I review the list of dividend increases each week, as part of my monitoring process. This exercise helps me monitor existing holdings and potentially identify companies for further research.
Dividend increases offer a good gauge for management's opinion on near terms business conditions and their affect on company cashflows. As a result, dividend increases can provide a good overview of management's assessment of the business environment. Changes in the pace in dividend increases could provide valuable insight about the business, in conjunction with other factors at play, that could potentially provide investors with a slight edge.
I identified six companies that increased dividends last week. All of these companies have managed to increase dividends for at least a decade. My short review of each company is listed below:
Accenture plc (ACN) is a professional services company, provides strategy and consulting, industry X, song, and technology and operation services worldwide.
Accenture raised quarterly dividends by 14.70% to $1.48/share. This is the 19th consecutive annual dividend increase for this dividend achiever. The company managed to grow dividends at an annualized rate of 10.30% over the past decade.
The company's earnings increased from $4.87/share in 2015 to $11.57/share in 2024.
The company is expected to earn $12.81/share in 2025.
The stock sells for 27.30 times forward earnings and yields 1.70%.
City Holding Company (CHCO) operates as a holding company for City National Bank of West Virginia that provides various banking, trust, and investment management, and other financial solutions in the United States.
The company raised quarterly dividends by 10.50% to $0.79/share. This is the 12th consecutive annual dividend increase for this dividend achiever. The company managed to grow dividends at an annualized rate of 6.20% over the past decade.
The company managed to grow earnings from $3.40/share in 2014 to $7.62/share in 2023.
The company is expected to earn $7.75/share in 2024.
The stock sells for 15.10 times forward earnings and yields 2.70%.
Farmers & Merchants Bancorp, Inc. (FMAO) operates as the bank holding company for The Farmers & Merchants State Bank that provides commercial banking services to individuals and small businesses in Northwest Ohio and Northeast Indiana.
Farmers & Merchants Bancorp raised quarterly dividends by 0.60% to $0.2213/share. This is the 30th consecutive annual increase in the Company’s regular dividend payment. The company managed to grow dividends at an annualized rate of 7.70% over the past decade.
The company's earnings increased from $1.04/share in 2014 to $1.67/share in 2023.
The company is expected to earn $1.59/share.
The stock sells for 17.40 times forward earnings and yields 3.20%.
Fortis Inc. (FTS) operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries.
Fortis raised quarterly dividends by 4.20% to $0.615/share. ( That's Canadian Dollars). This marks the 51st consecutive annual dividend increase for this dividend king.
The company's earnings increased from $1.41/share in 2014 to $3.10/share in 2023.
The company is expected to earn $3.23/share in 2024.
The stock sells for 19 times forward earnings and yields 4%.
Honeywell International Inc. (HON) engages in the aerospace technologies, building automation, energy and sustainable solutions, and industrial automation businesses in the United States, Europe, and internationally.
Honeywell increased quarterly dividends by 4.60% to $1.13/share. This is the 14th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 9.50%.
The company managed to grow earnings from $5.40/share in 2014 to $8.53/share in 2023.
The company is expected to earn $10.10/share in 2024.
The stock sells for 20.60 times forward earnings and yields 2.20%.
McDonald's Corporation (MCD) operates and franchises restaurants under the McDonald’s brand in the United States and internationally.
McDonald's increased quarterly dividends by 6% to $1.77/share. McDonald's has a strong history of returning capital to its shareholders and has raised its dividend for 48 consecutive years since paying its first dividend in 1976. The company managed to grow dividends at an annualized rate of 7.20% over the past decade.
The company is expected to earn $11.82/share in 2024.
The stock sells for 20.60 times forward earnings and yields 2.20%.
Relevant Articles:
- Five Dividend Achievers Raising Dividends Last Week
