Twelve Dividend Growth Stocks Raising Distributions to Investors Last Week

There were twelve dividend growth stocks which raised dividends to their investors. All of these companies have a minimum ten year track record of annual dividend increases.

A ten year streak of annual dividend increases is a good filter to weed out most cyclical stocks and those that have simply gotten lucky by riding a short-term trend of economic prosperity. On average, a ten year period covers a full economic cycle or two on average. While the current economic cycle is over ten years old, I still find the ten year minimum streak of annual dividend increases to be a good initial filter. After all, it weeds out companies that may have fallen on hard times even during this period of economic prosperity. As an investor, I am looking for the business model that can deliver sustainable profits over several periods of economic contraction and expansion. I am not looking to get rich quick overnight - I want a company that can compound earnings, dividends and net worth for decades into the future. That't the type of company to put in my portfolio, and just let the power of compounding do the heavy lifting for me.

That initial filter needs to be evaluated further by observing trends in dividend payout ratios, and understanding the phase of dividend growth that the company is in.

The twelve companies raising dividends over the past week include:

This is not an automatic buy however.  It is a list for further research I generated, as part of my monitoring process.


In general, I look for several quantitative factors when evaluating a company:

1) A ten year track record of annual dividend increases
2) A dividend payout ratio below 60% ( adjusted for MLPs, REITs and Utilities, Telecom and Tobacco, known for high payout ratios, but dependable earnings streams) I also want the dividend payout to be flat or stuck in a range over time, rather than increasing
3) Dividend Growth above the rate of inflation (I will consider a smaller growth if yield is high and sustainable)
4) A P/E ratio below 20 ( however I may bend my guideline if I like everything else)
5) Rising earnings per share over time, which I believe to be the fuel behind future dividend increases

I have had this list of screening criteria codified since at least 2010. It is fascinating to see others borrow the ideas and use it over the past decade.

This list is not a list of rules, but a list of guidelines. As I gain more experience, and as the investment environment changes, I will add/correct/modify each guideline. There is logic behind each step, which is helpful for me in deciding when I should stick to the criteria religiously or whether I should ignore some aspects of it. This is where having your own process gives you an advantage in investing. If you blindly copy someone else's method without understanding it, you may be in for a rude awakening.

For an example of how I analyze companies, please check my analysis of T.Rowe Price Group (TROW)

I find United Parcel Service (UPS) to be attractively valued today, although the business does face some challenges from different directions. Check my analysis of UPS for more information about the company.

The most fascinating company on this list is Nu Skin Enterprises (NUS), which I last analyzed 7 years ago. I did not like the company in 2013, and I do not like the business model today either. The stock has generated zero in returns since then. Stock investing is tough, because the company was the best performing stock on the S&P 500 in 2013, more than tripling, before giving all gains back in 2014 and then slowly drifting lower.
Update: Once I created the table and calculated the data, I realized that I missed out on two dividend increases from last week. Those include PepsiCo (PEP) and Nexterra (NEE). PepsiCo (PEP) raised its quarterly dividend by 7.06% to $1.0225/share. This was the 48th consecutive annual dividend increase for this dividend champion. The company has a ten year annualized dividend growth rate of 7.89%. The stock yields 2.78% and sells at a forward P/E of 24.87. Nexterra (NEE) raised its quarterly dividend by 12% to $1.40/share. This marked the 25th consecutive annual dividend increase for this newly minted dividend champion. The forward yield is 2%, and the stock sells for a forward P/E of 30.72. The company has a ten year dividend growth rate of 10.22% annualized.
Thank you for reading!

Relevant Articles:

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Index Investors are Closet Dividend Growth Investors

Last year marked a record in earnings and dividends for US companies. The S&P 500 index ended up distributing a record number of dividends as well.

As a result, the S&P 500 has managed to increase annual dividends for ten years in a row. This makes the S&P 500 a dividend achiever. This means that every index investor who owns shares in a mutual fund following S&P 500 or the Total US Stock Market is a closet dividend growth investor. In a previous article I stated that I find those funds to be the best dividend ETFs for investors in the accumulation phase of their journey.

The growth in dividends per share was supported by growth in earnings per share. Those hit a record as well.

