During the past week, GuruFocus recognized six companies as dividend growers. In order to be qualified for this list, the company had to:
· Have a dividend yield of greater than 3%.
· Have a strong history of stable and increasing dividends.
· Maintain Guru ownership.
· Have a market cap of greater than $10 billion.
The following six 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:
Commonwealth Bank of Australia (CMWAY)
On Aug. 16, Commonwealth Bank of Australia declared a dividend of $1.806 per share, representing a 5.32% dividend yield for the company. This dividend is payable on Oct. 15 to shareholders of the record at the close of business on Aug. 26, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 8.1%
· 5-year: 9.8%
· 3-year: 15.4%
Commonwealth Bank of Australia is Australia's largest retail bank and one of the "Big Four." It also operates in New Zealand and Asia. Its core business is the provision of retail, business and institutional banking services. It is also a major fund manager and has increasing market shares in general and life insurance.
Commonwealth Bank’s historical revenue and net income:
The analysis on Commonwealth Bank reports that the price is nearing a 10-year high of $73.82, the company has enough cash to cover all of its debt, its operating margin is expanding and its revenue has shown predictable revenue and earnings growth.
The Peter Lynch Chart suggests that the company is currently overvalued:
Commonwealth Bank of Australia has a market cap of $105.76 billion. Its shares are currently trading at around $65.61 with a P/E ratio of 15.70, a P/S ratio of 5.00 and a P/B ratio of 2.90. The bank had an annual average earnings growth of 1.4% over the past ten years.
GuruFocus rated Commonwealth Bank of Australia the business predictability rank of 3-star.
Ensco PLC (ESV)
On Aug. 19, Ensco PLC declared a dividend of $0.50 per share, representing a 3.05% dividend yield for the company. This dividend is payable on Sept. 20 to shareholders of the record at the close of business on Sept. 9, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 39.3%
· 5-year: 123.8%
· 3-year: 146.6%
The company is a global offshore contract drilling company. It is a provider of offshore contract drilling services to the international oil and gas industry.
Ensco’s historical revenue and net income:
The analysis on Ensco reports that the dividend yield is at a 1-year high, the P/E ratio is near a 2-year low and the P/B ratio is at a 1-year low.
The Peter Lynch Chart suggests that the company is currently undervalued:
Ensco PLC has a market cap of $13.46 billion. Its shares are currently trading at around $57.63 with a P/E ratio of 10.40, a P/S ratio of 2.90 and a P/B ratio of 1.10. The company had an annual average earnings growth of 15.2% over the past 10 years.
BHP Billiton (BHP)
On Aug. 20, BHP Billiton declared a dividend of $1.18 per share, representing a 3.53% dividend yield for the company. This dividend is payable on Sept. 25 to shareholders of the record at the close of business on Sept. 6, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 27.5%
· 5-year: 14.3%
· 3-year: 10.7%
BHP Billiton is a leader in the global natural resources industry. The Group has high-value and industry-leading positions in aluminum, metallurgical coal, thermal coal, copper, ferro-alloys, iron ore and titanium minerals.
BHP’s historical revenue and net income:
The analysis on BHP reports that the revenue has been in decline over the past year, the company has issued $8.6 billion of debt over the past year and the price is nearing a two-year high of $39.04.
The Peter Lynch Chart suggests that the company is currently undervalued:
BHP Billiton has a market cap of $171.37 billion. Its shares are currently trading at around $64.09 with a P/E ratio of 17.90, a P/S ratio of 2.40 and a P/B ratio of 2.60. The company had an annual average earnings growth of 27.3% over the past ten years.
GuruFocus rated BHP the business predictability rank of 3-star.
Williams Companies (WMB)
On Aug. 21, Williams Companies declared a dividend of $0.366 per share, representing a 3.66% dividend yield for the company. This dividend is payable on Sept. 30 to shareholders of the record at the close of business on Sept. 13, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 35.9%
· 5-year: 29.9%
· 3-year: 39.6%
Williams Companies is a natural gas company, which mainly finds, produces, gathers, processes and transports natural gas. The company's operations are conducted through its subsidiaries.
Williams Companies’ historical revenue and net income:
The analysis of Williams Companies reports that the revenue has been in decline over the past five years, the price is near a 10-year high of $38.04, the company has issued $3.3 billion over the past three years and that the company’s Piotroski F-Score is high, indicating a healthy situation.
