As part of my monitoring process, I review the list of dividend increases every week This activity helps me to monitor the business performance of any companies I am invested in. It also helps me to identify any hidden dividend gems, and place them on my list for further research.
My reviews are an example of the quick way I use to evaluate companies, before deciding if they are worth a second look later or not.
The companies in today’s article have managed to grow dividends for at least ten years in a row. These companies also announced a dividend increase during the past week. The companies include:
PPG Industries, Inc. (PPG) manufactures and distributes paints, coatings, and specialty materials worldwide.
The company raised its quarterly dividend by 6% to 54 cents/share. This marked the 49th year of consecutive annual dividend increases for this dividend champion. PPG Industries has managed to grow dividends at an annualized rate of 6.40% over the past decade.
Between 2010 and 2019, PPG Industries managed to grow earnings from $2.31/share to $5.22/share.
The company is expected to generate $4.44/share in 2020
The stock sells for 24 times forward earnings and yields 1.95%.
Computer Services, Inc. (CSVI) delivers core processing, digital banking, managed services, payments processing, print and electronic distribution, and regulatory compliance solutions to financial institutions and corporate entities in the United States.
The company raised its quarterly dividend by 19.10% to 25 cents/share. According to their press release, this marked the 49th year of consecutive annual dividend increases for the company. Sadly, I have not been able to verify this with any other independent source. I see that the stock has been publicly traded since 2003, hence I have to use this data as a starting point for the dividend record. If the stock was privately held before, the record of annual dividend increases before that doesn’t count.
If I find reliable data showing that the record started 49 years ago, I would update my stance on the topic.
Computer Services has managed to grow dividends at an annualized rate of 15.80% over the past decade.
Between 2010 and 2019, Computer Services managed to boost earnings from 81 cents/share to $1.91/share.
The stock sells for 27 times forward earnings and offers a dividend yield of 1.90%.
National Retail Properties (NNN) invests primarily in high-quality retail properties subject generally to long-term, net leases.
This real estate investment trust raised its quarterly dividend by 1% to 52 cents/share. This marked 31 years of consecutive annual dividend increases for this dividend champion.
The company has raised dividends by 3.10%/year annualized over the past decade.
Over the past decade, National Retail Properties has managed to boost its AFFO/share from $1.73 in 2009 to $2.79 in 2019.
The REIT is selling for 13.35 times forward FFO and yields 5.85%.
Stanley Black & Decker, Inc. (SWK) engages in tools and storage, industrial, and security businesses worldwide.
The company raised its quarterly dividend by 1.40% to 70 cents/share. This marked the 53th consecutive annual dividend increase for this dividend king. This dividend king has managed to boost distributions at an annualized rate of 7.60% over the past decade.
The company managed to boost earnings from $2.79/share in 2009 to $6.35/share in 2019.
The company is expected to earn $5.73/share in 2020.
The stock is selling for 25.10 times forward earnings and offers a dividend yield of 1.85%.
Marsh & McLennan Companies, Inc. (MMC) is a professional services company that provides advice and solutions to clients in the areas of risk, strategy, and people worldwide. It operates in two segments, Risk and Insurance Services, and Consulting.
The company increased its quarterly dividend by 2.20% to 46.50 cents/share. Marsh & McLennan has managed to grow dividends at an annualized rate of 8.10% over the past decade.
Earnings increased from $1.55/share in 2010 to $3.41/share in 2019.
The company is expected to generate $4.60/share in 2020.
The stock sells at 24.65 times forward earnings and yields 1.65%.
MGE Energy, Inc. (MGEE) operates as a public utility holding company primarily in Wisconsin. It operates through five segments: Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; Transmission Investments; and All Other.
MGE Energy raised its quarterly dividend by 5% to 37 cents/share. This event marked the company's 45th consecutive year of increasing its dividend. MGE Energy is a dividend champion which has managed to grow dividends at an annualized rate of 3.60% during the past decade.
MGE Energy managed to grow earnings from $1.67/share in 2010 to $2.51/share in 2019.
The stock looks richly valued at 26.50 times forward earnings. It yields 2.20%.
Relevant Articles:
- Investing is part art, part science
- Avoiding High Portfolio Ownership of Successful Investments
- Two Cheap Dividend Stocks Raising Dividends Last Week
- Bank OZK and John Wiley & Sons Reward Shareholders With Raises
I review the list of dividend increases every week, in an effort to monitor existing holdings, and uncover hidden dividend gems for further research.
I usually narrow my research to companies with a ten year history of annual dividend increases.
Last week, there were two companies that raised dividends. The companies include:
Bank OZK (OZK) provides retail and commercial banking services to businesses, individuals, and non-profit and governmental entities. The bank is expected to earn $1.51/share in 2020 and $2.26/share in 2021.
The bank raised its quarterly dividend by 0.90% to 27.25 cents/share. This increase represents a 13.50% hike over the dividend paid during the same time last year.
This was the 24th consecutive year of annual dividend increases for this dividend achiever. During the past decade, Bank OZK has managed to increase dividends at an annualized rate of 21.90%.
The company raised its earnings from 94 cents/share in 2010 to $3.30 in 2019.
Bank OZK is expected to earn $1.51/share in 2020 and $2.26/share in 2021.
The stock sells for 15.20 times forward earnings and yields 4.70%.
John Wiley & Sons, Inc. (JW-A) operates as a research and learning company worldwide. The company operates through three segments: Research Publishing & Platforms, Academic & Professional Learning, and Education Services.
The company raised its quarterly dividend by 0.70% to 34.25 cents/share. This was the 27th consecutive year of annual dividend increases for this dividend champion. During the past decade, the company has managed to increase dividends at an annualized rate of 9.50%. The rate of annualized dividend growth has been stalling over the past one, three and five years however.
John Wiley & Sons is expected to generate $2.02/share in 2020 and $2.43/share in 2021. For reference, the company earned $2.80/share in 2011 but lost $1.32/share in 2019.
The stock is fairly valued at 18.63 times forward earnings. The stock yields 3.64%.
I personally view both stocks as risky. Bank OZK has grown rapidly over the past decade, but that was in a very favorable economic environment. They’ve had some issues, so I am going to wait this one out.
John Wiley and Sons is a company that has not managed to grow earnings per share over the past decade. Perhaps because traditional publishing business model is under siege.
Relevant Articles:
- Three Dividend Stocks in the News
- Expect Dividend Cuts and Dividend Freezes in the Banking Sector
- My Favorite Exercise As A Dividend Growth Investor
- Seven Dividend Growth Stocks Rewarding Shareholders With Raises
RSS
Email
RSS: Dividends4Life RSS: Dividend Growth Investor RSS: The DIV-Net Site
