For this week’s review of notable dividend increases, I have included four companies which raised distributions last week. Each company has a ten-year track record of annual dividend increases. I believe that each of these companies is worth researching further. I find at least a few of them to be attractively valued today too.
My reviews include comparisons of the recent dividend increases relative to the ten-year average. I also look at the trends in earnings per share, coupled with a view of valuation. These are a derivative of my screening criteria.
The companies in today’s review include:
A. O. Smith Corporation (AOS) manufactures and markets residential and commercial gas and electric water heaters, boilers, tanks, and water treatment products in North America, China, Europe, and India. It operates through two segments, North America and Rest of World.
A.O. Smith raised its quarterly dividend by 9% to 24 cents/share. This marked the 26th consecutive annual dividend increase for this dividend champion. Over the past decade, the company has managed to grow distributions at an annualized rate of 19.90%.
Earnings per share have increased from 59 cents/share in 2009 to an estimated $2.36/share in 2019. Currently A.O. Smith is fully valued at 20.30 times forward earnings and offers a dividend yield of 2%.
Thor Industries, Inc. (THO) designs, manufactures, and sells recreational vehicles (RVs), and related parts and accessories primarily in the United States, Canada, and Europe. It operates in three segments: North American Towable Recreational Vehicles, North American Motorized Recreational Vehicles, and European Recreational Vehicles.
Thor Industries raised its quarterly dividend by 2.50% to 40 cents/share. This is a far cry from the annualized dividend growth of 18.30% over the past decade.
The company earned $2.07/share in 2010, and is expected to generate $5.62/share in 2019.
The stock looks attractively valued at 9.60 times forward earnings. Thor Industries yields 3%. The slow recent rate of dividend increases is giving me pause before putting this stock on my list for further research. I would imagine the RV market is fairly cyclical in nature, and the performance during 2006 – 2010 confirms my thesis. However, this company has managed to grow earnings in the long-run, which is pretty impressive.
Eaton Vance Corp. (EV) engages in the creation, marketing, and management of investment funds in the United States. It also provides investment management and counseling services to institutions and individuals. Further, the company operates as an adviser and distributor of investment companies and separate accounts.
Eaton Vance raised its quarterly dividend by 7.10% to 37.50 cents/share. The increase marks the 39th consecutive fiscal year that this dividend champion has raised its regular quarterly dividend. During the past decade, this dividend champion has managed to grow distributions at an annualized rate of 7.80%.
Eaton Vance earned $1.07/share in 2009. The company is expected to generate $3.39/share in 2019.
Currently, the stock is attractively valued at 12.80 times earnings and offers a dividend yield of 3.45%. Check my analysis of Eaton Vance for more information about the company.
Enterprise Products Partners L.P. (EPD) provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. The company operates through four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services.
Enterprise Products Partners raised its quarterly distributions to 44.25 cents/unit. This distribution is 2.30% higher than the distribution paid during the third quarter of last year. The rate of annual distributions growth has slowed down from the ten-year average of 5.30%. Enterprise Products Partners is a dividend achiever with a 21 year track record of annual dividend increases.
Enterprise Products Partners is one of the best managed pipeline companies in the US. It yields 6.40% today, but issues K-1 tax forms during tax time since it is a partnership. This factor complicates return filings at the federal and state levels for investors, which is why it is not suitable for everyone.
Relevant Articles:
- Twenty-Four Attractively Valued Dividend Champions for Further Research
- Dividend Aristocrats List for 2019
- 2019 Dividend Champions List
- November 2018 Dividend Champions List
Popular Posts
-
Realty Income (O) stock reached an all-time-high of $82.29/share in February 2020, or about five years ago. Today, the stock is selling at $...
-
I review the list of dividend increases every week as part of my monitoring process. Dividend increases provide signaling value to me in my ...
-
As a shareholder, there are two ways to make profits from a stock. The first way is when you sell your stock for a gain, after it has incre...
-
I came upon an interesting story about another dividend investor, this time a famous actor. This is Sean William Scott, who starred in such ...
-
I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me monitor existing positions. I a...
-
I am a big fan of diversification. That doesn't just mean owning a lot of companies however. It means spreading the risk. You need to un...
-
I tend to focus my attention on companies that regularly increase dividends to shareholders . A long history of annual dividend increases is...
-
I review the list of dividend increases every week as part of my monitoring process. Dividend increases provide signaling value to me in my ...
-
I was reviewing my old files and re-visited an interesting paper from Standard & Poor's from a few years ago about the importance of...
-
In terms of a somewhat succint summary, it is good to think in terms of trade-offs in the full picture. The expected returns formula I use r...
