Seeking Alpha
Value, long-term horizon, dividend investing, dividend growth investing
Profile| Send Message|
( followers)  

The Dividend Champions spreadsheet and PDF have been updated through 2/28/11. Note that all references to Champions mean companies that have paid higher dividends for at least 25 straight years; Contenders have streaks of 10-24 years; Challengers have streaks of 5-9 years. Together, all of these companies may be referred to using the abbreviation “CCC.”

This is the 10th in a series of articles focusing on specific industries and isolating the CCC companies within those industries. The first nine can be found under my articles page, beginning on March 2.

Two-for-One

In this final installment of my series on industry groups within the CCC universe, I'm presenting the last two industries, Technology and Transportation. Neither has a large number of companies, but the corporations represent the most prominent firms within their industries. Although they are largely unrelated – save for the eventual transportation of technology components – they are both key elements in our economy, both domestically and internationally.

Technology

Technology has advanced to the stage where many of the firms involved are being referred to as mature companies, and that often translates into dividend-paying corporations which, in this case, have established histories of increasing their payout to shareholders. Although their yields, on average, are lower than the average for the CCC universe, their dividend growth rates are typically higher and their payout ratios are still lower than typical CCC companies. They range in size from $54 million in market capitalization [Astro-Med (NASDAQ:ALOT)] to $223 billion [Microsoft (NASDAQ:MSFT)] and there are some above average yields to consider, like Intel's 3.38%.

No.

2/28

%

Payout

TTM

NY%

MktCap

DGR

DGR

Company

Symbol

Industry

Yrs

Price

Yield

Inc.

%Ratio

P/E

Growth

($Mil)

5-yr

10-yr

Analog Devices Inc.

(NASDAQ:ADI)

Tech.-Hardware

8

39.88

2.21

10.00

33.08

14.99

5.43

11,950

19.0

n/a

Astro-Med Inc.

(ALOT)

Tech.-Hardware

7

7.51

3.73

16.67

62.22

16.69

n/a

54

16.9

9.2

Intel Corp.

(NASDAQ:INTC)

Tech.-Hardware

8

21.47

3.38

15.05

36.06

10.68

7.32

117,830

14.5

24.6

Int'l Business Machines

(NYSE:IBM)

Tech.-Hardware

15

161.88

1.61

18.18

22.57

14.05

10.40

197,420

26.2

17.2

Linear Technology Corp.

(NASDAQ:LLTC)

Tech.-Hardware

19

34.56

2.78

4.35

43.84

15.78

0.00

7,840

18.1

23.7

Maxim Integrated Prod.

(NASDAQ:MXIM)

Tech.-Hardware

9

27.58

3.05

5.00

102.44

33.63

6.51

8,180

14.0

n/a

Microchip Technology

(NASDAQ:MCHP)

Tech.-Hardware

9

36.91

3.73

0.29

71.67

19.22

4.27

6,950

24.9

n/a

National Semiconductor

(NSM)

Tech.-Hardware

6

15.50

2.58

25.00

32.00

12.40

1.64

3,680

33.6

n/a

Texas Instruments

(NASDAQ:TXN)

Tech.-Hardware

7

35.61

1.46

8.33

19.85

13.59

6.13

41,570

36.1

19.1

Xilinx Inc.

(NASDAQ:XLNX)

Tech.-Hardware

7

33.25

1.92

14.29

27.47

14.27

-5.60

8,680

19.7

n/a

Averages for

10

Tech.-Hardware

9.5

41.42

2.64

11.72

45.12

16.53

4.01

40,415

22.3

18.8

Computer Services Inc.

(OTCQX:CSVI)

Tech.-Other

22

26.75

1.64

15.79

27.33

16.61

n/a

390

14.3

15.7

Microsoft Corp.

(MSFT)

Tech.-Other

6

26.58

2.41

23.08

27.35

11.36

8.24

223,340

11.4

n/a

National Instruments

(NASDAQ:NATI)

Tech.-Other

9

31.13

1.28

15.38

43.48

33.84

22.41

3,700

21.1

n/a

Averages for

3

Tech.-Other

12.3

28.15

1.78

18.08

32.72

20.60

15.32

75,810

15.6

15.7

Communications Sys.

