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.
I also wanted to mention that Raytheon Technologies (RTX) also raised dividends by 7.80% to $0.55/share. This is the core of the old United Technologies, which merged with Raytheon in 2020, and then split into three companies - Raytheon Technologies, OTIS and Carrier.
Because of the way Otis and Carrier proceeded about their dividend policies,
immediately after the spin-off, shareholders ended up with less annual income than before the split. Therefore, shareholders effectively received a dividend cut. But I still view Raytheon as a company that didn't cut dividends. It was a rare combination where I didn't sell after a cut, and was rewarded for it. Perhaps because of the confusion, I held on. But
the dividend aristocrats, dividend achievers indices have taken the company and spun-off parts off their portfolios.
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.
Relevant Articles:
Companies included in this article: AAPL, AGCO, AMP, AVY, AWK, FDS, GWW, HWBK, IBM, K, LBAI, MET, PH, RRX, SYY, UNTY
