I review the list of dividend increases as part of my monitoring process.
I review the most recent dividend increase, and compare it to the ten year average to gauge it. While I generally prefer a stable rate of dividend growth that is close to the average, I also understand that businesses face different short-term cycles as well.I also review the growth in earnings, and payout ratios, in order to determine the likelihood of future dividend increases. A company that grows earnings and maintains a stable payout ratio will be more likely to continue growing that future dividend income stream to investors. On the other hand, a company with a stagnant earnings per share can only be able to grow dividends through an expansion to the payout ratio, which is unsustainable.
Last but not least, I also look at current valuation factors such as P/E ratio and dividend yield, while also taking into consideration the past growth and future growth prospects for each enterprise.
Community Bank System, Inc. (CBU) operates as the bank holding company for Community Bank, N.A. that provides various banking and other financial services to retail, commercial, and municipal customers. It operates through three segments: Banking, Employee Benefit Services, and All Other.
The company hiked quarterly dividends by 2.30% to $0.44/share. This was the 30th consecutive year of dividend increases for this dividend champion. Over the past decade, CBU has managed to grow dividends at an annualized rate of 5.40%.
The stock sells for 18.71 times forward earnings and yields 2.61%.
Computer Services, Inc. (CSVI) provides core processing, digital banking, managed services, payments processing, print and electronic distribution, and regulatory compliance solutions to financial institutions and corporate entities in the United States.
The company raised its quarterly dividend by 7.40% to $0.29/share. According to the company's press release, this cash dividend marks the 51st consecutive annual increase in CSI’s cash dividends paid to shareholders. Over the past decade, Computer Services has managed to grow dividends at an annualized rate of 16%.
The stock sells for 16.80 times earnings and yields 3%.
Chesapeake Financial Shares, Inc. (CPKF) operates as the bank holding company for Chesapeake Bank that provides various banking products and services in Virginia.
The company increased quarterly dividends by 7.10% to $0.15/share. This was the 29th year of consecutive annual dividend increases for this dividend champion. Over the past decade, Chesapeake Financial Shares has managed to grow dividends at an annualized rate of 6.80%.
The stock sells for 8.72 times earnings and yields 2.40%.
Landstar System, Inc. (LSTR) provides integrated transportation management solutions in the United States, Canada, Mexico, and internationally. The company operates through two segments: Transportation Logistics, and Insurance.
The company boosted quarterly dividends by 20% to $0.30/share. This was the 17th consecutive year of annual dividend increases for this dividend achiever. Over the past decade, Landstar System has managed to grow dividends at an annualized rate of 15.90%.
The stock sells for 12.73 times forward earnings and yields 0.65%.
Mercantile Bank Corporation (MBWM) operates as the bank holding company for Mercantile Bank of Michigan that provides commercial and retail banking services to small- to medium-sized businesses and individuals in the United States.
The company raised quarterly dividends by 3.20% to $0.32/share. This was the 10th year of consecutive annual dividend increases for this newly minted dividend achiever.
The stock sells for 9.46 times forward earnings and yields 3.99%.
PPG Industries, Inc. (PPG) manufactures and distributes paints, coatings, and specialty materials worldwide.
The company increased quarterly dividends by 5.10% to $0.62/share. This event marks the 51 consecutive years of annual increases for this dividend king. Over the past decade, it has managed to grow distributions at an annualized rate of 7.20%.
The stock sells for 17.70 times forward earnings and yields 1.92%. Check my analysis of PPG Industries for more information about the company,
Regions Financial Corporation (RF) is a financial holding company that provides banking and bank-related services to individual and corporate customers. It operates through three segments: Corporate Bank, Consumer Bank, and Wealth Management.
The company increased quarterly dividends by 17.60% to $0.20/share. This is the tenth consecutive year of annual dividend increases for this newly minted dividend achiever. The company cut dividends during the Global Financial Crisis, which explains the 31.80% annualized pace of dividend growth over the past decade. The dividend is still below the 2008 level of $0.38/share however.
The stock sells for 9.05 times forward earnings and yields 3.95%.
1st Source Corporation (SRCE) operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients.
The bank raised its quarterly dividend by 3.20% to $0.32/share. This was the 35th year of annual dividend increases for this dividend champion. Over the past decade, the company managed to grow dividends at an annualized rate of 7.60%.
The stock sells for 10.40 times forward earnings and yields 2.75%
Stanley Black & Decker, Inc. (SWK) engages in the tools and storage and industrial businesses in the United States, Canada, rest of Americas, France, rest of Europe, and Asia.
The company increased quarterly dividends by 1.30% to $0.80/share. This marks the 55th consecutive annual dividend increase for this dividend king. Over the past decade, the company had managed to grow dividends at an annualized rate of 6.20%.
The stock sells for 11.89 times forward earnings and yields 2.73%. Check my analysis of Stanley Black & Decker from here.
Relevant Articles:
- Dividend Champions List for 2022
- Dividend Kings List for 2022
- Dividend Achievers Offer Income Growth and Capital Appreciation
- How to read my weekly dividend increase reports