I review the list of dividend increases as part of my monitoring process. For the sake of my process, I focus my attention on the companies with a more established track record of annual dividend increases. Companies with a shorter history of annual dividend increases generally have a more cyclical business. As an investor I look for companies with a more defensible business model, that is somewhat more immune to the ups and downs of the economic cycle.
These weekly reports I type up for you provide the types of quick evaluations I do on companies I stumble upon, before deciding to review them further for a potential investment, or put them away.
Over the past week, there were several companies that managed to increase dividends to shareholders and had a ten year history of annual dividend increases. The companies include:
Oracle Corporation (ORCL) provides products and services that address enterprise information technology environments worldwide.
Oracle raised its quarterly dividend by 33% to 32 cents/share. This marked the 12th consecutive annual dividend increase for this dividend achiever. The company has managed to increase dividends at an annualized rate of 17% over the past decade. Oracle does not announce dividend increases annually and on a predictable schedule however, yet it still managed to increase annual dividends due to its strategic timing of the quarters in which increases fall under.
Between 2011 and 2020, the company grew earnings from $1.67/share to $3.08/share.
The company is expected to earn $4.45/share in 2021.
The stock is selling for 15 times forward earings and yields 1.91%.
QUALCOMM Incorporated (QCOM) engages in the development and commercialization of foundational technologies and products are used in mobile devices and other wireless products, including network equipment, broadband gateway equipment, consumer electronic devices, and other connected devices worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI).
Qualcomm raised its quarterly dividend by 4.61% to 68 cents/share. This marked the 18th year of consecutive annual dividend increases for this dividend achiever. The company has managed to grow dividends at an annualized rate of 13.30% over the past decade.
Between 2011 and 2020, the company grew earnings from $2.52/share to $4.52/share.
The company is expected $7.32/share in 2021.
The stock is selling for 17.64 times forward earnings and yields 2.09%.
Colgate-Palmolive Company (CL) manufactures and sells consumer products worldwide. The company operates through two segments, Oral, Personal and Home Care; and Pet Nutrition.
Colgate-Palmolive hiked its quarterly dividend by 2.27% to 45 cents/share, marking the 58th consecutive annual dividend increase for this dividend king. Over the past decade, the company has managed to increase dividends at an annualized rate of 5.60%.
Between 2011 and 2020, Colgate-Palmolive managed to increase earnings from $2.47/share to $3.14/share.
The company is expected to earn $3.29/share in 2021.
The stock is selling for 22.92 times forward earnings and yields 2.38%.
Hill-Rom Holdings, Inc. (HRC) operates as a medical technology company worldwide. It operates through Patient Support Systems, Front Line Care, and Surgical Solutions segments.
The company raised quarterly dividends by 9.10% to 24 cents/share. This marked the 11th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company managed to increase dividends at an annualized rate of 7.90%.
Between 2011 and 2020 the company managed to grow earnings from $2.09/share to $3.32/share.
The company is expected to earn $5.82/share in 2021.
The stock is selling for 18.64 times forward earnings and yields 1.85%.
Franco-Nevada Corporation (FNV) operates as a gold-focused royalty and stream company in the United States, Canada, Latin America, Australia, Europe, and Africa, and internationally. It operates through two segment, Mining and Energy.
The company increased its quarterly dividend by 15.40% to 30 cents/share. This marked the 14th annual dividend increase for this dividend achiever.
Franco-Nevada has managed to hike dividends at an annualized rate of 13.40% over the past decade.
Between 2010 and 2020, Franco-Nevada has managed to grow earnings from 35 cents/share to $1.71/share.
The stock is selling for 37.24 times forward earnings and yields 0.86%.