Saturday, March 5, 2022

Eleven Dividend Growth Stocks Raising Dividends for Shareholders

I collect various data points throughout the day, month, year. My job as an investor is to try and connect them in a way to profit.

As part of my monitoring process, I review the list of dividend increases every week. This helps me monitor existing positions. This is helpful in my decision to add to positions, hold them or sell them. 

Looking at the list of dividend increases also helps me monitor the list of dividend growth stocks for further developments.  This helps me identify companies for further research.

I usually focus on the companies that have managed to increase dividends for at least a decade. I do this because I want to focus on companies that have managed to grow dividends over the range of a typical boom-bust economic cycle. 

There were ten companies that raised dividends last week, and also have a ten year track record of annual dividend increases. Check the list below - however, this is just a starting list for further research:

Company

Ticker

New Dividend

Old Dividend

Increase

Years Dividend Increases

P/E

Dividend Yield

10 year Annualized Dividend Growth

Federal Agricultural Mortgage

AGM

 $    0.95

 $    0.85

11.76%

11

10.87

3.22%

33.21%

Best Buy

BBY

 $    0.88

 $    0.70

25.71%

19

11.59

3.32%

15.82%

Canadian Natural Resources

CNQ

 $    0.75

 $    0.59

27.12%

22

11.18

4.14%

16.16%

Digital Realty Trust

DLR

 $    1.22

 $    1.16

5.17%

17

20.3

3.50%

5.39%

General Dynamics

GD

 $    1.26

 $    1.19

5.88%

31

20.34

2.05%

9.82%

Linde

LIN

 $    1.17

 $    1.06

10.38%

30

24.25

1.66%

7.80%

QNB

QNBC

 $    0.36

 $    0.35

2.86%

12

8.06

3.85%

3.42%

Standard & Poor's Global

SPGI

 $    0.85

 $    0.77

10.39%

49

30.37

0.83%

11.90%

SpartanNash

SPTN

 $    0.21

 $    0.20

5.00%

12

15.49

2.55%

12.56%

Steel Dynamics

STLD

 $    0.34

 $    0.26

30.77%

13

5.22

1.76%

10.63%

Texas Pacific Land

TPL

 $    3.00

 $    2.75

9.09%

18

23.01

0.92%

48.57%

This of course is just a list, not a recommendation.

When I review companies, I look at ten year trends in:

1) Earnings per share
2) Dividend payout ratio
3) Dividends per share
4) Valuation


Since I have some experience evaluating dividend companies, I also modify my criteria based on the environment we are in and the availability of quality companies. If I see a company with a strong business model and certain characteristics that I like, I may require a dividend streak that is lower than a decade. I have also found success in looking beyond screening criteria by purchasing stocks a little above the borders contained in a screen.

It is important to be flexible, without being too lenient.

You may like this analysis of General Dynamics (GD) as an example of how I review companies.

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