I review the list of dividend increases as part of my monitoring process. This helps me review the story behind companies I already own. It also helps me review companies for potential inclusion into my watchlist.
A long track record of annual dividend increases is an indication of a quality company with a strong business model. Its strength could be due to a favorable environment, competitive position, unique product, patent or trademark, a strong brand, a loyal group of customers or a combination of the above.
I find it helpful to identify these businesses and place them on my list for further research.
During the past week, there were two companies with long histories of annual dividend increases, which also hiked distributions to shareholders.
The companies include:
Thor Industries, Inc. (THO) designs, manufactures, and sells recreational vehicles (RVs), and related parts and accessories in the United States, Canada, and Europe.
The company raised its quarterly dividend by 4.90% to 43 cents/share. This marked the 12th year of consecutive annual dividend increases for this dividend achiever. The company has managed to increase dividends at an annualized rate of 17.90% over the past decade.
Thor Industries has managed to increase earnings from $2.26/share in 2012 to $11.85/share in 2021
Thor is expected to earn $13.57/share in 2022.
The stock is selling for 9.15 times forward earnings and yields 1.38%.
RPM International Inc. (RPM) manufactures, markets, and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide.
The company raised its quarterly dividend by 5.30% to 40 cents/share. This action marked RPM’s 48th consecutive year of increased cash dividends paid to its stockholders. Over the past decade, this dividend aristocrat has managed to grow dividends at an annualized rate of 5.90%.
“Increasing our cash dividend on an annual basis is one of the primary ways we continuously reward our shareholders,” stated Frank C. Sullivan, RPM chairman and CEO. “Combined with an appreciating stock price, increasing the dividend enables us to consistently deliver long-term value and outperform the cumulative total return of the broader market.”
Between 2011 and 2020, the company managed to grow earnings from $1.65/share to $3.87/share.
The company is expected to earn $3.83/share in 2021.
The stock is selling for 20.62 times forward earnings and yields 2.20%
Relevant Articles:
- Five Notable Dividend Increases For Review
- Six Dividend Growth Stocks Rewarding Shareholders With a Raise
- Five Dividend Growth Stocks Delivering Raises To Shareholders
- Six Dividend Growth Stocks Rewarding Shareholders With Raises