I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me monitor existing holdings but also identify companies for further research. I usually focus on the companies that have managed to increase dividends for at least ten years in a row.
A long history of annual dividend increases does not happen by accident. It is usually a result of a strong business that generates excess cashflows. But as we all know, past performance is also not always an indication of future results.
This exercise simply puts companies on my list for further research. Afterwards, I review each company briefly, before determining if I should pursue the idea further or set it aside.
Over the past week, there were 23 companies that increased dividends to shareholders in the US. Five of these companies have managed to increase dividends for at least ten years in a row.
Colgate-Palmolive Company (CL) manufactures and sells consumer products in the United States and internationally. It operates through two segments: Oral, Personal and Home Care; and Pet Nutrition.
The company increased quarterly dividends by 4.20% to $0.50/share. This is the 61st consecutive annual dividend increase for this dividend king. Over the past decade, the company has managed to increase dividends at an annualized rate of 3.68%.
Between 2014 and 2023 the company grew earnings slightly from $2.36/share to $2.77/share. The company is expecting to earn $3.49/share in 2024.
The stock sells for 25.35 times forward earnings and yields 2.26%.
Shoe Carnival, Inc. (SCVL) operates as a family footwear retailer in the United States.
The company increased quarterly dividends by 12.50% to $0.135/share. This is the 12th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 13.56%.
The company has managed to grow earnings from $0.66/share in 2014 to $4/share in 2023. The company is expected to earn $2.70/share in 2024.
The stock sells for 12.06 times forward earnings and yields 1.65%.
Steel Dynamics, Inc. (STLD) operates as a steel producer and metal recycler in the United States.
The company raised quarterly dividends by 8.20% to $0.46/share. This is the 15th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 14.15%.
Between 2014 and 2023, the company managed to grow earnings from $0.68/share to $14.72/share.
the company is expected to earn $10.59/share in 2024.
The stock sells for 13 times forward earnings and yields 1.33%.
UDR, Inc. (UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets.
The company increased quarterly dividends by 1.20% to $0.425/share. This is the 14th consecutive annual dividend increase for this dividend achiever. Over the past decade, this REIT has managed to grow dividends at an annualized rate of 5.89%.
UDR grew FFO/share from $1.58 in 2014 to $2.46 in 2023.
This REIT is expected to generate $2.45/share in FFO in 2024.
The stock sells for 15.14 times FFO and yields 4.57%.
Williams-Sonoma, Inc. (WSM) operates as an omni-channel specialty retailer of various products for home.
The company increased quarterly dividends by 26% to $1.13/share. This is the 18th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 11.71%.
Between 2015 and 2024, the company has managed to grow earnings from $3.30/share to $14.71/share.
The company is expected to earn $15.13 in 2024.
The stock sells for 18.76 times forward earnings and yields 1.59%.
Relevant Articles:
- 17 Dividend Growth Stocks Raising Shareholder Distributions