As a dividend growth investor, I look for investments that can deliver rising dividend income over time. I want dividend growth to be supported by growth in earnings per share, which provide the fuel behind future distribution hikes. Dividend income is more stable than capital gains, which makes it an ideal source of income in retirement. The stability and dependability of those dividend checks is the main reason retirees have been building portfolios to pay for their retirement.

It is great that index investors are enjoying the same benefits of long-term investment that dividend growth investors are enjoying as well.

Long-term expected returns on equities depends on three factors:

1) Initial dividend yield
2) Earnings and dividend growth
3) Changes in valuation

This is the formula that Jack Bogle wrote about in one of his books. I respect this giant in investing tremendously, and was deeply saddened by his demise in early 2019… Once I read his book on mutual funds, I realized that dividend growth investors and index investors are not that different at all.

We both look for low costs, low turnover, and being as passive as possible in taking the full power of compounding working for us. We both can benefit, as dividends are the investors' friend.

After S&P 500 has become a dividend achiever, it looks like any fund or investor who essentially owns this fund is a closet dividend growth investor. I am hopeful that more investors embrace a strategy for generating dividends, and that they would love the tax advantaged source of income. With dividend growth investing, you are likely to receive raises that are higher than the rate of inflation and higher than raises at most companies these days. I do not believe that anyone is so dumb as to state that they would hate receiving raises above the rate of inflation or above the rate you would get at most jobs in the US. More income beats having less income. Receiving passive dividend income from my investments beats earnings a salary by working 50 hours/week and commuting 10 hours/week come rain or shine. Passive dividend income also grows faster than active employee income.

The way to invest in the S&P 500 is through a low cost mutual fund, such as the one from Vanguard. It is available as an ETF with a ticker VOO. Alternatively, it is available through a mutual fund, with a ticker VFIAX. The oldest ETF on S&P 500 is very popular, and has the ticker SPY.

If you look at the Vanguard Total Stock Market Index ETF (VTI), it also has a ten year history of annual dividend increases. It is available as an ETF with a ticker (VTI). That’s an impressive track record:

It appears that the S&P 500 is a good dividend growth stock, which is well diversified. I view investing in S&P 500 as similar to buying a diversified conglomerate, such as Berkshire Hathaway. If the only way to invest was through a 401 K, I would strongly endorse that.

The US stock market is comprised of companies with established culture of raising dividends annually, like clockwork. This is a different culture than the one in many companies outside the US. However, this is not only because of culture. Most US companies have a dominant position on a global scale, which makes them the envy of the world. The US has a system which unleashes human potential, which is why the US has an economy that is a leader in innovation. That’s how the US has managed to generate a quarter of the World’s Economic Output with just 5% of the world’s population. The strong market economy, the democracy and the rule of law makes it a great place to invest. Not surprisingly that’s perhaps the reason why the US accounts for almost half of global market capitalization, given the fact that it houses only 5% of the worldwide population.

If you look at the history of annual dividends on the S&P 500 since 1960, it looks like this is not the first time that the index has developed an outstanding record of annual dividend increases. Between 1971 and 1999, the companies in the S&P 500 increased annual dividends per share every year. This brought dividends per share from $3.16 to $16.69, and had turned the S&P 500 index into a dividend aristocrat by 1996.

The S&P 500 dividends per share dipped by a little in 2000 and 2001, to $16.27 and $15.74/share. This could have been not only due to the recession, but also due to the inclusion of tech companies with no earnings in late 1999 and early 2000. In comparison, the price of the S&P 500 dropped by over 50% between its high in the year 2000 to its low in the year 2003. This is why dividend payments are more stable and reliable than capital gains and share prices. This is why it is wise for retirees to live off dividend income in retirement, rather than follow the foolish advise of selling stock at low prices.

By 2008, S&P 500 had managed to grow dividends for 7 years in a row to a high of $28.39. In 2009, the dividend cuts resulted in dividends declining to $22.41.

While dividend payments fell by 21% as a result of the worst recession since the Great Depression in the US, Stock prices fell by more than 50% from their high in 2007 to their lows in 2009. This is why dividend payments are more stable and reliable than capital gains and share prices. This is why it is wise for retirees to live off dividend income in retirement, rather than follow the foolish advise of selling stock at low prices.

