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:
PPL Corp (PPL)
On Nov. 21, PPL declared a dividend of $0.373 per share, representing 4.18% dividend yield for the company. This dividend is payable on Jan. 2 to shareholders of the record at the close of business on Dec. 10, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 6.10%
- 5-year: 1.60%
- 3-year: 1.60%
The company is an energy and utility holding company. Through subsidiaries, it generates electricity from power plants in the northeastern, northwestern and southeastern U.S., markets wholesale and retail energy in the northeastern and northwestern portions of the U.S.
PPL’s historical revenue and net income:
The analysis on PPL reports that the company’s revenue per share has been in decline over the past five years, it has issued $2.9 billion of debt over the past three years and its operating margin is expanding. The analysis also notes that the company’s dividend yield is near a 5-year low and its price is near a 5-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
PPL Corp has a market cap of $23.63 billion. Its shares are currently trading at around $35.53 with a P/E ratio of 25.10 and a P/S ratio of 2.25. The company had an annual average earnings growth of 1.50% over the past ten years.
Starwood Hotels & Resorts Worldwide (HOT, Financial)
On Nov. 20, Starwood Hotels & Resorts declared a dividend of $0.3650 per share, representing 3.04% dividend yield for the company. This dividend is payable on Dec. 29 to shareholders of the record at the close of business on Dec.8, 2014.
The company’s historical dividend growth is as follows:
- 10-year: -0.20%
- 5-year: 69.00%
- 3-year: 65.10%
Starwood Hotels & Resorts Worldwide operates as a hotel and leisure company. The company conducts its hotel and leisure business both directly and through its subsidiaries.
The analysis on Starwood Hotels & Resorts reports that the company’s operating margin is expanding, the dividend yield is near a 5-year high and its revenue per share has slowed down over the past year. The analysis also notes that the company’s price is sitting near a 10-year high.
Starwood’s historical revenue and net income:
The Peter Lynch Chart suggests that the company is currently overvalued:
Starwood Hotels & Resorts Worldwide has a market cap of $14.11 billion. Its shares are currently trading at around $79.00 with a P/E ratio of 28.40 and a P/S ratio of 2.50. The company had an annual average earnings growth of 37% over the past five years.
Williams Companies (WMB, Financial)
On Nov. 19, Williams Companies declared a dividend of $0.570 per share, representing 3.42% dividend yield for the company. This dividend is payable on Dec. 29 to shareholders of the record at the close of business on Dec. 12, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 28.70%
- 5-year: 38.70%
- 3-year: 43.70%
Williams Companies is an energy infrastructure company focused on connecting North America's significant hydrocarbon resource plays to growing markets for natural gas, NGLs, and olefins. Its operations are located principally in the United States, but span from the deepwater Gulf of Mexico to the Canadian oil sands.
Williams Companies’ historical revenue and net income:
The analysis on Williams Companies reports that the company’s revenue per share has been in decline over the past five years, it has issued $8.8 billion of debt. The analysis also notes that the company’s operating margin is expanding which is a good sign.
The Peter Lynch Chart suggests that the company is currently overvalued:
Williams Companies has a market cap of $38.68 billion. Its shares are currently trading at around $51.75 with a P/E ratio of 20.30 and a P/S ratio of 5.13. The company had an annual average earnings growth of 0.50% over the past ten years.
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