I review the list of dividend increases every week, as part of my review process. I focus my attention on companies that raised dividends in the current week, and have at least a ten-year track record of annual dividend increases.
Only a company with a strong cash flow generating business can afford to grow dividends for a long period of time. Therefore, a business growing dividends for at least a decade is worth looking at for further research.
There were nine companies that fit the criteria. You can view the five companies in the table below:
This is a list of companies for further review. Most seem attractive as businesses, but that doesn’t mean that they should be invested in at any price, regardless of valuation.
In reviewing the press releases for several of these companies, I liked the following snippets. These snippets showcase the commitment to dividend growth and the importance of it.
Brown-Forman (BF.B): “We are proud to continue the long tradition of delivering excellent returns to our shareholders. This marks the 40th consecutive year of dividend increases and reinforces our confidence in Brown-Forman's long-term growth outlook.”
Nike (NKE): “Nike has a consistent track record of delivering strong cash flow and returns for shareholders and today’s announcement marks the 22nd consecutive year we have increased our dividend,” said John Donahoe, President & CEO, NIKE, Inc. “This dividend increase reflects our continued confidence in our strategies to generate sustainable, profitable growth, while investing for the future.”
Matthews International (MATW): "We continue to maintain a strong cash flow profile facilitating ongoing support of our long-term growth objectives. This represents our 30th consecutive annual dividend increase since becoming a publicly-traded company.”
Royal Gold (RGLD): “Paying a growing and sustainable dividend continues to be a core strategic objective for Royal Gold,” commented Bill Heissenbuttel, President and CEO of Royal Gold. “We have paid a dividend since 2000, and despite volatility in the gold price we’ve increased our annual dividend every year since 2001. Our focus on consistently increasing our capital return to shareholders is unique in the precious metals sector, and Royal Gold is the only precious metals company in the S&P High Yield Dividend Aristocrats Index.”
This would likely be the last post for me this week. I will look forward to the Thanksgiving raises from Hormel Foods, McCormick, York Water Company, South Jersey Industries and Hingham Institution for Savings.
Relevant Articles:
- 14 Dividend Growth Stocks Rewarding Owners With A Raise