I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me monitor existing holdings and identify companies for further research.
I typically focus on companies that have managed to increase dividends for at least a decade. This helps me focus on those companies that have the durability of a business model that could potentially support decades of dividend increases into the future. Or so I have reasonably have come to believe.
This quick overview also showcases the type of review I do of individual companies, in order to determine if I want to put them on my list for further research or not.
Over the past week, there were two companies that both increased dividends and also have a ten year track record of consistent annual dividend increases under their belt. The companies include:
Brady Corporation (BRC) manufactures and supplies identification solutions (IDS) and workplace safety (WPS) products to identify and protect premises, products, and people in the United States and internationally.
Brady raised quarterly dividends by 2.10% to $0.24/share. This dividend represents the 39th consecutive annual increase in dividends. Over the past decade, the company has raised dividends at an annualized rate of 1.91%. The current dividend increase is roughly in line with the historical average for Brady.
The company managed to grow earnings from $1.08/share in 2015 to $4.08/share in 2024.
Analysts expect Brady Corporation to earn $4.49/share in 2025.
The stock sells for 16.10 times forward earnings and a dividend yield of 1.32%.
Verizon Communications Inc. (VZ) engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business).
Verizon raised its quarterly dividends by 1.90% to $0.6775/share. This is the 18th consecutive year Verizon’s Board has approved a quarterly dividend increase. Over the past decade, the company has managed to grow dividends at an annualized rate of 2.37%. The current dividend increase is roughly in line with the historical average for Verizon.
“Our strong focus on three key pillars – wireless service revenue growth, adjusted EBITDA expansion, and free cash flow generation – has once again put the Board in a position to raise the dividend," said Chairman and CEO Hans Vestberg. "This unwavering commitment to our strategic priorities, combined with our consistently disciplined financial management and our dedication to serving our customers with the best in mobility and broadband, continue to position us well for future growth."
The company managed to grow earnings from $2.42/share in 2014 to $2.76/share in 2023.
Analysts expect Verizon to earn $4.56/share in 2024.
The stock sells for 9 times forward earnings and a dividend yield of 6.58%.
Relevant Articles:
- Four Dividend Growth Stocks Raising Dividends Last Week
