Six Reliable Dividend Growth Stocks Rewarding Shareholders With Raises

I review the list of dividend increases weekly, as part of my portfolio monitoring process. I usually narrow the list down to companies with at least a ten year history of annual dividend increases.

The next involves reviewing each company in sufficient detail, in order to determine if dividend increases are based on solid fundamentals. This review includes looking at trends in earnings per share, dividends per share, payout ratios as good start. The goal is to determine the likelihood of future dividend increases.

The last review point includes valuation. In general, I try to avoid overpaying for companies. Valuation is more art than science however ( as is investing in general). This is why it is important to look at relative valuations and growth in the opportunity set, not just focus on absolute numbers.

These steps keep me in fighting shape, and help me monitor as many companies in the investable dividend growth universe in advance. This helps me to be prepared when the right opportunity at the right price comes along.

Over the past week, there were six companies which raised dividends to shareholders. Each company has a minimum ten year streak of annual dividend increases under its belt. The companies include:

Realty Income (O) increased its monthly dividend to 23.50 cents/share. That's a 1.73% increase over the dividend paid during the same time last year. Over the past decade, Realty Income has managed to increase dividends at an annualized rate of 4.90%. This dividend aristocrat has managed to grow dividends since 1994.

Between 2010 and 2020, Realty Income managed to grow FFO from $1.83/share to $3.31/share. Realty Income is expecting to generate FFO of $3.26 - $3.34/share in 2021.

The stock sells for 18.29 times FFO and yields 4.57%. Check my analysis of Realty Income for more information about the company.

WD-40 Company (WDFC) develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.  The company increased its quarterly dividend by 7.46% to 72 cents/share. This marked the 12th consecutive year of dividend increases for this dividend achiever. Over the past decade, the company has managed to increase distributions at an annualized rate of 10.10%.

Between 2010 and 2020, the company grew earnings from $2.15/share to $4.40/share. WD-40 is expected to earn $5.51/share in 2021.

The stock sells for 53.87 times forward earnings and yields 0.97%.

Williams-Sonoma, Inc. (WSM) operates as an omni-channel specialty retailer of various products for home. The company raised its quarterly dividend by 11.32% to 59 cents/share. This marked the 16th consecutive annual dividend increase for this dividend achiever. Over the past decade the company has managed to increase dividends at an annualized rate of 13.60%.

Between 2011 and 2021, the company grew earnings from $1.83/share to $8.61/share. Williams-Sonoma is expected to earn $9.22/share in 2022.

The stock sells for 18.96 times forward earnings and offers a current yield of 1.35%

UDR, Inc. (UDR) is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. The REIT hiked its quarterly dividends by 0.69% to 36.25 cents/share. This marked the tenth consecutive year of annual dividend increases for UDR. Over the past decade, the REIT has managed to hike dividends at an annualized rate of 7%.

Between 2011 and 2020, FFO/share grew from $1.28 to $1.85. The REIT is expected to earn $1.95/share in 2021.

The stock sells for 22.26 times FFO and yields 3.35%

Horizon Bancorp, Inc. (HBNC) operates as the bank holding company for Horizon Bank that provides a range of commercial and retail banking services.  The company raised its quarterly dividend by 8.33% to 13 cents/share. This marked the tenth consecutive annual dividend increase for this newly minted dividend achiever. During the past decade, the company has been able to increase dividends at an annualized rate of 13.60%.

Between 2010 and 2020, the company grew earnings from $0.54/share to $1.55/share. Horizont Bancorp is expected to earn $1.45/share in 2021.

The stock is selling for 13.40 times forward earnings and yields 2.67%. 

Independent Bank Corp. (INDB) operates as the bank holding company for Rockland Trust Company that provides commercial banking products and services to individuals and small-to-medium sized businesses primarily in Massachusetts.  The bank hiked its quarterly dividend by 4.34% to 48 cents/share, marking the tenth consecutive annual dividend increase. It has managed to grow dividends at an annualized rate of 9.70% over the past decade.

