Six Dividend Growth Stocks Rewarding Shareholders With a Raise

There were five companies with at least a decade of dividend increases under their belt which hiked distributions last week. There was one company with a nine year record included, because I am monitoring it more closely these days. I reviewed the latest increase against the ten year average in each of the three instances. I also reviewed the trends in earnings, and then looked at the valuation, in order to come up with a conclusion on whether these companies are worth researching further or not. I own shares in one of these companies, but I would not be adding today to it. I did identify one company that may be worth a second look if I can find it at the right entry price.

The companies raising dividends last week include:

Lockheed Martin Corporation (LMT), a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. It operates through four segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space.

The Lockheed Martin Corporation board of directors raised its quarterly dividend by 9.10% to $2.40 per share. This marked the 17th year of annual dividend increases for this dividend achiever. Over the past decade, it has managed to grow distributions at an annualized rate of 16.20%.

Lockheed Martin managed to boost earnings from $7.86/share in 2008 to $17.59/share in 2018. The company is expected to earn $21.21/share in 2019

The stock sells at 18.30 times forward earnings and offers a dividend yield of 2.50%.

Honeywell International Inc. (HON) operates as a diversified technology and manufacturing company worldwide. The company’s Board of Directors approved a 9.80% increase in the company's regular quarterly cash dividend from 82 cents per share to 90 cents per share. This marked the ninth consecutive annual dividend increase for this future dividend achiever. During the past decade, this company has managed to boost dividends at an annualized rate of 10.80%.

Honeywell managed to grow earnings from $3.75/share in 2008 to $8.98/share in 2018.
The company is expected to earn $8.10/share in 2019

The stock is slightly overvalued at 20.70 times forward earnings. Honeywell yields 2.10%. It may be worth a closer look below $162/share.

Artesian Resources Corporation (ARTNA) provides water, wastewater, and other services on the Delmarva Peninsula.

ARTNA Artesian Resources Corporation’s Board of Directors approved a 1.5% increase in the company’s dividend to 24.96 cents/share. Artesian Resources has paid quarterly dividends to its shareholders for 108 consecutive quarters and for the 23rd consecutive year has increased dividends. Over the past decade, this dividend achiever has managed to grow distributions at an annualized rate of 3%.

Artesian Resources has managed to increase earnings from 86 cents/share in 2008 to $1.54/share in 2018.

The stock is overvalued at 24 times earnings and offers a low dividend yield of 2.70%. The yield is low given the slow growth in distributions per share.

BancFirst Corporation (BANF) operates as the bank holding company for BancFirst that provides a range of commercial banking services to retail customers, and small to medium-sized businesses. It operates through Metropolitan Banks, Community Banks, and Other Financial Services segments. The company raised its quarterly dividend by 6.70% to 32 cents/share. This marked the 27th consecutive annual dividend increase for this dividend champion. The company has managed to boost its distributions at an annualized rate of 8.50%/year over the past decade.

Between 2008 and 2018, the company managed to increase earnings from $1.43/share to $3.76/share.
BancFirst Corporation is expected to earn $3.99/share in 2019

The stock is fairly valued at 14 times forward earnings and offers a dividend yield of 2.30%.

OGE Energy Corp. (OGE) operates as an energy and energy services provider that provides physical delivery and related services for electricity and natural gas primarily in the south central United States. It operates in two segments, Electric Utility and Natural Gas Midstream Operations.
The Company’s Board of Directors approved a 6.20% increase in its quarterly dividend to 38.75 cents per share. This marked the thirteenth consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to boost distributions at an annualized rate of 7%/year.

OGE Energy managed to grow earnings from a low of $1.25/share in 2008 to $2.12/share in 2018.
The company is expected to generate $2.12/share in 2019.

The stock is slightly overvalued at 21.40 times forward earnings. OGE Energy yields 3.40%.

Hingham Institution for Savings (HIFS) provides various financial products and services to individuals and small businesses in the United States.

The company’s Board of Directors raised its quarterly dividend by 2.60% to 40 cents/share. This was an increase of 11.10% over the dividend paid during the same time last year. Hingham Institution for Savings also distributes special dividends in the fourth quarter. The last special dividend was for 50 cents/share. Since the company has been raising dividends starting in 1995, it should be included in the dividend champions list from December 2019.

Hingham Institution for Savings grew its earnings to $ 13.90/share in 2018, from $2.96/share in 2009.
The stock yields 0.80% today, excluding the impact of special dividends. The stock is selling at 13.70 times forward earnings.

Relevant Articles:

- 2019 Dividend Champions List
- My Portfolio Monitoring Process In a Nutshell
- Nine Companies That Love To Raise Their Dividends
- Dividend Achievers versus Dividend Contenders & Champions