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Sunday, October 23, 2022

Twelve Dividend Growth Stocks Rewarding Shareholders With Raises

As part of my monitoring process, I review the list of companies that raised dividends over the past week. I tend to focus my attention mostly on companies that increase dividends for at least ten years in a row. This process helps me evaluate existing companies. In addition, it also helps me identify companies for further research.

Over the past week, there were twelve such companies. All of these companies raised dividends last week, and have also increased dividends for a decade (sans one):

Brown & Brown, Inc. (BRO) markets and sells insurance products and services in the United States, Bermuda, Canada, Ireland, the United Kingdom, and the Cayman Islands. It operates through four segments: Retail, National Programs, Wholesale Brokerage, and Services. 

The company increased quarterly dividends by 12.20% to $0.115/share. This is the 29th consecutive annual dividend increase for this dividend aristocrat. Over the past decade, the company has managed to increase dividends at an annualized rate of 8.90%.

The stock sells for 26.66 times forward earnings and yields 0.75%.

Crown Castle (CCI) owns, operates and leases more than 40,000 cell towers and approximately 80,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market. 

The REIT hiked quarterly dividends by 6.50% to $1.565/share. It has increased dividends annually since 2014. The five year annualized rate of dividend growth is 8.70%.

The stock sells for 16.07 times forward FFO and yields 5.07%.

Healthcare Services Group, Inc. (HCSG) provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates through two segments, Housekeeping and Dietary.

The company increased quarterly dividends by 0.60% to $0.2150/share. This is the 77th consecutive increase since the initiation of dividend payments in 2003. This dividend achiever has increased dividends for 19 years in a row.

The stock sells for 37.28 times forward earnings and yields 6.49%.

Celanese Corporation (CE) is a technology and specialty materials company that manufactures and sells high performance engineered polymers in the United States and internationally. The company operates through three segments: Engineered Materials, Acetate Tow, and Acetyl Chain. 

The company increased quarterly dividends by 2.90% to $0.70/share. This is the 13th consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has raised dividends at an annualized rate of 27.50%.

“We have a decade-long history, which our shareholders value, of annual growth in the dividends paid per share across each year,” said Lori Ryerkerk, chairman and chief executive officer. “On a full year basis, this increase in the quarterly dividend represents an additional cash commitment of less than $10 million on current shares outstanding. This increase in the quarterly dividend is consistent with what was contemplated in the deleveraging plan which we outlined when we announced the acquisition of Mobility & Materials.”

The stock sells for 5.38 times forward earnings and yields 2.96%.

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 company increased quarterly dividends by 3.20% to $0.32/share. This is the 36th consecutive year of dividend increases for this dividend champion. Over the past decade, the company has raised dividends at an annualized rate of 7.60%.

The stock sells for 11.93 times forward earnings and yields 2.29%.

Hubbell Incorporated (HUBB) designs, manufactures, and sells electrical and electronic products in the United States and internationally. It operates through two segments, Electrical Solution and Utility Solution. 

The company increased quarterly dividends by 6.70% to $1.12/share. This is the 15th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has raised dividends at an annualized rate of 10.10%.

The stock sells for 21.86 times forward earnings and yields 1.94%.

Lincoln Electric Holdings, Inc. (LECO) designs, develops, manufactures, and sells welding, cutting, and brazing products worldwide. The company operates through three segments: Americas Welding, International Welding, and The Harris Products Group. 

The company increased quarterly dividends by 14.30% to $0.64/share. This marks the 27th consecutive annual dividend increase for this dividend champion. Over the past decade, the company has raised dividends at an annualized rate of 12.50%.

“Our dividend increase reflects the strong execution of our Higher Standard 2025 Strategy and our confidence in the strength of future cash flow generation through the cycle,” said Christopher L. Mapes, Chairman, President and Chief Executive Officer.

The stock sells for 16.16 times forward earnings and yields 1.95%. I should put it on my list for further research.

Magellan Midstream Partners, L.P. (MMP) engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. It operates through Refined Products and Crude Oil segments. 

The MLP raised its quarterly distribution by 1% to $1.0475/unit.  Over the past decade, the company has raised dividends at an annualized rate of 10.20%. The past three years have seen annualized distribution growth below 3% however. This dividend achiever has increased annual distributions to limited partners for 21 years in a row.

The partnership yields 8.30%.

MGE Energy, Inc. (MGEE) operates as a public utility holding company primarily in Wisconsin. It operates through Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; Transmission Investments; and All Other.

The company increased quarterly dividends by 5.20% to $0.4075/share

MGE Energy has increased its dividend annually for the past 47 years and has paid cash dividends for more than 110 years. Over the past decade, this dividend champion has raised dividends at an annualized rate of 4.10%.

The stock sells for 20.61 times forward earnings and yields 2.52%.

Middlesex Water Company (MSEX) owns and operates regulated water utility and wastewater systems. It operates in two segments, Regulated and Non-Regulated. 

The company increased quarterly dividends by 7.80% to $0.3125/share.

This is the 50th year of consecutive annual dividend increases for this newly minted dividend king. Over the past decade, the company has raised dividends at an annualized rate of 4.20%.

The stock sells for 31.84 times forward earnings and yields 1.45%.

Pinnacle West Capital Corporation (PNW) Arizona Public Service Company, provides retail and wholesale electric services primarily in the state of Arizona. 

The company raised quarterly dividends by 1.80% to $0.865/share. This is the 11th consecutive year of annual dividend increases for this dividend achiever. Over the past decade, the company has raised dividends at an annualized rate of 4.70%.

The stock sells for 15.93 times forward earnings and yields 5.39%.

Prosperity Bancshares, Inc. (PB) operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. 

The company increased quarterly dividends by 5.80% to $0.55/share. This was the 25th year of consecutive annual dividend increases for this dividend champion. Over the past decade, the company has raised dividends at an annualized rate of 10.80%.

The stock sells for 12.54 times forward earnings and yields 3.04%.

Relevant Articles:

- Dividend Aristocrats list for 2022

- Dividend Kings list for 2022

- Dividend Champions list for 2022