Tuesday, February 9, 2021

Eight Dividend Paying Companies Growing Dividends Like Clockwork

As part of my review process, I look at the dividend increases every week. I use the following resources to compile this list, if you are interested to learn more about it.

I tend to narrow my attention down to the companies that have managed to increase dividends for at least ten years in a row. This helps me monitor how my existing investments are doing and also identify some emerging dividend growth success stories early on.

During the past week, there were several companies that managed to raise dividends to shareholders. The companies are listed below:

3M Company (MMM) develops, manufactures, and markets various products worldwide. It operates through four business segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer.

The company raised its quarterly dividend by 0.68% to $1.48/share

This marks the 63rd consecutive year 3M has increased its dividend. 3M is a dividend king that has paid dividends to its shareholders without interruption for more than 100 years.

The pace of dividend increases has definitely slowed down in recent years, and is a far cry from the ten year dividend growth rate of 10.84%.

Between 2010 and 2020, 3M managed to boost earnings from $5.63/share to $9.25share. The company is expected to earn $9.61/share in 2021.

The stock seems fairly valued at 18.62 times forward earnings and a dividend yield of 3.30%.

Avista Corporation (AVA) operates as an electric and natural gas utility company. It operates through two segments, Avista Utilities and AEL&P.

The company raised its quarterly dividend by 4.30% to 42.25 cents/share. The dividend increase marks the nineteenth consecutive year of dividend increases for this dividend achiever.

Avista has managed to increase dividends at an annualized rate of 4.94% during the past decade.

Between 2009 and 2019, Avista managed to grow earnings from $1.58/share to $2.97/share. Avista is expected to earn $1.84/share in 2020.

The stock is selling for 20.75 times forward earnings and yields 4.40%.

Activision Blizzard, Inc. (ATVI)  develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through three segments: Activision Publishing, Inc.; Blizzard Entertainment, Inc.; and King Digital Entertainment.

The Board of Directors declared an annual dividend of $0.47 per common share, which represents a 14.63% increase from 2020. This marked the 11th year of consecutive annual dividend increases for this dividend achiever.

Over the past decade, Activision Blizzard has managed to increase dividends at an annualized rate of 10.58%.

The company managed to grow earnings from 33 cents/share in 2010 to $$2.22/share in 2020. The company is expected to earn $3.51/share in 2021.

The stock is valued at 28.95 times forward earnings and yields 0.46%.

CME Group Inc. (CME) operates contract markets for the trading of futures and options on futures contracts worldwide.

The company raised its quarterly dividend by 5.88% to 90 cents/share. This marked the 11th year of consecutive annual dividend increases for this dividend achiever.  Over the past decade, CME Group has managed to grow distributions at an annualized rate of 13.96%. 

CME Group managed to boost earnings from $2.48/share in 2009 to $5.91/share in 2019. The company is expected to earn $6.76/share in 2020.

The company’s stock is selling for 28.31 times forward earnings. CME Group yields 1.88%. This figure does not include the special dividend that is has paid regularly over the past few years – the last payment was for $2.50, which is an extra 1.30% yield.

Quest Diagnostics Incorporated (DGX) provides diagnostic testing, information, and services in the United States and internationally. 

Quest Diagnostics raised its quarterly dividend by 10.70% to 62 cents/share.  This marked the 10th consecutive annual dividend increase for this newly minted dividend achiever. Over the past decade, the company has managed to raise dividends at an annualized rate of 18.64%.

Between 2010 and 2020, Quest Diagnostics managed to increase earnings from $4.05/share to $8.94/share. The company is expected to earn $10.95/share in 2021.

The stock is selling for 11.12 times forward earnings and yields 2.03%. This looks like an interesting company that is selling at a cheap price, that also grows earnings and dividends. I would put it on my list for further research.

Corning Incorporated (GLW) engages in display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses worldwide.

The company raised its quarterly dividend by 9.09% to 24 cents/share. This marked the 11th consecutive annual dividend increase for this dividend achiever. Over the past decade it has managed to boost dividends at an annualized rate of 15.97%.

Corning is expecting to earn $1.96/share in 2021, which is only slightly higher than 2011's earnings of  $1.78/share.

The stock is selling for 19.09 times forward earnings and yields 2.56%.

Prudential Financial, Inc. (PRU)  provides insurance, investment management, and other financial products and services. It operates through eight segments: PGIM, Retirement, Group Insurance, Individual Annuities, Individual Life, Assurance IQ, International Businesses, and Closed Block.

The company hiked quarterly dividends by 4.50% to $1.15/share. This marked the 13rd consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has actually managed to grow dividends at an annualized rate of 14.36%.

Prudential Financial is expected to earn $11.71/share in 2021. For comparison, Prudential Financial earned $7.12/share in 2010. The company’s earnings per share are all over the place due the cyclical nature of the insurance industry. 

The stock is selling for 6.85 times forward earnings and yields 5.73%. 

RenaissanceRe Holdings Ltd. (RNR) provides reinsurance and insurance products in the United States and internationally. The company operates through Property, and Casualty and Specialty segments.

The company raised its quarterly dividend by 2.86% yo 36 cents/share. This marked the 26th consecutive annual dividend increase for this dividend champion. During the past decade, RenaissanceRe Holdings has managed to increase distributions at an annualized rate of 3.42%/year.

RenaissanceRe is expected to earn $14.69/share in 2021.

The stock is selling for 10.84 times forward earnings and yields 0.90%.

Relevant Articles:

Busiest Week For Dividend Increases Ever

Seven Companies Rewarding Shareholders With a Raise

How to read my weekly dividend increase reports

Dividends Offer an Instant Rebate on Your Purchase Price



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