During the past week, GuruFocus recognized four 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 four 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:
DTE Energy Holding (DTE)
On May 1, DTE Energy Holding declared a dividend of $0.655 per share, representing 3.4% dividend yield for the company. This dividend is payable on July 15 to shareholders of the record at the close of business on June 16, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 2.30%
- 5-year: 5.10%
- 3-year: 5.80%
DTE Energy, through its subsidiaries, is engaged in the business of providing electricity and natural gas sales, distribution and storage services throughout southeastern Michigan. Its main operating segments are Electric Utility, Gas Utility, Non-Utility Operations, and Corporate and other.
DTE’s historical revenue and net income:
The analysis on DTE Energy reports that the company’s revenue has been in decline over the past five years, its price is trading near its 10-year high and over the past three years the company has issued $24 million of debt.
The Peter Lynch Chart suggests that the company is currently overvalued:
DTE Energy has a market cap of $13.79 billion. Its shares are currently trading at around $77.93 with a P/E ratio of 18.10, a P/S ratio of 1.20 and a P/B ratio of 1.50. The company had an annual average earnings growth of 3.40% over the past ten years.
Duke Energy Corporation (DUK)
On May 1, Duke Energy declared a dividend of $0.780 per share, representing 4.2% dividend yield for the company. This dividend is payable on June 16 to shareholders of the record at the close of business on May 16, 2014.
The company’s historical dividend growth is as follows:
- 10-year: -1.50%
- 5-year: 2.30%
- 3-year: 2.00%
Duke Energy is an energy company headquartered in Charlotte, North Carolina. Its regulated utility operations serve 4 million customers located in five states in the Southeast and Midwest United States. Its Commercial Power and International Energy business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the U.S.
Duke Energy’s historical revenue and net income:
The analysis on Duke Energy reports that the company’s dividend yield is close to a 10-year low, its price is close to a 10-year high and the company has issued $8.2 billion in debt over the past three years. The analysis also notes that the P/E ratio and P/B ratio are both at 1-year lows.
The Peter Lynch Chart suggests that the company is currently overvalued:
Duke Energy has a market cap of $51.94 billion. Its shares are currently trading at around $73.52 with a P/E ratio of 19.60, a P/S ratio of 2.10 and a P/B ratio of 1.20. The dividend yield of Duke Energy is currently at around 4.20%. The company had an annual average earnings growth of 3.30% over the past five years.
HCP Inc. (HCP)
On May 1, HCP declared a dividend of $0.545 per share, representing 5% dividend yield for the company. This dividend is payable on May 27 to shareholders of the record at the close of business on May 12, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 4.10%
- 5-year: 3.40%
- 3-year: 4.10%
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 $19.29 billion. Its shares are currently trading at around $42.20 with a P/E ratio of 19.80, a P/S ratio of 9.10 and a P/B ratio of 1.70. The company had an annual average earnings growth of 15.60% over the past ten years.
Health Care REIT (HCN)
On May 1, Health Care REIT declared a dividend of $0.795 per share, representing 4.9% dividend yield for the company. This dividend is payable on May 20 to shareholders of the record at the close of business on May 12, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 3.10%
- 5-year: 3.20%
- 3-year: 3.80%
This is Health Care REIT’s 172nd 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 $18.42 billion. Its shares are currently trading at around $63.52 with a P/E ratio of 219.20, a P/S ratio of 6.10 and a P/B ratio of 1.60. The company had an annual average earnings growth of 6.30% over the past ten years.
Check out the company’s total dividend return calculator.
To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.
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