GuruFocus Names Top Two Dividend Growers of the Week

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Oct 09, 2014
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During the past week, GuruFocus recognized two 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 two 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:

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Publix Super Markets Inc (PUSH)

On Oct. 1, Publix Super Markets declared a dividend of $0.370 per share, representing 4.90% dividend yield for the company. This dividend is payable on Dec. 1 to shareholders of the record at the close of business on Oct. 31, 2014.

The company’s historical dividend growth is as follows:

- 10-year: 0.00%

- 5-year: 0.00%

- 3-year: 15.00%

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Publix Super Markets and its wholly owned subsidiaries are engaged in the operation of retail food supermarkets in Florida, Georgia, Alabama, South Carolina & Tennessee. The Company sells grocery food items as well as health and beauty care, pharmacy, floral and other products and services.

Publix’s historical revenue and net income:

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The analysis on Publix Super Markets reports that the company has shown predictable revenue and earnings growth, its operating margin is expanding and its price is sitting near a 10-year low. The analysis also notes that the company’s P/S, P/E and P/B ratios are all sitting at near 10-year lows.

The Peter Lynch Chart suggests that the company is currently undervalued:

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Publix Super Markets has a market cap of $11.56 billion. Its shares are currently trading at around $14.75 with a P/E ratio of 6.90, a P/S ratio of 0.40 and a P/B ratio of 1.10. The company had an annual average earnings growth of 7.80% over the past ten years.

GuruFocus rated Publix the business predictability rank of 4-star.

ConocoPhillips (COP)

On Oct. 1, ConocoPhillips declared a dividend of $0.73 per share, representing 5.20% dividend yield for the company. This dividend is payable on Dec. 1 to shareholders of the record at the close of business on Oct. 14, 2014.

The company’s historical dividend growth is as follows:

- 10-year: 12.50%

- 5-year: 9.40%

- 3-year: 7.90%

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ConocoPhillips focuses on exploring for, developing and producing crude oil and natural gas globally. Its portfolio primarily includes legacy assets in North America, Europe, Asia and Australia.

ConocoPhillips’ historical revenue and net income:

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The analysis on ConocoPhillips reports that the company’s revenue per share has been in decline for the past five years, its dividend yield is near a 1-year high and its P/E and P/B ratios are trading at near historic lows.

The Peter Lynch Chart suggests that the company is currently undervalued:

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ConocoPhillips has a market cap of $89.88 billion. Its shares are currently trading at around $71.57 with a P/E ratio of 9.90 and a P/S ratio of 1.60. The company had an annual average earnings growth of 1.10% 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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