I review the list of dividend increases as part of my monitoring process. This activity helps me to monitor existing positions and also identify potential candidates for further research. I usually focus on the companies with a ten year track record of annual dividend increases.
The next step is evaluating each company in detail, and determining if it is attractively valued.
This of course is just one exercise in my monitoring process. It helps me get ready to act when the right opportunity is available on sale.
Over the past week, there were five companies that raised dividends and had a minimum ten year track record of annual dividend increases. The companies include:
Agree Realty Corporation (ADC) is a publicly traded real estate investment trust involved in the acquisition and development of properties net leased to industry-leading, omni-channel retail tenants.
The REIT hiked monthly dividends by 2.90% to $0.247/share. This is the 11th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 5.70%.
Between 2013 and 2022, the REIT managed to grow FFO/share from $2.12 to $3.47.
The REIT is expected to generate forward FFO of $3.94/share in 2023.
The stock sells for 13.94 times forward FFO and yields 5.40%.
A. O. Smith Corporation (AOS) manufactures and markets residential and commercial gas, heat pump and electric water heaters, boilers, tanks, and water treatment products in North America, China, Europe, and India. It operates through two segments, North America and Rest of World.
The company increased quarterly dividends by 6.67% to $0.32/share. This is the 30th consecutive annual dividend increase for this dividend champion. Over the past decade, the company has managed to increase dividends at an annualized rate of 20.30%.
"This dividend increase reflects our confidence in the stability in our replacement demand inherent in our water heating and boiler businesses, as well as our focus on returning capital to shareholders," said Kevin J. Wheeler, chairman and chief executive officer. "We are proud to say the five-year compound annual growth rate of our dividend rate is more than 10%, and that we have increased our dividend each year for over 30 years."
Between 2013 and 2022, the company grew earnings from $0.92/share to $1.52/share. The results from 2022 are reduced due to one-time charges. It was a non-cash, pre-tax expense of $417.3 million, or $1.60 per share after taxes, due to the planned settlement of pension liabilities.
The stock sells for 19.42 times forward earnings and yields 1.82%.
HP Inc. (HPQ) provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services in the United States and internationally. The company operates through three segments: Personal Systems, Printing, and Corporate Investments.
The company declared its plans to increase annual dividends by 5% to $1.1024/share. This is the 13th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 15.50%.
Between 2013 and 2022, the company managed to grow earnings per share from $2.64 to $3.09.
The stock sells for 8 times forward earnings and yields 4.16%.
Northwest Natural Holding Company (NWN) provides regulated natural gas distribution services to residential, commercial, industrial, and transportation customers in Oregon and Southwest Washington.
The company raised quarterly dividends by 0.60% to $0.4875/share. This was the 68th consecutive year of dividend increases for this dividend king. Over the past decade, the company has managed to increase dividends at an annualized rate of 0.80%.
Between 2013 and 2022 the company grew earnings per share from $2.24 to $2.54.
The company is expected to earn $2.67/share in 2023.
The stock sells for 14.66 times forward earnings and yields 4.98%.
THOR Industries, Inc. (THO) designs, manufactures, and sells recreational vehicles (RVs), and related parts and accessories in the United States, Canada, and Europe.
Thor raised quarterly dividend by 6.7% to $0.48/share. This is the 13th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 10.70%.
Between 2014 and 2023 the company grew earnings per share from $3.36 to $7.
The company is expected to earn $6.80/share in 2024.
The stock sells for 13.33 times forward earnings and yields 2.12%.
Relevant Articles:
- Five Dividend Growth Stocks Increasing Shareholder Dividends
- Six Dividend Growth Stocks Raising Dividends Last Week
- Seven Dividend Growth Stocks Raising Distributions Last Week
- Three Dividend Growth Stocks Rewarding Shareholders With Raises