Everyone proclaimed dividend investing to be dead, yet surprisingly this was the ideal ground to invest in dividend stocks. As I discussed before, the dividend aristocrats had done very well during the next 12 years. And as a result of the economic rebound, growth in earnings and free cash flows, the S&P 500 was able to grow dividends for 10 years in a row from the ashes of the Global Financial Crisis.

Due to rising annual dividend payments from US corporations over time, I view market indexes such as S&P 500 or Total US Stock Market index to be some of the best dividend growth ETF’s for investors. As I mentioned above, I simply view these funds as similar to one large diversified conglomerate with several hundred subsidiaries. If an investor managed to put money to work every month, and invests for the long-term, they should do well for themselves. If I were investing in a fund however, I would not sell after a dividend cut, due to the diversified nature of the portfolio. I usually sell after a dividend cut for individual holdings that I manage in my dividend portfolio, but would not do that for a fund on S&P 500 or Total Stock Market index.

And since there are several trillion dollars that are passively invested in S&P 500 and Total US Stock Market index, it would seem that Dividend Growth Investing is one of the most popular investment strategies out there.

Welcome to the Dividend Growth Investor Community Index Fund Investors! Glad to have you on-board!

Relevant Articles:

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Nineteen Dividend Growth Stocks For Further Research

There were over 60 dividend increases in the past week. It looks like corporate boards are flush with cash, as the economic recovery enters its tenth year, and consumer confidence is slowly rising. There is a record low unemployment, and the consumer is spending again, which is good for corporate revenues and bottom lines.

When companies raise dividends, they signal their confidence in the near term prospects of the business. A dividend is a sacred cow in the US. This is why business leaders need to evaluate the cashflow estimates over the next couple of years against estimated cash outflows and growth plans for future investment. Only after a reasonable amount of cashflow is left over, which is more than what the business needs, can they decide what the dividend rate should be. If a business expects to grow excess cashflows over time, they will most likely return a growing amount of cashflows to its shareholders.

Our goal is to evaluate each business, its prospects, fundamentals and valuation, before considering it for our portfolios.

Out of the list of 60+ dividend increases, I focused on the companies that have increase dividends for at least ten years in a row. There were nineteen companies that raised dividends last week, which also have at least a ten year streak of annual dividend increases. Two of those companies were dividend kings, having increased dividends for over 50 years in a row. Three of these companies are dividend aristocrats, having increased dividends for over 25 years in a row. The rest were either dividend achievers, or newly minted dividend achievers.

I then consolidated the information in a tabular format, for easier review:

This list is not a recommendation to buy or sell stocks. It is simply a list of companies that raised dividends last week. The companies listed have managed to grow dividends for at least ten years in a row.

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.

Relevant Articles:

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Where are the 2007 Dividend Aristocrats today?

There is a big misunderstanding that somehow the financial crisis was worse for dividend growth investors, than equity investors in general.

This is an incorrect statement. 

Dividend growth investors did fine during the financial crisis, despite having a high allocation to financials. That's because a lot of companies that end up increasing dividends for 25 years in a row, and get to a membership into the S&P 500 have wide moats, strong competitive advantages, lasting earnings power, and earn consistent profits. While there are always disruptions, and the risk of change is there, a lot of the dividend aristocrats as a group have managed to withstand a lot of obstacles in their way, including recessions, wars, inflation and deflation, and different business conditions in the US and Globally.

I will use the performance of the Dividend Aristocrats to illustrate why that is the case in aggregate.

I obtained the list of the Dividend Aristocrats from 2007, and tracked them to see where they are today. This article is a continuation of my analysis of the performance of the same list of companies between 2007 and 2016. Check the article titled "Investing in the Dividend Aristocrats from 2007"

There were 60 companies on the Dividend Aristocrats list at the end of 2007. That was right when the financial crisis was about to hit the world. No one knew if we were in a recession, and there were doubts whether the worst was over or just beginning. Obviously, the end of 2007 was a peaceful time, as the storm was about to hit everyone. Hence, I chose the end of 2007 list of dividend aristocrats as the starting point for my study.

Out of the 60 aristocrats in 2007, there are 31 dividend aristocrats remaining as of 2020.

