During the past week, GuruFocus recognized three 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 three 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:
Spectra Energy Partners LP (SEP)
On May 7, Spectra Energy Partners declared a dividend of $0.556 per share, representing 3.9% dividend yield for the company. This dividend is payable on May 30 to shareholders of the record at the close of business on May 19, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 0.00%
- 5-year: 7.40%
- 3-year: 5.90%
Spectra Energy, through its subsidiaries and equity affiliates, is engaged in the transportation and gathering of natural gas through interstate pipeline systems with over 3,100 miles of pipelines that serve the southeastern United States, as well as the storage of natural gas in underground facilities with aggregate working gas storage capacity.
Spectra Energy’s historical revenue and net income:
The analysis on Spectra reports that the company has issued $2.9 billion over the past three years, its dividend yield is near a 5-year low and its price is near a 10-year high. The analysis also notes that the company’s operating margin is expanding, which is usually a good sign.
The Peter Lynch Chart suggests that the company is currently undervalued:
Spectra Energy Partners has a market cap of $15.07 billion. Its shares are currently trading at around $52.84 with a P/E ratio of 10.80 and a P/S ratio of 5.60. The company had an annual average earnings growth of 35.10% over the past five years.
HSBC Holdings PLC (HBCYF)
On May 7, HSBC Holdings declared a dividend of $0.10 per share, representing 4.8% dividend yield for the company. This dividend is payable on July 10 to shareholders of the record at the close of business on May 22, 2014.
The company’s historical dividend growth is as follows:
- 10-year: -7.70%
- 5-year: 9.20%
- 3-year: 12.20%
HSBC Holdings PLC is a banking and financial services organizations in the world. Its products and services are delivered to its clients through four global businesses, Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking.
HSBC Holdings’ historical revenue and earnings growth:
The analysis on HSBC reports that the company’s revenue per share has been in decline over the past five years, its operating margin is expanding and its dividend yield is near a 2-year high. The analysis also notes that the company’s P/E, P/S and P/B ratios are all trading near 1-year lows.
The Peter Lynch Chart suggests that the company is currently undervalued:
HSBC Holdings has a market cap of $191.65 billion. Its shares are currently trading at around $10.18 with a P/E ratio of 12.20, a P/S ratio of 2.70 and a P/B ratio of 1.10. HSBC had an annual average earnings growth of 27.60% over the past five years.
Westpac Banking Corp (WBK)
On May 7, Westpac Banking declared a dividend of $0.83 per share, representing 5% dividend yield for the company. This dividend is payable on July 14 to shareholders of the record at the close of business on May 15, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 7.60%
- 5-year: 8.60%
- 3-year: 10.80%
Westpac Banking Corp. was founded in 1817 and was the first bank established in Australia. It is one of the four major banking organizations in Australia.
Westpac Banking’s historical revenue and net income:
The analysis on Westpac reports that the company’s dividend is near a 5-year low, its price is near a 10-year high and its operating margin is expanding.
The Peter Lynch Chart suggests that the company is currently overvalued:
Westpac has a market cap of $101.68 billion. Its shares are currently trading at around $32.76 with a P/E ratio of 16.20, a P/S ratio of 6.10 and a P/B ratio of 2.30. The company had an annual average earnings growth of 4.70% 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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