I review the list of dividend increases every single week, as part of my monitoring process. It helps me evaluate existing companies and potentially identify companies for further research.
I usually focus my attention on companies with more established track record of annual dividend increases. This helps me focus on companies that have a higher chance of increasing dividends throughout a typical boom/bust economic cycle. This is why I focus on companies that have managed to grow dividends for at least a decade. What better evidence of the ability to grow dividends over a typical boom/bust cycle than a history of regular annual dividend increases for over a decade?
During the past week, there were 31 companies that increased dividends to shareholders. Thirteen of them have managed to increases dividends for at least a decade. The companies include:
Bank of America Corporation (BAC) provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates in four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.
The company increased quarterly dividends by 8.30% to $0.26/share. This is the 11th consecutive annual dividend increase for this dividend achiever. Over the past five years, it has managed to increase dividends at an annualized rate of 11.24%.
Between 2014 and 2023, the company managed to grow earnings from $0.43/share to $3.10/share.
The company is expected to earn $3.26/share in 2024.
The stock sells for 12.80 times forward earnings and yields 2.50%
Cintas Corporation (CTAS) engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments.
Cintas Corporation raised quarterly dividend by 15.60% to $1.56/share. This is the 41st consecutive annual dividend increase for this dividend aristocrat. The company has managed to grow dividends at an annualized rate of 19.52% over the past five years, which is impressive.
This was fueled by growth in earnings per share over the past decade. Cintas grew earnings from $3.68/share in 2015 to $15.46/share in 2024.
Cintas is expected to earn $16.67/share in 2025.
Cintas is the best performing Dividend Aristocrat over the past decade, when measured in terms of total returns. While the fundamental results have been impressive, a large tailwind to returns has been the expansion of the P/E ratio. The stock is expensive today at 45.30 times forward earnings. It yields 0.83%. Back in 2014, the stock traded at a P/E between 16 and 23 for reference. The range of dividend yield was between a low of 1.20% and a high of 1.70%.
Community Trust Bancorp, Inc. (CTBI) operates as the bank holding company for Community Trust Bank, Inc. that engages in the provision of commercial and personal banking, and trust and wealth management services to small and mid-sized communities in eastern, northeastern, central, and south-central Kentucky, as well as southern West Virginia, and northeastern Tennessee.
The company increased quarterly dividends by 2.20% to $0.47/share. This is the 44th consecutive annual dividend increase for this dividend champion. Over the past five years, the company has managed to grow dividends at an annualized rate of 5.69%.
Between 2014 and 2023, the company managed to grow earnings from $2.50/share to $4.36/share.
The company is expected to earn $4.38/share in 2024.
The stock sells for 11.70 times forward earnings and yields 3.70%
Cullen/Frost Bankers, Inc. (CFR) operates as the bank holding company for Frost Bank that provides commercial and consumer banking services in Texas.
The company increased quarterly dividends by 3.30% to $0.95/share. This is the 31st consecutive annual dividend increase for this dividend champion. Over the past five years, the company has managed to grow dividends at an annualized rate of 6.77%.
Between 2014 and 2023, the company managed to grow earnings from $4.33/share to $9.11/share.
The company is expected to earn $8.44/share in 2024.
The stock sells for 14 times forward earnings and yields 3.20%
First Community Bankshares, Inc. (FCBC) operates as the financial holding company for First Community Bank that provides various banking products and services.
The company increased quarterly dividends by 6.90% to $0.31share. This is the 13th consecutive annual dividend increase for this dividend achiever. Over the past five years, the company has managed to grow dividends at an annualized rate of 8.26%.
Between 2014 and 2023, the company managed to grow earnings from $1.34/share to $2.67/share.
The company is expected to earn $2.69/share in 2024.
The stock sells for 16.80 times forward earnings and yields 2.74%
1st Source Corporation (SRCE) operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients.
The Board of Directors approved an increase in the cash dividend of two cents per share, raising the approved dividend for the quarter to $0.36 per common share, up 12.50% from the cash dividend declared a year ago. This is the 36th consecutive annual dividend increase for this dividend champion. Over the past five years, it has managed to increase dividends at an annualized rate of 6.25%.
Between 2014 and 2023, the company managed to grow earnings from $2.17/share to $5.03/share.
