I review the list of dividend increases every week, as part of my review process. This exercise helps me to monitor existing holdings. It also helps me potentially identify companies for further research.
This exercise also shows the process I would go to review a company quickly, and the steps I would take to determine if I want to review it further for potential inclusion, or not.
I typically focus my attention on companies which have managed to increase dividends for at least ten years in a row. Over the past week, there were ten companies which managed to increase dividends and also have a ten year track record of annual dividend increases under their belt. The companies include:
Albemarle Corporation (ALB) develops, manufactures, and markets engineered specialty chemicals worldwide. It operates through three segments: Energy Storage, Specialties and Ketjen.
The company raised quarterly dividends by 1.20% to $0.405/share. This was the 30th year of consecutive annual dividend increases for this dividend aristocrat. Over the past decade, the company has managed to grow dividend at an annualized rate of 5.20%.
Between 2014 and 2023, the company managed to grow earnings from $1.69/share to $13.41/share.
The company is expected to earn $2.32/share in 2024. The cyclical nature of the business is pretty evident from those fluctuations in annual earnings per share figures over the past decade.
The stock sells for 39.80 times forward earnings and yields 1.75%.
Community Financial System, Inc. (CBU) operates as the bank holding company for Community Bank, N.A. that provides various banking and other financial services to retail, commercial, institutional, and municipal customers. It operates through three segments: Banking, Employee Benefit Services, and All Other.
The company raised its quarterly dividend by 2.20% to $0.46/share. This is the 32nd consecutive year of dividend increases for this dividend champion. Over the past decade, the company has managed to increase dividends at an annualized rate of 4.87%.
“Our consistent profitability, rooted in our financial services business model, coupled with our strong cash flows, have positioned us to increase our dividend for 32 consecutive years. We have returned over $750 million to our Shareholders through dividends over the last 10 years and believe a growing dividend demonstrates our commitment to provide favorable long term returns to our Shareholders.”
The company earned $2.24/share in 2014 and eked out a small rate of growth in EPS to $2.45/share in 2023.
The company is expecting to earn $3.21/share in 2024.
The stock sells for 18.30 times forward earnings and yields 3.15%.
Duke Energy Corporation (DUK) operates as an energy company in the United States. It operates through two segments: Electric Utilities and Infrastructure (EU&I), and Gas Utilities and Infrastructure (GU&I).
The company increased quarterly dividends by 2% to $1.045/share. This is the 20th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 2.77%.
Between 2014 and 2023, the company managed to grow earnings from $2.66/share to $3.54/share.
The company is expected to earn $5.97/share in 2024.
The stock sells for 17.90 times forward earnings and yields 3.90%.
Greene County Bancorp, Inc. (GCBC) operates as a holding company for The Bank of Greene County that provides various financial services in the United States. The company has generated impressive returns to shareholders since its IPO in 1999. The annual report looks interesting to read as well.
The bank raised its quarterly dividends by 12.50% to $0.09/share. This was the eleventh year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 5.54%.
The company managed to grow earnings per share from $0.39 in 2014 to $1.81 in 2023.
The stock sells for 23.70 times earnings and yields 1.06%.
Mercantile Bank Corporation (MBWM) operates as the bank holding company for Mercantile Bank of Michigan that provides commercial and retail banking services to small- to medium-sized businesses and individuals in the United States.
The company raised its quarterly dividend by 2.90% to $0.36/share. This also represents a 5.90% increase over the dividend paid during the same time last year. 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 11.53%.
"The Board of Directors' declaration of an increased third quarter cash dividend is a testament to our ongoing commitment to enhance shareholder value through worthwhile cash returns," said Ray Reitsma, President and Chief Executive Officer of Mercantile. "Our financial metrics have remained strong during the lengthy period of uncertain economic and operating conditions, which coupled with the realization of solid financial results in future periods as anticipated, should allow us to continue to reward shareholders with competitive dividend yields while maintaining sufficient capital levels to meet asset growth objectives."
Between 2014 and 2024, the company managed to grow earnings from $1.28/share to $5.13/share.
The company is expected to earn $4.81/share in 2024.
The stock sells for 10 times forward earnings and yields 3%.
NNN REIT (NNN) invests primarily in high-quality retail properties subject generally to long-term, net leases.
National Retail Properties raised quarterly dividends by 2.70% to $0.58/share. This marks the 35th consecutive annual dividend increase for this dividend champion.
Over the past decade, the REIT has managed to grow dividends at an annualized rate of 3.37%
Steve Horn, Chief Executive Officer, commented: "Maintaining a multi-year perspective has kept NNN in position to increase the annual dividend for the 35th consecutive year in 2024. A disciplined capital deployment strategy and a strong, flexible balance sheet have allowed NNN to continue this impressive track record of consistent growth."
The REIT generated $3.26/share in FFO in 2023. It is expected to generate $3.31/share in FFO in 2024.
The REIT sells for 13.90 times forward FFO and yields 5.03%.
PPG Industries, Inc. (PPG) manufactures and distributes paints, coatings, and specialty materials in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through two segments, Performance Coatings and Industrial Coatings.
The company increased quarterly dividends by 4.60% to $0.68/share. This is the 53rd consecutive annual dividend increases for this dividend king. During the past decade, the company has managed to grow dividends at an annualized rate of 7.70%.
“We are proud of PPG’s long heritage of rewarding shareholders and pleased with the opportunity to increase our dividend per share. This dividend growth reflects the strong confidence that PPG’s Board has in the resiliency of our business and the strength and future growth of our operating cash flow,” said Tim Knavish, PPG chairman and chief executive officer.
Earnings per share declined from $7.60 in 2014 to $5.38 in 2023.
The company is expected to earn $8.29/share in 2024.
The stock sells for 15.45 times forward earnings and yields 2.12%.
Regions Financial Corporation (RF) is a financial holding company which provides banking and bank-related services to individual and corporate customers. It operates through three segments: Corporate Bank, Consumer Bank, and Wealth Management.
The company increased quarterly dividends by 4.20% to $0.25/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 26.50%. The high rate of dividend growth is due to the fact the bank cut dividends to the bone during the Global Financial Crisis of 2007 - 2009. The growth is unlikely to be repeated over the next decade from current levels.
Regions Financial managed to grow earnings from $0.80/share in 2014 to $2.11/share in 2023.
The bank is expected to earn $1.97/share.
The stock sells for 11.20 times forward earnings and yields 4.52%.
State Street Corporation (STT) provides a range of financial products and services to institutional investors worldwide.
The company raised quarterly dividends by 10.10% to $0.76/share. This is the 14th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company managed to grow dividends at an annualized rate of 9.70%.
Between 2014 and 2023, the company managed to grow earnings per share from $3 to $9.35.
The company is expected to earn $8.20/share in 2024.
The stock sells for 10.30 times forward earnings and yields 3.60%
