Welcome to another edition of my dividend increase reports. Every week, I look at the list of dividend increases as part of my portfolio monitoring process. I also use this list as a potential source of ideas for further research.
I started with the list of dividend increases for the past week, which was reduced to a more manageable level by introducing a few simple filters. Namely, I focus on the companies with a ten year streak of dividend increases. I use this filter because I have found too many companies with small histories of dividend increases that fail to continue raising dividends at the first sign of trouble. I want to look for companies which have a shareholder friendly dividend policies, and which have the earning power and stability in underlying business operations to continue paying and raising dividends through thick or thin.
In my reviews of the list, I end up looking at dividend growth rates, recent dividend increases, as well as trends in earnings per share. Most importantly, I look at valuation as well.
The companies which raised dividends last week include:
PPG Industries, Inc. (PPG) manufactures and distributes paints, coatings, and specialty materials worldwide. The company raised its dividends by 6.30% to 51 cents/share. This marked the 48th year of consecutive annual dividend increases for this dividend champion. Over the past decade, this dividend champion has managed to boost distributions at an annualized rate of 5.90%.
Between 2008 and 2018, PPG Industries managed to grow earnings from $1.63/share to $5.47/share. PPG industries is expected to earn $6.27/share in 2019.
The stock looks fairly valued at 18.90 times forward earnings. PPG Industries yields 1.70%. I like the consistency in dividend growth, although I would prefer if the stock price is lower and the yield is a little better. Check my analysis of PPG Industries for more information about the stock.
Stanley Black & Decker, Inc. (SWK) engages in tools and storage, industrial, and security businesses worldwide. The company increased its quarterly dividend by 4.50% to 69 cents/share. This marked the 52nd consecutive annual dividend increase for this dividend king. During the past decade, this dividend king has managed to grow dividends at an annualized rate of 7.40%.
Between 2008 and 2018, the company managed to grow earnings from $3.84/share to $8.15/share (adjusted for one-time items). Stanley Black & Decker is expected to generate $8.62/share in 2019.
Right now, Stanley Black & Decker is attractively valued at 17.70 times forward earnings. The stock yields 1.80%. It looks like a good company to add to my list for future research, despite the slowdown in annual dividend growth.
Unum Group (UNM) provides financial protection benefit solutions in the United States, the United Kingdom, and internationally. It operates through Unum US, Unum International, Colonial Life, and Closed Block segments. The company increased its quarterly dividend by 9.60% to 28.50 cents/share.
This marked the 11th annual dividend increase for this dividend achiever. Over the past decade, Unum Group has managed to grow dividends at an annualized rate of 12.60%. Between 2008 and 2018, Unum’s earnings per share rose from $1.61/share to $5.20/share ( adjusted for one time items).
Unum Group is expected to earn $5.43/share in 2019.
Right now, the stock is attractively valued at 6.10 times forward earnings. Unum Group yields 3.40%. I would add the stock to my list for further research.
National Retail Properties (NNN) invests primarily in high-quality retail properties subject generally to long term, net leases. The REIT increased its quarterly dividend by 3% to 50 cents/share. This marked the 30th consecutive annual dividend increase for this dividend champion. During the past decade, this REIT has managed to grow distributions at an annualized rate of 2.80%/year.
Between 2009 and 2018, the REIT managed to grow FFO from $1.12/share to $2.53/share.
The REIT is overvalued at 20.80 times FFO. National Retail Properties yields 3.80%. I find the stock to be a good hold today but would not be adding at current prices.
Computer Services, Inc., (CSVI) delivers core processing, digital banking, managed services, payments processing, print and electronic distribution, and regulatory compliance solutions to financial institutions and corporate entities in the United States. The company increased its quarterly dividend by 16.70% to 21 cents/share. This was the 48th consecutive annual dividend increase for this company, according to the company’s press release. However, according to the company’s 2004 annual report, the company had raised dividends for 15 years in a row then. Over the past decade, Computer Services has managed to grow dividends at an annualized rate of 15%.
According to the company reports, between 2009 and 2019, the company managed to grow earnings from $1.31/share to $3.23/share.
Right now, Computer Services seems fairly valued at 12.20 times earnings, and offers a well covered dividend yield of 2.10%. I probably need to add this stock to my list for further research.
Relevant Articles:
- Nine Companies That Love To Raise Their Dividends
- Three Dividend Achievers Distributing More Cash to Shareholders
- Five Dividend Machines Working Hard for Their Owners
- Eight Dividend Achievers Showering Owners With More Cash