As part of my review process, I monitor the list of dividend increases every week. I use several different resources to come up with a list of dividend increases for the week. I then narrow the list down to include only these companies that have a minimum streak of annual dividend increases. In this case, I focus on companies that raised dividends for at least a decade.
There were seven dividend growth stocks that raised dividends last week. One of them, MSA Safety is a newly minted dividend king.
The companies that increased dividends over the past week include:
|
Company |
Ticker |
New Dividend |
Old Dividend |
Increase |
Years Dividend Increases |
P/E |
Dividend Yield |
10 year Annualized Dividend Growth |
|
Algonquin Power & Utilities |
AQN |
$ 0.1808 |
$ 0.1706 |
5.98% |
12 |
18.86 |
5.13% |
9.59% |
|
Union Pacific |
UNP |
$ 1.30 |
$ 1.18 |
10.17% |
16 |
19.67 |
2.25% |
16.09% |
|
Alerus Financial |
ALRS |
$ 0.18 |
$ 0.16 |
12.50% |
24 |
10.69 |
2.84% |
7.77% |
|
Phillips 66 |
PSX |
$ 0.97 |
$ 0.92 |
5.43% |
10 |
9.81 |
4.10% |
8.12% |
|
Cardinal Health |
CAH |
$ 0.4957 |
$ 0.4908 |
1.00% |
26 |
10.67 |
3.57% |
9.07% |
|
First Merchants |
FRME |
$ 0.32 |
$ 0.29 |
10.34% |
11 |
10.47 |
3.25% |
39.67% |
|
Microchip Technology |
MCHP |
$ 0.2760 |
$ 0.2530 |
9.09% |
22 |
12.32 |
1.65% |
2.09% |
The job is not done just by reviewing fundamentals however. The investor also needs to come up with a conclusion whether the stock is fairly valued at the moment. If it is not, then the investor may come up with a price at which the security may be attractive.
The other thing to consider is that valuation is relative. When evaluating companies, we compare them to other companies with promising fundamental and valuation characteristics. Then, we strive to pick the company or companies with the best values in the investors opportunity set.
While this sounds like a lot of work on the surface, with practice, it becomes almost a second nature.
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