During the past week, GuruFocus recognized four 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 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:
McDonald’s Corporation (MCD)
On Sept. 19, McDonald’s declared a dividend of $0.81 per share, representing a 3.18% dividend yield for the company. This dividend is payable on Dec. 16 to shareholders of the record at the close of business on Dec. 2, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 24.9%
· 5-year: 14.4%
· 3-year: 11.9%
McDonald’s Corp. franchises and operates McDonald's restaurants in the food service industry. The company and its franchisees purchase food, packaging, equipment and other goods from numerous independent suppliers.
McDonald’s historical revenue and net income:
The company recently released its August comparable sales which highlighted:
· Comparable sales increased 1.9% in Aug.
· U.S. up 0.2%
· Europe up 3.3%
· APMEA down 0.5%
The Peter Lynch Chart suggests that the company is currently overvalued:
The analysis on McDonald’s reports that the company’s operating margin is expanding, its dividend yield is at a three-year high, its revenue growth has slowed over the past year and its price is nearing a 10-year high.
McDonald’s has a market cap of $97.25 billion. Its shares are currently trading at around $97.28 with a P/E ratio of 17.80, a P/S ratio of 3.50 and a P/B ratio of 6.38. The company had an annual average earnings growth of 14.5% over the past 10 years.
GuruFocus rated McDonald’s Corporation the business predictability rank of 5-star.
PG&E Corp. (PCG)
On Sept. 18, PG&E declared a dividend of $0.455 per share, representing a 4.39% dividend yield for the company. This dividend is payable on Oct. 15 to shareholders of the record at the close of business on Sept. 30, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 0%
· 5-year: 4%
· 3-year: 2.7%
PG&E Corporation is a holding company that conducts its business through Pacific Gas and Electric Company, a public utility operating in northern and central California. The utility's revenues are generated mainly through the sale and delivery of electricity and natural gas to customers.
PG&E’s historical revenue and net income:
The company’s second quarter results reported:
· Net income was $328 million, or $0.74 per share. Up from $235 million last year.
· Non-GAAP basis was at $343 million, or $0.81 per share.
· The total cost to shareholders for natural gas pipeline safety-related work incurred since the San Bruno accident or committed over the next several years exceeds $2.2 billion.
· 2013 guidance of GAAP $1.71 to $2.27 per share
The Peter Lynch Chart suggests that the company is currently overvalued:
PG&E has a market cap of $18.82 billion. Its shares are currently trading at around $42.28 with a P/E ratio of 20.00, a P/S ratio of 1.20 and a P/B ratio of 1.33.
Clorox Company (CLX)
On Sept. 17, Clorox declared a dividend of $0.71 per share, representing a 3.18% dividend yield for the company. This dividend is payable on Nov. 15 to shareholders of the record at the close of business on Oct. 30, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 11.7%
· 5-year: 8.8%
· 3-year: 8.6%
Clorox Company is a manufacturer and marketer of consumer and professional products. It sells its products through mass merchandisers, grocery stores, other retail outlets, distributors and medical supply providers.
Clorox’s historical revenue and net income:
The company is celebrating its 100th year anniversary this year. The company has also recently announced several new products this year including Clorox Brand Pool Care Products and a new 4-in-One Disinfectant & Sanitizer.
On Aug. 1 the company reported their FY13 results which highlighted a 3% sales growth over the year, an increase of 80 basis points of gross margin expansion and $4.31 diluted EPS from continuing operations.
The Peter Lynch Chart suggests that the company is currently overvalued:
Clorox Company has a market cap of $10.83 billion. Its shares are currently trading at around $83.03 with a P/E ratio of 19.30, a P/S ratio of 1.90 and a P/B ratio of 74.05. The company had an annual average earnings growth of 5.4% over the past ten years.
Barclays Africa Group Limited (AGRPY)
On Sept. 17, Barclays Africa Group declared a dividend of $0.563 per share, representing a 4.83% dividend yield for the company. This dividend is payable on Oct. 3 to shareholders of the record at the close of business on Sept. 27, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 0%
· 5-year: 28.1%
· 3-year: 29.4%
Barclays Africa Group, formerly ABSA Group, provides banking, assurance and wealth management products and services in South Africa. It provides retail banking products and services as well as home and vehicle loans.
Barclays Africa’s historical revenue and net income:
The analysis on Barclays Africa reports that the company has issued ZAR303.336 million of debt over the past three years, the company has no debt and the company’s dividend yield is at a 5-year high.
Barclays Africa has a market cap of $10.69 billion. Its shares are currently trading at around $29.77 with a P/E ratio of 6.90, a P/S ratio of 1.70 and a P/B ratio of 1.74.