This means that there were 29 companies that were removed from the list of dividend aristocrats for one reason or another.

Seventeen companies were removed from the list due to dividend cuts. Most of those dividend cuts occurred in 2008 and 2009. They were heavily concentrated in the financial sector too.

Three companies kept dividends unchanged for longer than one year, which meant that they were booted off the index. However, all those companies have since resumed increasing dividends.

Eight companies ended up being acquired, which is why they were booted off the index.

None of the companies went under. A lot of the companies that cut dividends in 2008 – 2009 are now recovering, and growing their dividends above their pre-crisis levels.

It is fascinating to me that investors who sold due to dividend cuts in 2008 were able to save a large portion of their capital, and avoided several of the collapses. I am referring to the likes of Citigroup, Bank of America, but also Fannie and Freddie.

However, investors who bought after a major dividend cut, such as the ones from Wells Fargo, US Bank, JP Morgan and even General Electric, did very well.

It should not be surprising that when a once in a generation financial crisis hits the world, you would get an increase in dividend cuts. For milder recessions such as the 2000 – 2003 one, the level of dividend cuts was more subdued. One of those dividend cutters ended up being acquired, but I am classifying it under dividend cuts. That’s because it was acquired a few years after the dividend was cut.

I decided to backtest how a completely passive investor in an equal weighted version of the Dividend Aristocrats list from 2007 would have done. I used the dividend channel tool and made the following assumptions:

1) The investor puts equal amounts of money into each company
2) The investor holds on to all shares, but doesn’t sell, unless a company is acquired. We even hold on to dividend cuts
3) All dividends are reinvested
4) For acquisitions, we reinvest the money in S&P 500, since the Dividend Aristocrats ETF was not available until 2013. I didn’t want to end up making too many calculations by equally distributing the funds into the remaining companies, because the data gathering process by using dividend channel was very manual and time intensive.

I did a more manual calculation a couple of years ago, which many seem to have forgotten about. So I /decided to just update the numbers using a slight modification to the original approach.

If I had more time, and a better process for testing data using historical databases that account for delisted companies and calculated historical total returns, I would have been able to test a few variations. Notably selling after a dividend cut, allocating the money on to the remaining companies. I may have tried testing if rebalancing would have added anything to the returns. Unfortunately, being a one person operation, and the datasets I have, I am limited in what I can do.

I did like the fact that Dividend Channel had information on companies that are no longer being traded, which reduces the risk of survivorship bias in testing to a certain degree. If I had just focused on the companies that remained in the index, without accounting for the ones that were deleted, I would have done fantastically well. However, I did not know in advance in 2007 which 31 companies would remain as dividend aristocrats. All I knew in early 2008 was that I liked the dividend aristocrats, and provided the reasons in the following article: Why do I like the Dividend Aristocrats?

The results of this passive investing strategy are really amazing. An equally weighted amount placed in each of the 60 dividend aristocrats at the end of 2007 would have resulted in an initial outlay of $600,000 (or $10,000 each). By the end of 2019, the portfolio would be worth $2.057 million, versus $1.683 million for a similar investment in the S&P 500.

The most interesting fact was that an investment in the Dividend Aristocrats index, which accounts for the addition and removal of companies as well as the quarterly rebalancing, did even better. An investment in the dividend aristocrats index in 2007 would have turned to $2,348,840. That surprised me when I initially ran the numbers in 2007, and still shows me that anything is possible in the world of investing. Those results go contrary to my preaching on the site that one should never sell, they should never rebalance, and they should actively change portfolio components.

This is why I am always staying that investing is part art, part science.

For example, the best performing stock was Sherwin-Williams (SHW), which turned a $10,000 initial investment at the end of 2007 into $119,530.82 by the end of 2019.

The second and third best performing companies were V.F. Corp (VFC) and Standard & Poor's Global (SPGI), turning that $10,000 investment into $83,404.49 and $81,906.11 respectively.

The worst performing dividend aristocrat over the past 12 years was Supervalu (SVU), which turned a $10,000 investment into $1,758.29. The company cut dividends in 2013, and was acquired in 2018.

The second and third worst performing companies were Pitney Bowes (PBI) and General Electric (GE), turning the initial investment of $10,000 into $2,128.14 and $4,642.60 respectively.

