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:
Blackstone Group LP (BX)
On April 17, Blackstone Group declared a dividend of $0.350 per share, representing 4.3% dividend yield for the company. This dividend is payable on May 5 to shareholders of the record at the close of business on April 28, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 0.00%
- 5-year: 18.60%
- 3-year: 25.30%
Blackstone Group is an alternative asset manager and a provider of financial advisory services. Its alternative asset management businesses include the management of corporate private equity funds, real estate funds, funds of hedge funds, credit-oriented funds, collateralized loan obligation vehicles and publicly-traded closed-end mutual funds.
Blackstone Group’s historical revenue and net income:
The analysis on Blackstone Group reports that the company’s price is near a 5-year high, its dividend yield is near a 2-year high and its cash flow shows divergence from its reported net income.
The Peter Lynch Chart suggests that the company is currently overvalued:
Blackstone Group has a market cap of $36.16 billion. Its shares are currently trading at around $31.34 with a P/E ratio of 18.50, a P/S ratio of 3.47 and a P/B ratio of 3.60.
Mattel (MAT)
On April 17, Mattel declared a dividend of $0.380 per share, representing 3.90% dividend yield for the company. This dividend is payable on June 13 to shareholders of the record at the close of business on May 23, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 12.10%
- 5-year: 18.60%
- 3-year: 20.20%
Mattel designs, manufactures and markets a number of toy products through sales to its customers and directly to consumers.
Mattel’s historical revenue and earnings growth:
The analysis on Mattel reports that the company’s asset growth is faster than its revenue growth, its revenue per share has slowed down over the past year and over the past three years the company has issued $380.42 million of debt. The analysis also notes that the company’s operating margin is expanding, its dividend yield is near a 2-year high and its P/S and P/B ratios are trading near historical lows.
The Peter Lynch Chart suggests that the company is currently overvalued:
Mattel has a market cap of $12.75 billion. Its shares are currently trading at around $37.47 with a P/E ratio of 14.40, a P/S ratio of 2.00 and a P/B ratio of 3.90. The company had an annual average earnings growth of 6.80% over the past ten years.
Consolidated Edison (ED)
On April 17, Consolidated Edison declared a dividend of $0.630 per share, representing 3.9% dividend yield for the company. This dividend is payable on June 15 to shareholders of the record at the close of business on May 14, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 0.90%
- 5-year: 1.00%
- 3-year: 1.10%
Consolidated Edison is a holding company which owns all of the outstanding common stock of Consolidated Edison Company of New York, Orange and Rockland Utilities, and the competitive energy businesses. It provides a range of energy-related products and services to its customers through its subsidiaries.
Consolidated Edison’s historical revenue and net income:
The analysis on Consolidated Edison reports that the company’s revenue has been in decline over the past five years and the company has also issued $1.8 billion. It also notes the company’s operating margin is expanding and its P/E ratio and P/B ratio are trading at historic lows.
The Peter Lynch Chart suggests that the company is currently overvalued:
Consolidated Edison has a market cap of $16.55 billion. Its shares are currently trading at around $56.50 with a P/E ratio of 15.60, a P/S ratio of 1.35 and a P/B ratio of 1.35. The company had an annual average earnings growth of 3.90% over the past ten years.
Wisconsin Energy Corporation (WEC)
On April 10, Wisconsin Energy declared a dividend of $0.390 per share, representing 3.1% dividend yield for the company. This dividend is payable on June 1 to shareholders of the record at the close of business on May 14, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 15.60%
- 5-year: 21.30%
- 3-year: 21.80%
Wisconsin Energy conducts its operations mainly in two operating segments: a utility energy segment and a non-utility energy segment.
Wisconsin Energy’s historical revenue and net income:
The analysis on Wisconsin Energy reports that the company has issued $218.2 million of debt over the past three years, its price is close to a 10-year high and its Piotroski F-Score is high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Wisconsin Energy Corporation has a market cap of $10.76 billion. Its shares are currently trading at around $47.61 with a P/E ratio of 19.00, a P/S ratio of 2.42 and a P/B ratio of 2.53. The company had an annual average earnings growth of 3.30% over the past ten years.
ONEOK Partners LP (OKS)
On April 17, ONEOK declared a dividend of $0.745 per share, representing 5.1% dividend yield for the company. This dividend is payable on May 15 to shareholders of the record at the close of business on April 30, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 6.40%
- 5-year: 7.40%
- 3-year: 8.80%
ONEOK is engaged in the gathering, processing, storage and transportation of natural gas in the United States. The company's operations are divided into three business segments: Natural Gas Gathering and Processing, Natural Gas Pipelines, Natural Gas Liquids.
ONEOK’s historical revenue and net income:
The analysis on ONEOK reports that the company’s price is near a 10-year high, its operating margin is expanding, and it has shown predictable revenue and earnings growth.
The Peter Lynch Chart suggests that the company is currently overvalued:
ONEOK Partners reports that the company has a market cap of $13.2 billion. Its shares are trading at around $56.89 with a P/E ratio of 24.20, a P/S ratio of 1.10 and a P/B ratio of 2.60. The company had an annual average earnings growth of 4.50% over the past ten years.
GuruFocus rated ONEOK Partners the business predictability rank of 2.5-star.
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