During the past week, GuruFocus recognized 10 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 five companies were declared at the beginning of last week. The companies come from various industries and sectors of the market, but they all fit the necessary criteria needed to qualify them as dividend growers. The other five dividend growers are featured in Part II of this article.
A comparison of the companies’ historical dividend growth:
CenterPoint Energy (CNP)
On Oct. 23, CenterPoint Energy declared a dividend of $0.208 per share, representing a 3.30% dividend yield for the company. This dividend is payable on Dec. 10 to shareholders of the record at the close of business on Nov. 15, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 10.60%
· 5-year: 2.50%
· 3-year: 2.10%
CenterPoint Energy is an electric and natural gas utility company, serving several markets in the states of Ark., La., Minn., Miss., Okla., and Texas. Its operations are segmented into five areas: Electric Transmission & Distribution, Natural Gas Distribution, Competitive Natural Gas Sales and Services, Interstate Pipelines, Field Services and Other Operations.
CenterPoint’s historical revenue and net income:
The analysis on CenterPoint reports that the company’s revenue has been in decline for the past five years, its price is near a 10-year high as are its P/E and P/S ratios.
The company was recently ranked as a top performer in the J.D. Power 2013 customer satisfaction survey.
The Peter Lynch Chart suggests that the company is currently overvalued:
CenterPoint Energy has a market cap of $10.65 billion. Its shares are currently trading at around $24.84 with a P/E ratio of 56.20, a P/S ratio of 1.30 and a P/B ratio of 2.50.
Energy Transfer Equity LP (ETE)
On Oct. 23, Energy Transfer Equity declared a dividend of $0.673 per share, representing a 3.70% dividend yield for the company. This dividend is payable on Nov. 19 to shareholders of the record at the close of business on Nov. 4, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 0%
· 5-year: 6.30%
· 3-year: 5.90%
Energy Transfer Equity is a publicly traded partnership, which owns the general partner of Energy Transfer Partners LP. The company owns and operates natural gas gathering systems, natural gas intrastate pipeline systems and gas processing plants.
Energy Transfer Equity’s historical revenue and net income:
This most recent distribution represents an increase of $0.045 per common unit on an annualized basis. This is the fourth consecutive quarter that ETE has raised its distribution.
The analysis on Energy Transfer reports that the company’s price is near a 10-year high, its gross and operating margins have been in a long-term decline and over the past three years they have issued $7.2 billion of debt.
Over the past quarter ETE has sold its Missouri Gas Energy assets to Laclede Gas as well as pricing $1.5 billion of senior notes.
The Peter Lynch Chart suggests that the company is currently overvalued:
Energy Transfer Equity has a market cap of $19.1 billion. Its shares are currently trading at around $68.05 with a P/E ratio of 63.60, a P/S ratio of 0.50 and a P/B ratio of 12.80. The company had an annual average earnings growth of 8.90% over the past five years.
GlaxoSmithKline PLC (GSK)
On Oct. 24, GlaxoSmithKline declared a dividend of $0.616 per share, representing a 4.60% dividend yield for the company. This dividend is payable on Jan. 9 to shareholders of the record at the close of business on Nov. 15, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 7.10%
· 5-year: 6.8%
· 3-year: 6.8%
GlaxoSmithKline PLC creates, discovers, develops, manufactures and markets pharmaceutical products including vaccines, over-the-counter (OTC) medicines and health-related consumer products.
GlaxoSmithKline’s historical revenue and net income:
The analysis on GlaxoSmithKline reports that the company’s revenue has been in decline over the past three years, its price is at a 10-year high and it has issued GBP3.1 billion of debt over the past three years.
The company’s third quarter results highlighted:
· EPS growth of 16% to 28.9p, benefiting from operating, financial and long-term cost efficiencies.
· Consumer Healthcare sector up 4%.
· Received four approvals in three markets: Tivicay for HIV, FluLaval Q-IV vaccine for flue, Tafinlar for metastatic melanoma and Relvar Ellipta for asthma.
· Third quarter dividend up 6%.
The Peter Lynch Chart suggests that the company is currently overvalued:
GlaxoSmithKline has a market cap of $128.35 billion. Its shares are currently trading at around $52.57 with a P/E ratio of 19.80, a P/S ratio of 3.00 and a P/B ratio of 12.30. The company had an annual average earnings growth of 9.40% over the past ten years.
There are currently 16 gurus that hold on to a position in GlaxoSmithKline.
GuruFocus rated GlaxoSmithKline the business predictability rank of 2-star.
ONEOK Partners LP (OKS)
On Oct. 24, ONEOK Partners declared a dividend of $0.725 per share, representing a 5.20% dividend yield for the company. This dividend is payable on Nov. 14 to shareholders of the record at the close of business on Nov. 4, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 5.8%
· 5-year: 5%
· 3-year: 6.2%
ONEOK Partners has increased its distribution by 81% since April 2006. The company also increased its most recent quarterly dividend from $0.72 in the second quarter to $0.725 for the third quarter.
