Each week, I go through the list of dividend increases in order to monitor performance of existing holdings, and uncover hidden dividend gems. I then narrow down the list by eliminating companies with a short dividend growth streak.
I also look at things like trends in earnings per share, dividends per share, dividend payout ratios, in order to determine the likelihood of future dividend growth and growth in intrinsic value. My basic analysis also focuses on valuation and dividend sustainability.
Over the past week, there were five dividend stocks with a long streak of consecutive annual dividend increases, which raised dividends to shareholders.
The companies include:
McCormick & Company, Incorporated (MKC) manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry. It operates through two segments, Consumer and Industrial. The company raised its quarterly dividend by 9.30% to 47 cents per share. This dividend champion has rewarded shareholders with a dividend raise for the past 31 years in a row. Over the past decade, McCormick has raised dividends at a rate of 9.60% per year. This quality company is selling at 23.50 times forward earnings and yields 2.10%. I would be interested in adding to my position in this compounding machine on dips below $76 per share.
Check my analysis of McCormick for more information about the company.
The Walt Disney Co (DIS), together with its subsidiaries, operates as an entertainment company worldwide. The company raised its quarterly dividend by 9.90% to 78 cents per share. This dividend stock has rewarded shareholders with a dividend raise for the past 7 years in a row. Over the past decade, Disney has raised dividends at a rate of 19% per year. The stock is selling at 16.60 times forward earnings and yields 1.60%. I think that the company is attractively valued in the current environment, and is a solid long-term holding idea.
Check my analysis of Walt Disney for more information about the company.
WEC Energy Group Inc (WEC), through its subsidiaries, generates and distributes electric energy. The company operates through Wisconsin, Illinois, Other States, electric transmission, and We Power, Corporate and Other segments. The company raised its quarterly dividend by 5.10% to 52 cents per share. This dividend contender has rewarded shareholders with a dividend raise for the past 14 years in a row. Over the past decade, it has raised dividends at a rate of 14.80% per year. The stock is selling at 18.90 times forward earnings and yields 3.70%.
The trends in earnings and dividends look intriguing enough, to place this stock on the list for further research.