During the past week, GuruFocus recognized five 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 five 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:
Sysco Corporation (SYY)
On Feb. 21, Sysco declared a dividend of $0.290 per share, representing 3.10% dividend yield for the company. This dividend is payable on April 25 to shareholders of the record at the close of business on April 4, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 9.30%
- 5-year: 4.20%
- 3-year: 3.90%
Sysco through its subsidiaries and divisions is the North American distributor of food and related products mainly to the foodservice or 'food-away-from-home' industry.
Sysco’s historical revenue and net income:
The analysis on Sysco reports that the company has shown predictable revenue and earnings growth, its dividend yield is near a 5-year low and its price is near a 10-year high. It also notes that over the past three years the company has issued $530.71 billion.
The Peter Lynch Chart suggests that the company is currently overvalued:
Sysco has a market cap of $21.15 billion. Its shares are currently trading at around $36.16 with a P/E ratio of 21.80, a P/S ratio of 4.20% and a P/B ratio of 3.97. Sysco had an annual average earnings growth of 4.20% over the past ten years.
On Feb. 20, Lorillard declared a dividend of $0.615 per share, representing 4.60% dividend yield for the company. This dividend is payable on March 10 to shareholders of the record at the close of business on Feb. 28, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 0.00%
- 5-year: 31.40%
- 3-year: 17.30%
Lorillard through its subsidiaries is engaged in the manufacture and sale of cigarettes. Its principal products are marketed under the brand names of Newport, Kent, True, Maverick and Old Gold with substantially all of its sales in the U.S.
Lorillard’s historical revenue and net income:
The analysis on Lorillard reports that the company’s operating and gross margins have been in a 5-year decline, its revenue has slowed down over the year and its price is at a 10-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Lorillard has a market cap of $17.84 billion. Its shares are trading at around $48.43 per share with a P/E ratio of 15.20, a P/S ratio of 2.60 and a P/B ratio of 1.80. The dividend yield of Lorillard stocks is at 4.60%. The company had an annual average earnings growth of 16.10%.
Public Storage (PSA)
On Feb. 20, Public Storage declared a dividend of $1.40 per share, representing 3.10% dividend yield for the company. This dividend is payable on March 31 to shareholders of the record at the close of business on March 14, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 10.00%
- 5-year: 20.80%
- 3-year: 26.00%
Public Storage’s principal business activities include the acquisition, development, ownership and operation of self-storage facilities which offer storage spaces for lease, generally on a month-to-month basis, for personal and business use. The company owns and operates self-storage facilities in the US.
Public Storage’s historical revenue and net income:
The analysis on Public Storage reports that the company shows strong financial strength, its Altman Z-Score and Piotroski F-Score are high and its price is near a 10-year high. It also notes that the company’s operating margin is expanding and its P/S and P/B ratio are trading at 10-year highs.
The Peter Lynch Chart suggests that the company is currently overvalued:
Public Storage has a market cap of $28.8 billion. Its shares are currently trading at around $167.37 with a P/E ratio of 35.60, a P/S ratio of 15.00 and a P/B ratio of 5.50. The company had an annual average earnings growth of 2.20% over the past five years.
Xcel Energy (XEL)
On Feb. 19, Xcel declared a dividend of $0.30 per share, representing 3.70% dividend yield for the company. This dividend is payable on April 20 to shareholders of the record at the close of business on March 20, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 3.70%
- 5-year: 3.20%
- 3-year: 3.20%
Xcel Company is a holding company, with subsidiaries engaged mainly in the utility business. The company's utility subsidiaries are engaged mainly in the generation, purchase, transmission, distribution and sale of electricity and in the purchase, transportation, distribution and sale of natural gas.
Xcel’s historical revenue and earnings growth:
The analysis on Xcel reports that the company’s revenue has been in decline for the past five years, the price is sitting on a 10-year high and its operating margin has been expanding. The analysis also notes that the company has issued $2.1 billion of debt over the past three years.
The Peter Lynch Chart suggests that the company’s currently overvalued:
Xcel Energy has a market cap of $15 billion. Its shares are currently trading at around $30.14 with a P/E ratio of 15.80, a P/S ratio of 1.40 and a P/B ratio of 1.60. The company had an annual average earnings growth of 3.30% over the past ten years.
Newmont Mining Corporation (NEM)
On Feb. 19, Newmont Mining declared a dividend of $0.150 per share, representing 5.10% dividend yield for the company. This dividend is payable on March 27 to shareholders of the record at the close of business on March 13, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 18.90%
- 5-year: 40.80%
- 3-year: 51.80%
Newmont Mining Corporation is engaged in the exploration for and acquisition of gold properties. The company is a gold producer with operations and/or assets in the United States, Australia, Peru, Indonesia, Ghana, New Zealand and Mexico.
Newmont Mining’s historical revenue and net income:
The analysis on Newmont Mining reports that the company’s revenue has been in decline over the past year, the company has issued $1.2 billion of debt over the past three years and the company has a poor share buyback track record. On the other hand the analysis also noted that the company’s price is trading at a 10-year low as is its P/B and P/S ratios.
Newmont Mining has a market cap of $11.67 billion. Its shares are currently trading at around $23.67 with a P/S ratio of 1.40 and a P/B ratio of 1.00. The company had an annual average earnings growth of 15%.
To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.
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