I review the list of dividend increases as part of my monitoring process. I find it helpful to evaluate companies with a long streak of annual dividend increases of at least ten years. The process of checking the list of dividend increases every week helps me identify hidden dividend gems for further research.
This process also helps me to review existing holdings, and update my research file for them. This is helpful whenever I have money to invest, since a recent dividend action is one of the inputs I use to establish whether I want to buy a stock.
During the past week, there were several companies that raised dividends to shareholders. I am mentioning the ones with at least a ten year streak of annual dividend increases in the article below:
The Southern Company (SO) engages in the generation, transmission, and distribution of electricity. It operates in four segments: Gas Distribution Operations, Gas Pipeline Investments, Wholesale Gas Services, and Gas Marketing Services
Southern Company raised its quarterly dividend by 3.12% to 66 cents/share, marking the 20th consecutive year of annual dividend increases. During the past decade, this dividend achiever has managed to grow dividends at an annualized rate of 3.50%.
Earnings grew from $2.55/share in 2011 to $2.93/share in 2020. The company is expected to earn $3.31/share in 2021.
The stock sells for 19.71 times forward earnings and has a dividend yield of 4.04%.
The Travelers Companies, Inc. (TRV) provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United states and internationally. The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance.
Traveler’s Companies raised quarterly dividends by 3.50% to 88 cents/share, marking 17 consecutive years of dividend increases with a compound annual growth rate of 9% over that period.
This dividend achiever also added $5 billion to its existing 805 million share buyback program, which is equivalent to almost 15% of the company’s market capitalization. Unlike dividends however, the timing of buybacks is never certain.
Earnings grew from $3.36/share in 2011 to $10.52/share in 2020. The company is expected to earn $10.95/share in 2021.
The stock is selling for 14.41 times forward earnings and offers a current yield of 2.23%.
Johnson & Johnson (JNJ) researches and develops, manufactures, and sells a range of products in the health care field worldwide.
Johnson & Johnson raised its quarterly dividend by 5% to $1.06/share. This marked the 59th consecutive year of dividend increases for this dividend king. During the past decade, Johnson & Johnson has managed to grow dividends at an annualized rate of 6.60%.
"Despite a year of unprecedented disruption, Johnson & Johnson remained committed to its established financial principles that strengthen our ability to drive long-term value for stakeholders. In recognition of our notable 2020 results, strong financial position and confidence in the future of Johnson & Johnson, the Board of Directors has voted to increase the quarterly dividend for the 59th consecutive year," said Alex Gorsky, Chairman and Chief Executive Officer of the company.
Earnings grew from $3.49/share in 2011 to $5.51/share in 2020. Earnings per share have had large one-time items deducted from them in recent years, which artificially suppress the profits. The company is expected to earn $9.56/share in 2021.
The stock sells for 17.32 times forward earnings and yields 2.56%.
Parker-Hannifin Corporation (PH) manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide.
The company raised its quarterly dividend by 17% to $1.03/share.
"This dividend increase reflects the Board's confidence in our financial position and our continued ability to generate strong cash flows throughout the business cycle,” said Todd Leombruno, Executive Vice President and Chief Financial Officer. “We remain committed to maintaining our record of increasing our annual dividend payout which now stands at 65 consecutive fiscal years and is among the top five longest-running dividend-increase records in the S&P 500 Index.”
This dividend king has a record of increasing its annual dividend payout for 65 consecutive fiscal years.
Parker-Hannifin has managed to grow dividends at an annualized rate of 12.60%.
Earnings grew from $6.37/share in 2011 to $9.29/share in 2020. The company is expected to earn $14.19/share in 2021.
The stock sells for 22.42 times forward earnings and yields 1.30%.
Bar Harbor Bankshares (BHB) operates as the holding company for Bar Harbor Bank & Trust that provides commercial, retail, and wealth management banking services.
The bank raised its quarterly dividend by 9.10% to 24 cents/share. This marked the 18th year of annual dividends increasing for this dividend achiever. Over the past decade, the bank has managed to grow dividends at an annualized rate of 6.60%.
Earnings grew from $1.27/share in 2011 to $2.18/share in 2020.
The stock is selling for 13.52 times earnings and yields 3.26%.
J.B. Hunt Transport Services, Inc. (JBHT) provides surface transportation and delivery services in North America. It operates through five segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS), and Truckload (JBT).
The company raised its quarterly dividend by 11.10% to 30 cents/share. This is the 17th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 8.40%.
Earnings grew from $2.11/share in 2011 to $4.74/share in 2020. The company is expected to earn $6.54/share in 2021.
The stock is selling at 25.88 times forward earnings and yields 0.71%.
Premier Financial Corp. (PFC) operates as the holding company for Premier Bank and First Insurance Group that provides community banking and financial services.
The company hiked its quarterly dividend by 8.30% to 26 cents/share. This is the tenth year of consecutive annul dividend increases for this newly minted dividend achiever. The ten year dividend growth is higher than the last hike, because the company eliminated dividends in late 2009 and paid no dividends in 2010. It initiated a small dividend at the end of 2011 and has been growing it since.
Earnings grew from $0.71/share in 2011 to $1.75/share in 2020. The company is expected to earn $3.22/share in 2021.
The stock is selling for 10.07 times forward earnings and yields 3.20%.
Whirlpool Corporation (WHR) manufactures and markets home appliances and related products. It operates through four segments: North America; Europe, Middle East and Africa; Latin America; and Asia.
The company raised its quarterly dividend by 12% to $1.40/share. Annual dividends have increased each year since 2010, even though the company did not raise dividends in 2012. The company has raised dividends at an annualized rate of 10.90% over the past decade.
"I am pleased to announce that we are increasing our dividend for the ninth consecutive year and have approved a significant expansion of our share repurchase program," said Marc Bitzer, chairman and chief executive officer of Whirlpool Corporation. "These actions highlight the confidence we have in our business to continue generating strong levels of cash and reflect our continued commitment to creating strong shareholder value."
Earnings grew from $4.99/share in 2011 to $17.07/share in 2020. The company is expected to earn $23.63/share in 2021.
The company's Board of Directors also authorized an additional $2 billion share repurchase program. The new authorization is in addition to the $531 million unused portion of the previous program as of December 31, 2020. For reference, the market capitalization of Whirlpool is around $15 billion.
The stock is selling for 10.11 times forward earnings and yields 2.34%.
Relevant Articles:
- Johnson & Johnson (JNJ) Hikes Dividends By 5%
- Three Banks Raising Dividends to Shareholders
- Six Reliable Dividend Growth Stocks Rewarding Shareholders With Raises
- Happy Coca-Cola Dividend Day Warren Buffett
