I review the list of dividend increases every week, as part of my monitoring process. This helps me in my review of existing positions and in uncovering potential companies for future research.
This is just one venue I use to monitor companies. Other ways include screening the list of dividend aristocrats, champions or achievers, before delving into each individual company that looks promising.
I believe in familiarizing myself with as many promising companies as possible, in an effort to be able to act quickly if they sell at the right price.
In order to compile the list of companies I mention today, I looked at companies that have raised dividends over the past week and also have managed to increase dividends for at least ten years in a row.
The companies meeting that criteria are listed below:
Aflac Incorporated (AFL) provides supplemental health and life insurance products. It operates through two segments, Aflac Japan and Aflac U.S.
The company hiked quarterly dividends by 5% to $0.42/share. This was the 40th consecutive year of annual dividend increases for this dividend aristocrat. Over the past five years, the company has managed to increase dividends at an annualized rate of 12.96.
Commenting on the announcements, Aflac Incorporated Chairman and Chief Executive Officer Daniel P. Amos said: "I am pleased with the Board's action to increase the first quarter 2023 dividend. We treasure our record of 40 consecutive years of dividend increases, and our dividend track record is supported by the strength of our capital and cash flows. As an insurance company, our primary responsibility is to fulfill the promises we make to our policyholders. At the same time, we are listening to our shareholders and understand the importance of prudent liquidity and capital management. We remain committed to maintaining strong capital ratios on behalf of our policyholders and balance this financial strength with tactical capital deployment."
The stock is selling for 13.55 times forward earnings and yields 2.37%.
Automatic Data Processing, Inc. (ADP) provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO).
ADP boosted quarterly dividends by 20% to $1.25/share. The increased cash dividend marks the 48th consecutive year in which this dividend aristocrat has increased distributions to shareholders. Over the past five years, the company has managed to increase dividends at an annualized rate of 12.78%.
I loved this part from the press release: Our dividend is a cornerstone to our long-standing commitment to shareholder-friendly actions, and we are pleased to be one of a select group of companies with such a track record," said Carlos Rodriguez
The stock sells for 30.76 times forward earnings and yields 2.01%.
Atmos Energy Corporation (ATO) engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States. It operates through two segments, Distribution, and Pipeline and Storage.
The company hiked quarterly dividends by 8.82% to $0.74/share. This marked the 39th year of consecutive annual dividend increases for this dividend champion. Over the past five years, the company has managed to increase dividends at an annualized rate of 8.73%.
I loved this part from the press release: "The increased regular cash dividend reflects the company's continued strong financial position"
The stock sells for 18.56 times forward earnings and yields 2.67%.
Becton, Dickinson and Company (BDX) develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, pharmaceutical industry, and the general public worldwide.
The company raised quarterly dividends by 4.60% to $0.91/share. This marked the 51st year of consecutive annual dividend increases for this dividend king. Over the past five years, the company has raised dividends at an annualized rate of 3.84%.
The stock is selling for 18.75 times forward earnings and yields 1.60%.
Lancaster Colony Corporation (LANC) engages in the manufacturing and marketing of food products for the retail and foodservice markets in the United States. It operates in two segments, Retail and Foodservice.
The company increased quarterly dividends by 6.25% to $0.85/share. This marked the 60th year of consecutive annual dividend increases for this dividend king. Over the past five years, the company has managed to increase dividends at an annualized rate of 7.78%.
The stock sells for 33.12 times forward earnings and yields 1.67%.
Roper Technologies, Inc. (ROP) designs and develops software, and engineered products and solutions.
The company hiked quarterly dividends by 10.08% to $0.68/share. During the past five years, Roper managed to hike dividends at an annualized rate of 12.12%.
The stock sells for 31.13 times forward earnings and yields 0.62%.
Innospec Inc. (IOSP) develops, manufactures, blends, markets, and supplies specialty chemicals in the United States, rest of North America, the United Kingdom, rest of Europe, and internationally.
The company raised semi-annual dividends by 3.20% to $0.65/share. This is the second dividend increase this year, bringing the new payment 10.17% higher than the payment in the same time last year. This marked the 10th year of consecutive annual dividend increases for this newly minted dividend achiever. Over the past five years, the company managed to boost dividends at an annualized rate of 11.60%
The stock sells for 17.29 times forward earnings and yields 1.20%.
Assurant, Inc.(AIZ) provides lifestyle and housing solutions that support, protect, and connect consumer purchases in North America, Latin America, Europe, and the Asia Pacific.
The company raised quarterly dividends by 2.94% to $0.70/share. This marked the 19th year of consecutive annul dividend increases for this dividend achiever. Over the past five years, the company has managed to hike distributions at an annualized rate of 5.60%.
The stock sells for 12.09 times forward earnings and yields 2.18%.
Farmers & Merchants Bancorp (FMCB) operates as the bank holding company for Farmers & Merchants Bank of Central California that provides various banking services to businesses and individuals.
The company raised semi-annual dividends by 9.21% to $8.30/share. This marked the 57 year of consecutive annual dividend increases for this dividend king. The company has managed to raise dividends at an annualized rate of 3.31% over the past five years.
The stock sells for 10.91 times forward earnings and yields 1.70%.
This article shows a review I do once a week. It usually takes a few minutes a week for me, though writing it down for your enjoyment takes longer than that.
This of course is just one step in the process. If I find a company that looks promising, I would run it through my screening criteria, analyze the company, and establish a proper valuation target for accumulation.
Relevant Articles:
- How to read my stock analysis reports
- My screening criteria for dividend growth stocks