As part of my monitoring process, I review the list of dividend increases every week This activity helps me to monitor the business performance of any companies I am invested in. It also helps me to identify any hidden dividend gems, and place them on my list for further research.
My reviews are an example of the quick way I use to evaluate companies, before deciding if they are worth a second look later or not.
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Five Dividend Growth Stocks
The companies in today’s article have managed to grow dividends for at least ten years in a row. These companies also announced a dividend increase during the past week. The companies include:
PPG Industries, Inc. (PPG) manufactures and distributes paints, coatings, and specialty materials worldwide.
The company raised its quarterly dividend by 6% to 54 cents/share. This marked the 49th year of consecutive annual dividend increases for this dividend champion. PPG Industries has managed to grow dividends at an annualized rate of 6.40% over the past decade.
Between 2010 and 2019, PPG Industries managed to grow earnings from $2.31/share to $5.22/share.
The company is expected to generate $4.44/share in 2020
The stock sells for 24 times forward earnings and yields 1.95%.
Computer Services, Inc. (CSVI) delivers core processing, digital banking, managed services, payments processing, print and electronic distribution, and regulatory compliance solutions to financial institutions and corporate entities in the United States.
Computer Services raised its quarterly dividend by 19.10% to 25 cents/share. According to their press release, this marked the 49th year of consecutive annual dividend increases for the company. Sadly, I have not been able to verify this with any other independent source. I see that the stock has been publicly traded since 2003, hence I have to use this data as a starting point for the dividend record. If the stock was privately held before, the record of annual dividend increases before that doesn’t count.
If I find reliable data showing that the record started 49 years ago, I would update my stance on the topic.
Computer Services has managed to grow dividends at an annualized rate of 15.80% over the past decade.
Between 2010 and 2019, Computer Services managed to boost earnings from 81 cents/share to $1.91/share.
The stock sells for 27 times forward earnings and offers a dividend yield of 1.90%.
National Retail Properties
National Retail Properties (NNN) invests primarily in high-quality retail properties subject generally to long-term, net leases.
The company has raised dividends by 3.10%/year annualized over the past decade.
Over the past decade, National Retail Properties has managed to boost its AFFO/share from $1.73 in 2009 to $2.79 in 2019.
The REIT is selling for 13.35 times forward FFO and yields 5.85%.
Stanley Black & Decker
Stanley Black & Decker, Inc. (SWK) engages in tools and storage, industrial, and security businesses worldwide.
The company raised its quarterly dividend by 1.40% to 70 cents/share. This marked the 53th consecutive annual dividend increase for this dividend king. This dividend king has managed to boost distributions at an annualized rate of 7.60% over the past decade.
The company managed to boost earnings from $2.79/share in 2009 to $6.35/share in 2019.
The company is expected to earn $5.73/share in 2020.
The stock is selling for 25.10 times forward earnings and offers a dividend yield of 1.85%.
Marsh & McLennan Companies
Marsh & McLennan Companies, Inc. (MMC) is a professional services company that provides advice and solutions to clients in the areas of risk, strategy, and people worldwide. It operates in two segments, Risk and Insurance Services, and Consulting.
The company increased its quarterly dividend by 2.20% to 46.50 cents/share. Marsh & McLennan has managed to grow dividends at an annualized rate of 8.10% over the past decade.
Earnings increased from $1.55/share in 2010 to $3.41/share in 2019.
The company is expected to generate $4.60/share in 2020.
The stock sells at 24.65 times forward earnings and yields 1.65%.
MGE Energy, Inc. (MGEE) operates as a public utility holding company primarily in Wisconsin. It operates through five segments: Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; Transmission Investments; and All Other.
MGE Energy raised its quarterly dividend by 5% to 37 cents/share. This event marked the company's 45th consecutive year of increasing its dividend. MGE Energy is a dividend champion which has managed to grow dividends at an annualized rate of 3.60% during the past decade.
MGE Energy managed to grow earnings from $1.67/share in 2010 to $2.51/share in 2019.
The stock looks richly valued at 26.50 times forward earnings. It yields 2.20%.
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