Dow Jones, S&P 500 finish Thursday with slight gains >>> READ MORE

13 Companies Building Wealth For Long Term Shareholders

These companies recently increased their dividend payouts for income investors

    View All  

Dividend growth investing is a very simple but effective wealth building strategy.

The investor focuses on companies with a proven track record of annual dividend increases, which typically exemplifies quality in a company. The next step involves focusing on those enterprises that grow earnings and are available at attractive valuations today.

The next step in the process is the most difficult one – doing absolutely nothing after assembling your portfolio of quality dividend growth stocks, while watching your dividend income rise year over year for decades. Most dividend investors who fail, succumb to short-term thinking because they listen to the useless noise out there. The dividend investors who succeed hold patiently to their diversified portfolios over time, and end up generating a lot of dividends for decisions made decades prior to that.

I always like seeing how my dividend stocks are continuing their streak of annual dividend increases.

As part of my monitoring process, I review the list of dividend increases with at least a ten year streak.

The 13 companies that met the criteria are listed below, along with my comments:

T. Rowe Price Group, Inc. (TROW) is a publicly owned investment manager. The firm provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. The company raised its quarterly dividend by 5.60% to 57 cents per share. This marked the 31st consecutive annual dividend increase for this dividend champion. Over the past decade, the company has managed to increase annual dividends at a rate of 16.30% per year. The company managed to grow earnings per share from $2.40 in 2007 to $4.75 by 2016. T.Rowe is expected to earn $4.80 per share in 2017.

Currently, TROW stock is attractively value at 14.80 times forward earnings and yields 3.20%. Check my analysis of T. Rowe Price for more information about the company.

The Coca-Cola Co (KO), a beverage company, manufactures and distributes various nonalcoholic beverages worldwide. The company primarily offers sparkling beverages and still beverages. The Coca-Cola Co raised its quarterly dividend by 5.70% to 37 cents per share. This marked the 55th consecutive annual dividend increase for this dividend king. Over the past decade, the company has managed to increase annual dividends at a rate of 9% per year. The company managed to grow earnings per share from $1.08 in 2006 to $1.49 by 2016. The Coca-Cola Co is expected to earn $1.97/share in 2017.

Currently, KO stock is overvalued at 20.90 times forward earnings and yields 3.60%. Due to the overvaluation and the lack of earnings growth over the past five years I am not interested in buying shares of this company. Check my analysis of Coca-Cola for more information about the company.

National Health Investors Inc (NHI) is a real estate investment trust that in the health care properties primarily in the long-term care and senior housing industries. This REIT raised its quarterly dividend by 5.60% to 95 cents per share. This marked the 15th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to increase annual dividends at a rate of 6.50% per year. The company managed to grow funds from operations from $2.63 in 2009 to $5.25 by 2016.

Currently, NHI stock is selling at 14.10 times FFO and yields 5.10%. It looks like an interesting high yield dividend portfolio idea to consider for further research.

Nu Skin Enterprises, Inc. (NUS) develops and distributes anti-aging personal care products and nutritional supplements under the Nu Skin and Pharmanex category brands worldwide. The company raised its quarterly dividend by 1.40% to 36 cents per share. This marked the 17th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to increase annual dividends at a rate of 14.50 per year. The company managed to grow earnings per share from $0.47 in 2006 to $2.25 by 2015. Nu Skin Enterprises is expected to earn $2.90 per share in 2017.

Currently, NUS stock is at 16.30 times forward earnings and yields 3%. Due to the nature of the company’s business model, as discussed during the review of Nu Skin, I am going to give the company a pass at this time.

SCANA Corporation (SCG), through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity to retail and wholesale customers in South Carolina. The company raised its quarterly dividend by 6.50% to 61.25 cents per share. This marked the 17th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to increase annual dividends at a rate of 3.50% per year. The company managed to grow earnings per share from $2.63 in 2006 to $4.16 by 2016. SCANA Corporation is expected to earn $4.22 per share in 2017.

Currently, SCG stock looks attractively valued at 15.60 times forward earnings and yields 3.70%. I would add it to my list for further research.

Sherwin-Williams Co (SHW) develops, manufactures, distributes, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers primarily in North and South America, the Caribbean, Europe, and Asia. The company operates in four segments: Paint Stores Group, Consumer Group, Global Finishes Group, and Latin America Coatings Group. The company raised its quarterly dividend by 1.20% to 85 cents per share. This marked the 39th consecutive annual dividend increase for this dividend champion. Over the past decade, the company has managed to increase annual dividends at a rate of 12.60% per year. The company managed to grow earnings per share from $4.70 in 2007 to $11.99 by 2016. Sherwin-Williams is expected to earn $13.80 per share in 2017.

Currently, SHW stock overvalued is at 22.60 times forward earnings and yields 1.10%. It would be an interesting idea on dips below 276/share.

Analog Devices, Inc. (ADI) designs, manufactures, and markets a portfolio of solutions that leverage analog, mixed-signal, and digital signal processing technology, including integrated circuits (ICs), algorithms, software, and subsystems. The company raised its quarterly dividend by 7.10% to 45 cents per share. This marked the 15th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to increase annual dividends at a rate of 16.10% per year. The company managed to grow earnings per share from $1.51 in 2007 to $2.76 by 2016. Analog Devices is expected to earn $3.39 per share in 2017.

Currently, the stock is overvalued at 24.30 times forward earnings and yields 2.20%.

Auburn National Bancorporation Inc (AUBN) operates as the bank holding company for AuburnBank that provides various banking products and services in East Alabama. The company raised its quarterly dividend by 2.20% to 23 cents per share. This marked the 16th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to increase annual dividends at a rate of 4.30% per year. The company managed to grow earnings per share from $1.74 in 2006 to $2.24 by 2016.

Currently, AUBN stock is attractively priced at 14.90 times forward earnings and yields 2.80%. I would add it to my list for further research.

Owens & Minor, Inc. (OMI), together with its subsidiaries, operates as a healthcare logistics company. It operates through two segments, Domestic and International. The company raised its quarterly dividend by 1% to 25.75 cents per share. This marked the 20th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to increase annual dividends at a rate of 11.30% per year. The company managed to grow earnings per share from $1.19 in 2007 to $1.76 by 2016. Owens & Minor is expected to earn $1.96 per share in 2017.

Currently, OMI stock is attractively valued at 17.80 times forward earnings and yields 3%.I would add it to my list for further research.

Next Page


Article printed from InvestorPlace Media, http://investorplace.com/2017/02/thirteen-companies-building-wealth-for-long-term-shareholders/.

©2017 InvestorPlace Media, LLC