I review the list of dividend increases as part of my monitoring process every week. This exercise helps me monitor existing positions. This exercise also helps me potentially identify companies for further research. It is also helpful to showcase the quick drill I do on each company, focusing on the factors that I find most helpful, before putting it on the list for further research or putting it in the "too hard pile".
Over the past week, there were four companies in North America that raised dividends to shareholders and have a ten year track record of consistent annual dividend increases. The companies include:
Donaldson Company, Inc. (DCI) manufactures and sells filtration systems and replacement parts worldwide. The company operates through three segments: Mobile Solutions, Industrial Solutions, and Life Sciences.
The company increased quarterly dividends by 8% to $0.27/share. This marked the 28th consecutive year of annual dividend increases for this dividend champion. Over the past decade, the company has managed to increase dividends at an annualized rate of 7%.
Between 2014 and 2023, the company managed to grow earnings from $1.79/share to $2.95/share. The company is expected to earn $3.27/share.
The stock sells for 22.50 times forward earnings and yields 1.47%.
Lowe's Companies, Inc. (LOW) operates as a home improvement retailer in the United States.
The company lifted quarterly dividends by 4.50% to $1.15/share. This is the 62nd consecutive annual dividend increase for this dividend king. It's also much slower than the ten year average annual dividend growth of 20.30%/year.
Between 2014 and 2023, the company managed to grow earnings from $2.71/share to $13.24/share. The company is expected to earn $12.23/share.
The stock sells for 18.10 times forward earnings and yields 2.08%.
National Bank of Canada (NTIOF) (NA.TO) provides financial services to individuals, businesses, institutional clients, and governments in Canada and internationally. It operates through four segments: Personal and Commercial, Wealth Management, Financial Markets, and U.S. Specialty Finance and International.
The bank raised quarterly dividends by 3.80% to $1.10/share. This is the second dividend increase over the past year, bringing the year over year increase to 7.84%. This is the 15th year of consecutive annual dividend increases for this dividend achiever. The company has increased dividends at an annualized rate of 8.80% over the past decade.
Between 2014 and 2023, the company managed to grow earnings from $4.36/share to $9.47/share.
The bank is expected to earn $10.05/share in 2024.
The stock sells for 11.60 times forward earnings and yields 3.77%. (DGI Note: All Figures for National Bank of Canada are in Canadian Dollars)
Royal Bank of Canada (RY) operates as a diversified financial service company worldwide.
The company raised quarterly dividends by 2.90% to $1.42/share. This is the second dividend increase over the past year, bringing the year over year increase to 5.19%. This is the 14th year of consecutive annual dividend increases for this dividend achiever. The company has increased dividends at an annualized rate of 8.80% over the past decade.
Between 2014 and 2023, the company managed to grow earnings from $6.03/share to $10.51/share.
The bank is expected to earn $11.58/share in 2024.
The stock sells for 12.87 times forward earnings and yields 3.81%. (DGI Note: All Figures for RY are in Canadian Dollars)
Relevant Articles:
- Six Companies Increasing Dividends to Shareholders Last Week
- Five Dividend Growth Stocks Rewarding Shareholders With Raises Last Week
- Fourteen Dividend Growth Stocks Raising Dividends Last Week