dividend increase for this dividend champion. The latest dividend hike is smaller than the ten year average of 6.70%/year.

Kimberly-Clark managed to grow earnings from $4.04/share in 2008 to $6.40/share in 2017. The company is expected to generate $6.65/share in 2018.

The stock is attractively valued at 16.20 times forward earnings and yields 3.80%. Unfortunately, the company is growing dividends at 3% for a second year in a row. The slowdown in dividend growth shows that management expects headwinds in the near term for the business. I will have to reassess whether it makes sense to continue adding to the position.

Rollins, Inc. (ROL), through its subsidiaries, provides pest and termite control services to residential and commercial customers. It offers protection against termite damage, rodents, and insects. The company raised its quarterly dividend by 12.50% to 10.50 cents/share. This marked the 17th consecutive year of annual dividend increases for this dividend achiever. In the past decade, Rollins has been able to grow the dividend at an annual rate of 17.90%.

Rollins managed to grow earnings from 20 cents/share in 2008 to 55 cents/share in 2017. The company is expected to generate 72 cents/share in 2018.

Unfortunately, the stock is overvalued today at 51.80 times forward earnings. The yield is 1.10%. Rollins may be worth a closer look on dips to $14/share, which would be a huge decline from todays levels.

Franklin Electric Co., Inc. (FELE), together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. It operates in three segments: Water Systems, Fueling Systems, and Distribution. The company raised its quarterly dividend by 20.80% to 14.50 cents/share. This marked the 27th year of annual dividend increases for Franklin Electric. This increase was more than double the size of its ten year average dividend growth of 6%/year.
Between 2008 and 2017, earnings per share increased from $0.95 to $1.65. The company is expected to generate $2.23/share in 2018.

The stock is overvalued at 20.50 times forward earnings. Franklin Electric yields 1.30%.

Relevant Articles:

- How to value dividend stocks
- How to read my weekly dividend increase reports
- Price is what you pay, value is what you get
- Three Characteristics of Successful Dividend Investors

I just bought these ten dividend growth stocks

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The ultimate goal of this portfolio is to generate $1,000 in monthly dividend income. I will track my progress towards our goal every month. I plan to track this portfolio in real time over the next few years, and track our progress towards our goal. I view this exercise mostly as an educational tool, that will hopefully show how I build and manage a dividend portfolio.

Thank you for reading Dividend Growth Investor.