Over the past week there were two companies that raised dividends in the US, which also had a ten year streak of consecutive annual dividend increases. However, there was one dividend aristocrat, which also cut dividends for the first time in 48 years.
Walgreens Boots Alliance (WBA) cut dividends by 47.90% to $0.25/share. This ended the 48 year streak of consecutive annual dividend increases for this now former dividend aristocrat. The company had failed to raise dividends in July, and kept them unchanged for six quarters, before cutting them.
Over the past decade, Walgreens had managed to raise dividends by 5%/year. The pace of annualized dividend growth has been decelerating since however. The company grew earnings per share from $2.03 in 2015 to $5.02 in 2022, before losing $3.57/share in 2023.
The company is expected to earn $3.33/share in 2024.
The two increases were from Alamo (ALG) and Bank OZK (OZK).
Alamo Group Inc. (ALG) designs, manufactures, distributes, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural uses worldwide. It operates through two segments, Vegetation Management and Industrial Equipment.
The company raised quarterly dividends by 18.20% to $0.26/share. This is the tenth year of consecutive annual dividend increases for this newly minted dividend achiever.
Alamo Group has managed to grow dividends at an annualized rate of 12.10% over the past decade.
The company grew earnings from $3/share in 2013 to $8.58/share in 2022. Alamo Group is expected to earn $11.41/share in 2023.
The stock sells for 17.56 times forward earnings and has a dividend yield of 0.52%.
Bank OZK (OZK) provides various retail and commercial banking services.
The company raised quarterly dividends by 2.70% to $0.38/share. Bank OZK has increased its quarterly cash dividend on its common stock in each of the last fifty-four quarters. The new dividend is 11.76% higher than the dividend paid during the same time last year. This dividend aristocrat has increased dividends since 1997.
Bank OZK has managed to grow dividends at an annualized rate of 14.70% over the past decade.
The company has managed to grow earnings between 2013 and 2022 from $1.27/share to $4.55/share. Bank OZK is expected to earn $5.85/share in 2024.
The stock sells for 8.32 times forward earnings and has a dividend yield of 3.12%.
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