I review the list of dividend increases every week, as part of my portfolio monitoring process. I leverage several of my dividend investing resources for this effort.
I started by reviewing the list of all dividend increases for the week. I then narrowed the list down to the companies that have managed to boost dividends for at least ten years in a row. I also focused on companies that had a meaningful combination of yield and dividend growth.
The companies for this week’s review include:
AmerisourceBergen Corporation (ABC) sources and distributes pharmaceutical products in the United States and internationally.
The company raised its quarterly dividend by 4.76% to 44 cents/share. This marked the 17th year of consecutive annual dividend increases for this dividend achiever. During the past decade, the company has managed to increase dividends at an annualized rate of 20.89%.
Between 2009 and 2019, the company grew earnings from $1.66/share to $4.04/share. The company is expected to earn $8.42/share in 2021.
The stock is selling for 12.30 times forward earnings and offers a dividend yield of 1.70%.
BOK Financial Corporation (BOKF) operates as the financial holding company for BOKF, NA that provides various financial products and services in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and Kansas/Missouri. It operates through three segments: Commercial Banking, Consumer Banking, and Wealth Management.
The company raised its quarterly dividend by 2% to 52 cents/share. This marked the 16th year of consecutive annual dividend increases for this dividend achiever. During the past decade, the company has managed to increase dividends at an annualized rate of 7.80%.
Between 2009 and 2019, BOK Financial managed to grow earnings from $2.96/share to $7.03/share. The company is expected to earn $5.88/share in 2020. The stock is selling for 10.20 times forward earnings and yields 3.50%
Evergy, Inc. (EVRG), through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Kansas and Missouri.
Evergy raised its quarterly dividend by 5.90% to 53.50 cents/share. This marked the 16th consecutive annual dividend increase for this dividend achiever. Over the past decade, Evergy has managed to increase distributions at an annualized rate of 4.95%.
Between 2009 and 2019 Evergy managed to grow earnings from $1.58/share to $2.79/share. The company is expected to earn $3/share in 2020.
The stock sells for 18.35 times forward earnings and yields 3.90%.
Lincoln National Corporation (LNC) through its subsidiaries, operates multiple insurance and retirement businesses in the United States. It operates through four segments: Annuities, Retirement Plan Services, Life Insurance, and Group Protection.
The company increased its quarterly dividends by 5% to 42 cents/share. This marked the elevents consecutve annual dividend increase for this dividend achiever. During the past decade, the company has managed to raise dividends at an annualized rate of 19.95%.
Lincoln Financial has cyclical earnings per share. At the cyclical peak in 2007 it earned $5.13/share. By 2019, it earned $4.38/share. The company is expected to earn $6.80/share in 2020.
The stock sells for 5 times forward earnings and yields 4.90%.
Rockwell Automation, Inc. (ROK) provides industrial automation and digital transformation solutions. It operates in two segments, Architecture & Software, and Control Products & Solutions.
The company raised its quarterly dividend by 4.90% to $1.07/share. This marked the 11th consecutive annual dividend increase for this dividend achiever. During the past decade, it managed to increase distributions at an annualized rate of 13%.
Between 2009 and 2019, the company managed to grow earnings from $1.18/share to $6.22/share. The company is expected to earn $5.44/share in 2020.
The stock sells for 33 times forward earnings and yields 1.70%.
Mercury General Corporation (MCY), engages in writing personal automobile insurance in the United States.
Mercury General hiked its quarterly dividend by 0.40% to 63.25 cents/share, marking the 34th consecutive annual dividend increase for this dividend champion. The company's rate of dividend growth was 0.76%/year over the past decade.
Between 2009 and 2019, Mercury General earnings went from $7.32/share to $5.78/share. The company is expected to earn $4.50/share in 2020.
The stock sells for 9.30 times forward earnings and yields 6.10%
Commerce Bancshares, Inc. (CBSH) operates as the bank holding company for Commerce Bank that provides retail, mortgage banking, corporate, investment, trust, and asset management products and services to individuals and businesses. It operates through three segments: Consumer, Commercial, and Wealth.
The company declared a dividend of 27 cents/share, coupled with a 5% stock dividend. When you increase number of shares by 5%, but you keep the dividend unchanged, you are in effect increasing the dividend by 5%.Over the past decade, Commerce Bank has managed to grow distributions at an annualized rate of 6.36%
This is the 53rd year of annual dividend increases for Commerce Bancshares, which is a dividend king.
Between 2009 and 2019, earnings per share increased from $1.28 to $3.58. The company is expected to earn $2.83/share in 2020.
The stock sells for 22 times forward earnings and yields 1.70%.
Emerson Electric Co. (EMR), a technology and engineering company, provides solutions to industrial, commercial, and consumer markets worldwide. It operates through Automation Solutions and Commercial & Residential Solutions segments.
Emerson Electric increased its quarterly dividend by 1% to 50.50 cents/share. This marked the 64th consecutive annual dividend increase for this dividend king. During the past decade, Emerson Electric has managed to grow dividends at an annualized rate of 4.05%.
The company is expected to earn $3.46/share in 2020. Earnings per share have been largely flat between 2008 and 2019, rising from $3.06/share to $3.24/share. The stock is overvalued at 22.90 times forward earnings and yields 2.90%.
Utah Medical Products, Inc. (UTMD) manufactures and distributes medical devices for the healthcare industry in the United States, Europe, and internationally.
The company raised its quarterly dividend by 1.80% to 28.50 cents/share. This marked the 18th year of consecutive annual dividend increases. During the past decade, the company has been able to grow dividends at an annualized rate of 1.75%.
Between 2009 and 2019 the company raised its earnings from $1.72/share to $3.94/share.
The stock is selling for 25.60 times earnings and yields 1.40%.
This is a list of companies for further review. Most seem attractive as businesses, but that doesn’t mean that they should be invested in at any price, regardless of valuation.
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