ONEOK Partners is one of the largest publicly traded master limited partnerships. It is also considered a leader in the gathering, processing, storage and transportation of natural gas in the U.S. and is the owner of one of the nation’s premier natural gas liquids systems, connecting the NGL supply in the Mid-Continent and Rocky Mountain regions with its key market centers.
ONEOK’s historical revenue and net income:
The analysis on ONEOK reports that the company’s revenue has been in decline over the past year, its dividend is at a 2-year high and its operating margin is expanding.
The company is set to release its third quarter earnings after the market closes on Nov. 5, 2013.
The Peter Lynch Chart suggests that the company is currently overvalued:
ONEOK Partners LP has a market cap of $11.94 billion. Its shares are currently trading at around $54.24 with a P/E ratio of 21.70, a P/S ratio of 1.10 and a P/B ratio of 2.70. The company had an annual average earnings growth of 4.60% over the past ten years.
Three gurus currently hold a position in ONEOK.
HCP Inc (HCP)
On Oct. 24, HCP Inc declared a dividend of $0.525 per share, representing a 4.80% dividend yield for the company. This dividend is payable on Nov. 19 to shareholders of the record at the close of business on Nov. 4, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 3.4%
· 5-year: 2.3%
· 3-year: 2.8%
The company is the only REIT included in the S&P 500 Dividend Aristocrats Index following 28 consecutive years of dividend increases.
At the beginning of the month the company’s Board of Directors named a new president and CEO. The Board named Lauralee Martin to the position. She is one of the highest-ranking women in commercial real estate and has served on HCP’s Board for the past five years. As a result of this change Martin left her position as CEO of the Americas segment of Jones Lang LaSalle (JLL).
HCP is a self-administered REIT that invests primarily in real estate serving the healthcare industry in the U.S. The company acquires, develops leases, manages and disposes of healthcare real estate and provides financing to healthcare providers.
HCP’s historical revenue and net income:
The analysis on HCP reports that the company’s revenue has been in decline for the past five years, it has issued $2.6 billion of debt over the past three years, its operating margin is expanding and its dividend yield is at a 2-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
HCP has a market cap of $19.52 billion. Its shares are currently trading at around $42.82 with a P/E ratio of 21.7, a P/S ratio of 9.60 and a P/B ratio of 1.90. The company had an annual average earnings growth of 17.40% over the past ten years.
There are currently six gurus that maintain a position in HCP.
Check out Part II of this week’s Dividend Growers.
To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.
Try a free 7-day premium membership.
· 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 five companies were declared at the beginning of last week. The companies come from various industries and sectors of the market, but they all fit the necessary criteria needed to qualify them as dividend growers. The other five dividend growers are featured in Part II of this article.
A comparison of the companies’ historical dividend growth:
CenterPoint Energy (CNP)
On Oct. 23, CenterPoint Energy declared a dividend of $0.208 per share, representing a 3.30% dividend yield for the company. This dividend is payable on Dec. 10 to shareholders of the record at the close of business on Nov. 15, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 10.60%
· 5-year: 2.50%
· 3-year: 2.10%
CenterPoint Energy is an electric and natural gas utility company, serving several markets in the states of Ark., La., Minn., Miss., Okla., and Texas. Its operations are segmented into five areas: Electric Transmission & Distribution, Natural Gas Distribution, Competitive Natural Gas Sales and Services, Interstate Pipelines, Field Services and Other Operations.
CenterPoint’s historical revenue and net income:
The analysis on CenterPoint reports that the company’s revenue has been in decline for the past five years, its price is near a 10-year high as are its P/E and P/S ratios.
The company was recently ranked as a top performer in the J.D. Power 2013 customer satisfaction survey.
The Peter Lynch Chart suggests that the company is currently overvalued:
CenterPoint Energy has a market cap of $10.65 billion. Its shares are currently trading at around $24.84 with a P/E ratio of 56.20, a P/S ratio of 1.30 and a P/B ratio of 2.50.
Energy Transfer Equity LP (ETE)
On Oct. 23, Energy Transfer Equity declared a dividend of $0.673 per share, representing a 3.70% dividend yield for the company. This dividend is payable on Nov. 19 to shareholders of the record at the close of business on Nov. 4, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 0%
· 5-year: 6.30%
· 3-year: 5.90%
Energy Transfer Equity is a publicly traded partnership, which owns the general partner of Energy Transfer Partners LP. The company owns and operates natural gas gathering systems, natural gas intrastate pipeline systems and gas processing plants.
Energy Transfer Equity’s historical revenue and net income:
This most recent distribution represents an increase of $0.045 per common unit on an annualized basis. This is the fourth consecutive quarter that ETE has raised its distribution.
The analysis on Energy Transfer reports that the company’s price is near a 10-year high, its gross and operating margins have been in a long-term decline and over the past three years they have issued $7.2 billion of debt.
Over the past quarter ETE has sold its Missouri Gas Energy assets to Laclede Gas as well as pricing $1.5 billion of senior notes.