I would have never known in advance which would have been the best and worst companies to invest in 2007. But I did know to own a diversified list for the long run. Check my article on the best dividend stocks for the long run from 2008, and the update from 2018.

Thank you for reading!

Relevant Articles:

- Dividend Aristocrats List for 2020

- Investing in the Dividend Aristocrats from 2007

- Why do I like the Dividend Aristocrats?

- Historical changes of the S&P Dividend Aristocrats

- Best Dividends Stocks for the Long Run

What Dividend Investors Can Learn From Human Resource Departments?

I believe that dividend growth investors can learn a lot about business from the world of human resources. Human resource departments utilize a lot of tool to gather resumes, screen them using certain criteria, and invite candidates for an interview. Only a few make it to a point where they get a job offer, and then an even smaller percentage end up starting at a company.

I have been to many job interviews over the past 15 - 20 years. I would say that less than 10% of these interviews resulted in jobs doe me. I have been reflecting over my experience during the past couple of decades. I came to the conclusion that looking at companies with a streak of dividend increases is similar to companies that screen candidates that possess a certain qualifications, before inviting them over for an interview.

In the world of dividend growth investing, having a streak of so many consecutive annual dividend increases gets your foot in the door, and makes you eligible for further research.

In the world of recruiting and interviewing, having a certain types of qualifications such as education, certifications and skills, can get your foot in the door for an interview.

Dividend growth investing is similar to looking at resumes and screening candidates

A candidate with a certain skills is more likely to be asked out to an interview. This is just one part of the process however.

They will be asked more detailed questions, in order to determine if they are a good fit for the organization. They are going to be asked questions, in order to determine how they did when the going got tough. Subsequently, they may get an offer, if they are worthy of inclusion in the organization. If a candidate wants too much in remuneration, they are overvalued, and may not be suitable for the organization’s needs at this time. If another candidate asks for too little money, you have to ask yourselves why are they so cheap? Is there something that the hiring committee is missing?

In a similar way, a long streak of dividend increases doesn’t automatically mean I will buy a stock. It simply puts a stock on my list for further research. After that, I will review fundamentals, the business model, valuation, and determine if the stock would be a good fit for my dividend growth portfolio. Even then, I may have an amazing opportunity, which is overvalued. But I still need to use my process of gathering data and compiling a sample of dividend growth stocks with a minimum number of annual dividend increases. The next step is making sure that there are strong funamentals behind that past dividend growth, such as rising earnings and sustainable payout, in order to ensure that dividends can rise in the future. Last but not least, I also want to make sure that these companies are available at attractive valuations.

I also want to make sure that these companies show confidence in their dividend increases. Increasing the dividend demonstrates a confidence and optimism in the continued strength of cash flow generation and financial position,

Now that I have rambler on for a few paragraphs, I wanted to share with you the list of companies that made it to my screen last week. These are companies that raised dividends over the past week, and have a minimum of ten consecutive years of annual dividend increases behind their belts. I review their fundamentals and valuation, in order to determine if they should be researched further, or put away for the time being.

The companies include:

Tanger Factory Outlet Centers, Inc. (SKT), is a publicly-traded REIT headquartered in Greensboro, North Carolina that presently operates and owns, or has an ownership interest in, a portfolio of 39 upscale outlet shopping centers.

Tanger Factory Outlets increased its quarterly dividend by 0.70% to 35.75 cents/share. Since becoming a public company in May 1993, the Company has paid a cash dividend each quarter and has increased its dividend each year, putting it among a very small group of equity REITs to achieve such a milestone. Tanger has managed to grow distributions at an annualized rate of 6.40% over the past decade.

This dividend champion managed to boost FFO/share from $1.35 in 2009 to $2.27 in 2019. The problem is that FFO/share has largely been flat since hitting $2.23/share in 2015, even if it hit a peak at $2.48 in 2018.

The REIT yields 9.80%, and sells for 6.40 times FFO. It is cheap, and punished. I guess the worry is that Mr Market views this company as risky, and FFO/share as unsustainable.

Archer-Daniels-Midland Company (ADM) procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States and internationally. The company operates through four segments: Origination, Oilseeds, Carbohydrate Solutions, and Nutrition.

