I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me review existing holdings for dividend increases and financial updates. It also helps me review potential candidates for further research.
This exercise also helps me review the pulse of dividend markets in the US, and also keeps me in fighting shape. When I review a lot of companies, and their fundamentals, I feed myself more data to potentially uncover more patterns and setup for further review down the road. All knowledge compounds over time, just like compound interest after all.
I like to look at several items, when doing those quick reviews. I like to look at the most recent dividend increase, and then compare it to the 5 or 10 year average of dividend growth. In general, I like consistency, but note if there is any deceleration of growth, which is a potential red flag.
I also like to review growth in earnings per share over the past decade, because rising EPS is the fuel behind future dividend increases. I do not want to see generally flat earnings per share, because this shows me that future dividend growth will be limited.
Last but not least, I also like to review valuation. It's helpful to look at P/E ratios alongside past growth, in order to get a good gauge as to whether a company is fairly valued or expensive. That's one step that has to be done at the end, only after one has narrowed any list down to promising candidates based on fundamentals.
Over the past decade, there were 23 companies that raised dividends. Only seven of them have managed to raise dividends for at least a decade. The companeis include:
Farmers & Merchants Bancorp (FMCB) operates as the bank holding company for Farmers & Merchants Bank of Central California that provides various banking services to businesses and individuals.
The company raised its semi-annual dividend by 5.70% to $9.30/share. Farmers & Merchants Bancorp is a dividend king which has increased dividends for 59 consecutive years. The company has managed to grow dividend at a rate of 3.60%/year over the past 5 years.
The company grew earnings from $32.64/share in 2014 to $116/61/share in 2023.
The stock sells for 8.40 times earnings and yields 1.90%
First National Corporation (FXNC) operates as the bank holding company for First Bank that provides various commercial banking services to small and medium-sized businesses, individuals, estates, local governmental entities, and non-profit organizations in Virginia.
The company raised quarterly dividends by 3.30% to $0.155/share.This is the 10th consecutive annual dividend increase for this newly minted dividend achiever. The company has managed to grow dividends at an annualized rate of 24.60% over the past five years.
Between 2014 and 2023, the company's earnings went from $1.32/share to $1.54/share. The company is expected to earn $0.69/share in 2024.
The stock sells for 34 times forward earnings and yields 2.60%.
Griffon Corporation (GFF) provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. The company operates through two segments: Home and Building Products, and Consumer and Professional Products.
The company raised quarterly dividends by 20% to $0.18/share. This is the 13th consecutive annual dividend increase for this dividend achiever. The company has managed to grow dividends at an annualized rate of 12.10% over the past five years.
Between 2015 and 2024, the company's earnings went from $0.77/share to $4.41/share. The company is expected to earn $5.55/share in 2025.
The stock sells for 13.30 times forward earnings and yields 1%
Motorola Solutions, Inc. (MSI) provides public safety and enterprise security solutions in the United States, the United Kingdom, Canada, and internationally. The company operates in two segments, Products and Systems Integration, and Software and Services.
The company raised its quarterly dividends by 11% to $1.09/share. This marks the 13th consecutive year of annual dividend increases for this dividend achiever. The company has managed to grow dividends at an annualized rate of 11.10% over the past five years.
Between 2014 and 2023, the company's earnings went from $5.29/share to $10.23/share. The company is expected to earn $13.68/share in 2024.
The stock sells for 35.73 times forward earnings and yields 0.90%.
NIKE, Inc. (NKE) engages in the design, development, marketing, and sale of athletic footwear, apparel, equipment, accessories, and services worldwide.
The company raised quarterly dividends by 8.10% to $0.40/share. This marks the 23rd consecutive year of annual dividend increases for this dividend achiever. The company has managed to grow dividends at an annualized rate of 11.20% over the past five years.
Between 2015 and 2024, the company's earnings went from $1.90/share to $3.76/share. The company is expected to earn $2.81/share in 2025.
The stock sells for 27 times forward earnings and yields 2.10%.
Spire Inc. (SR) engages in the purchase, retail distribution, and sale of natural gas to residential, commercial, industrial, and other end-users of natural gas in the United States. The company operates through three segments: Gas Utility, Gas Marketing, and Midstream.
The company increased quarterly dividends by 4% to $0.785/share. 2025 will be the 22nd consecutive year of increasing the annual dividend for this dividend achiever. The company has managed to grow dividends at an annualized rate of 5.10% over the past five years.
Between 2014 and 2023, the company's earnings went from $2.35/share to $3.86/share. The company is expected to earn $4.20/share in 2025.
The stock sells for 15.95 times forward earnings and yields 4.70%.
Tyson Foods, Inc. (TSN) operates as a food company worldwide. It operates through four segments: Beef, Pork, Chicken, and Prepared Foods.
The company raised quarterly dividends by 2% to $0.50/share. This is the 13th consecutive annual dividend increase for this dividend achiever. The company has managed to grow dividends at an annualized rate of 8.60% over the past five years.
Between 2015 and 2024, Tyson Foods earnings went from $3.01/share to $2.26/share. The company is expected to earn $3.47/share in 2025.
The stock sells for 18.50 times forward earnings and yields 3.10%