The company is expected to earn $4.77/share in 2024.
The stock sells for 13.10 times forward earnings and yields 2.20%
Home Bancshares, Inc. (HOMB) operates as the bank holding company for Centennial Bank that provides commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals, and municipalities.
The company increased quarterly dividends by 8.30% to $0.195/share. This is the 14th consecutive annual dividend increase for this dividend achiever. During the past five years, the company managed to grow dividends at an annualized rate of 9.37%.
Between 2014 and 2023, the company managed to grow earnings from $0.86/share to $1.94/share.
The company is expected to earn $2.07/share in 2024.
The stock sells for 13.70 times forward earnings and yields 2.75%
Kellanova (K) manufactures and markets snacks and convenience foods in North America, Europe, Latin America, the Asia Pacific, the Middle East, Australia, and Africa.
The company increased quarterly dividends by 1.80% to $0.57/share. This is the 21st consecutive annual dividend increase for this dividend achiever. Over the past five years, it has managed to increase dividends at an annualized rate of 2.66%.
Between 2014 and 2023, the company managed to grow earnings from $1.77/share to $2.78/share.
The company is expected to earn $3.62/share in 2024.
The stock sells for 15.80 times forward earnings and yields 3.90%
NBT Bancorp Inc. (NBTB) is a financial holding company, which provides commercial banking, retail banking, and wealth management services.
The company increased quarterly dividends by 6.30% to $0.34/share. This is the 12th consecutive annual dividend increase for this dividend achiever. Over the past five years, it has managed to increase dividends at an annualized rate of 4.61%.
Between 2014 and 2023, the company managed to grow earnings from $1.71/share to $2.67/share.
The company is expected to earn $2.88/share in 2024.
The stock sells for 17.20 times forward earnings and yields 2.75%
NextEra Energy Partners, LP (NEP) acquires, owns, and manages contracted clean energy projects in the United States.
The partnership raised quarterly distributions by 1.40% to $0.905/unit. . This declaration reflects an annualized increase of approximately 6% from a year earlier. This is the tenth consecutive year of distribution increases for this newly minted dividend achiever. The partnership has managed to grow distributions at an annualized rate of 14.50%/year over the past five years.
Right now it sells at a distribution yield of 13.80%.
Principal Financial Group, Inc. (PFG) provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates through Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection segments.
The company increased quarterly dividends by 1.40% to $0.72/share. This is the 17th consecutive annual dividend increase for this dividend achiever. Over the past five years, it has managed to increase dividends at an annualized rate of 4.36%.
The company earned $3.70/share in 2014. It earned $2.58/share in 2023. The earnings stream is volatile, which explains this partly.
The company is expected to earn $7.28/share in 2024.
The stock sells for 11.60 times forward earnings and yields 3.55%
Republic Services, Inc. (RSG) offers environmental services in the United States and Canada.
The company hiked quarterly dividends by 8.40% to $0.58/share. This is the 21st consecutive annual dividend increase for this dividend achiever. Over the past 5 years, it has managed to grow dividends at an annualized rate of 7.45%.
"We are raising our quarterly dividend by approximately 8 percent," said Jon Vander Ark, president and chief executive officer. "This is the 21st consecutive year we've increased our annual dividend, which reinforces our commitment to efficiently return cash to shareholders."
Between 2014 and 2023, the company managed to grow earnings from $1.54/share to $5.47/share.
The company is expected to earn $6.14/share in 2024.
The stock sells at 30.83 times forward earnings, which unfortunately is a tad too rich for my taste right now. It offers a dividend yield of 1.25%. The stock was selling at a cheaper valuation when I profiled it a decade or so ago.
Stanley Black & Decker, Inc. (SWK) provides hand tools, power tools, outdoor products, and related accessories in the United States, Canada, Other Americas, Europe, and Asia.
The company increased quarterly dividends by 1.20% to $0.82/share. This is the 57th consecutive annual dividend increase for this dividend king. This is also the third consecutive year in which the company increased dividends by a penny. Over the past five years, it has managed to increase dividends at an annualized rate of 4.53%.
The company earned $4.87/share in 2014, but lost money in 2023. The highest earnings occurred in 2021, when it earned $10.55/share.
The company is expected to earn $3.98/share in 2024.
The stock sells for 22.50 times forward earnings and yields 3.45%