ADM’s Board of Directors has declared a cash dividend of 36.0 cents per share on the company’s common stock, a 2.85% increase from last quarter’s dividend of 35.0 cents per share. This marked the 45th consecutive year of annual dividend increases for this dividend champion. ADM has managed to grow distributions at an annualized rate of 9.60% during the past decade.

Earnings per share went from $2.62 in 2009 to $3.19 in 2018. The company is expected to earn $3.27/share in 2020

The stock sells for 13.30 times forward earnings and yields 3.20%.

AmerisourceBergen Corporation (ABC) sources and distributes pharmaceutical products in the United States and internationally.

Amerisource Bergen's Board of Directors declared a quarterly dividend of $0.42 per common share, a 5% increase in the quarterly dividend rate from $0.40 per common share. This was lower than the ten year annualized growth of 20.90% over the past decade. This event also marked the 16th year of annual dividend increases for this dividend achiever.

Earnings went from $2.22/share in 2010 to $4.04/share in 2019. The company is expected to generate $7.62/share in 2020

The stock is cheap at 11.20 times forward earnings, but yields only 2%.

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.

MarketAxess Holdings increased its quarterly dividend by 17.70% to 60 cents/share. During the past decade, the company has managed to grow distributions at an annualized rate of 40.10%. This was the eleventh consecutive annual dividend increase for this dividend achiever.

MarketAxess managed to boost earnings rapidly, from 42 cents/share in 2009 to $4.57/share in 2018
The company is expected to generate $6.01/share in 2020.

The stock sells for 58.90 times forward earnings, yields 0.70%.

Franklin Electric Co., Inc. (FELE) designs, manufactures, and distributes water and fuel pumping systems worldwide. It operates in three segments: Water Systems, Fueling Systems, and Distribution.

Franklin Electric raised its quarterly dividend by 7% to 15.50 cents/share. This is the 28th consecutive year of annual dividend increases for this dividend champion. Over the past decade, it has managed to boost dividends at an annualized rate of 8.80%

The company managed to grow earnings from 56 cents/share in 2009 to $2.23/share in 2018. The company is expected to earn $2.16/share in 2019 and $2.39/share in 2020.

Franklin Electric is overvalued at 26.70 times forward earnings and yields 1.10%

Rollins, Inc. (ROL), provides pest and termite control services to residential and commercial customers.

Rollins, Inc. announced that the Board of Directors approved a 14.30% increase in the Company's quarterly cash dividend. The increased regular quarterly cash dividend of $0.12 per share. This marks the 18th consecutive year the Board has increased its dividend a minimum of 12.0% or more. Over the past decade, Rollins has managed to increase dividends at an annualized rate of 17.60%.

Rollins has managed to grow earnings from 25 cents/share in 2009 to 71 cents/share in 2018. Rollins is expected to earn $0.80/share in 2020.

The stock is overvalued at 47 times forward earnings. It yields 1.25%.

S&P Global Inc. (SPGI) provides ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide. The company operates through four segments: S&P Global Ratings (Ratings), S&P Global Market Intelligence (Market Intelligence), S&P Global Platts (Platts), and S&P Dow Jones Indices (Indices).

The Board of Directors of S&P Global (SPGI) approved a 17.5% increase in the regular quarterly cash dividend on the Company's common stock. The Company has paid a dividend each year since 1937 and is one of only 24 companies in the S&P 500 that has increased its dividend annually for at least the last 47 years. The new annualized dividend rate of $2.68 per share represents an average compound annual dividend growth rate of 10.1% since 1974. The annualized dividend growth is at 9.70% over the past decade.

Between 2009 and 2018, this dividend aristocrat has managed to boost earnings from $2.33/share to $7.73/share.
The company is expected to earn $9.43/share in 2019 and $10.48/share in 2020.

The stock is overvalued at 31.15 times forward earnings and offers a dividend yield of 0.90%.

BlackRock, Inc. (BLK) is a publicly owned investment manager. BlackRock, Inc. announced that its Board of Directors approved a 10% increase in the quarterly cash dividend to $3.63 per share. The company has an annualized dividend growth of 15.50% over the past decade.

