I review the list of dividend increases each week as part of my monitoring process. This exercise helps review existing holdings, and potentially identify companies for further research. Reviewing dividend increases is a good way to keep track of the pulse of Dividend Growth Investing universe.
I focus on consistent dividend growth companies. Therefore, I typically focus my attention on companies that have managed to raise dividends for at least ten years in a row. The companies listed below have managed to increase dividends for at least a decade and announced a dividend increase last week.
I looked at the dividend increase, in relation to historical dividend growth rates. That provides helpful information about the business prospects, and management's assessment of those prospects.
I also like to look at growth in earnings per share over the same period of time, in order to determine if dividend growth is on solid footing. Rising earnings per share provide the fuel behind future dividend increases.
Last but not least, I look at valuation metrics, such as P/E ratio, Dividend Yield in conjunction with growth in dividends and growth in earnings per share. Even the best company in the world is not worth overpaying for. However, valuation is tricky.
A company with a low P/E may turn out to be more expensive in the long run if those earnings per share are cyclical or in a terminal decline.
A company with a high P/E may turn out to be cheap in the long run if those earnings per share grow and they are counter-cyclical.
Long story short, valuation is not a one sized trick pony. I have an article scheduled on this topic over the next week.
The companies that announced dividend increases last week, AND also had at least a ten year streak of annual dividend increases 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 increased quarterly dividends by 20% to $0.27/share. This is the 31st year of consecutive annual dividend increases for this dividend champion.
Badger Meter has managed to increase dividends at an annualized rate of 9.90% over the past decade.
The company managed to grow earnings from $0.86/share in 2013 to $2.28/share in 2022.
The company is expected to earn $3.01/share in 2023.
The stock yields 0.65% and sells for 52.94 times forward earnings. It's pricey today, but may be worth a researching if it drops to a more reasonable valuation.
Cboe Global Markets, Inc. (CBOE) operates as an options exchange worldwide. It operates through six segments: Options, North American Equities, Europe and Asia Pacific, Futures, Global FX, and Digital.
The company increased quarterly dividends by 10% to $0.55/share. This is the 13th consecutive year Cboe has increased its dividend.
Cboe Global Markets has managed to increase dividends at an annualized rate of 13.80% over the past decade.
The company managed to grow earnings from $1.99/share in 2013 to $2.20/share in 2022.
The company is expected to earn $7.29/share in 2023.
This dividend achiever sells for 20.60 times forward earnings and yields 1.46%.
Dillard's, Inc. (DDS) operates retail department stores in the southeastern, southwestern, and midwestern areas of the United States.
The company hiked quarterly dividends by 25% to $0.25/share. This is the 13th year of consecutive annual dividend increases for this dividend achiever.
Dillard's has managed to increase dividends at an annualized rate of 14.90% over the past decade.
The company managed to grow earnings from $7.10/share in 2013 to $50.81/share in 2022.
The company is expected to earn $41.83/share in 2023.
The stock sells for 8.13 times forward earnings and yields 0.30%.
Muncy Bank Financial has managed to increase dividends at an annualized rate of 7.80% over the past decade.
The company managed to grow earnings from $2.69/share in 2013 to $3.90/share in 2022.
NBT Bancorp has managed to increase dividends at an annualized rate of 3.80% over the past decade.
The company managed to grow earnings from $1.47/share in 2013 to $3.54/share in 2022.
Stock Yards Bancorp has managed to increase dividends at an annualized rate of 8.30% over the past decade.
The company managed to grow earnings from $1.27/share in 2013 to $3.24/share in 2022.
The stock sells for 12.80 times forward earnings and yields 2.56%.
The company managed to grow earnings from $4.56/share in 2013 to $17.46/share in 2022.
