As part of my monitoring process, I review the list of dividend increases every week. This exercise is helpful in monitoring the progress for existing holdings in my dividend growth portfolio. It is also a helpful exercise to uncover hidden gems for further research.
I like to review the press releases, and see if I can see something that jumps at me. The tone of press releases, the rate of change in dividends, when compared to historical averages and growth in fundamentals, gives me a very decent approximation if management is bluffing or is simply staying the course.
I usually focus on the companies that have managed to increase dividends for at least a decade. During the past week, the following companies raised dividends for their shareholders:
Lockheed Martin Corporation (LMT) engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. It operates through four segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space.
The company increased its quarterly dividend by 7.10% to $3/share. This is the 20th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 12.50%.
The stock sells for 14.45 times forward earnings and yields 2.90%.
Starbucks Corporation (SBUX) operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates through three segments: North America, International, and Channel Development.
The company increased its quarterly dividend by 8.20% to $0.53/share. Starbucks initiated its dividend in 2010 and has increased it in each of the past 12 years. Over the past decade, the company has managed to increase dividends at an annualized rate of 20.70%.
The stock sells at 29.32 times forward earnings and yields 2.52%.
Fortis Inc. (FTS) operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries.
The company increased its quarterly dividend by 5.60% to $CAD 0.565/share, marking 49 consecutive years of increased dividends. The company has managed to grow dividends at an annualized rate of 5.90% over the past decade.
The stock sells at 18.05 times forward earnings and yields 4.40%. Check my analysis of Fortis for more information about the company.
Honeywell International Inc. (HON) operates as a diversified technology and manufacturing company worldwide.
The company increased quarterly dividends by 5.10% to $1.03/share. This was the 12th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 10.70%.
The stock sells for 19.29 times forward earnings and yields 2.35%.
Ingredion Incorporated (INGR) produces and sells starches and sweeteners for various industries. It operates through four segments: North America; South America; Asia-Pacific; and Europe, Middle East and Africa.
The company increased quarterly dividends by 9.20% to $0.71/share. This is the 12th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 15.70%. The pace of annualized dividend growth has slowed down to 2% over the pat 3 years however.
The stock sells for 11.28 times forward earnings and yields 3.53%
The First of Long Island Corporation (FLIC) operates as the holding company for The First National Bank of Long Island that provides financial services to small and medium-sized businesses, professionals, consumers, municipalities, and other organizations.
The company raised its quarterly dividend by 5% to $0.21/share. This was the 26th year of consecutive annual dividend increases for this dividend champion. Over the past decade, the company has managed to increase dividends at an annualized rate of 6.90%.
The stock sells at 8.18 times forward earnings and yields 4.64%.
City Holding Company (CHCO) operates as a holding company for City National Bank of West Virginia that provides various banking, trust and investment management, and other financial solutions in the United States.
The company increased quarterly dividends by 8.30% to $0.65/share. This was the 11th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 5.50%.
The stock sells for 14.07 times forward earnings and yields 2.93%.
Relevant Articles:
- Dividend Achievers Offer Income Growth and Capital Appreciation
- Dividend Champions List for 2022
- Eight Companies Expected to Raise Dividends in September