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I review the list of dividend increases every week, as part of my monitoring process.
I use this exercise to review existing companies and identify companies for further research.
In my evaluation, I review the rate of dividend increase relative to the historical average. In general, I look for consistent dividends. This is where I note decelerating dividend growth as a potential red flag.
I then review the trends in earnings per share, in order to determine if that dividend growth is on a solid footing. Rising earnings are the fuel behind future dividend increases.
I also review the valuation as well. That means looking at the P/E ratio and dividends in relation to dividend growth.
During the last week, there were seven companies which have managed to grow dividends for at least a decade, which also increased dividends last week. The companies include:
Comfort Systems USA, Inc. (FIX) provides mechanical and electrical installation, renovation, maintenance, repair, and replacement services for the mechanical and electrical services industry in the United States. It operates through two segments, Mechanical and Electrical.
The company hiked quarterly dividends by 20% to $0.30/share. This is the 12th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 15%.
Between 2014 and 2023 the company managed to grow earnings from $0.61/share to $9.03/share.
The stock sells for 25.38 times forward earnings and yields 0.40%.
Avery Dennison Corporation (AVY) operates as a materials science and digital identification solutions company in the United States, Europe, the Middle East, North Africa, Asia, Latin, America, and internationally.
The company increased quarterly dividends by 9% to $0.88/share. This is the 14th consecutive annual dividend increase for this dividend achiever. Over the past decade the company has managed to grow dividends at an annualized rate of 10.80%.
The company managed to grow earnings from $2.61/share in 2014 to $6.23/share in 2023.
The company is expected to earn $9.39/share in 2024.
The stock sells for 23.33 times forward earnings and yields 1.61%.
Delek Logistics Partners, LP (DKL) provides gathering, pipeline, transportation, and other services for crude oil, intermediates, refined products, natural gas, storage, wholesale marketing, terminalling water disposal and recycling customers in the United States.
The partnership increased quarterly distributions by 1.4% to $1.07/unit. This distribution represents a 4.4 percent increase over Delek Logistics’ distribution for the first quarter 2023. This is the eleventh year of annual distribution increases for this dividend achiever.
Delek Logistics Partners has increased distributions for 11 years in a row. It has an annualized distribution growth of 11.34% over the past decade.
The partnership yields 10.21% today.
Nasdaq, Inc. (NDAQ) operates as a technology company that serves capital markets and other industries worldwide. It operates in three segments: Capital Access Platforms, Financial Technology, and Market Services.
Nasdaq increased quarterly dividends by 9.10% to $0.24/share. This is the 12th consecutive annual dividend increase for this dividend achiever. Over the past decade the company has managed to grow dividends at an annualized rate of 17.40%.
Nasdaq managed to grow earnings from $0.82/share in 2014 to $2.10/share in 2023.
The company is expected to earn $2.69/share in 2024.
The stock sells for 22.32 times forward earnings and yields 1.60%.
Parker-Hannifin Corporation (PH) manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The company operates through two segments: Diversified Industrial and Aerospace Systems.
Parker-Hannifin increased quarterly dividends by 10% to $1.63/share. This is the 68th consecutive annual dividend increase for this dividend king. The company has managed to grow dividends at an annualized rate of 12.48% over the past decade.
Between 2014 and 2023, the company managed to grow earnings per share from $6.98 to $16.23.
The company is expected to earn $24.43/share in 2024.
The stock sells for 22.66 times forward earnings and yields 1.18%.
Sysco Corporation (SYY) engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally.
Sysco increased quarterly dividends by 2% to $0.51/share. This marked the 48th consecutive annual dividend increase for this dividend aristocrat. Over the past decade, the company has managed to grow dividends at an annualized rate of 5.86%.
Between 2014 and 2023 the company managed to grow earnings per share from $1.59 to $3.49.
The company is expected to earn $4.32/share in 2024.
The stock sells for 17.85 times forward earnings and yields 2.65%.
Tompkins Financial Corporation (TMP) provides commercial and consumer banking, leasing, trust and investment management, financial planning and wealth management, and insurance services. The company operates through three segments: Banking, Insurance, and Wealth Management.
Tompkins Financial increased quarterly dividends by 1.60% to $0.61/share. This is the 38th consecutive annual dividend increase for this dividend champion. Over the past decade, the company has managed to increase dividends at an annualized rate of 4.54%.
Between 2014 and 2023 the company’s earnings per share went from $3.51 to $0.66.
The company is expected to earn $4.54/share in 2024.
The stock sells for 10.20 times forward earnings and yields 5.27%.
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