Thursday, March 19, 2020

Seven Dividend Companies Rewarding Shareholders With Raises

As part of my monitoring process, I review the list of dividend increases every week. This is helpful in monitoring dividend increases for my dividend portfolio holdings, and for companies I am monitoring for a potential acquisition.

There were seven companies with long histories of annual dividend increases, which also raised dividends last week.

The companies include:

Company
Symbol
Dividend Yield
New Dividend
Old Dividend
Stock Price
Forward P/E ratio
Dividend Payout Ratio
Years Annual Dividend Increases
Annualized Dividend Growth
Colgate-Palmolive
CL
2.55%
0.44
0.43
69.1
    23.27 
59%
56
7.11%
Globe Life
GL
1.05%
0.1875
0.1725
71.58
    10.04 
11%
14
10.53%
Gentex
GNTX
1.90%
0.12
0.115
25.21
    14.32 
27%
9
7.54%
Horace Mann Educators
HMN
3.09%
0.3
0.2875
38.82
    14.38 
44%
10
17.09%
Qualcomm
QCOM
3.43%
0.65
0.62
75.81
    18.36 
63%
17
13.98%
W.P. Carey
WPC
5.63%
1.04
1.038
73.88
    15.20 
86%
23
7.59%
Wyndham Destinations
WYND
6.32%
0.5
0.45
31.64
      5.16 
33%
10
27.38%

These companies are not investment recommendations. To determine if these dividend growth stocks are worth investing in, I focus on the following:

1) Growth in earnings per share over the past decade
2) A dividend payout ratio that is below 60%
3) A P/E ratio below 20
4) A history of consistent annual dividend increases over the past decade

I use a variation of my screening criteria when looking for quality companies to consider for my portfolio. Check my article on screening the dividend aristocrats list for more information.

Obviously, having an income stream that is relatively insulated against the ups and downs of the economic cycle is an advantage, particularly in today’s challenging world economy. If your earnings do not fall as much during a recession, your company can afford to continue paying the dividend. If the earnings stream dries up, and there are significant debt obligations to be serviced in a challenging credit market, chances are that the dividend may be put on the chopping block. This is why it is important to buy quality companies, at attractive valuations.

When I analyze companies, I look for things like rising earnings per share, dividend payout ratios, perform qualitative assessments, and looks for trends in dividends per share. Check my analysis of Colgate-Palmolive from a couple of years ago for more information on how I analyze companies in detail.

Relevant Articles:

How to read my stock analysis reports
Thirty-One Dividend Aristocrats for Further Review
Seven Dividend Achievers Defying Coronavirus Fears
A Record Week on Wall Street For Dividend Increases

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