The Peter Lynch Chart suggests that the company is currently overvalued:
Williams Companies has a market cap of $24.91 billion. Its shares are currently trading at around $36.46 with a P/E ratio of 39.30, a P/S ratio of 3.40 and a P/B ratio of 5.30. Williams Companies had an annual average earnings growth of 2.3% over the past 10 years.
PPL Corp. (PPL, Financial)
On Aug. 23, PPL Corp. declared a dividend of $0.368 per share, representing a 4.71% dividend yield for the company. This dividend is payable on Oct. 1 to shareholders of the record at the close of business on Sept. 10, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 7.6%
· 5-year: 2.1%
· 3-year: 8.8%
PPL is an energy and utility holding company that, through its subsidiaries, is mainly engaged in the generation and marketing of electricity in the northeastern and western U.S.
PPL’s historical revenue and net income:
The Peter Lynch Chart suggests that the company is currently undervalued:
PPL Corporation has a market cap of $19.39 billion. Its shares are currently trading at around $30.70 with a P/E ratio of 12.50, a P/S ratio of 1.70 and a P/B ratio of 1.60. The company had an annual average earnings growth of 2.6% over the past 10 years.
Altria Group (MO)
On Aug. 23, Altria Group declared a dividend of $0.48 per share, representing a 5.13% dividend yield for the company. This dividend is payable on Oct. 10 to shareholders of the record at the close of business on Sept. 16, 2013.
The company’s historical dividend growth is as follows:
· 10-year: -8.7%
· 5-year: 2.1%
· 3-year: 8.8%
The company's wholly owned subsidiaries included Philip Morris USA, which is engaged in the manufacture and sale of cigarettes and other tobacco products in the U.S., and John Middleton, which is engaged in the manufacture and sale of machine-made cigars and pipe tobacco.
Altria Group’s historical revenue and net income:
The analysis on Altria reports that the price is close to a 10-year high, the operating margin is expanding, the P/E ratio is nearing a two-year low and the P/S ratio is nearing a 10-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Altria Group has a market cap of $68.59 billion. Its shares are currently trading at around $34.22 with a P/E ratio of 15.70, a P/S ratio of 3.90 and a P/B ratio of 19.20. The company had an annual average earnings growth of 9.7% over the past five years.
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· Have a dividend yield of greater than 3%.
· Have a strong history of stable and increasing dividends.
· Maintain Guru ownership.
· Have a market cap of greater than $10 billion.
The following six 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:
Commonwealth Bank of Australia (CMWAY)
On Aug. 16, Commonwealth Bank of Australia declared a dividend of $1.806 per share, representing a 5.32% dividend yield for the company. This dividend is payable on Oct. 15 to shareholders of the record at the close of business on Aug. 26, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 8.1%
· 5-year: 9.8%
· 3-year: 15.4%
Commonwealth Bank of Australia is Australia's largest retail bank and one of the "Big Four." It also operates in New Zealand and Asia. Its core business is the provision of retail, business and institutional banking services. It is also a major fund manager and has increasing market shares in general and life insurance.
Commonwealth Bank’s historical revenue and net income:
The analysis on Commonwealth Bank reports that the price is nearing a 10-year high of $73.82, the company has enough cash to cover all of its debt, its operating margin is expanding and its revenue has shown predictable revenue and earnings growth.
The Peter Lynch Chart suggests that the company is currently overvalued:
Commonwealth Bank of Australia has a market cap of $105.76 billion. Its shares are currently trading at around $65.61 with a P/E ratio of 15.70, a P/S ratio of 5.00 and a P/B ratio of 2.90. The bank had an annual average earnings growth of 1.4% over the past ten years.
GuruFocus rated Commonwealth Bank of Australia the business predictability rank of 3-star.
Ensco PLC (ESV)
On Aug. 19, Ensco PLC declared a dividend of $0.50 per share, representing a 3.05% dividend yield for the company. This dividend is payable on Sept. 20 to shareholders of the record at the close of business on Sept. 9, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 39.3%
· 5-year: 123.8%
· 3-year: 146.6%
The company is a global offshore contract drilling company. It is a provider of offshore contract drilling services to the international oil and gas industry.
Ensco’s historical revenue and net income:
The analysis on Ensco reports that the dividend yield is at a 1-year high, the P/E ratio is near a 2-year low and the P/B ratio is at a 1-year low.
