During the past week GuruFocus recognized four companies as dividend growers. In order to make it on this list, the company had to have a dividend of more than 3%, a consistent history of continuing and raising dividends, be in at least one guru’s portfolio and have a market cap greater than $1 billion. The following four companies come from various industries and sectors of the market, but they all fit the necessary criteria needed to qualify them as dividend growers.
A comparison of the companies’ historical dividend growth:
HBC data by GuruFocus.com
1. Lorillard (LO)
On May 14, Lorillard declared a dividend of $0.55 per share. This sets the company’s dividend yield at 4.7%. The dividend is payable on June 10 to shareholders of the record at the close of business May 31, 2013.
The company’s dividend growth history is as follows:
· 10-year: 0%
· 5-year: 31.4%
· 3-year: 12.7%
LO data by GuruFocus.com
Lorillard has offered steadily increasing quarterly dividends since 2008.
Lorillard, through its subsidiaries, is engaged in the manufacture and sale of cigarettes. The company is the third largest manufacturer of cigarettes in the U.S. Its principal products are marketed under the brand names of Newport, Kent, True, Maverick and Old Gold. It produces cigarettes for both the premium and discount segments of the domestic cigarette market.
Lorillard’s market cap is $16.65 billion.
The GuruFocus analysis on Lorillard reports:
· The company’s gross and operating margins have been in a long-term decline. The annual rates of decline are 3.5% and 2.9%, respectively.
· The price is nearing its 10-year high of $46.22.
· The revenue per share has slowed down in the past year.
There are 11 gurus that currently hold a stake in Lorillard.
With its shares down 0.36%, Lorillard trades at $44.11.
2. ConocoPhillips (COP)
On May 14, ConocoPhillips declared a dividend of $0.66 per share. This makes the company’s dividend yield 4.2%. The dividend is payable on June 3 to shareholders of the record at the close of business May 24, 2013.
The company’s dividend growth history is as follows:
· 10-year: 14.4%
· 5-year: 10.6%
· 3-year: 8.4%
COP data by GuruFocus.com
ConocoPhillips has offered a quarterly dividend since 1982, and the dividend has increased regularly since 1986.
ConocoPhillips is an international, integrated energy company. The company is organized into six operating segments: Exploration and Production, Refining and Marketing, Midstream, LUKOIL Investments, Emerging Businesses and Chemicals.
ConocoPhillips has a market cap of $77.2 billion; its shares were traded at around $64.12 with a P/E ratio of 10.90 and P/S ratio of 1.30. ConocoPhillips had an annual average earnings growth of 40.5% over the past five years.
The analysis on ConocoPhillips reports:
· The company’s revenue has been in decline for the last five years.
· The price has exceeded its previous 3-year high.
· The P/B ratio is close to a 10-year high of 1.61.
There are 26 gurus including Warren Buffet that hold stake in ConocoPhillips.
With its shares up 1.14% this afternoon, ConocoPhillips trades at $64.03.
3. PPL Corp. (PPL)
On May 15, PPL Corp. declared a dividend of $0.368 per share. This makes the company’s dividend yield 4.5%. The dividend is payable July 1 to shareholders of the record at the close of business June 10, 2013.
PPL’s dividend growth history is as follows:
· 10-year: 7.6%
· 5-year: 1.6%
· 3-year: 1.1%
PPL data by GuruFocus.com
PPL has offered a consistent quarterly dividend every quarter since 1989. The dividend has increased regularly since 1999.
PPL Corp. is an energy and utility holding company that, through its subsidiaries, is primarily engaged in the generation and marketing of electricity in the northeastern and western U.S. and in the delivery of electricity in Pennsylvania.
PPL Corp. has a market cap of $18.72 billion; its shares were traded around $31.81 with a P/E ratio of 13.70 and P/S ratio of 1.80. PPL Corp had an annual average earnings growth of 2.6% over the past 10 years.
The GuruFocus analysis of PPL reports:
· In the past three years, the company has issued $10.6 billion of debt.
· The company’s revenue has been in decline over the past year.
· The price is close to a three-year high of $33.03.
· The operating margin has been expanding.
· The P/S Ratio is close to a three-year high of 1.86.
There are currently eight gurus that hold shares of PPL.
With its shares down 1.06%, PPL Corp. trades at $31.81.
4. HSBC Holdings PLC (HBC)
On May 10, HSBC Holdings declared a dividend of $0.50 per share, setting the dividend yield at 3.9%. The dividend is payable July 11 to shareholders of the record at the close of business May 24, 2013.
The dividend growth history is as follows:
· 10-year: -13.2%
· 5-year: -22.2%
· 3-year: 2.8%
HBC data by GuruFocus.com
The company has offered dividends since 1997. The board has adopted a policy of paying quarterly interim dividends on the ordinary shares. Under the policy it is intended that they will have a pattern of three equal interim dividends with a variable fourth interim dividend.
HSBC Holdings is a banking and financial services organization with branches throughout the world. Its products are delivered to its clients through four global businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets and Global Private Banking. The company maintains some 7,200 offices in 85 countries.
HSBC Holdings has a market cap of $214.21 billion; its shares were traded around $58.61 with a P/E ratio of 12.50 and P/S ratio of 2.40. HSBC Holdings had an annual average earnings growth of 0.4% over the past five years.
The analysis on HSBC Holdings makes note of the following:
· The per-share revenue has been in decline for the last five years.
· The company has issued $156.42 million of debt in the past three years.
· The P/S ratio is at a five-year high of 2.47.
· The bank holds enough cash to cover all of its debt.
· The company’s operating margin is expanding.
