I review the list of dividend increases every week, as part of my monitoring process. I usually focus my attention on the companies with a ten year streak of annual dividend increases, and then review each company using my criteria. I am always on the lookout for new ideas, and to determine if my existing holdings are working. I also want to be ready to act quickly, when the right time arrives.
This exercise helps me to evaluate companies I already own, and see how they are doing. This is a helpful piece of the puzzle, that would be helpful when/if I decide to add to these companies at the right price.
This exercise also helps me identify companies for further research. A large part of the time is spent reviewing companies, screening for companies, and trying to learn more about companies, their business, etc.
It is not glamorous at all, but dull and boring.
But it does pay dividends.
Over the past week, there were several companies raising dividends. The companies include:
This of course is just a list, not a recommendation. On a side note,
PepsiCo actually first announced that they will be increasing that dividend in February with their financial results. However, they finalized the dividend data with the release from last week.
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.
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Companies mentioned in this article: IEX, MAN, MSA, MTRN, PEP, POOL, RLI, UGI, WTS