The Peter Lynch Chart suggests that the company is currently undervalued:
Ensco PLC has a market cap of $13.46 billion. Its shares are currently trading at around $57.63 with a P/E ratio of 10.40, a P/S ratio of 2.90 and a P/B ratio of 1.10. The company had an annual average earnings growth of 15.2% over the past 10 years.
BHP Billiton (BHP)
On Aug. 20, BHP Billiton declared a dividend of $1.18 per share, representing a 3.53% dividend yield for the company. This dividend is payable on Sept. 25 to shareholders of the record at the close of business on Sept. 6, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 27.5%
· 5-year: 14.3%
· 3-year: 10.7%
BHP Billiton is a leader in the global natural resources industry. The Group has high-value and industry-leading positions in aluminum, metallurgical coal, thermal coal, copper, ferro-alloys, iron ore and titanium minerals.
BHP’s historical revenue and net income:
The analysis on BHP reports that the revenue has been in decline over the past year, the company has issued $8.6 billion of debt over the past year and the price is nearing a two-year high of $39.04.
The Peter Lynch Chart suggests that the company is currently undervalued:
BHP Billiton has a market cap of $171.37 billion. Its shares are currently trading at around $64.09 with a P/E ratio of 17.90, a P/S ratio of 2.40 and a P/B ratio of 2.60. The company had an annual average earnings growth of 27.3% over the past ten years.
GuruFocus rated BHP the business predictability rank of 3-star.
Williams Companies (WMB)
On Aug. 21, Williams Companies declared a dividend of $0.366 per share, representing a 3.66% dividend yield for the company. This dividend is payable on Sept. 30 to shareholders of the record at the close of business on Sept. 13, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 35.9%
· 5-year: 29.9%
· 3-year: 39.6%
Williams Companies is a natural gas company, which mainly finds, produces, gathers, processes and transports natural gas. The company's operations are conducted through its subsidiaries.
Williams Companies’ historical revenue and net income:
The analysis of Williams Companies reports that the revenue has been in decline over the past five years, the price is near a 10-year high of $38.04, the company has issued $3.3 billion over the past three years and that the company’s Piotroski F-Score is high, indicating a healthy situation.
The Peter Lynch Chart suggests that the company is currently overvalued:
Williams Companies has a market cap of $24.91 billion. Its shares are currently trading at around $36.46 with a P/E ratio of 39.30, a P/S ratio of 3.40 and a P/B ratio of 5.30. Williams Companies had an annual average earnings growth of 2.3% over the past 10 years.
PPL Corp. (PPL, Financial)
On Aug. 23, PPL Corp. declared a dividend of $0.368 per share, representing a 4.71% dividend yield for the company. This dividend is payable on Oct. 1 to shareholders of the record at the close of business on Sept. 10, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 7.6%
· 5-year: 2.1%
· 3-year: 8.8%
PPL is an energy and utility holding company that, through its subsidiaries, is mainly engaged in the generation and marketing of electricity in the northeastern and western U.S.
PPL’s historical revenue and net income:
The Peter Lynch Chart suggests that the company is currently undervalued:
PPL Corporation has a market cap of $19.39 billion. Its shares are currently trading at around $30.70 with a P/E ratio of 12.50, a P/S ratio of 1.70 and a P/B ratio of 1.60. The company had an annual average earnings growth of 2.6% over the past 10 years.
Altria Group (MO)
On Aug. 23, Altria Group declared a dividend of $0.48 per share, representing a 5.13% dividend yield for the company. This dividend is payable on Oct. 10 to shareholders of the record at the close of business on Sept. 16, 2013.
The company’s historical dividend growth is as follows:
· 10-year: -8.7%
· 5-year: 2.1%
· 3-year: 8.8%
The company's wholly owned subsidiaries included Philip Morris USA, which is engaged in the manufacture and sale of cigarettes and other tobacco products in the U.S., and John Middleton, which is engaged in the manufacture and sale of machine-made cigars and pipe tobacco.
Altria Group’s historical revenue and net income:
The analysis on Altria reports that the price is close to a 10-year high, the operating margin is expanding, the P/E ratio is nearing a two-year low and the P/S ratio is nearing a 10-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Altria Group has a market cap of $68.59 billion. Its shares are currently trading at around $34.22 with a P/E ratio of 15.70, a P/S ratio of 3.90 and a P/B ratio of 19.20. The company had an annual average earnings growth of 9.7% over the past five years.
To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.
Try a free 7-day premium membership.
