I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me review existing holdings, and also potentially identify companies for further research.
I typically focus on companies with a ten year track record of annual dividend increases. I then review the latest dividend increase and compare it to the pace of increases over the last decade. I find it helpful to review dividend growth along with earnings growth and current valuation multiples such as P/E ratio and dividend yield.
Over the past week, there were three companies that raised dividends. These companies have also managed to increase annual dividends to shareholders for at least ten years in a row. The companies include:
Apogee Enterprises, Inc. (APOG) designs and develops glass and metal products and services in the United States, Canada, and Brazil. The company operates in four segments: Architectural Framing Systems, Architectural Glass, Architectural Services, and Large-Scale Optical Technologies (LSO).
The company increased quarterly dividends by 9.10% to $0.24/share. This marks Apogee’s tenth consecutive year with a dividend increase, during which time the quarterly dividend has grown by 167 percent, from $0.09 per share to $0.24 per share.
“This dividend increase reflects our improved operational performance, strong financial position, and ability to generate consistent cash flow,” said Ty R. Silberhorn, Chief Executive Officer. “As we continue to execute our strategy, we’re committed to delivering value through investing in profitable growth and returning capital to our shareholders.”
The stock sells for 11.60 times forward earnings and yields 2.07%.
STAG Industrial, Inc. (STAG) is a real estate investment trust focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. By targeting this type of property, STAG has developed an investment strategy that helps investors find a powerful balance of income plus growth.
The REIT hiked its monthly dividend by 0.70% to $0.1225/share. This marked the 12th consecutive annual dividend increases for this dividend achiever. Over the past decade, the company managed to boost dividends at an annualized rate of 3.20%. The pace of annualized dividend growth has been below 1% over the past 5 years however.
The stock sells for 15.80 times forward FFO and yields 4.20%.
Lakeland Financial Corporation (LKFN) operates as the bank holding company for Lake City Bank that provides various banking products and services.
The company increased quarterly dividends by 15% to $0.46/share. This marked the 12th consecutive annual dividend increases for this dividend achiever. Over the past decade, the company managed to boost dividends at an annualized rate of 13.70%.
"We are pleased to announce another healthy increase to our dividend rate. Our consistent long-term operating performance and a strong capital foundation provide the capacity to comfortably increase dividends to shareholders," commented David M. Findlay, President and Chief Executive Officer.
The stock sells for 18.39 times forward earnings and yields 2.40%.
Relevant Articles:
- Two Dividend Achievers Rewarding Shareholders With Raises
- Twelve Companies Rewarding Shareholders With a Raise
