There were 53 dividend increases last week. Last week was a busy week for dividend increases.
The pace of dividend increases shows me that management teams have a relatively optimistic view on near term business activity. I view dividend increases as an instant check on management near-term expectations.
I noticed this fact, as part of my monitoring process of reviewing dividend increases. I check the list of dividend increases to evaluate the performance of companies I already own and to identify companies for further research.
I focus my attention on companies with an established streak of annual dividend increases, in order to identify strong businesses that generate excess cash flows that grow over time. I usually look for companies that have managed to grow dividends for at least a decade.
Next, I review the most recent dividend increase to its historical trends, in order to determine if things are improving, decelerating or keeping pace. I also like to review the pace of dividend increases relative to earnings growth, in order to determine if distributions are growing on a solid ground. I also like to review the payout ratio, in order to determine dividend safety.
Last but not least, I review valuation. Valuation is not a formula - it is a combination of P/E, earnings growth, safety of the earnings stream on a relative basis for all other available investments.
I compiled the list of dividend growth stocks, which managed to increase dividends last week and also have at least a ten year history of annualized dividend increases:
|
Company |
Symbol |
New Dividend |
Old Dividend |
Raise |
Years Annual Dividend Increases |
Ten Year Annualized Dividend
Growth |
Forward P/E |
Dividend Yield |
|
The Hartford Financial Services Group, Inc. |
HIG |
0.385 |
0.35 |
10.00% |
12 |
20.35% |
12.97 |
2.11% |
|
Arbor Realty Trust, Inc. |
ABR |
0.36 |
0.35 |
2.86% |
11 |
16.22% |
10.34 |
7.16% |
|
The Gorman-Rupp Company |
GRC |
0.17 |
0.15 |
13.33% |
49 |
8.18% |
32.96 |
1.60% |
|
AbbVie Inc. |
ABBV |
1.41 |
1.3 |
8.46% |
48 |
18.50% |
12.56 |
4.92% |
|
Rockwell Automation, Inc. |
ROK |
1.12 |
1.07 |
4.67% |
12 |
12.43% |
34.45 |
1.40% |
|
Westamerica Bancorporation |
WABC |
0.42 |
0.41 |
2.44% |
30 |
1.31% |
17.34 |
3.01% |
|
West Pharmaceutical Services, Inc. |
WST |
0.18 |
0.17 |
5.88% |
29 |
7.18% |
50.66 |
0.17% |
|
Exxon Mobil Corporation |
XOM |
0.88 |
0.87 |
1.15% |
39 |
7.18% |
12.89 |
5.46% |
|
DTE Energy Company |
DTE |
0.885 |
0.825 |
7.27% |
13 |
6.54% |
19.06 |
3.12% |
|
Black Hills Corporation |
BKH |
0.595 |
0.565 |
5.31% |
51 |
4.19% |
17.03 |
3.59% |
|
Standex International Corporation |
SXI |
0.26 |
0.24 |
8.33% |
11 |
15.67% |
21.22 |
0.93% |
|
Tennant Company |
TNC |
0.25 |
0.23 |
8.70% |
50 |
4.20% |
18.27 |
1.26% |
|
Amphenol Corporation |
APH |
0.2 |
0.14 |
42.86% |
10 |
42.00% |
31.77 |
1.04% |
|
Waste Connections, Inc. |
WCN |
0.23 |
0.2 |
15.00% |
12 |
31.22% |
42.57 |
0.68% |
|
Visa Inc. |
V |
0.375 |
0.32 |
17.19% |
14 |
24.98% |
29.92 |
0.71% |
Just wanted to mention that this list is not a recommendation for you to buy or sell. It is just a list of companies that raised dividends last month. Each company has managed to grow dividends for at least a decade.
I discussed what I look at when evaluating companies at the beginning of the article
Relevant Articles:
- Twelve Companies Rewarding Shareholders With Regular Dividend Increases
- Five Dividend Growth Stocks Delivering Raises To Shareholders
- Six Dividend Growth Stocks Rewarding Shareholders With Raises
