During the past week, GuruFocus recognized nine companies as dividend growers. In order to be qualified for this list, the company had to:
- Have a dividend 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 nine 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:
Mattel (MAT)
On Jan. 31, Mattel declared a dividend of $0.380 per share, representing 3.81% dividend yield for the company. This dividend is payable on March 7 to shareholders of the record at the close of business on Feb. 20, 2014.
The company’s historical dividend growth is as follows:
- 10-year:Ă‚ 11.60%
- 5-year:Ă‚ 12.90%
- 3-year:Ă‚ 18.20%
Mattel has offered a quarterly cash dividend since March 1982. The dividend has consistently increased since 1991.
Mattel designs, manufactures and markets toys and family products. The Mattel portfolio consists of products such as: Barbie, Hot Wheels, Monster High, American Girl, Thomas & Friends and Fisher-Price brands.
Mattel’s historical revenue and net income:
The Peter Lynch Chart suggests that the company is currently overvalued:
Mattel has a market cap of $12.29 billion. Its shares are currently trading at around $36.30 with a P/E ratio of 15.00, a P/S ratio of 1.90 and a P/B ratio of 4.10. The company had an annual average earnings growth of 4.80% over the past ten years.
GuruFocus rated Mattel the business predictability rank of 3-star.
Entergy Corp (ETR)
On Jan. 31, Entergy declared a dividend of $0.83 per share, representing 5.30% dividend yield for the company. This dividend is payable on March 3 to shareholders of the record at the close of business on Feb. 13, 2014.
The company’s historical dividend growth is as follows:
- 10-year:Ă‚ 8.60%
- 5-year:Ă‚ 3.10%
- 3-year:Ă‚ 3.40%
Entergy Corporation is an integrated energy Company engaged primarily in electric power production and retail electric distribution operations.
Entergy’s historical revenue and net income:
The analysis on Entergy reports that the company has issued $1.8 billion in debt over the past three years and that its price is nearing a 3-year high.
The Peter Lynch Chart suggests that the company is currently undervalued:
Entergy has a market cap of $11.21 billion. Its shares are currently trading at around $62.84 with a P/E ratio of 13.10, a P/S ratio of 1.00 and a P/B ratio of 1.20. The company had an annual average earnings growth of 6.70% over the past ten years.
There are currently nine gurus that hold a stake in Entergy.
HCP Inc. (HCP)
On Jan. 31, HCP declared a dividend of $0.545 per share, representing 5.40% dividend yield for the company. This dividend is payable on Feb. 18 to shareholders of the record at the close of business on Feb. 10, 2014.
The company’s historical dividend growth is as follows:
- 10-year:Ă‚ 3.40%
- 5-year:Ă‚ 2.30%
- 3-year:Ă‚ 2.80%
HCP is a REIT that invests mainly 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 operating margin is expanding, its dividend yield is close to a 3-year high and over the past three years the company has issued $2.4 billion of debt.
The Peter Lynch Chart suggests that the company is currently overvalued:
HCP has a market cap of $17.76 billion.Ă‚ Its shares are currently trading at around $38.87 with a P/E ratio of 19.20, a P/S ratio of 8.40 and a P/B ratio of 1.70.Ă‚ The company had an annual average earnings growth of 24.60% over the past ten years.
Health Care REIT (HCN)
On Jan. 30, Intel declared a dividend of $0.795 per share, representing 5.30% dividend yield for the company. This dividend is payable on Feb. 20 to shareholders of the record at the close of business on Feb. 10, 2014.
The company’s historical dividend growth is as follows:
- 10-year:Ă‚ 2.70%
- 5-year:Ă‚ 2.30%
- 3-year:Ă‚ 2.90%
This is Health Care REIT’s 171st consecutive quarterly dividend payment.
Health Care REIT is a REIT that invests in senior housing and health care real estate. The company also provides property management and development services. Its property types include investment properties and medical office buildings.
Health Care’s historical revenue and net income:
The Peter Lynch Chart suggests that the company is currently overvalued:
Health Care REIT has a market cap of $16.59 billion. Its shares are currently trading at around $57.48 with a P/E ratio of 96.40, a P/S ratio of 6.10 and a P/B ratio of 1.60. The company had an annual average earnings growth of 1.70% over the past five years.
Check out the company’s total dividend return calculator.
Chevron Corp (CVX)
On Jan. 29, Chevron declared a dividend of $1.00 per share, representing 3.50% dividend yield for the company. This dividend is payable on March 10 to shareholders of the record at the close of business on Feb. 14, 2014.
The company’s historical dividend growth is as follows:
- 10-year:Ă‚ 10.40%
- 5-year:Ă‚ 8.40%
- 3-year:Ă‚ 9.70%
Chevron manages its investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to U.S. and international subsidiaries that engage in fully integrated petroleum operations, chemicals operations, mining operations, power generation and energy services.
Chevron’s historical revenue and net income:
The analysis on Chevron reports that the company has issued $8.4 billion of debt over the past three years, its revenue has been in decline over the past year, the price is nearing a 10-year high and its operating margin is expanding.
The Peter Lynch Chart suggests that the company is currently undervalued:
Chevron has a market cap of $214.68 billion. Its shares are currently trading at around $111.63 with a P/E ratio of 9.10, a P/S ratio of 0.93 and a P/B ratio of 1.49. The company had an annual average earnings growth 12.50% over the past ten years.