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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 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:
McDonald’s Corporation (MCD)
On Sept. 19, McDonald’s declared a dividend of $0.81 per share, representing a 3.18% dividend yield for the company. This dividend is payable on Dec. 16 to shareholders of the record at the close of business on Dec. 2, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 24.9%
· 5-year: 14.4%
· 3-year: 11.9%
McDonald’s Corp. franchises and operates McDonald's restaurants in the food service industry. The company and its franchisees purchase food, packaging, equipment and other goods from numerous independent suppliers.
McDonald’s historical revenue and net income:
The company recently released its August comparable sales which highlighted:
· Comparable sales increased 1.9% in Aug.
· U.S. up 0.2%
· Europe up 3.3%
· APMEA down 0.5%
The Peter Lynch Chart suggests that the company is currently overvalued:
The analysis on McDonald’s reports that the company’s operating margin is expanding, its dividend yield is at a three-year high, its revenue growth has slowed over the past year and its price is nearing a 10-year high.
McDonald’s has a market cap of $97.25 billion. Its shares are currently trading at around $97.28 with a P/E ratio of 17.80, a P/S ratio of 3.50 and a P/B ratio of 6.38. The company had an annual average earnings growth of 14.5% over the past 10 years.
GuruFocus rated McDonald’s Corporation the business predictability rank of 5-star.
PG&E Corp. (PCG)
On Sept. 18, PG&E declared a dividend of $0.455 per share, representing a 4.39% dividend yield for the company. This dividend is payable on Oct. 15 to shareholders of the record at the close of business on Sept. 30, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 0%
· 5-year: 4%
· 3-year: 2.7%
PG&E Corporation is a holding company that conducts its business through Pacific Gas and Electric Company, a public utility operating in northern and central California. The utility's revenues are generated mainly through the sale and delivery of electricity and natural gas to customers.
PG&E’s historical revenue and net income:
The company’s second quarter results reported:
· Net income was $328 million, or $0.74 per share. Up from $235 million last year.
· Non-GAAP basis was at $343 million, or $0.81 per share.
· The total cost to shareholders for natural gas pipeline safety-related work incurred since the San Bruno accident or committed over the next several years exceeds $2.2 billion.
· 2013 guidance of GAAP $1.71 to $2.27 per share
The Peter Lynch Chart suggests that the company is currently overvalued:
PG&E has a market cap of $18.82 billion. Its shares are currently trading at around $42.28 with a P/E ratio of 20.00, a P/S ratio of 1.20 and a P/B ratio of 1.33.
Clorox Company (CLX)
On Sept. 17, Clorox declared a dividend of $0.71 per share, representing a 3.18% dividend yield for the company. This dividend is payable on Nov. 15 to shareholders of the record at the close of business on Oct. 30, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 11.7%
· 5-year: 8.8%
· 3-year: 8.6%
Clorox Company is a manufacturer and marketer of consumer and professional products. It sells its products through mass merchandisers, grocery stores, other retail outlets, distributors and medical supply providers.
Clorox’s historical revenue and net income:
The company is celebrating its 100th year anniversary this year. The company has also recently announced several new products this year including Clorox Brand Pool Care Products and a new 4-in-One Disinfectant & Sanitizer.
On Aug. 1 the company reported their FY13 results which highlighted a 3% sales growth over the year, an increase of 80 basis points of gross margin expansion and $4.31 diluted EPS from continuing operations.
The Peter Lynch Chart suggests that the company is currently overvalued:
Clorox Company has a market cap of $10.83 billion. Its shares are currently trading at around $83.03 with a P/E ratio of 19.30, a P/S ratio of 1.90 and a P/B ratio of 74.05. The company had an annual average earnings growth of 5.4% over the past ten years.
Barclays Africa Group Limited (AGRPY)
On Sept. 17, Barclays Africa Group declared a dividend of $0.563 per share, representing a 4.83% dividend yield for the company. This dividend is payable on Oct. 3 to shareholders of the record at the close of business on Sept. 27, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 0%
· 5-year: 28.1%
· 3-year: 29.4%
Barclays Africa Group, formerly ABSA Group, provides banking, assurance and wealth management products and services in South Africa. It provides retail banking products and services as well as home and vehicle loans.
Barclays Africa’s historical revenue and net income:
The analysis on Barclays Africa reports that the company has issued ZAR303.336 million of debt over the past three years, the company has no debt and the company’s dividend yield is at a 5-year high.
Barclays Africa has a market cap of $10.69 billion. Its shares are currently trading at around $29.77 with a P/E ratio of 6.90, a P/S ratio of 1.70 and a P/B ratio of 1.74.
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