As part of my monitoring process, I review the list of dividend increases every week. This is helpful in monitoring dividend increases for my dividend portfolio holdings, and for companies I am monitoring for a potential acquisition.
There were seven companies with long histories of annual dividend increases, which also raised dividends last week.
The companies include:
Company
|
Symbol
|
Dividend Yield
|
New Dividend
|
Old Dividend
|
Stock Price
|
Forward P/E ratio
|
Dividend Payout Ratio
|
Years Annual Dividend Increases
|
Annualized Dividend Growth
|
Colgate-Palmolive
|
CL
|
2.55%
|
0.44
|
0.43
|
69.1
|
23.27
|
59%
|
56
|
7.11%
|
Globe Life
|
GL
|
1.05%
|
0.1875
|
0.1725
|
71.58
|
10.04
|
11%
|
14
|
10.53%
|
Gentex
|
GNTX
|
1.90%
|
0.12
|
0.115
|
25.21
|
14.32
|
27%
|
9
|
7.54%
|
Horace Mann Educators
|
HMN
|
3.09%
|
0.3
|
0.2875
|
38.82
|
14.38
|
44%
|
10
|
17.09%
|
Qualcomm
|
QCOM
|
3.43%
|
0.65
|
0.62
|
75.81
|
18.36
|
63%
|
17
|
13.98%
|
W.P. Carey
|
WPC
|
5.63%
|
1.04
|
1.038
|
73.88
|
15.20
|
86%
|
23
|
7.59%
|
Wyndham Destinations
|
WYND
|
6.32%
|
0.5
|
0.45
|
31.64
|
5.16
|
33%
|
10
|
27.38%
|
These companies are not investment recommendations. To determine if these dividend growth stocks are worth investing in, I focus on the following:
1) Growth in earnings per share over the past decade
2) A dividend payout ratio that is below 60%
3) A P/E ratio below 20
4) A history of consistent annual dividend increases over the past decade
I use a variation of my screening criteria when looking for quality companies to consider for my portfolio. Check my article on screening the dividend aristocrats list for more information.
Obviously, having an income stream that is relatively insulated against the ups and downs of the economic cycle is an advantage, particularly in today’s challenging world economy. If your earnings do not fall as much during a recession, your company can afford to continue paying the dividend. If the earnings stream dries up, and there are significant debt obligations to be serviced in a challenging credit market, chances are that the dividend may be put on the chopping block. This is why it is important to buy quality companies, at attractive valuations.
When I analyze companies, I look for things like rising earnings per share, dividend payout ratios, perform qualitative assessments, and looks for trends in dividends per share. Check my analysis of Colgate-Palmolive from a couple of years ago for more information on how I analyze companies in detail.
Relevant Articles:
- How to read my stock analysis reports
- Thirty-One Dividend Aristocrats for Further Review
- Seven Dividend Achievers Defying Coronavirus Fears
- A Record Week on Wall Street For Dividend Increases