Between 2009 and 2018, the company grew earnings from $6.11/share to $26.58/share.
The company earned $28.43/share in 2019 and is expected to generate $31.94/share in 2020.

The stock is fairly valued at 16.50 times forward earnings and a dividend yield of 2.75%. Check my analysis of Blackrock for more information about the company.

California Water Service Group, (CWT) provides water utility and other related services in California, Washington, New Mexico, and Hawaii.

California Water Service Group's Board of Directors declared the company's 300th consecutive quarterly dividend, increasing the annual dividend from $0.79 to $0.85. This represents the 53rd consecutive annual dividend increase for this dividend king. The company has managed to increase dividends at an annualized rate of 3% over the past decade.

California Water Service Group grew earnings from 97 cents/share in 2009 to $1.36/share by 2018.
The company is expected to earn $1.38/share in 2019 and $1.57/share in 2020.

The stock is overvalued at 38.10 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 Board of Directors of Chevron Corporation declared a quarterly dividend of one dollar and twenty-nine cents ($1.29) per share, an increase of 8.4 percent. This increase puts Chevron on track to make 2020 the 33rd consecutive year with an increase in annual dividend payout. The company has managed to increase dividends at an annualized rate of 6% over the past decade.

This dividend champion managed to boost earnings from $5.24/share in 2009 to $7,74/share by 2018. Chevron earned $1.54/share in 2019, and is expected to generate an adjusted $6.81/share in 2020.

The stock is fairly valued at 17.10 times forward earnings and a yield of 4.80%.

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.

SJW Group announced that the Board of Directors approved an increase in the 2020 annual dividend over total dividends paid in 2019 of 6.7% or $0.08 per share to $1.28 per share. Dividends have been paid on SJW Group’s and its predecessor’s common stock for 305 consecutive quarters and the annual dividend amount has increased in each of the last 52 years. The company has managed to increase dividends at an annualized rate of 6.20% over the past decade.

This dividend king grew earnings from 81 cents/share in 2009 to $1.82/share in 2018. The company is expected to earn $1.68/share in 2019 and $2.31/share by 2020.

SJW Group stock is overvalued at 43.70 times forward earnings and yields 1.75%.

Church & Dwight Co., Inc. (CHD) develops, manufactures, and markets household, personal care, and specialty products. It operates in three segments: Consumer Domestic, Consumer International, and Specialty Products Division.

The Company’s Board of Directors declared a 5.5% increase in the regular quarterly dividend from $0.2275 to $0.24 per share. This is the 24th consecutive year in which the Company has increased the dividend. The company has managed to increase dividends at an annualized rate of 23% during the past decade.

Church & Dwight earned 85 cents/share in 2009, and managed to boost profits to $2.27/share in 2018. Church & Dwight earned $2.44/share in 2019, and is expected to generate $2.69/share in 2020.

The stock is overvalued at 29.90 times forward earnings and yields 1.30%.

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 increased its quarterly dividend by 7.10% to 60 cents/share. This marked the 60th consecutive annual dividend increase for this dividend king. The company has managed to increase dividends at an annualized rate of 3.50% during the past decade.

Between 2009 and 2018, the company’s earnings went from $2.65/share to $1.75/share. The company is expected to earn $4.08/share in 2019.

Cincinnati Financial is overvalued at 25.70 times forward earnings and yields 2.30%.

Polaris Inc. (PII) designs, engineers, manufactures, and markets power sports vehicles worldwide. It operates in five segments: ORV/Snowmobiles, Motorcycles, Global Adjacent Markets, Aftermarket, and Boats.

Polaris Inc. announced that its Board of Directors approved a 2 percent increase in the regular quarterly cash dividend, raising the payout to $0.62 per share. This increase represents the 25th consecutive year of Polaris increasing its dividend. Annualized dividend growth has been dropping over the past one, three and five years. For reference, Polaris had managed to grow dividends at an annualized rate of 12% during the past decade.

Between 2009 and 2019, the company managed to grow earnings from $1.53/share to $5.20/share. The company expects adjusted profits of $6.80 - $7.05/share in 2020. Those include one-time items which are excluded from EPS,

This dividend champion seems attractively valued at 13.20 times forward earnings and a dividend yield of 2.70%.

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