Only a company with a strong cash flow generating business can afford to grow dividends for a long period of time. Therefore, a business growing dividends for at least a decade is worth looking at for further research.
There were five companies that fit the criteria. You can view the five companies in the table below:
You can also read a little more about these companies in my summary below. I also included some information below on Ross Stores (ROST), which suspended dividends last week.
Flowers Foods, Inc. (FLO) produces and markets packaged bakery products in the United States.
The company raised its quarterly dividend by 5.30% to 20 cents/share. This marked the 19th consecutive annual dividend increase for this dividend achiever. During the past decade, the company has managed to increase dividends at an annualized rate of 9.60%.
The company is expected to earn $1.06/share in 2020. The company earned $0.66/share in 2010.
Right now the stock is selling for 21.60 times forward earnings and yields 3.50%.
The Clorox Company (CLX) manufactures and markets consumer and professional products worldwide. It operates through four segments: Cleaning, Household, Lifestyle, and International.
Clorox increased quarterly dividends by 4.70% to $1.11/share. This marked the 43rd consecutive year of annual dividend increased for this dividend champion. During the past decade, Clorox has managed to increase dividends at an annualized rate of 7.70%.
The company is expected to earn $6.60/share in 2020. The company earned $4.24/share in 2010.
Right now the stock sells for 30 times forward earnings and yields 2.25%.
Northrop Grumman Corporation (NOC) operates as a security company. The company operates through Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems segments.
Northrop Grumman hiked its quarterly dividend by 9.85% to 1.45/share. This marked the 17th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 13%.
Northrop Grumman is expected to earn $22.57/share in 2020. The company earned $6.82/share in 2010.
The stock sells for 14.45 times forward earnings and yields 1.80%.
Medtronic plc (MDT) develops, manufactures, distributes, and sells device-based medical therapies to hospitals, physicians, clinicians, and patients worldwide. It operates in four segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group, and Diabetes Group.
Medtronic increased its quarterly dividend by 7.40% to 58 cents/share, marking the 43rd consecutive annual dividend increase for this dividend champion. Medtronic has managed to increase dividends at an annualized rate of 10.20% during the past decade.
Medtronic is expected to earn $5.14/share in 2020. The company earned $2.79/share in 2010.
The stock sells for 18.40 times forward earnings and yields 2.45%.
Chubb Limited (CB) provides insurance and reinsurance products worldwide.
The company raised its quarterly dividend by 4% to 78 cents/share. This even marked the 27th consecutive annual dividend increase for this dividend champion. Chubb has managed to grow dividends at an annualized rate of 9.90% during the past decade.
The company is expected to earn $9.64/share in 2020. The company earned $9.11/share in 2010.
The stock sells for 12.15 times forward earnings and yields 2.70%.
Last week, I also had a dividend suspension from Ross Stores (ROST). The company followed the lead of TJX Companies (TJX) and is conserving cash in this environment. At least Ross Stores did a press release, and did not bury the dividend suspension in their quarterly report. Ross Stores just joined the dividend aristocrats index in early 2020, so this is a disappointment. They have to wait until 2046 before they will be eligible to join again.
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