GuruFocus rated Chevron the business predictability rank of 2-star.
McDonald’s Corporation (MCD)
On Jan. 29, McDonald’s declared a dividend of $0.810 per share, representing 3.30% dividend yield for the company. This dividend is payable on March 17 to shareholders of the record at the close of business on March 3, 2014.
The company’s historical dividend growth is as follows:
- 10-year:Ă‚ 24.90%
- 5-year:Ă‚ 14.40%
- 3-year:Ă‚ 11.90%
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 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 $92.56 billion. Its shares are currently trading at around $93.02 with a P/E ratio of 16.90, a P/S ratio of 3.40 and a P/B ratio of 6.20. The company had an annual average earnings growth of 14.6% over the past 10 years.
GuruFocus rated McDonald’s Corporation the business predictability rank of 5-star.
AvalonBay Communities (AVB)
On Jan. 29, AvalonBay Communities declared a dividend of $1.16 per share, representing 3.50% dividend yield for the company. This dividend is payable on April 15 to shareholders of the record at the close of business on March 31, 2014.
The company’s historical dividend growth is as follows:
- 10-year:Ă‚ 3.90%
- 5-year:Ă‚ 1.70%
- 3-year:Ă‚ 2.80%
AvalonBay Communities is a real estate investment trust which focuses on the ownership and operation of apartment communities. The company is engaged in the development, redevelopment, acquisition, ownership and operation of communities in high barrier-to-entry markets in the U.S.
AvalonBay’s historical revenue and net income:
The analysis on AvalonBay reports that the company’s operating margin is expanding, its dividend yield is close to a 3-year high and its P/B and P/S ratios are trading at 3-year lows.
The company recently announced that its CFO Thomas Sargeant would be retiring effective May 2014 and that his successor would be Kevin O’Shea. O’Shea is currently the Vice President of Capital Markets for AvalonBay.
The Peter Lynch Chart suggests that the company is currently overvalued:
AvalonBay Communities has a market cap of $15.95 billion. Its shares are currently trading at around $123.21 with a P/E ratio of 61.10, a P/S ratio of 10.80 and a P/B ratio of 1.90. The company had an annual average earnings growth of 12.20% over the past five years.
Potash Corporation of Saskatchewan (POT)
On Jan. 29, Potash Corporation of Saskatchewan declared a dividend of $0.35 per share, representing 4.20% dividend yield for the company. This dividend is payable on May 1 to shareholders of the record at the close of business on April 10, 2014.
The company’s historical dividend growth is as follows:
- 10-year:Ă‚ 24.60%
- 5-year:Ă‚ 49.90%
- 3-year:Ă‚ 61.50%
Potash Corporation is an integrated fertilizer and related industrial and feed products company. The company owns and operates five potash mines in Saskatchewan and one in New Brunswick. Its phosphate operations include the manufacture and sale of solid and liquid phosphate fertilizers, phosphate feed and industrial acid, which is used in food products and industrial processes.
Potash Corporation’s historical revenue and net income:
The analysis on Potash reports that the company’s asset growth is currently faster than its revenue growth, its revenue has been in decline over the past year and its operating margin is expanding. The analysis also notes that the dividend yield is close to a 10-year high.
The Peter Lynch Chart suggests that the company is currently undervalued:
Potash Corporation of Saskatchewan has a market cap of $26.98 billion. Its shares are currently trading at around $31.52 with a P/E ratio of 14.00, a P/S ratio of 3.80 and a P/B ratio of 2.70. The company had an annual average earnings growth of 35.40% over the past ten years.
GuruFocus rated Potash the business predictability rank of 3-star.
Magellan Midstream Partners (MMP)
On Jan. 28, Magellan Midstream declared a dividend of $0.585 per share, representing 3.20% dividend yield for the company. This dividend is payable on Feb. 14 to shareholders of the record at the close of business on Feb. 7, 2014.
The company’s historical dividend growth is as follows:
- 10-year:Ă‚ 9.20%
- 5-year:Ă‚ 6.60%
- 3-year:Ă‚ 7.90%
This most recent quarterly distribution represents the 47th distribution increase since the company’s IPO in 2001.
Magellan Midstream is mainly engaged in the transportation, storage and distribution of refined petroleum products. It owns a petroleum products pipeline system, petroleum products terminals and an ammonia pipeline system.
Magellan Midstream’s historical revenue and net income:
The analysis on Magellan reports that the company’s revenue has been in decline over the past five years, they have issued $611.34 million of debt over the past three years, its price is near a 10-year high and its operating margin is expanding.
Magellan also recently announced that it has plans to construct a new origin at Barnhart, Texas to accept crude oil shipments. This stop falls along the company’s Longhorn pipeline. This new origin is expected to begin receiving in 2015 and will cost about $25 million.
The Peter Lynch Chart suggests that the company is currently overvalued:
Magellan Midstream Partners has a market cap of $14.9 billion. Its shares are currently trading at around $65.75 with a P/E ratio of 27.40, a P/S ratio of 8.10 and a P/B ratio of 9.50. The company had an annual average earnings growth of 9.80% over the past ten years.
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