I review the list of dividend increases every week, as part of my monitoring process. It helps me evaluate existing holdings, and identify companies for further research.
In my review, I focus on companies that have raised dividends for at least a decade. That's a quality filter that screens out a lot of cyclical companies, and companies that may not have what it takes to compound capital for long periods of time.
Next, I review the raise, along with any pertinent financial information. I like reading management's opinion about the raise, and compare it to financial history for more context.
When I review companies in more detail, I look at trends in earnings per share and payout ratios, in order to determine if the company can continue delivering in the future.
Over the past week, there were several companies that raised dividends, and have a ten year track record of annualized dividend increases. The companies include:
Badger Meter, Inc. (BMI) manufactures and markets flow measurement, quality, control, and communication solutions in the United States, Asia, Canada, Europe, Mexico, the Middle East, and internationally.
The company raised quarterly dividends by 12.50% to $0.225/share. This was the 30th consecutive year of dividend increases for this dividend champion. Over the past decade, the company has managed to grow dividends at an annualized rate of 9.70%.
Kenneth C. Bockhorst, Chairman, President and Chief Executive Officer, stated, “We remain committed to our long tradition of paying dividends to our shareholders as part of their total returns, and are incredibly proud of achieving 30 consecutive years of dividend increases. Dividends are a key element of our disciplined approach to capital allocation, and evidence of the confidence that Badger Meter has in the resilience of our earnings and cash flow.”
The stock is expensive at 43.78 times forward earnings however. Badger Meter yields 0.81%. Even at the June lows, the stock sold as low as 33 times forward earnings.
Broadridge Financial Solutions, Inc. (BR) provides investor communications and technology-driven solutions for the financial services industry worldwide.
The company raised its quarterly dividends by 13.30% to $0.725/share. This was the 16th consecutive year of annual dividend increases for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 14.50%.
"Our results reflect continued execution of our long-term growth strategy, the ongoing digitization of financial services, and strong performance from our Itiviti acquisition.
"Broadridge's resilient business model is built to deliver growth through different economic cycles. Looking ahead, we expect continued growth in Fiscal 2023, with 6-9% organic recurring revenue growth, continued margin expansion, and 7-11% Adjusted EPS growth. Most importantly, we are well-positioned to deliver, again, on our three-year financial objectives, with recurring revenue and Adjusted EPS growth at or above the higher end of the range," Mr. Gokey added.
"Finally, I'm pleased to announce that our Board has approved a 13% increase in our annual dividend amount to $2.90 per share. Broadridge has now increased its dividend for 16 consecutive years, further underlining the strength and resiliency of our business and the durability of the trends driving our growth."
The stock sells for 26.35 times forward earnings and yields 1.58%. Even at the lows in June, the stock only went as low as 20.80 times forward earnings.
J&J Snack Foods Corp. (JJSF) manufactures, markets, and distributes nutritional snack foods and beverages to the food service and retail supermarket industries in the United States, Mexico, and Canada. It operates in three segments: Food Service, Retail Supermarkets, and Frozen Beverages.
The company hiked its quarterly dividend by 10.60% to $0.70/share. This is the 17th consecutive year of annual dividend increases for this dividend achiever. The company has managed to grow dividends at an annualized rate of 18% over the past decade.
The stock is expensive at 55.33 times forward earnings. The stock yields 1.61%. Even at the lows in May, the stock sold at 45 times forward earnings.
Nordson Corporation (NDSN) engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. It operates through two segments, Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS).
The company hiked quarterly dividends by a massive 27.50% to $0.65/share. This increase represents Nordson’s 59th consecutive year of annual dividend increases. Over the past decade, this dividend king has managed to grow dividends at an annualized rate of 14.30%.
“Nordson has a proud history of returning a portion of its cash flow to our shareholders. This increase moves our annual dividend yield to slightly over one percent,” said Joseph Kelley, executive vice president and chief financial officer. “This increase reflects our confidence in our long-term profitable growth, which is driven by the continued execution of our Ascend strategy, designed to deliver top-tier growth with leading margins and returns.”
The stock sells for 25.62 times forward earnings and yields 1.07%. Even during the June lows, the stock only got as cheap as 21 times forward earnings.
ResMed Inc. (RMD) develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service.
The company increased quarterly dividends by 4.80% to $0.44/share. This marks the 10th year of consecutive annual dividend increases for this newly minted dividend achiever. Over the past five years however, the company has raised dividends at an annualized rate of 4.94%.
The stock is expensive at 42 times forward earnings. Even in May, it sold as cheaply as 33 times forward earnings, which is not cheap either. The dividend yield is 0.73%.
Westlake Corporation (WLK) manufactures and supplies petrochemicals, polymers, and building products worldwide. It operates through two segments, Performance and Essential Materials; and Housing and Infrastructure Products.
The company hiked its quarterly dividends by 20% to $0.2975/share. This was the 18th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 23.50%. The five year dividend growth is 8.80% annualized however.
The stock is selling at 21.74 times forward earnings. The new dividend yield is 1.15%.
Relevant Articles:
- Eight Dividend Growth Companies Rewarding Owners With a Raise Last Week
- Twelve Companies Committed to Returning More Profits to Shareholders
- 15 Dividend Paying Companies Raising Dividends Last Week