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:
AT&T (T)
On June 27, AT&T declared a dividend of $0.46 per share, representing 5.20% dividend yield for the company. This dividend is payable on August 1 to shareholders of the record at the close of business on July 1, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 4.40%
- 5-year: 2.30%
- 3-year: 2.30%
AT&T is a communications holding company. Its subsidiaries and affiliates are the providers of AT&T services in the U.S. and internationally. The company holds a portfolio of the nation’s fastest and most reliable 4G LTE network, wireless internet, Wi-Fi and voice and cloud-based services.
AT&T’s historical revenue and net income:
The analysis on AT&T reports that the company’s price is near a 5-year high, it has issued $12.6 billion in debt over the past three years and its operating income has been in loss over the past three years. On the other hand the analysis also notes that the Piotroski F-Score is high, its dividend yield is near a 2-year high and its P/E, P/S and P/B ratios are all trading at around historical lows.
The Peter Lynch Chart suggests that the company is currently undervalued:
AT&T has a market cap of $184.3 billion. Its shares are currently trading at around $35.51 with a P/E ratio of 10.40 and a P/S ratio of 1.50. The company had an annual average earnings growth of 4.10% over the past ten years.
Lockheed Martin (LMT)
On June 26, Lockheed Martin declared a dividend of $1.33 per share, representing 3.20% dividend yield for the company. This dividend is payable on Sept. 26 to shareholders of the record at the close of business on Sept. 2, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 20.90%
- 5-year: 20.70%
- 3-year: 21.90%
Lockheed Martin is a security company that is principally engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems and products. It also provides a range of management, engineering, technical, scientific, logistic, and information services.
Lockheed Martin’s historical revenue and earnings growth:
The analysis on Lockheed Martin reports that the company’s revenue has been in decline over the past month, its dividend yield is near a 3-year low and its price is near a 10-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Lockheed Martin has a market cap of $51.02 billion. Its shares are currently trading at around $160.75 with a P/E ratio of 16.50, a P/S ratio of 1.20 and a P/B ratio of 10.50. The company had an annual average earnings growth of 9.90% over the past ten years.
GuruFocus rated Lockheed Martin the business predictability rank of 3-star.
Pfizer (PFE)
On June 26, Pfizer declared a dividend of $0.260 per share, representing 3.40% dividend yield for the company. This dividend is payable on Sept. 3 to shareholders of the record at the close of business on Aug. 1, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 1.20%
- 5-year: 5.80%
- 3-year: 10.10%
Pfizer is a global pharmaceutical firm which develops and produces medicines and vaccines for a range of conditions which include areas of immunology, inflammation, oncology, cardiovascular and metabolic diseases, neuroscience and pain.
Pfizer’s historical revenue and net income:
The analysis on Pfizer reports that the company’s revenue has been in decline over the past year, the dividend yield is near a 5-year low, the price is near a 5-year high and its operating margin is expanding.
The Peter Lynch Chart suggests that the company is currently undervalued:
Pfizer has a market cap of $192.19 billion. Its shares are currently trading at around $30.13 with a P/E ratio of 9.60, a P/S ratio of 4.00 and a P/B ratio of 2.70. The company had an annual average earnings growth of 3.40% over the past ten years.
GuruFocus rated Pfizer the business predictability rank of 3-star.
Freeport-McMoRan Copper & Gold (FCX, Financial)
On June 25, Freeport-McMoRan declared a dividend of $0.313 per share, representing 3.40% dividend yield for the company. This dividend is payable on Aug. 1 to shareholders of the record at the close of business on July 15, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 0.00%
- 5-year: 0.00%
- 3-year: 40.60%
Freeport-McMoRan is a U.S.-based natural resource company with an industry leading global portfolio of mineral assets, significant oil and gas resources and a growing production profile.
Freeport-McMoRan’s historical revenue and net income:
The analysis on Freeport-McMoRan reports that the company’s asset growth is faster than its revenue growth and its P/S ratio is close to a 2-year low.
The Peter Lynch Chart shows that the company is currently undervalued:
Freeport-McMoRan Copper & Gold has a market cap of $38.43 billion. Its shares are currently trading at around $37.00 with a P/E ratio of 15.10, a P/S ratio of 1.80 and a P/B ratio of 1.50. The dividend yield for the company is currently sitting at 3.40%.
To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.
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