There are 10 gurus that hold shares of HSBC Holdings.
With its shares up 1.45%, HSBC trades at $58.61.
To view a complete list of high yielding dividend stocks found among the Gurus’ portfolios, click here.
A comparison of the companies’ historical dividend growth:
HBC data by GuruFocus.com1. Lorillard (LO)
On May 14, Lorillard declared a dividend of $0.55 per share. This sets the company’s dividend yield at 4.7%. The dividend is payable on June 10 to shareholders of the record at the close of business May 31, 2013.
The company’s dividend growth history is as follows:
· 10-year: 0%
· 5-year: 31.4%
· 3-year: 12.7%
LO data by GuruFocus.comLorillard has offered steadily increasing quarterly dividends since 2008.
Lorillard, through its subsidiaries, is engaged in the manufacture and sale of cigarettes. The company is the third largest manufacturer of cigarettes in the U.S. Its principal products are marketed under the brand names of Newport, Kent, True, Maverick and Old Gold. It produces cigarettes for both the premium and discount segments of the domestic cigarette market.
Lorillard’s market cap is $16.65 billion.
The GuruFocus analysis on Lorillard reports:
· The company’s gross and operating margins have been in a long-term decline. The annual rates of decline are 3.5% and 2.9%, respectively.
· The price is nearing its 10-year high of $46.22.
· The revenue per share has slowed down in the past year.
There are 11 gurus that currently hold a stake in Lorillard.
With its shares down 0.36%, Lorillard trades at $44.11.
2. ConocoPhillips (COP)
On May 14, ConocoPhillips declared a dividend of $0.66 per share. This makes the company’s dividend yield 4.2%. The dividend is payable on June 3 to shareholders of the record at the close of business May 24, 2013.
The company’s dividend growth history is as follows:
· 10-year: 14.4%
· 5-year: 10.6%
· 3-year: 8.4%
COP data by GuruFocus.comConocoPhillips has offered a quarterly dividend since 1982, and the dividend has increased regularly since 1986.
ConocoPhillips is an international, integrated energy company. The company is organized into six operating segments: Exploration and Production, Refining and Marketing, Midstream, LUKOIL Investments, Emerging Businesses and Chemicals.
ConocoPhillips has a market cap of $77.2 billion; its shares were traded at around $64.12 with a P/E ratio of 10.90 and P/S ratio of 1.30. ConocoPhillips had an annual average earnings growth of 40.5% over the past five years.
The analysis on ConocoPhillips reports:
· The company’s revenue has been in decline for the last five years.
· The price has exceeded its previous 3-year high.
· The P/B ratio is close to a 10-year high of 1.61.
There are 26 gurus including Warren Buffet that hold stake in ConocoPhillips.
With its shares up 1.14% this afternoon, ConocoPhillips trades at $64.03.
3. PPL Corp. (PPL)
On May 15, PPL Corp. declared a dividend of $0.368 per share. This makes the company’s dividend yield 4.5%. The dividend is payable July 1 to shareholders of the record at the close of business June 10, 2013.
PPL’s dividend growth history is as follows:
· 10-year: 7.6%
· 5-year: 1.6%
· 3-year: 1.1%
PPL data by GuruFocus.comPPL has offered a consistent quarterly dividend every quarter since 1989. The dividend has increased regularly since 1999.
PPL Corp. is an energy and utility holding company that, through its subsidiaries, is primarily engaged in the generation and marketing of electricity in the northeastern and western U.S. and in the delivery of electricity in Pennsylvania.
PPL Corp. has a market cap of $18.72 billion; its shares were traded around $31.81 with a P/E ratio of 13.70 and P/S ratio of 1.80. PPL Corp had an annual average earnings growth of 2.6% over the past 10 years.
The GuruFocus analysis of PPL reports:
· In the past three years, the company has issued $10.6 billion of debt.
· The company’s revenue has been in decline over the past year.
· The price is close to a three-year high of $33.03.
· The operating margin has been expanding.
· The P/S Ratio is close to a three-year high of 1.86.
There are currently eight gurus that hold shares of PPL.
With its shares down 1.06%, PPL Corp. trades at $31.81.
4. HSBC Holdings PLC (HBC)
On May 10, HSBC Holdings declared a dividend of $0.50 per share, setting the dividend yield at 3.9%. The dividend is payable July 11 to shareholders of the record at the close of business May 24, 2013.
The dividend growth history is as follows:
· 10-year: -13.2%
· 5-year: -22.2%
· 3-year: 2.8%
HBC data by GuruFocus.comThe company has offered dividends since 1997. The board has adopted a policy of paying quarterly interim dividends on the ordinary shares. Under the policy it is intended that they will have a pattern of three equal interim dividends with a variable fourth interim dividend.
HSBC Holdings is a banking and financial services organization with branches throughout the world. Its products are delivered to its clients through four global businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets and Global Private Banking. The company maintains some 7,200 offices in 85 countries.
HSBC Holdings has a market cap of $214.21 billion; its shares were traded around $58.61 with a P/E ratio of 12.50 and P/S ratio of 2.40. HSBC Holdings had an annual average earnings growth of 0.4% over the past five years.
The analysis on HSBC Holdings makes note of the following:
· The per-share revenue has been in decline for the last five years.
· The company has issued $156.42 million of debt in the past three years.
· The P/S ratio is at a five-year high of 2.47.
· The bank holds enough cash to cover all of its debt.
· The company’s operating margin is expanding.
There are 10 gurus that hold shares of HSBC Holdings.
With its shares up 1.45%, HSBC trades at $58.61.
To view a complete list of high yielding dividend stocks found among the Gurus’ portfolios, click here.
