Thursday, August 29, 2019

Three Dividend Growth Companies In The News

Last week, there were four dividend increases from companies which have at least a decade of annual dividend growth under their belts. The most notable company that hiked dividends last week was Altria Group, which marked its 50th year of consecutive annual dividend increases. As a result, Altria joined the elite group of dividend kings.

However, there were three other companies with a decade of annual dividend increases or longer. These companies include:

Atrion Corporation (ATRI) develops, manufactures, and sells products for fluid delivery, cardiovascular, and ophthalmology applications worldwide.

Last week, the company hiked its quarterly dividend by 14.80% to $1.55/share. This marked the 17th consecutive year of annual dividend increases for this dividend achiever. Over the past decade, the company has managed to grow distributions at an annualized rate of 16.80%.

Atrion has managed to boost earnings from $7.82/share in 2008 to $18.44/share in 2018.

Unfortunately, the stock is overvalued today at a little over 41 times earnings. The yield is also kind of low at 0.80%. This may be a good company to watch during the next big selloff. There are no Wall Street analysts covering it too, so there is a potential opportunity for research.

Community Bank System, Inc. (CBU) operates as the bank holding company for Community Bank, N.A. that provides various banking and other financial services to retail, commercial, and municipal customers. It operates through three segments: Banking, Employee Benefit Services, and All Other.

The company hiked its quarterly dividend by 8% to 41 cents/share. This marked the 28th consecutive annual dividend increase for this dividend champion. During the past decade, the company has managed to boost distributions at an annualized rate of 5.10%. It is impressive to find a financial company that kept raising the dividends during the financial crisis.

Between 2008 and 2018, the company has managed to grow earnings from $1.48/share to $3.24/share. The company is expected to generate $3.24/share in 2019.

The bank is very close to fully valued at 18.90 times forward earnings, which is a high multiple for a financial institution. The stock yields 2.70% today, which is also on the lower side for as financial institutions. The company may be worth a second look if it comes down in price from here.

L3Harris Technologies, Inc. (LHX) provides technology-based solutions that solve government and commercial customers' mission-critical challenges in the United States and internationally. The company operates in three segments: Communication Systems, Electronic Systems, and Space and Intelligence Systems.

The company hiked its quarterly dividend by 9.50% to 75 cents/share. This marked the 18th consecutive annual dividend increase for this dividend achiever. The company has managed to boost distributions at an annualized rate of 13.60% over the past decade.

Between 2008 and 2019, the company managed to boost earnings from $3.25/share to $7.86/share. The company is expected to generate $9.59/share in 2019.

The stock is overvalued at 22.20 times forward earnings and offers a dividend yield of 1.40%. The stock may be worth a second look on dips below 20 times earnings.

Relevant Articles:

2019 Dividend Champions List
Altria Group Joins The Dividend Kings List
Dividend Growth Stocks I am Buying In August 2019
Dividend Achievers versus Dividend Contenders & Champions

Recent Posts From DIV-Net Members