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Dividend growth investing
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Summary

  • It is important to regularly monitor dividend portfolios, research company fundamentals, in order to determine if dividends are sustainable and whether there are catalysts for future dividend growth.
  • A process of regular monitoring should include regular check-ups on dividend increases, in order to check how companies one owns are doing and find other fresh ideas.
  • In this article, I highlight ten dividend achievers that announced dividend increases in the past week.

As a dividend growth investor, I spend several hours per week screening for attractive candidates for my portfolio and then researching them in detail. I believe in fundamental analysis first and foremost. I look for stability and stimulants for growth in earnings that can deliver strong dividend growth and stock price gains in the future. I also believe in regular monitoring of dividend growth stocks, in order to check how companies I own are doing. One aspect of monitoring involves checking for any recent dividend increases for every company in the US. That way I can not only monitor my holdings, but also find out about prospective dividend growth stocks at the start of their potential long journeys to stardom.

Over the past week, there were several dividend growth stocks that announced their intent to increase distributions to shareholders. I only included those that have managed to increase dividends for at least one decade. The companies include:

Target Corporation (NYSE:TGT) operates general merchandise stores in the United States and Canada. The company raised its quarterly dividends by 20.90% to 52 cents/share. This dividend champion has increased dividends for 47 years in a row. In the past decade, the company has managed to increase dividends by 19.80%/year. The stock is attractively valued at 15.50 times forward earnings and a current yield of 3.60%. Despite headwinds that the company has faced in the past year, I find the stock to be attractively valued, and I have been adding to my exposure several times so far this year. Check my analysis of Target.

Casey's General Stores, Inc. (NASDAQ:CASY), operates convenience stores in 14 Midwestern states, primarily Iowa, Missouri, and Illinois. The company raised its quarterly dividends by 11.10% to 20 cents/share. This dividend achiever has increased dividends for 15 years in a row. In the past decade, the company has managed to increase dividends by 19.10%/year. The stock is attractively valued at 20.10 times forward earnings and a current yield of 1.10%. Check my analysis of Casey's General Stores.

Caterpillar Inc. (NYSE:CAT) manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. The company raised its quarterly dividends by 16.70% to 70 cents/share. This dividend achiever has increased dividends for 21 years in a row. In the past decade, the company has managed to increase dividends by 12.70%/year. The stock is attractively valued at 17.20 times earnings and a current yield of 2.60%. Check myanalysis of Caterpillar.

Universal Health Realty Income Trust (NYSE:UHT) is a real estate investment trust, that invests in healthcare and human service related facilities. The company raised its quarterly dividends by 0.80% to 63 cents/share. This dividend champion has increased dividends for 28 years in a row. In the past decade, the company has managed to increase dividends by 2.40%/year. This REIT currently yields 5.85%. I sold my stake in the company last year, given the anemic dividend growth of the past and do not plan on initiating a position again.

C. R. Bard, Inc. (NYSE:BCR) designs, manufactures, packages, distributes, and sells medical, surgical, diagnostic, and patient care devices worldwide. The company raised its quarterly dividends by 4.80% to 22 cents/share. This dividend champion has increased dividends for 43 years in a row. The stock is attractively valued at 16.60 times earnings and a current yield of 0.60%. In the past decade, the company has managed to increase dividends by 6.20%/year. Ordinarily given the low yield and low dividend growth, I will take a pass at this time. However, there is something about C.R. Bard's relentless increase in earnings per share that makes me really want to add the stock to my list for further research.

National Fuel Gas Company (NYSE:NFG) operates as a diversified energy company in the United States. The company raised its quarterly dividends by 2.70% to 38.50 cents/share. This dividend champion has increased dividends for 44 years in a row. In the past decade, the company has managed to increase dividends by 3.40%/year. The stock is overvalued at 21.50 times forward earnings and a current yield of 2.10%. Given the low growth, I would take a pass on it for the time being.

Oil-Dri Corporation of America (NYSE:ODC) mines, develops, manufactures, and markets sorbent products in the United States and internationally. The company raised its quarterly dividends by 5.30% to 20 cents/share. This dividend achiever has increased dividends for 12 years in a row. In the past decade, the company has managed to increase dividends by 9.60%/year. The stock is attractively valued at 16.40 times forward earnings and a current yield of 2.70%. I would add it to my list for further research.

Essex Property Trust, Inc. (NYSE:ESS) is a real estate investment trust in the United States that engages in the ownership, operation, management, acquisition, development, and redevelopment of apartment communities, as well as commercial properties. The company raised its quarterly dividends by 7.40% to $1.30/share. This dividend achiever has increased dividends for 20 years in a row. In the past decade, the company has managed to increase dividends by 4.30%/year. This REIT yields 2.90% today, which I believe to be low for a pass-through entity these days.

Best Buy Co., Inc. (NYSE:BBY) operates as a multi-national, multi-channel retailer of technology products in the United States, Canada, China, and Mexico. The company raised its quarterly dividends by 11.80% to 19 cents/share. This dividend achiever has increased dividends for 12 years in a row. In the past decade, the company has managed to increase dividends by 13%/year. The stock is attractively valued at 12.60 times forward earnings and a current yield of 2.60%. I need to add Best Buy on my list for further research.

FedEx Corporation (NYSE:FDX) provides transportation, e-commerce, and business services in the United States and internationally. The company raised its quarterly dividends by 33.30% to 20 cents/share. This dividend achiever has increased dividends for 12 years in a row. In the past decade, the company has managed to increase dividends by 10.70%/year. The stock is overvalued at 21 times forward earnings and a current yield of 0.60%. I would add it on my list for further research.

Source: 10 Dividend Increases For Further Review