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:
On Aug. 22, Sysco Corp declared a dividend of $0.290 per share, representing 3.10% dividend yield for the company. This dividend is payable on Oct. 24 to shareholders of the record at the close of business on Oct. 3, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 9.30%
- 5-year: 4.20%
- 3-year: 3.90%
Sysco, through its subsidiaries and divisions, is the leading North American distributor of food and related products mainly to the foodservice or 'food-away-from-home' industry.
Sysco’s historical revenue and net income:
The analysis on Sysco reports that the company has shown predictable revenue and net income, its dividend yield is near a 5-year low and its price is 10-year high. It also notes that over the past three years the company has issued $362.4 million of debt.
The Peter Lynch Chart suggests that the company is currently overvalued:
Sysco Corporation has a market cap of $22.07 billion. Its shares are currently trading at around $37.76 with a P/E ratio of 23.20, a P/S ratio of 0.50 and a P/B ratio of 4.20. The company had an annual average earnings growth of 4.20% over the past ten years.
Woodside Petroleum Ltd. (WOPEY, Financial)
On Aug. 21, Woodside Petroleum declared a dividend of $1.09 per share, representing 4.60% dividend yield for the company. This dividend is payable on Oct. 6 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: 8.30%
- 5-year: 7.50%
- 3-year: 11.60%
Woodside Petroleum Limited is the operator of oil and gas production in Australia. It has operations encompassing the production of liquefied natural gas, domestic gas, condensate, crude oil and liquefied petroleum gas.
Woodside Petroleum’s historical revenue and net income:
The analysis on Woodside reports that the company’s dividend yield is near a 10-year high, its price is near a 3-year high and its operating margin has been a 5-year decline.
The Peter Lynch Chart suggests that the company is currently overvalued:
Woodside Petroleum has a market cap of $33.61 billion. Its shares are currently trading at around $40.80 with a P/E ratio of 18.40, a P/S ratio of 5.45 and a P/B ratio of 2.12. The company had an annual average earnings growth of 4.80% over the past ten years.
Waste Management (WM)
On Aug. 21, Waste Management declared a dividend of $0.375 per share, representing 3.20% dividend yield for the company. This dividend is payable on Sept. 19 to shareholders of the record at the close of business on Sept. 5, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 8.30%
- 5-year: 8.50%
- 3-year: 8.00%
Waste Management and its subsidiaries provide collection, transfer, recycling, and disposal services. It is also a developer, operator and owner of waste-to-energy and landfill gas-to-energy facilities in the United States.
Waste Management’s revenue and net income:
The analysis on Waste Management reports that the company has issued $460 million of debt over the past three years, its revenue per share has slowed down over the past year, its dividend yield is near a 5-year low and its price is near a 10-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Waste Management has a market cap of $21.71 billion. Its shares are trading at around $46.54 with a P/E ratio of 175.00 and a P/S ratio of 1.60. The company had an annual average earnings growth of 1.20% over the past ten years
On Aug. 21, Altria Group declared a dividend of $0.52 per share, representing 4.50% dividend yield for the company. This dividend is payable on Oct.12 to shareholders of the record at the close of business on Sept. 15, 2014.
The company’s historical dividend growth is as follows:
- 10-year: -8.20%
- 5-year: 8.50%
- 3-year: 8.00%
Altria Group is a holding company whose wholly-owned subsidiaries included Philip Morris USA, which is engaged in the manufacture and sale of cigarettes and other tobacco products in the United States, and John Middleton Co, engaged in the manufacture and sale of machine-made large cigars and pipe tobacco.
Altria Group’s historical revenue and net income:
The analysis on Altria Group reports that the company’s operating margin is expanding, its dividend yield is near a 10-year low and its price is near a 10-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Altria Group has a market cap of $85.23 billion. Its shares are currently trading at around $42.97 with a P/E ratio of 19.70 and a P/S ratio of 4.80. Altria had an annual average earnings growth of 7.30% over the past five years.
To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.
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