The bank earned $2.12/share in 2011 and is expected to grow earnings to $3.95/share by 2021.

The stock is selling for 22.93 times forward earnings and yields 2.12%.

Relevant Articles:

- Two Dividend Hikes From Last Week

- 13 Dividend Growth Stocks Raising Shareholder Distributions

- Fifteen Companies Rewarding Shareholders With a Raise

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4 Higher-Yielding Consumer Stocks With A History of Rising Dividends

When it comes to investing in Dividend Growth Stocks certain sectors have been more favorable to investors than others. Historically, the sectors most popular with dividend investors include Financial Services, Healthcare and Consumer Defensive. Each has provided good yields and growth over the years.

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Fourteen Dividend Growth Stocks Raising Dividends For Shareholders

In my monitoring process, I tend to analyze companies I own once every 12 to 18 months. However, I also receive push notifications such as annual reports, quarterly press releases, dividend increase notifications. Since most companies I focus on are major multi-national corporations, if they do something significant, it makes the business news.

I review the list of dividend increases every week, as part of my monitoring process. I focus on the companies with at least a ten year history of annual dividend increases, in order to reduce noise.

This process is helpful in monitoring how existing holdings are doing. It is also helpful in uncovering companies for future research.

Auburn National Bancorporation, Inc. (AUBN) operates as the bank holding company for AuburnBank that provides various banking products and services in East Alabama.

The company raised its quarterly dividend by 2% to 26 cents/share. This marked the 20th year of annual dividend increases for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 2.70%.

Between 2010 and 2020, the company managed to grow earnings from $1.47/share to $2.09/share

The company sells for 18.80 times earnings and yields 2.65%

Brookfield Asset Management (BAM) is a leading global alternative asset manager and one of the largest investors in real assets.

The company raised its quarterly dividend by 8.33% tp 13 cents/share.

This is the tenth year of consecutive annual dividend increases for this international dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 9.20%.

The stock yields 1.21%.

CSX Corporation (CSX) provides rail-based freight transportation services.

The railroad hiked its quarterly dividend by 7.69% to 28 cents/share.

This is the 17th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 12.30%.

CSX Corp earned $1.35/share in 2010, and managed to grow profits to $3.60/share by 2020.

The stock is selling for 20.63 times forward earnings and yields 1.24%.

Eversource Energy (ES) a public utility holding company, engages in the energy delivery business. The company operates in four segments: Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution.

This utility company raised its quarterly dividends by 6.17% to 60.25 cents/share.

This was the 23rd consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 8.30%.

Between 2009 and 2019, the company managed to grow earnings from $1.91/share to $2.81/share.

The company is expected to earn $3.64/share in 2020.

The stock is selling for 23.41 times forward earnings and yields 2.83%.

NextEra Energy, Inc. (NEE) generates, transmits, and distributes electric power in North America.

NextEra increased its quarterly dividend by 10% to 38.50 cents/share.

This marked the 26th year of annual dividend increases for this dividend aristocrat. Over the past decade, the company has managed to increase dividends at an annualized rate of 10.80%.

The company earned $1.15/share in 2011 and is expected to earn $2.52/share in 2021.

The stock is selling for 33 times forward earnings and yields 1.85%.

Nu Skin Enterprises, Inc. (NUS) develops and distributes personal care and wellness products worldwide. NuSkin raised its quarterly dividend by 1.33% to 38 cents/share.

That was the 21st year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 11.60%.

Between 2009 and 2019, the company managed to grow earnings from $1.40/share to $3.10/share. Nu Skin Enterprises is expected to earn $3.99/share in 2020.

The stock is selling for 12.24 times forward earnings and yields 3.11%.

NorthWestern Corporation (NWE) provides electricity and natural gas to residential, commercial, and industrial customers. The company operates through Electric Operations and Natural Gas Operations segments.

