I review the list of dividend increases each week, as part of my monitoring process. This exercise helps me monitor existing holdings and potentially identify companies for further research.
Dividend increases offer a good gauge for management's opinion on near terms business conditions and their affect on company cashflows. As a result, dividend increases can provide a good overview of management's assessment of the business environment. Changes in the pace in dividend increases could provide valuable insight about the business, in conjunction with other factors at play, that could potentially provide investors with a slight edge.
I identified seven companies that increased dividends last week. All of these companies have managed to increase dividends for at least a decade. My short review of each company is listed below:
American Tower (AMT) one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of nearly 226,000 communications sites and a highly interconnected footprint of U.S. data center facilities.
American Tower raised its quarterly dividend by 3.20% to $1.62/share. This is a 10.20% increase over the dividend paid during the same time last year. This is the 11th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, it has managed to grow dividends at an annualized rate of 20.30%.
The REIT grew FFO/share from $3.01 in 2012 to $11.41 in 2022. It expects to generate $9.74/share in FFO in 2023.
The REIT sells for 17.40 times forward FFO and yields 3.89%.
Fortis Inc. (FTS) operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries.
Fortis hiked quarterly dividends by 4.40% to CAD $0.59/share. This marked the 50th year of consecutive annual dividend increases for this newly minted Canadian dividend king. Over the past decade, Fortis has managed to grow dividends at an annualized rate of 6.27%.
"Our Board of Directors declared a fourth quarter dividend representing a 4.4% increase that will mark 50 years of consecutive increases in dividends paid," said David Hutchens, President and CEO, Fortis Inc. "This makes Fortis one of only two companies listed on the Toronto Stock Exchange to reach this significant milestone."
"Our sustainable regulated growth strategy is focused on delivering cleaner energy that remains affordable and reliable for our customers while supporting annual dividend growth of 4-6% through 2028,” said Mr. Hutchens.
Between 2013 and 2022, the company managed to grow earnings from $1.74/share to $2.78/share. Fortis is expected to earn $3.05/share. I wanted to state that all numbers listed here for Fortis are in Canadian Dollars.
The stock sells for 17.84 times forward earnings and yields 4.35%.
Microsoft Corporation (MSFT) develops and supports software, services, devices and solutions worldwide.
Microsoft boosted quarterly dividends by 10.30% to $0.75/share. This is the 19th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, it has managed to grow dividends at an annualized rate of 11.80%.
Microsoft grew earnings from $2.66/share in 2014 to $9.72/share in 2023.
The company is expected to earn $11/share in 2023.
The stock sells for 29 times forward earnings and yields 0.94%.
Norwood Financial Corp. (NWFL) operates as the bank holding company for Wayne Bank that provides various banking products and services.
The company increased quarterly dividends by 3.60% to $0.29/share. This is the 2th year of consecutive annual dividend increases for this dividend champion. Over the past decade, it has managed to grow dividends at an annualized rate of 4.40%.
Mr. Donnelly commented, “The Board is extremely pleased to provide our shareholders with this quarterly dividend. It reflects the Company’s financial strength and strong capital position which has contributed to our solid performance.”
Between 2013 and 2022, the company managed to grow earnings from $1.56/share to $3.59/share.
The company is expected to earn $3.38/share in 2023.
The stock sells for 7.95 times forward earnings and yields 4.42%.
Shoe Carnival, Inc. (SCVL) operates as a family footwear retailer in the United States.
The company hiked quarterly dividends by 20% to $0.12/share. This marked the 11th year of annual dividend increases for this dividend achiever. Over the past decade, the company managed to grow dividends at an annualized rate of 18.90%.
“This marks our 46th consecutive quarterly dividend. With continued strong cash flow generation and no long-term debt, the Board’s decision to significantly increase the quarterly dividend demonstrates our confidence in driving continued shareholder returns, while also investing to grow the business,” commented Mark Worden, Shoe Carnival’s President and Chief Executive Officer.
Between 2014 and 2023 the company managed to grow earnings from $0.66/share to $4/share.
The company is expected to generate $3.09/share in 2023.
The stock sells for 7.26 times forward earnings and yields 2.10%.
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 raised quarterly dividends by 7.50% to $0.57/share. This dividend achiever has increased dividends for 13 years in a row. Over the past decade, it has managed to grow dividends at an annualized rate of 18.70%.
Starbucks has managed to grow earnings per share from $1.01 in 2013 to $2.85/share in 2022.
The company is expected to earn $3.45/share in 2023.
The stock sells for 26.95 times forward earnings and yields 2.43%.
Texas Instruments Incorporated (TXN) designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. It operates in two segments, Analog and Embedded Processing.
The company raised quarterly dividends by 4.80% to $1.30/share. This marks 20 consecutive years of dividend increases for this dividend achiever. Over the past decade, it has managed to grow dividends at an annualized rate of 20.30%.
The increase is consistent with TI's long-term objective for dividends by providing a sustainable and growing dividend and reflects the company's continued commitment to return all free cash flow to its owners over time.
Between 2013 and 2022, the company increased earnings from $1.94/share to $9.51/share.
The company is expected to earn $7.44/share in 2023.
The stock sells for 21.56 times forward earnings and yields 3.25%.
Relevant Articles:
- Three Dividend Growth Stocks Rewarding Shareholders With Raises
- Eight Dividend Growth Companies Increasing Dividends Last Week
- Three Dividend Growth Companies Increasing Dividends Last Week
- Seven Dividend Growth Stocks Rewarding Shareholders With Raises