I review the list of dividend increases every week, as part of my monitoring process. I usually focus my attention on the companies with a ten year streak of annual dividend increases, and then review each company using my criteria. I am always on the lookout for new ideas, and to determine if my existing holdings are working. I also want to be ready to act quickly, when the right time arrives.
This exercise helps me to evaluate companies I already own, and see how they are doing. This is a helpful piece of the puzzle, that would be helpful when/if I decide to add to these companies at the right price.
This exercise also helps me identify companies for further research. A large part of the time is spent reviewing companies, screening for companies, and trying to learn more about companies, their business, etc.
It is not glamorous at all, but dull and boring.
But it does pay dividends.
Over the past week, there were several companies raising dividends. The companies include:
Avery Dennison Corporation (AVY) operates as a materials science and digital identification solutions company in the United States, Europe, the Middle East, North Africa, Asia, Latin, America, and internationally.
The company raised quarterly dividends by 6.80% to $0.94/share. This is the 15th consecutive annual dividend increase for this dividend achiever. Over the past decade, it has managed to grow dividends at an annualized rate of 9.92%.
The company has managed to grow earnings from $8.60/share in 2015 to $33.67/share in 2024.
The company is expected to earn $9.77/share in 2025.
The stock sells for 17.48 times forward earnings and yields 2.03%.
Ameriprise Financial, Inc. (AMP) operates as a diversified financial services company in the United States and internationally. The company offers financial planning and advice services to individual and institutional clients.
The company raised quarterly dividends by 8.10% to $1.60/share. This is the 20th consecutive annual dividend increase for this dividend achiever. Over the past decade, it has managed to grow dividends at an annualized rate of 9.86%.
The company has managed to grow earnings from $8.60/share in 2015 to $33.67/share in 2024.
The company is expected to earn $36.81/share in 2025.
The stock sells for 12.66 times forward earnings and yields 1.25%.
Comfort Systems USA, Inc. (FIX) provides mechanical and electrical installation, renovation, maintenance, repair, and replacement services for the mechanical and electrical services industry in the United States. It operates through two segments: Mechanical and Electrical.
The company increased quarterly dividends by 12.50% to $0.45/share. This is a 50% increase over the dividend paid during the same time last year. This is the 13th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to raise dividends at an annualized rate of 18.20%.
The company has managed to grow earnings from $1.32/share in 2015 to $14.64/share in 2024.
The company is expected to earn $19.94/share in 2025.
The stock sells for 19.93 times forward earnings and yields 0.43%.
Home Bancshares, Inc. (HOMB) operates as the bank holding company for Centennial Bank that provides commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals, and municipalities in the United States.
The company raised quarterly dividends by 2.60% over the prior quarterly dividend to $0.20/share. This is also an 11.10% hike over the dividend paid during the same time last year. This is the 14th consecutive annual dividend increase for this dividend achiever. Over the past decade, it has managed to grow dividends at an annualized rate of 15.67%.
The company has managed to grow earnings from $1.01/share in 2015 to $2.01/share in 2024.
The company is expected to earn $2.27/share in 2025.
The stock sells for 12.18 times forward earnings and yields 2.80%.
Lithia Motors, Inc. (LAD) operates as an automotive retailer in the United States, the United Kingdom, and Canada. It operates in two segments, Vehicle Operations and Financing Operations.
The company raised quarterly dividends by 3.80% to $0.55/share. This is the 15th year of consecutive annual dividend increases for this dividend achiever. This raise is also much lower than the ten year average of 13.10%
The company has managed to grow earnings from $6.96/share in 2015 to $29.70/share in 2024.
The company is expected to earn $32.77share in 2025.
The stock sells for 8.94 times forward earnings and yields 0.75%.
MetLife, Inc. (MET) is a financial services company, which provides insurance, annuities, employee benefits, and asset management services worldwide. It operates in six segments: Group Benefits; Retirement and Income Solutions; Asia; Latin America; Europe, the Middle East and Africa; and MetLife Holdings.
The company raised quarterly dividends by 4.10% to $0.5675/share. This is the 13th consecutive annual dividend increase for this dividend achiever. Over the past decade, it has managed to grow dividends at an annualized rate of 6.20%.
The company has managed to grow earnings from $4.67/share in 2015 to $5.98/share in 2024.
The company is expected to earn $9.20/share in 2025.
The stock sells for 8.18 times forward earnings and yields 3%.
Nasdaq, Inc. (NDAQ) operates as a technology company that serves capital markets and other industries worldwide. It operates in three segments: Capital Access Platforms, Financial Technology, and Market Services.
The company raised quarterly dividends by 12.50% to $0.27/share. This is the 13th consecutive annual dividend increase for this dividend achiever. Over the past decade, it has managed to grow dividends at an annualized rate of 17.13%.
The company has managed to grow earnings from $0.85/share in 2015 to $1.94/share in 2024.
The company is expected to earn $3.19/share in 2025.
The stock sells for 23.59 times forward earnings and yields 1.28%.
Parker-Hannifin Corporation (PH) manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The company operates through two segments: Diversified Industrial and Aerospace Systems.
The company raised quarterly dividends by 10.40% to $1.80/share. This is the 69th consecutive annual dividend increase for this dividend king. Over the past decade, it has managed to grow dividends at an annualized rate of 11.90%.
The company has managed to grow earnings from $7.08/share in 2015 to $22.13/share in 2024.
The company is expected to earn $26.73/share in 2025.
The stock sells for 22.37 times forward earnings and yields 1.09%.
Principal Financial Group, Inc. (PFG) provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates through Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection segments.
The company raised quarterly dividends by 1.30% over the previous quarterly distribution to $0.76/share. This is a 7.04% raise over the dividend paid during Q2 2024. This is the 17th consecutive annual dividend increase for this dividend achiever. Over the past decade, it has managed to grow dividends at an annualized rate of 8%.
The company has managed to grow earnings from $4.11/share in 2015 to $6.77/share in 2024.
The company is expected to earn $8.15/share in 2025.
The stock sells for 9.01 times forward earnings and yields 3.88%.
Sysco Corporation (SYY) engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. The company operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments.
The company raised quarterly dividends by 5.90% to $0.54/share. This is the 49th consecutive annual dividend increase for this dividend aristocrat. Over the past decade, it has managed to grow dividends at an annualized rate of 5.70%.
The company has managed to grow earnings from $4.67/share in 2015 to $5.98/share in 2024.
The company is expected to earn $4.55/share in 2025.
The stock sells for 15.58 times forward earnings and yields 2.81%.
Westamerica Bancorporation (WABC) operates as a bank holding company for the Westamerica Bank that provides various banking products and services to individual and commercial customers in the United States.
The company raised quarterly dividends by 4.50% to $0.46/share. This is the 34th consecutive annual dividend increase for this dividend champion. Over the past decade, it has managed to grow dividends at an annualized rate of 1.48%.
The company has managed to grow earnings from $2.30/share in 2015 to $5.20/share in 2024.
The company is expected to earn $4.40/share in 2025.
The stock sells for 10.96 times forward earnings and yields 3.63%.
This of course is just a list, not a recommendation.
When I review companies, I look at ten year trends in:
1) Earnings per share
2) Dividend payout ratio
3) Dividends per share
4) Valuation
Since I have some experience evaluating dividend companies, I also modify my criteria based on the environment we are in and the availability of quality companies. If I see a company with a strong business model and certain characteristics that I like, I may require a dividend streak that is lower than a decade. I have also found success in looking beyond screening criteria by purchasing stocks a little above the borders contained in a screen.
It is important to be flexible, without being too lenient.