NorthWestern raised its quarterly dividend by 3.33% to 62 cents/share.

This was the 17th year of annual dividends increases for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 5.80%.

Between 2009 and 2019, the company managed to increase earnings from $2.02/share to $3.98/share.

NorthWestern is expected to earn $3.51/share in 2021.

The stock is selling for 12.24 times forward earnings and yields 3.11%

Primerica, Inc. (PRI) provides financial products to middle income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Investment and Savings Products; and Corporate and Other Distributed Products.

The company raised its quarterly dividend by 17.50% to 47 cents/share.

This marked the 12th year of annual dividend increases for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 55%.

The company is expected to earn $11.05/share in 2021.

The stock is selling for 12.83 times forward earnings and yields 1.33%.

Robert Half International Inc. (RHI) provides staffing and risk consulting services in North America, South America, Europe, Asia, and Australia. The company operates through three segments: Temporary and Consultant Staffing, Permanent Placement Staffing, and Risk Consulting and Internal Audit Services.

The company raised its quarterly dividends by 11.76% to 38 cents/share.

This was the 18th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 10.10%.

Between 2010 and 2020, the company managed to increase earnings from 44 cents/share to $2.70/share. The company is expecting to earn $3.35/share in 2021.

The stock is selling for 22 times forward earnings and yields 2.06%.

Sonoco Products Company (SON) manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia. The company operates through four segments: Consumer Packaging, Display and Packaging, Paper and Industrial Converted Products, and Protective Solutions.

The company raised its quarterly dividend by 4.65% to 45 cents/share.

That was the 39th year of annual dividend increases for this dividend champion. Over the past decade, the company has managed to increase dividends at an annualized rate of 4.50%.

The company earned $2.13/share in 2011 and is expecting to earn $3.54/share in 2021.

The stock is selling for 16.90 times forward earnings and yields 3%.

T. Rowe Price Group, Inc. (TROW) is a publicly owned investment manager.

The company raised its quarterly dividend by 20% to $1.08/share.

This marked the 35th consecutive annual dividend increase for this dividend aristocrat. Over the past decade, the company has managed to increase dividends at an annualized rate of 12.80%.

Between 2010 and 2020, the company has managed to grow earnings from $2.53/share to $9.98/share.

The company is expected to earn $11.98/share in 2021.

The stock is selling for 13.70 times forward earnings and yields 2.65%.

United Parcel Service, Inc. (UPS) provides letter and package delivery, specialized transportation, logistics, and financial services. It operates through three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight.

UPS raised its quarterly dividend by 1% to $1.02/share.

That’s the 12th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 7.90%.

The company earned $3.84/share in 2011, and is projected to earn $8.92/share in 2021.

The stock is selling for 18.32 times forward earnings and yields 2.50%.

Cisco Systems, Inc. (CSCO) designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. 

Since initiating a dividend in 2011, Cisco has been rewarding shareholders with a raise annually.  The last dividend increase was in February 2021, when the company raised distributions by 2.77% to 37 cents/share. Cisco has a 5-year annualized dividend growth of 13.30%.

The company managed to grow earnings from $1.33/share in 2010 to $2.64/share in 2020. 

Cisco sells for 14.70 times forward earnings and yields 3.13%

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). 

PepsiCo announced a 5.10 percent increase in its annualized dividend to $4.30 per share.

The company is a dividend aristocrat, which has increased distributions for 49 years in a row. 

Between 2010 and 2020, PepsiCo managed to grow its earnings from $3.91/share to $5.12/share. The company is expected to earn $6.06/share in 2021.

The stock is selling for 22.10 times forward earnings and yields 3.21%.

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- How to read my weekly dividend increase reports

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Are Defense Stocks Good Defensive Stocks?

When the economy and the market starts heading south, many investors start buying dividend growth stocks. They have long been considered a defensive position in turbulent times. Given these investors defensive stance, one might ask how about some real defense stocks, as in the Aerospace and Defense industry.

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