Thursday, November 9, 2017

10-Year Dividend Growers with dividend increase (Nov 06 - Nov 10)


One way to identify dividend growth stocks is to look for dividend increases. Companies that pay rising dividends are likely to be financially healthy and generate consistent cash flow. I am interested in stocks with at least ten consecutive years of increasing annual regular dividend payments. Here is a list of such companies that increased their dividends last week.








Automatic Data Processing (ADP), +10.53% dividend increase

Automatic Data Processing, Inc. (ADP) is a provider of human capital management (HCM) solutions to employers, offering solutions to businesses of various sizes. The Company also provides business process outsourcing solutions. Its segments include Emplo...

Automatic Data Processing has declared quarterly dividend of $0.63(+10.53% increase). It goes ex-dividend on 12/7/2017 and is payable on 1/1/2018. Annualized dividend is $2.28 at a yield of 2.03%. Automatic Data Processing has a dividend growth rate of 6.80% (3 Year Average) and has 42 Years of Consecutive Dividend Growth.

Automatic Data Processing has a twelve month trailing (TTM) earnings per share (EPS) of $3.94, which gives it a dividend payout ratio of 56.50%. The predicted earnings per share for 2018 is $4.32. Earnings per share is further expected to grow by 10.63% annually over the next five years. EPS has grown by 6.60% in the last 5 years. The cash per share is $5.47. Using cash per share we can compute the dividend payout ratio as 41.68%. Automatic Data Processing has a market capitalization of $50.97B. It has a P/E ratio of 28.58. (Forward P/E: 26.06). Automatic Data Processing has a beta of 0.90 and is 9% less volatile than the overall market. Analyst consensus target price is $-. Using the forward P/E ratio of 26.06 and forward earnings per share of $4.32 we can compute the fair value of stock as $112.58


Atmos Energy Corporation (ATO), +8.89% dividend increase

Atmos Energy Corporation is a fully-regulated, natural-gas-only distributor engaged primarily in the regulated natural gas distribution and pipeline businesses, as well as other nonregulated natural gas businesses. It operates through three segments: re...

Atmos Energy Corporation has declared quarterly dividend of $0.49(+8.89% increase). It goes ex-dividend on 11/24/2017 and is payable on 12/11/2017. Annualized dividend is $1.80 at a yield of 2.02%. Atmos Energy Corporation has a dividend growth rate of 6.40% (3 Year Average) and has 34 Years of Consecutive Dividend Growth.

Atmos Energy Corporation has a twelve month trailing (TTM) earnings per share (EPS) of $3.60, which gives it a dividend payout ratio of 47.40%. The predicted earnings per share for 2018 is $3.83. Earnings per share is further expected to grow by 6.70% annually over the next five years. EPS has grown by 10.30% in the last 5 years. The cash per share is $0.67. Using cash per share we can compute the dividend payout ratio as 268.66%. Atmos Energy Corporation has a market capitalization of $9.35B. It has a P/E ratio of 24.78. (Forward P/E: 23.31). Atmos Energy Corporation has a beta of 0.39 and is 61% less volatile than the overall market. Analyst consensus target price is $87.44. Using the forward P/E ratio of 23.31 and forward earnings per share of $3.83 we can compute the fair value of stock as $89.28


Universal Corporation (UVV), +1.85% dividend increase

Universal Corporation is a leaf tobacco supplier. The Company is engaged in procuring, financing, processing, packing, storing and shipping leaf tobacco for sale to manufacturers of consumer tobacco products....

Universal Corporation has declared quarterly dividend of $0.55(+1.85% increase). It goes ex-dividend on 1/5/2018 and is payable on 2/5/2018. Annualized dividend is $2.16 at a yield of 3.94%. Universal Corporation has a dividend growth rate of 2.00% (3 Year Average) and has 45 Years of Consecutive Dividend Growth.


AmerisourceBergen Corporation (Holding Co) (ABC), +2.7% dividend increase

AmerisourceBergen Corporation is a pharmaceutical sourcing and distribution services company. The Company's segments include Pharmaceutical Distribution and Other. The Company provides services to healthcare providers, and pharmaceutical and biotech man...

AmerisourceBergen Corporation (Holding Co) has declared quarterly dividend of $0.38(+2.7% increase). It goes ex-dividend on 11/17/2017 and is payable on 12/4/2017. Annualized dividend is $1.46 at a yield of 1.94%. AmerisourceBergen Corporation (Holding Co) has a dividend growth rate of 17.00% (3 Year Average) and has 12 Years of Consecutive Dividend Growth.

AmerisourceBergen Corporation (Holding Co) has a twelve month trailing (TTM) earnings per share (EPS) of $1.85, which gives it a dividend payout ratio of 26.60%. The predicted earnings per share for 2018 is $6.66. Earnings per share is further expected to grow by 8.24% annually over the next five years. EPS has grown by -8.80% in the last 5 years. The cash per share is $6.11. Using cash per share we can compute the dividend payout ratio as 23.9%. AmerisourceBergen Corporation (Holding Co) has a market capitalization of $16.15B. It has a P/E ratio of 40.62. (Forward P/E: 11.31). AmerisourceBergen Corporation (Holding Co) has a beta of 0.97 and is 3% less volatile than the overall market. Analyst consensus target price is $92.10. Using the forward P/E ratio of 11.31 and forward earnings per share of $6.66 we can compute the fair value of stock as $75.32


10-Year Dividend Growers with dividend increase (Oct 30 - Nov 03)








12 comments:

  1. Geek, ADP is one of my favorite stocks and I was very pleased with their dividend increase. They have been a steady and solid performer over the years. Tom

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    1. Yes, great stock. I was hoping to initiate a position in ADP.

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  2. ABC and ADP look interesting. Both are solid long time dividend raisers. Unfortunately I don't hold any of the names mentioned above. Thanks for compiling.

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    1. Any particular reason you don't own ADP?

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    2. I haven't really looked into that stock in earnest. I guess it's in a sector that I don't find that interesting though I know they handle a lot of the payroll out there.

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  3. I will just throw out on ADP, that they benefit from rising interest rates since they are able to invest their clients payroll funds on a short term basis. ADP and its competitor PAYX are good holdings to benefit from rising interest rates and can help diversify an otherwise interest rate sensitive dividend stock portfolio. Insurance companies also provide this type of diversification. Keith wrote about insurance companies a few months back on DivHut. Tom

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    1. "since they are able to invest their clients payroll funds on a short term basis." ==> WOW! really? I guess higher interest will improve their earning.

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  4. I like ADP and wouldn't mind adding it to my portfolio. But I haven't seen any dips for a buying opportunity. And the shares are sitting comfortably above $100 which is a little pricey when you don't have a lot of free capital to spend. Great list, thanks for sharing.

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    1. True :-) Holding all stocks is impossible. That is why I ended up owning VIG

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  5. Geek, unfortunately I don't own any of those particular stocks, but I do like owning dividend stocks for that very reason: you get the benefit of increase in dividends over and over again. Companies that have increased their dividends for the past ten years are generally more likely to keep increasing their dividends. In fact, they may very well be on their way to dividend aristocrat status.

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    1. It's a matter of time before you start holding these stocks. As we grow our portfolio we will definitely be adding more diversified stocks. Thanks for swinging by mate.

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