During the past week, GuruFocus recognized five 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 five 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:
Health Care REIT (HCN)
On Jan. 20, Health Care REIT declared a dividend of $0.825 per share, representing 3.90% dividend yield for the company. This dividend is payable on Feb. 20 to shareholders of the record at the close of business on Feb. 10, 2015.
The company’s historical dividend growth is as follows:
- 10-year: 3.10%
- 5-year: 3.20%
- 3-year: 3.80%
Health Care REIT is a real estate investment trust that invests in senior housing and health care real estate. The company also provides property management and development services.
Health Care REIT’s historical revenue and net income:
The analysis on Health Care REIT reports that the company has issued $1.4 billion of debt over the past three years, its dividend yield is near a 10-year low and its price is sitting near a 10-year high. The analysis also notes that the company’s Piotroski F-Score is high.
Health Care REIT has a market cap of $24.58 billion. Its shares are currently trading at around $81.25witha a P/E ratio of 91.50 and a P/S ratio of 7.50. The company had an annual average earnings growth of 9.20% over the past five years.
Blackstone Group LP (BX)
On Jan. 30, Blackstone Group declared a dividend of $0.780 per share, representing 5.20% dividend yield for the company. This dividend is payable on Feb. 17 to shareholders of the record at the close of business on Feb. 9, 2015.
The company’s historical dividend growth is as follows:
- 10-year: 0.00%
- 5-year: 4.10%
- 3-year: 25.30%
Blackstone Group is an alternative asset manager and a provider of financial advisory services. Its alternative asset management businesses include the management of private equity, real estate, hedge fund solutions, non-investment grade credit, secondary funds and multi-asset class exposures falling outside of other funds' mandates.
Blackstone Group’s historical revenue and net income:
The analysis on Blackstone reports that the company has strong financial strength, its price is sitting near a 10-year high and P/B and P/S ratios are also near 10-year highs.
The Peter Lynch Chart suggests that the company is currently undervalued:
Blackstone Group has a market cap of $39.1 billion. Its shares are currently trading at around $37.29 with a P/E ratio of 13.50 and a P/S ratio of 2.80.
Chevron Corp (CVX)
On Jan. 28, Chevron Corp. declared a dividend of $1.070 per share, representing 4.00% dividend yield for the company. This dividend is payable on March 10 to shareholders of the record at the close of business on Feb. 17, 2015.
The company’s historical dividend growth is as follows:
- 10-year: 10.30%
- 5-year: 10.30%
- 3-year: 11.20%
The company manages its investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to U.S. and international subsidiaries that engage in fully integrated petroleum operations, chemicals operations, mining operations, and power and energy services.
Chevron’s historical revenue and net income:
The analysis on Chevron reports that the company’s revenue per share has been in decline over the past year, it has issued $15.9 billion of debt over the past three years, its operating margin is expanding and its dividend yield is near a 10-year high.
Chevron has a market cap of $215.98 billion. Its shares are currently trading at around $104.42 with a P/E ratio of 9.50 and a P/S ratio of 0.90. The company had an annual average earnings growth of 9.20% over the past ten years.
GuruFocus rated Chevron the business predictability rank of 2-star.
Magellan Midstream Partners LP (MMP)
On Jan. 27, Magellan Midstream Partners declared a dividend of $0.695 per share, representing 3.30% dividend yield for the company. This dividend is payable on Feb. 13 to shareholders of the record at the close of business on Feb. 6, 2015.
The company’s historical dividend growth is as follows:
- 10-year: 9.00%
- 5-year: 10.40%
- 3-year: 13.00%
The GuruFpcus Dividend page also notes that the company has had a consistent dividend increase since 2001.
Magellan is engaged in the transportation, storage and distribution of refined petroleum products. The Company operates in three segments namely refined products segment, crude oil segment and marine storage segment.
Magellan Midstream’s historical revenue and net income:
The analysis on Magellan reports that the company’s operating margin is expanding, its Piotroski F-Score is high and that its price is sitting near a 10-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Magellan Midstream Partners has a market cap of $19.22 billion. Its shares are currently trading at around $79.39 with a P/E ratio of 23.40 and a P/S ratio of 8.20. The company had an annual average earnings growth of 9% over the past ten years.
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