The Peter Lynch Chart suggests that the company is currently overvalued:
Energy Transfer Equity has a market cap of $19.1 billion. Its shares are currently trading at around $68.05 with a P/E ratio of 63.60, a P/S ratio of 0.50 and a P/B ratio of 12.80. The company had an annual average earnings growth of 8.90% over the past five years.
GlaxoSmithKline PLC (GSK)
On Oct. 24, GlaxoSmithKline declared a dividend of $0.616 per share, representing a 4.60% dividend yield for the company. This dividend is payable on Jan. 9 to shareholders of the record at the close of business on Nov. 15, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 7.10%
· 5-year: 6.8%
· 3-year: 6.8%
GlaxoSmithKline PLC creates, discovers, develops, manufactures and markets pharmaceutical products including vaccines, over-the-counter (OTC) medicines and health-related consumer products.
GlaxoSmithKline’s historical revenue and net income:
The analysis on GlaxoSmithKline reports that the company’s revenue has been in decline over the past three years, its price is at a 10-year high and it has issued GBP3.1 billion of debt over the past three years.
The company’s third quarter results highlighted:
· EPS growth of 16% to 28.9p, benefiting from operating, financial and long-term cost efficiencies.
· Consumer Healthcare sector up 4%.
· Received four approvals in three markets: Tivicay for HIV, FluLaval Q-IV vaccine for flue, Tafinlar for metastatic melanoma and Relvar Ellipta for asthma.
· Third quarter dividend up 6%.
The Peter Lynch Chart suggests that the company is currently overvalued:
GlaxoSmithKline has a market cap of $128.35 billion. Its shares are currently trading at around $52.57 with a P/E ratio of 19.80, a P/S ratio of 3.00 and a P/B ratio of 12.30. The company had an annual average earnings growth of 9.40% over the past ten years.
There are currently 16 gurus that hold on to a position in GlaxoSmithKline.
GuruFocus rated GlaxoSmithKline the business predictability rank of 2-star.
ONEOK Partners LP (OKS)
On Oct. 24, ONEOK Partners declared a dividend of $0.725 per share, representing a 5.20% dividend yield for the company. This dividend is payable on Nov. 14 to shareholders of the record at the close of business on Nov. 4, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 5.8%
· 5-year: 5%
· 3-year: 6.2%
ONEOK Partners has increased its distribution by 81% since April 2006. The company also increased its most recent quarterly dividend from $0.72 in the second quarter to $0.725 for the third quarter.
ONEOK Partners is one of the largest publicly traded master limited partnerships. It is also considered a leader in the gathering, processing, storage and transportation of natural gas in the U.S. and is the owner of one of the nation’s premier natural gas liquids systems, connecting the NGL supply in the Mid-Continent and Rocky Mountain regions with its key market centers.
ONEOK’s historical revenue and net income:
The analysis on ONEOK reports that the company’s revenue has been in decline over the past year, its dividend is at a 2-year high and its operating margin is expanding.
The company is set to release its third quarter earnings after the market closes on Nov. 5, 2013.
The Peter Lynch Chart suggests that the company is currently overvalued:
ONEOK Partners LP has a market cap of $11.94 billion. Its shares are currently trading at around $54.24 with a P/E ratio of 21.70, a P/S ratio of 1.10 and a P/B ratio of 2.70. The company had an annual average earnings growth of 4.60% over the past ten years.
Three gurus currently hold a position in ONEOK.
HCP Inc (HCP)
On Oct. 24, HCP Inc declared a dividend of $0.525 per share, representing a 4.80% dividend yield for the company. This dividend is payable on Nov. 19 to shareholders of the record at the close of business on Nov. 4, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 3.4%
· 5-year: 2.3%
· 3-year: 2.8%
The company is the only REIT included in the S&P 500 Dividend Aristocrats Index following 28 consecutive years of dividend increases.
At the beginning of the month the company’s Board of Directors named a new president and CEO. The Board named Lauralee Martin to the position. She is one of the highest-ranking women in commercial real estate and has served on HCP’s Board for the past five years. As a result of this change Martin left her position as CEO of the Americas segment of Jones Lang LaSalle (JLL).
HCP is a self-administered REIT that invests primarily in real estate serving the healthcare industry in the U.S. The company acquires, develops leases, manages and disposes of healthcare real estate and provides financing to healthcare providers.
HCP’s historical revenue and net income:
The analysis on HCP reports that the company’s revenue has been in decline for the past five years, it has issued $2.6 billion of debt over the past three years, its operating margin is expanding and its dividend yield is at a 2-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
HCP has a market cap of $19.52 billion. Its shares are currently trading at around $42.82 with a P/E ratio of 21.7, a P/S ratio of 9.60 and a P/B ratio of 1.90. The company had an annual average earnings growth of 17.40% over the past ten years.
There are currently six gurus that maintain a position in HCP.
Check out Part II of this week’s Dividend Growers.
To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.
Try a free 7-day premium membership.
