I usually narrow my research to companies with a ten year history of annual dividend increases.
Lee Ainslie's Maverick Capital had a difficult third quarter, although many hedge funds did. The quarter ended with the S&P 500's worst month since the beginning of the COVID pandemic. Q3 2021 hedge fund letters, conferences and more Maverick fund returns Maverick USA was down 11.6% for the third quarter, bringing its year-to-date return to Read More
Bank Ozk Raises Its Dividends
Last week, there were two companies that raised dividends. The companies include:
Bank Ozk (NASDAQ:OZK) provides retail and commercial banking services to businesses, individuals, and non-profit and governmental entities. The bank is expected to earn $1.51/share in 2020 and $2.26/share in 2021.
The bank raised its quarterly dividend by 0.90% to 27.25 cents/share. This increase represents a 13.50% hike over the dividend paid during the same time last year.
This was the 24th consecutive year of annual dividend increases for this dividend achiever. During the past decade, Bank OZK has managed to increase dividends at an annualized rate of 21.90%.
The company raised its earnings from 94 cents/share in 2010 to $3.30 in 2019.
Bank OZK is expected to earn $1.51/share in 2020 and $2.26/share in 2021.
The stock sells for 15.20 times forward earnings and yields 4.70%.
John Wiley & Sons Raises Its Dividends
John Wiley & Sons, Inc. (JW-A) operates as a research and learning company worldwide. The company operates through three segments: Research Publishing & Platforms, Academic & Professional Learning, and Education Services.
The company raised its quarterly dividend by 0.70% to 34.25 cents/share. This was the 27th consecutive year of annual dividend increases for this dividend champion. During the past decade, the company has managed to increase dividends at an annualized rate of 9.50%. The rate of annualized dividend growth has been stalling over the past one, three and five years however.
John Wiley & Sons is expected to generate $2.02/share in 2020 and $2.43/share in 2021. For reference, the company earned $2.80/share in 2011 but lost $1.32/share in 2019.
The stock is fairly valued at 18.63 times forward earnings. The stock yields 3.64%.
I personally view both stocks as risky. Bank OZK has grown rapidly over the past decade, but that was in a very favorable economic environment. They’ve had some issues, so I am going to wait this one out.
John Wiley and Sons is a company that has not managed to grow earnings per share over the past decade. Perhaps because traditional publishing business model is under siege.
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Article by Dividend Growth Investor