I review the list of dividend increases each week, as part of my monitoring process. This helps me monitor existing holdings. This step also helps me identify potential ideas for further research.
For these reviews, I usually focus my attention on companies with at least a ten year track record of annual dividend increases. I ignore the rest, because I want companies with the ability to grow dividends throughout a normal economic cycle.
I also review trends in earnings per share, dividend growth, and valuation, before deciding if I want to spend more of my time researching the company in detail. I also like reviewing the press releases, in order to sense the tone and commitment of company management to furthering shareholder interests.
During the past week, there were four companies that raised dividends, and had an adequately long track record of annual dividend increases. The companies include:
Bank OZK (OZK) provides various retail and commercial banking services.
The company raised its quarterly dividend by 3.30% to $0.31/share. Bank OZK has increased its quarterly cash dividend on its common stock in each of the last forty-seven quarters. For comparison purposes, the bank paid $0.28/share in April 2021.
Bank OZK has raised dividends for 26 years in a row and has a ten year annualized dividend growth rate of 19.90%.
Between 2012 and 2021, the bank managed to grow earnings from $1.10/share to $4.47/share. It is expected to earn $3.94/share in 2022.
The stock is selling for 10.86 times forward earnings and yields 2.81%.
Glacier Bancorp, Inc. (GBCI) operates as the bank holding company for Glacier Bank that provides commercial banking services to individuals, small to medium-sized businesses, community organizations, and public entities in the United States.
The company increased its quarterly dividend by 3.10% to $0.33/share. The Company has declared 148 consecutive quarterly dividends and has increased the dividend 49 times. This is the eleventh year of consecutive annual dividend increases. Over the past decade, the company managed to grow dividends at an annualized rate of 9.30%.
Between 2012 and 2021, the bank managed to grow earnings from $1.05/share to $2.86/share. The company expects to earn $2.79/share in 2022.
The stock is selling for 18.05 times forward earnings and yields 2.63%.
The PNC Financial Services Group, Inc. (PNC) operates as a diversified financial services company in the United States.
The company raised its quarterly dividend by 20% to $1.50/share. This is the twelfth consecutive year of annual dividend increases for this dividend achiever. Over the past decade, the bank has managed to boost dividends at an annualized rate of 16.30%.
"The significant increase in our dividend is reflective of PNC's financial performance, strong capital levels and our board's confidence in our business model and strategies," said William S. Demchak, PNC chairman, president and chief executive officer.
PNC earned $5.28/share in 2012 and managed to grow earnings to $12.70/share in 2021. The bank is expected to earn $14.13/share in 2022.
The stock is selling at a forward P/E of 12.97 and yields 3.30%.
Watsco, Inc. (WSO) distributes air conditioning, heating, refrigeration equipment, and related parts and supplies.
The company increased its quarterly dividend by 12.80% to $2.20/share. This is the ninth year of dividend increases for Watsco. They lost their track record in 2012, when they distributed a large special dividend, in anticipation of the increased taxes on dividends in 2013. That never happened, to they resumed growing the dividend from a lower base.
Watsco has paid dividends to shareholders for 48 consecutive years. The Company’s philosophy is to share increasing amounts of cash flow through higher dividends while maintaining a conservative balance sheet with continued capacity to build its distribution network. Future changes in dividends are considered in light of investment opportunities, cash flow, general economic conditions and Watsco’s overall financial condition.
Watsco grew earnings from $2.70/share in 2012 to $10.78/share in 2021. The company is expected to further grow earnings per share to $11.99 in 2022.
The stock is selling at 25.41 times forward earnings and yields 2.89%.
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- Thirteen Dividend Growth Stocks Rewarding Shareholders With A Raise
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