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:
Centrica PLC (CPYYY)
On Feb. 28, Centrica PLC declared a dividend of $0.79 per share, representing 4.67% dividend yield for the company. This dividend is payable on June 23 to shareholders of the record at the close of business on April 25, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 5.70%
- 5-year: 4.80%
- 3-year: 8.20%
Centrica PLC is engaged in the integrated energy business. Its business is operated through four major brands: British Gas, Centrica Energy, Centrica Storage, and Direct Energy.
Centrica’s historical revenue and net income:
The analysis on Centrica reports that the company’s revenue has been in decline over the past five years, its operating margin is expanding and its dividend yield is at a 3-year high. It also reports that over the past year the company has issued GBP664 million of debt and that its P/B and P/S ratios are trading at historic lows.
The Peter Lynch Chart suggests that the company is currently overvalued:
There are currently no gurus that hold a position in Centrica.
Centrica PLC has a market cap of $27.79 billion. Its shares are currently trading at around $21.90 per share with a P/E ratio of 13.20, a P/S ratio of 0.70 and a P/B ratio of 2.85. The company had an annual average earnings growth of 7.90% over the past ten years.
Barclays Africa Group Limited (AGRPY)
On Feb. 28, Barclays Africa Group declared a dividend of $0.723 per share, representing 5.13% dividend yield for the company. This dividend is payable on April 17 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: 0.00%
- 5-year: 28.10%
- 3-year: 29.40%
Barclays Africa Group Limited, formerly ABSA Group Ltd, provides banking, assurance, and wealth management products and services in South Africa. It provides retail banking products and services, including home loans; vehicle loans.
Barclays Africa Group’s historical revenue and net income:
The analysis on Barclays reports that the company’s revenue has been in decline over the past three years, it has issued ZAR320.2 million of debt over the past year and its dividend payout ratio is too high, indicating that the dividend may not be sustainable. It also notes that the company’s P/E, P/B and P/S ratios are trading at historical lows.
The Peter Lynch Chart suggests that the company is currently undervalued:
There are currently no gurus that hold a position in Barclays Africa.
Barclays Africa Group Limited has a market cap of $10.4 billion. Its shares are currently trading at around $24.55 with a P/E ratio of 11.50, a P/S ratio of 3.00 and a P/B ratio of 0.80.
Waste Management (WM)
On Feb. 25, Waste Management declared a dividend of $0.375 per share, representing 3.55% dividend yield for the company. This dividend is payable on March 21 to shareholders of the record at the close of business on March 10, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 8.30%
- 5-year: 6.00%
- 3-year: 5.00%
Waste Management is a provider of waste management services in North America. The company's subsidiaries provide collection, transfer, recycling, and disposal services. It is also a developer, operator and owner of waste-to-energy and landfill gas-to-energy facilities in the U.S.
Waste Management’s historical revenue and net income:
The analysis on Waste Management reports that the company has issued $975 million of debt in the past three years, their revenue has been in decline over the past three years and their growth and operating margins have been in a five-year decline.
There are thirteen gurus that hold a position in Waste Management. Check out their holding histories here.
Waste Management has a market cap of $19.18 billion. Its shares are currently trading at around $41.26 with a P/E ratio of 200.30, a P/S ratio of 1.40 and a P/B ratio of 3.40. The company had an annual average earnings growth of 1.20% over the past ten years.
Kumba Iron Ore (KIROY)
On Feb. 25, Kumba Iron Ore declared a dividend of $0.507 per share, representing 7.04% dividend yield for the company. This dividend is payable on March 27 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: 0.00%
- 5-year: 33.60%
- 3-year: 5.10%
Kumba Iron Ore Limited is a value-adding supplier of quality iron ore to the global steel industry. The Company together with its subsidiaries engaged in the exploration, extraction, beneficiation, marketing, sale, and shipping of iron ore in South Africa. Its main products include lump and fine ores.
Kumba Iron Ore’s historical revenue and net income:
The analysis on Kumba Iron Ore reports that the company’s revenue has been in decline over the past year, the company has issued ZAR$178.3 million of debt over the past year and it has a poor stock buyback record. On the other hand Kumba’s operating margin is expanding, its dividend yield is at a 10-year high and its P/E, P/B and P/S ratios are all trading at historical lows.
The Peter Lynch Chart suggests that the company is currently undervalued:
Kumba Iron Ore has a market cap of $12.1 billion. Its shares are currently trading at around $12.55 with a P/E ratio of 10.80, a P/S ratio of 2.90 and a P/B ratio of 6.90.
To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.
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