As part of my monitoring process, I review the list of dividend increases every week. This helps me review companies I own. It also helps me identify companies I may be interested in.
When I review the list of dividend increases for the week, I usually focus my attention on the companies that raised dividends for at least a decade. The next step involves doing a quick review of fundamentals, which is documented in this type of article.
I look at trends in earnings per share, dividends per share in order to get an idea of how sustainable the current dividend is. It also helps me get an idea whether dividend growth is supported by growth in earnings, which can help me in deciding the likelihood of future dividend growth.
In general, I also look at valuation as well. I look at P/E ratios in conjunction with earnings and dividend growth. Companies with more dependable earnings get more points than companies whose earnings are more cyclical and harder to depend on.
Now that we got this out of the way, it is time to present the list of companies that 1) Raised dividends last week and 2) have managed to increase dividends annually for at least a decade.
The companies include:
Microsoft Corporation (MSFT) develops, licenses, and supports software, services, devices, and solutions worldwide.
Microsoft raised its quarterly dividend by 10.70% to 62 cents/share. The board of directors also approved a new share repurchase program authorizing up to $60 billion in share repurchases.
This is the 17th year of consecutive annual dividend increase for this dividend achiever. Over the past decade, Microsoft has managed to increase dividends at an annualized rate of 14.30%.
Between 2012 and 2021, Microsoft managed to grow earnings from $2/share to $8.05/share.
Microsoft is expected to earn $8.79/share in 2022.
The stock is selling for 34.71 times forward earnings and yields 0.81%
Texas Instruments Incorporated (TXN) designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates in two segments, Analog and Embedded Processing.
Texas Instruments increased its quarterly dividend by 13% to $1.15/share.
This marked the 18th consecutive of dividend increases for this dividend achiever. Over the past decade, Texas Instruments has managed to increase dividends at an annualized rate of 22.50%.
Between 2011 and 2020, Texas Instruments managed to grow earnings from $1.88/share to $5.97/share.
Texas Instruments is expected to earn $8.01/share in 2021.
The stock sells for 24.58 times forward earnings and yields 2.34%.
Philip Morris International Inc. (PM) manufactures and sells cigarettes, other nicotine-containing products, smoke-free products, and related electronic devices and accessories.
Philip Morris International raised its quarterly dividend by 4.20% to $1.25/share. This marked the 13th year of consecutive annual dividend increases for this international dividend achiever. Over the past decade, Philip Morris International has managed to boost dividends at an annualized rate of 7.10%.
Between 2012 and 2021, Philip Morris International managed to grow earnings from $4.85/share to $5.16/share.
Philip Morris International is expected to earn $6.09/share in 2021.
The stock sells for 16.90 times forward earnings and yields 4.86%.
Realty Income, (O) The Monthly Dividend Company, is an S&P 500 company dedicated to providing stockholders with dependable monthly income.
The REIT hiked its monthly dividend to 23.60 cents/share. This was the 112th dividend increase since going public in 1994. The recent dividend is only 0.85% higher than the dividend paid during the same time last year. Over the past decade however, Realty Income has managed to grow dividends at an annualized rate of 4.90%. Realty Income is a dividend aristocrat, which has managed to increase dividends annually since 1995.
Between 2012 and 2020, Realty Income managed to grow FFO/share from $1.98 to $3.31.
Realty Income is expected to generate $3.46/share in FFO.
The REIT is selling for 19.78 times forward FFO and yields 4.14%. Check my analysis of Realty Income for more information about the REIT.
Fifth Third Bancorp (FITB) is a diversified financial services company headquartered in Cincinnati, Ohio, and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution.
Fifth Third Bancorp raised its quarterly dividend by 11.10% to 30 cents/share. This is the eleventh year of annual dividend increases for this dividend achiever.
Between 2012 and 2021, Fifth Third Bancorp managed to grow earnings from $1.18/share to $1.83/share.
Fifth Third Bancorp is expected to earn $3.63/share in 2021.
The stock is selling for 11.12 times forward earnings and yields 2.97%.
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- Kroger and John Wiley Reward Shareholders With Dividend Increases