I review the list of dividend increases as part of my monitoring process.
I review the most recent dividend increase, and compare it to the ten year average to gauge it. While I generally prefer a stable rate of dividend growth that is close to the average, I also understand that businesses face different short-term cycles as well.
I also review the growth in earnings, and payout ratios, in order to determine the likelihood of future dividend increases. A company that grows earnings and maintains a stable payout ratio will be more likely to continue growing that future dividend income stream to investors. On the other hand, a company with a stagnant earnings per share can only be able to grow dividends through an expansion to the payout ratio, which is unsustainable.
Last but not least, I also look at current valuation factors such as P/E ratio and dividend yield, while also taking into consideration the past growth and future growth prospects for each enterprise.
Broadridge Financial Solutions, Inc. (BR) provides investor communications and technology-driven solutions for the financial services industry worldwide.
Broadridge hiked its quarterly dividend by 6.50% to 57.50 cents/share. This marked the 14th consecutive annual dividend increase for this dividend achiever. Over the past decade, this dividend achiever has managed to grow distributions at an annualized rate of 19%.
Broadridge managed to increase earnings from $1.32/share in 2010 to $3.95/share in 2019
Broadridge Financial is expected to generate $5.45/share in 2020.
Right now the stock is selling for 25.50 times forward earnings. Broadridge Financial yields 1.70%. Check my analysis of Broadridge Financial for more information about the company.
Nordson Corporation (NDSN) engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide.
Nordson increased its quarterly dividend by 2.60% to 39 cents/share, marking the 57th consecutive annual dividend increase for this dividend king. Over the past decade, it has managed to boost dividends at an annualized rate of 14.50%
The company grew earnings from $2.46/share in 2010 to $5.79/share in 2019.
The company is expected to earn $5.40/share in 2020. The stock is overvalued at 38.30 times forward earnings and yields 0.75%
Cboe Global Markets, Inc (CBOE) operates as an options exchange in the United States. It operates in five segments: Options, U.S. Equities, Futures, European Equities, and Global FX.
CBOE raised its quarterly dividend by 16.70% to 42 cents/share. This marked the 10th year of annual dividend increases for this newly minted dividend achiever. Over the past five years, CBOE has managed to increase dividends at an annualized rate of 11.40%.
Between 2010 and 2019, CBOE grew earnings from $1.03/share to $3.34/share. CBOE is expected to earn $5.19/share in 2020.
The stock is attractively valued at 17 times forward earnings and a dividend yield of 1.90%.
Westlake Chemical Corporation (WLK) manufactures and markets basic chemicals, vinyls, polymers, and building products worldwide. It operates through two segments, Olefins and Vinyls.
Westlake Chemical increased its quarterly dividend by 2.90% to 27 cents/share. This marked the 17th consecutive year of annual dividend increases for Westlake Chemical. Over the past decade, the company has managed to boost distributions at an annualized rate of 25%.
The company managed to grow earnings from $1.67/share in 2010 to $3.25/share in 2019
Westlake is expected to generate $1.54/share in 2020.
The stock is overvalued at 39.60 times forward earnings and offers a dividend yield of 1.80%.
International Flavors & Fragrances Inc. (IFF) manufactures flavors and fragrances for use in various consumer products. It operates through two segments, Taste and Scent.
The company increased its quarterly dividend by 2.70% to 77 cents/share. This marked the 18th year of annual dividend increases for this dividend achiever. Over the past decade, it has managed to grow distributions at an annualized rate of 11.50%
The company managed to grow earnings from $3.26/share in 2010 to $4/share in 2019.
International Flavors and Fragrances is expected to earn $5.74/share in 2020.
The stock is selling for 21.50 times forward earnings. The stock yields 2.50% today.
KLA Corporation (KLAC) designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nanoelectronics industries worldwide.
The company increased its quarterly dividend by 5.90% to 90 cents/share. This was the 11th consecutive annual dividend increase for this dividend achiever. During the past decade, it has managed to boost distributions at an annualized rate of 17.80%
The company managed to increase earnings from $4.66/share in 2010 to $7.70/share in 2019.
KLA is expected to generate $11.41/share in 2020.
The stock is trading at 18.50 times earnings and yields 1.70%.
Chemed Corporation (CHE) provides hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers in the United States. It operates through two segments, VITAS and Roto-Rooter.
Chemed raised its quarterly dividend by 6.25% to 34 cents/share. This marked the 12th year of consecutive annual dividend increases for this dividend achiever. In the past decade, it has managed to increase dividends at an annualized rate of 13.20%
Chemed managed to grow earnings from $3.55/share in 2010 to $13.31/share in 2019.
Chemed is expected to generate $16.35/share in 2020.
The stock sells for 31 times forward earnings and yields 0.30%.
Carlisle Companies Incorporated (CSL) operates as a diversified manufacturer of engineered products in the United States, Europe, Asia, Canada, Mexico, the Middle East, Africa, and internationally.
The company raised its quarterly dividend by 5% to 52.50 cents/share. This marked the 44th year of consecutive annual dividend increases for this dividend champion. During the past decade, it has managed to increase dividends at an annualized rate of 11%.
Carlisle companies managed to grow earnings from $2.34/share in 2010 to $8.19/share in 2019.
Carlisle Companies is expected to earn $5.53/share.
Right now the stock sells for 22.75 times forward earnings and offers a dividend yield of 1.70%.
Relevant Articles:
- Two Sweet Dividend Increases For Long-Term Shareholders
- Screening The Dividend Champions List For Bargains
- Six Companies Demonstrating A Commitment to Shareholder Returns
- Nine Dividend Paying Companies Raising Dividends Last Week