I review the list of dividend increases every single week, as part of my monitoring process. This exercise helps me to monitor existing holdings. It also helps me potentially identify companies for further research.
I typically focus my attention on the companies with a ten year track record of annual dividend increases.
Over the past week, there were nine companies that both raised dividends to shareholders and also have a ten year streak of consecutive annual dividend increases. I have included a short summary behind each company, the raise, and the type of fundamental and valuation information I use to quickly decide if a company should be placed on my list for research or not.
The nine companies are listed below:
The Bank of New York Mellon Corporation (BK) provides a range of financial products and services in the United States and internationally. The company operates through Securities Services, Market and Wealth Services, Investment and Wealth Management, and other segments.
The company hiked quarterly dividends by 11.90% to $0.47/share. This is the 14th consecutive annual dividend increases for this dividend achiever. The company has managed to grow dividends at an annualized rate of 8.70% over the past 5 years.
The company managed to grow earnings per share from $2.17 in 2014 to $3.89 in 2023.
The company is expected to earn $5.52/share in 2024.
The stock sells for 11.15 times forward earnings and yields 2.91%.
Cummins Inc. (CMI) designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera.
Cummins raised quarterly dividends by 8.30% to $1.82/share. Cummins is a dividend achiever which has increased the quarterly common stock dividend to shareholders for 19 consecutive years. The company has managed to grow dividends at an annualized rate of 7.90% over the past 5 years.
Between 2014 and 2023, the company's earnings/share went from $9.04 to $5.19. That was driven by one-time charges against income however.
The company is expected to earn $18.53/share in 2024.
The stock sells for 15.10 times forward earnings and yields 2.54%.
Enterprise Products Partners L.P. (EPD) provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. It operates in four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services.
The partnership hiked quarterly distributions by 1.90% to $0.525/unit. This is also a 5% increase over the distribution paid during the same time last year. This is the 26th consecutive annual distribution hike for this dividend champion.
Over the past five years, EPD has managed to grow distributions at an annualized rate of 2.90%.
The units yield 7.15% today.
Gladstone Land (LAND) is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S. and leases its properties to unrelated third-party farmers
Gladstone Land increased its monthly dividends by 0.20% to $0.0467/share. This is a 1.08% raise over the monthly dividend paid during the same time last year. This is also the tenth consecutive annual dividend increase for this newly minted dividend achiever. The company has managed to grow dividends at an annualized rate of 0.80% over the past 5 years.
The REIT grew FFO/share from $0.24 in 2014 to $0.62 in 2023. It's expected to generate $0.62/share in FFO in 2024.
The stock sells for 23.50 times forward FFO and yields 3.83%.
Marsh & McLennan Companies, Inc. (MMC) is a professional services company, which provides advice and solutions to clients in the areas of risk, strategy, and people worldwide. It operates through Risk and Insurance Services, and Consulting segments.
Marsh & McLennan increased quarterly dividends by 14.80% to $0.815/share. This is the 15th year of consecutive annual dividend increases for this dividend achiever. The company has managed to grow dividends at an annualized rate of 10.50% over the past 5 years.
The company managed to grow earnings per share from $2.69 in 2014 to $7.60 in 2023.
The company is expected to earn $8.70/share in 2024.
The stock sells for 25 times forward earnings and yields 1.50%.
Ryder System, Inc. (R) operates as a logistics and transportation company worldwide. It operates through three segments: Fleet Management Solutions (FMS), Supply Chain Solutions (SCS), and Dedicated Transportation Solutions (DTS).
The company raised quarterly dividends by 14.10% to $0.81/share. This is the 20th consecutive annual dividend increase for this dividend achiever. The company has managed to grow dividends at an annualized rate of 4.65% over the past 5 years.
Between 2014 and 2023, the company managed to grow earnings from $4.14/share to $8.90/share.
The company is expected to earn $12.04/share in 2024.
The stock sells for 10.40 times forward earnings and yields 2.50%.
The J. M. Smucker Company (SJM) manufactures and markets branded food and beverage products worldwide. It operates in four segments: U.S. Retail Coffee, U.S. Retail Frozen Handheld and Spreads, U.S. Retail Pet Foods, and Sweet Baked Snacks.
The company increased quarterly dividends by 2% to $1.08/share. This is the 27th consecutive annual dividend increase for this dividend aristocrat. The company has managed to grow dividends at an annualized rate of 5% over the past 5 years.
Between 2015 and 2024, the company managed to grow earnings from $3.33/share to $7.15/share.
The company is expected to earn $10/share in 2024.
The stock sells for 11.10 times forward earnings and yields 3.82%.
Unum Group (UNM) provides financial protection benefit solutions primarily in the United States, the United Kingdom, Poland, and internationally. It operates through Unum US, Unum International, Colonial Life, and Closed Block segment.
The company raised quarterly dividends by 15.10% to $0.42/share. This is the 16th year of consecutive annual dividend increases for this dividend achiever. The company has managed to grow dividends at an annualized rate of 7.25% over the past 5 years.
Between 2014 and 2023, the company managed to grow earnings from $1.57/share to $6.53/share.
The company is expected to earn $8.23/share in 2024.
The stock sells for 6.25 times forward earnings and yields 3.25%.
FS Bancorp, Inc. (FSBW) operates as a bank holding company for 1st Security Bank of Washington that provides banking and financial services to local families, local and regional businesses, and industry niches. The company operates in two segments, Commercial and Consumer Banking; and Home Lending.
The company increased quarterly dividends by 3.80% to $0.27/share. This is the second dividend increase this year bringing the dividend 8% higher than its level from the same time last year. This is the 11th consecutive annual dividend increase for this dividend achiever. The company has managed to grow dividends at an annualized rate of 30.40% over the past 5 years.
Between 2014 and 2023, the company managed to grow earnings from $0.76/share to $4.63/share.
The bank is expected to earn $4.21/share in 2024.
The stock sells for 8.70 times forward earnings and yields 2.85%.
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