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:
Equity Residential (EQR)
On March 13, Equity Residential declared a dividend of $0.50 per share, representing 3.20% dividend yield for the company. This dividend is payable on April 11 to shareholders of the record at the close of business on March 24, 2014.
The company’s historical dividend growth is as follows:
- 10-year: -0.50%
- 5-year: 4.40%
- 3-year: 8.00%
Equity Residential is an S&P 500 company focused on the acquisition, development and management of quality apartment properties in top United States growth markets. The company provides real estate operations, leasing, legal, financial, accounting, acquisition, disposition, development and other support functions.
Equity Residential’s historical revenue and net income:
The analysis on Equity Residential reports that the company’s price is sitting near a 1-year high, its operating margin is expanding and its cash flow from operations has sever divergence from the reported net income, meaning the company might not be receiving payment from its customers.
The Peter Lynch Chart suggests that the company is currently undervalued:
Equity Residential has a market cap of $21.08 billion. Its shares were traded at around $58.37 with a P/E ratio of 11.10, a P/S ratio of 6.80 and a P/B ratio of 2.00. The dividend yield of Equity Residential is currently at 3.80%. The company had an annual average earnings growth of 3.20% over the past five years.
Philip Morris International (PM)
On March 12, Philip Morris declared a dividend of $0.94 per share, representing 4.40% dividend yield for the company. This dividend is payable on April 11 to shareholders of the record at the close of business on March 27, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 0.00%
- 5-year: 13.00%
- 3-year: 13.60%
Philip Morris’ subsidiaries and affiliates and their licensees are engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside the U.S. Its portfolio comprises both international and local brands. Its portfolio of international and local brands is led by Marlboro.
Philip Morris’ historical revenue and net income:
The analysis on Philip Morris reports that the company’s operating margin is expanding, over the past three years it has issued $9.2 billion of debt and its dividend yield is near a 3-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Philip Morris has a market cap of $127.26 billion. Its shares are currently trading at around $80.28 with a P/E ratio of 15.40 and P/S ratio of 1.60. The company had an annual average earnings growth of 13.10% over the past five years.
Bangkok Bank PCL (BKKLY)
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%
Bangkok Bank’s main business is commercial banking which it conducts through its businesses through a network of branches covering all parts of Thailand and some major parts of the world. It provides banking and financial services including commercial, consumer, credit card, mortgage lending, international trade financing, investment banking, and securities services.
Bangkok Bank’s historical revenue and net income:
The analysis on Bangkok Bank reports that the company’s revenue has been in decline over the past three years, its dividend yield is close to a 5-year high and its P/E and P/S ratios are trading at historical lows.
The Peter Lynch Chart suggests that the company is currently undervalued:
Bangkok Bank had a market cap of $10.27 billion. Its shares are currently trading at around $26.89 with a P/E ratio of 9.50, a P/S ratio of 3.40 and a P/B ratio of 1.20. The dividend yield of Bangkok Bank is currently at 3.30%.
Oversea-Chinese Banking Corp (OVCHY)
On March 10, Oversea-Chinese Banking declared a dividend of $0.243 per share, representing 3.30% dividend yield for the company. This dividend is payable on May 27 to shareholders of the record at the close of business on April 21, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 0.00%
- 5-year: 2.80%
- 3-year: 3.50%
Oversea-Chinese Banking Group is principally engaged in the business of banking, life assurance, general insurance, asset management, investment holding, futures and stockbroking. The company's segments include Global Consumer/Private Banking, Global Corporate/Investment Banking, Global Treasury and Markets and Insurance.
Oversea-Chinese Banking’s historical revenue and net income:
The analysis on Oversea-Chinese Banking reports that the company’s revenue has been in decline over the past year, it has issued SGD14.8 in debt over the past three years and its P/S ratio is close to a 3-year high. On the other hand it also notes that the operating margin is expanding and its dividend yield is at a 5-year high.
Oversea-Chinese Banking has a market cap of $25.73 billion. Its shares are currently trading at around $14.99 with a P/E ratio of 12.40 and a P/S ratio of 5.10/ The company had an annual average earnings growth of 3.80% over the past ten years.
To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.
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