As part of my monitoring process, I follow the dividend increases for companies I own, and companies on my watchlist. This process can also put companies on my watchlist, if I see and exciting dividend growth story.
I typically focus on the companies that have managed to increase distributions for at least a decade. There were three companies that fit those parameters last week. The companies include:
McDonald's Corporation (MCD) operates and franchises McDonald's restaurants in the United States and internationally.
McDonald’s raised its quarterly dividend by 7% to $1.38/share. This dividend aristocrat has a strong history of returning capital to its shareholders and has raised its dividend for 45 consecutive years. It has managed to increase dividends at an annualized rate of 8.40% over the past decade.
Earnings per share grew from $5.27 in 2011 to $7.88 in 2019, before falling to $6.31 in 2020. The company is expected to earn $9.05/share in 2021.
The stock is selling for 26.86 times forward earnings and yields 2.27%
Public Service Enterprise Group Incorporated (PEG) operates as an energy company primarily in the Northeastern and Mid-Atlantic United States. It operates through two segments, PSE&G and PSEG Power.
Public Service Enterprise Group announced its intent to boost the annual dividend by 5.88% to $2.16/share. This marked the tenth year of consecutive annual dividend increases for this newly minted dividend achiever. It has managed to increase dividends at an annualized rate of 3.60% over the past decade.
Earnings per share grew from $2.96 in 2011 to $3.76 in 2020. The company is expected to earn $3.56/share in 2021.
The stock is selling for 16.96 times forward earnings and yields 3.37%.
Starbucks Corporation (SBUX) operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates through three segments: Americas, International, and Channel Development.
Starbucks raised its quarterly dividend by 8.90% to 49 cents/share. This marked the eleventh year of consecutive annual dividend increases for this dividend achiever. It has managed to increase dividends at an annualized rate of 25% over the past decade.
Earnings per share grew from $0.81 in 2011 to $3.24 in 2018, before falling to $0.79 in 2020. The company is expected to earn $3.24/share in 2021.
The stock is selling for 34.90 times forward earnings and yields 1.74%.
Fortis Inc. (FTS) operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries.
Fortis increased its quarterly dividend by 5.90% to 53.50 cents/share, marking 48 consecutive years of increased dividends for the company.
The stock is selling for 20.70 times forward earnings and yields 3.83%.
Bank OZK (OZK) provides various retail and commercial banking services.
Bank OZK raised its quarterly dividend by 1.80% to 29 cents/share. Bank OZK has increased its quarterly cash dividend in each of the last forty-five quarters. It has managed to increase dividends at an annualized rate of 21.80% over the past decade.
Earnings per share grew from $1.47 in 2011 to $3.35 in 2017, before falling to $2.26 in 2020. The bank is expected to earn $4.17/share in 2021.
The stock is selling for 10.53 times forward earnings and yields 2.64%.
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