Dividend Growth Investor Newsletter

Pages

Monday, April 18, 2022

Five Companies Delivering Dependable Dividend Raises

As part of my weekly review process, I monitor the list of dividend increases and focus on the companies with at least a ten year history of dividend increases. This process helps me to monitor existing positions, but also to identify companies for further research. 

It is also a good reminder about the companies that I never pulled the trigger on, despite understanding them. As an investor, I get to learn from mistakes I make, and hopefully improve over time. 

Over the past week, there were several companies that raised dividends. The companies with at least a ten year track record of annual dividend increases include:

The Procter & Gamble Company (PG) provides branded consumer packaged goods to consumers in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa. It operates in five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care. 

Procter & Gamble raised its quarterly dividend by 5% to $0.9133/share. This was the 66th consecutive annual dividend increase for this dividend king. I liked this part from the press release:

This dividend increase marked the 66th consecutive year that P&G has increased its dividend and the 132nd consecutive year that P&G has paid a dividend since its incorporation in 1890. It reinforces our commitment to return cash to shareholders, many of whom rely on the steady, reliable income earned with their investment in P&G.

Over the past decade, the company has managed to grow dividends at an annualized rate of 5.20%.

Between 2012 and 2021, the company managed to grow earnings from $3.66/share to $5.50/share.

P&G is expected to earn $5.86/share in 2022.

The stock is selling for 27.05 times forward earnings and yields 2.30%. Check my review for more information about the company.

Costco Wholesale Corporation (COST) engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. 

Costco raised its quarterly dividend by 13.90% to $0.90/share. This was the 18th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 12.70%.

Between 2012 and 2021, the company managed to grow earnings from $3.89/share to $11.27/share.

The company is expected to earn $13.04/share in 2022.

The stock is selling for 45.26 times forward earnings and yields 0.61%. Check my review for more information about the company.

Aon plc, (AON) is a professional services firm, provides advice and solutions to clients focused on risk, retirement, and health worldwide. 

AON increased its quarterly dividend by 9.80% to $0.56/share. This is the eleventh year of consecutive annual dividend increases for this dividend achiever.

During the past decade, the company has managed to increase dividends at an annualized rate of 12.70%.

Between 2012 and 2021, the company managed to grow earnings from $2.99/share to $5.55/share.

The company is estimated to earn $13.27/share in 2022.

The company is selling for 24.74 times forward earnings and yields 0.68%.

First Republic Bank (FRC) provides private banking, private business banking, and private wealth management services to clients in metropolitan areas in the United States. It operates in two segments, Commercial Banking and Wealth Management. 

First Republic Bank raised its quarterly dividend by 22.70% to $0.27/share. 

This is the banks 11th consecutive year of dividend increases. The company has raised dividends by 6.40%/year over the past decade.

Between 2012 and 2021, the bank managed to increase earnings from $2.75/share to $7.68/share.

The company is expected to earn $8.44/share in 2022.

The stock is selling for 19.05 times forward earnings and yields 0.67%. 

Quaint Oak Bancorp, Inc., (QNTO) operates as a chartered stock savings bank. The company operates in two segments, Banking and Mortgage BankingQuaint Oak Bancorp increased its quarterly dividend by 18.20% to $0.13/share. This was the 14th consecutive annul dividend increase for this bank.

Between 2012 and 2021, the company managed to grow earnings from $0.55/share to $3.06/share.

The company is selling for 7.60 times earnings and yields 2.24%.


Relevant Articles:

- Costco (COST) Hikes Dividends by 13.90%

- Procter & Gamble (PG) Raises Dividends For 66th Consecutive Year