(NASDAQ:JCS)

Tel. Equip.

8

16.20

3.70

7.14

56.60

15.28

n/a

136

16.5

3.8

Harris Corp.

(NYSE:HRS)

Tel. Equip.

9

46.66

2.14

13.64

20.45

9.54

2.86

5,970

27.4

25.1

Qualcomm Inc.

(NASDAQ:QCOM)

Tel. Equip.

8

59.58

1.28

11.76

35.02

27.46

7.52

97,930

16.8

n/a

Averages for

3

Tel. Equip.

8.3

40.81

2.37

10.85

37.36

17.43

5.19

34,679

20.3

14.5

Averages for

16

Technology

9.8

38.82

2.43

12.75

41.34

17.46

5.93

45,976

20.7

17.3

Averages for

447

CCC Co's

16.7

47.91

2.91

8.20

68.18

21.94

12.39

16,745

12.5

10.3

Transportation

The Transportation sector is mainly composed of Railroads and trucking companies, but also includes firms like Ryder, which describes itself as a Logistics firm. To some extent, this sector has been characterized as a cyclical part of the economy, but its importance to most other industries is undeniable. Railroads have prospered in recent years as they have shown themselves to be a cheaper and more efficient method of shipment than long-haul trucking. But intermodal shipping, which allows for the transfer of containers from ocean-going vessels to flat-bed rail cars and eventually to short-haul truck beds, has been a boon to all segments of the transportation industry. Yields are typically below average, but dividend growth rates tend to be higher.

No.

2/28

%

Payout

TTM

NY%

MktCap

DGR

DGR

Company

Symbol

Industry

Yrs

Price

Yield

Inc.

%Ratio

P/E

Growth

($Mil)

5-yr

10-yr

Canadian National Rail.

(NYSE:CNI)

Railroad

15

73.27

1.77

24.05

28.38

16.00

13.56

33,670

16.8

16.2

CSX Corp.

(NYSE:CSX)

Railroad

6

74.66

1.39

8.33

25.62

18.39

15.60

27,650

35.4

5.0

Norfolk Southern

(NYSE:NSC)

Railroad

10

65.58

2.44

11.11

40.00

16.40

14.62

23,350

23.9

5.8

Union Pacific

(NYSE:UNP)

Railroad

5

95.41

1.59

15.15

27.49

17.25

16.54

46,850

14.9

11.6

Averages for

4

Railroad

9.0

77.23

1.80

14.66

30.37

17.01

15.08

32,880

22.8

9.6

C.H.Robinson Worldwide

(NASDAQ:CHRW)

Transportation

14

72.39

1.60

16.00

49.79

31.07

16.24

11,920

28.2

29.2

Expeditors International

(NASDAQ:EXPD)

Transportation

16

47.80

0.84

5.26

25.16

30.06

14.67

10,140

21.7

27.6

FedEx Corp.

(NYSE:FDX)

Transportation

9

90.02

0.53

9.09

11.51

21.59

29.82

28,450

8.7

n/a

JB Hunt Transport Serv.

(NASDAQ:JBHT)

Transportation

8

41.61

1.25

8.33

33.33

26.67

20.30

5,060

14.9

44.0

Knight Transportation

(NYSE:KNX)

Transportation

7

18.61

1.29

20.00

34.29

26.59

20.00

1,560

34.0

n/a

Landstar System Inc.

(NASDAQ:LSTR)

Transportation

6

44.47

0.45

11.11

11.30

25.12

16.74

2,130

30.6

n/a

Ryder System

(NYSE:R)

Transportation

6

47.83

2.26

8.00

48.21

21.35

20.96

2,450

9.8

5.4

Textainer Group Hldgs

(NYSE:TGH)

Transportation

5

35.35

3.28

7.41

47.74

14.55

8.58

1,710

n/a

n/a

Averages for

8

Other

8.9

49.76

1.44

10.65

32.67

24.63

18.41

7,928

21.1

26.6

Averages for

12

Transportation

8.9

58.92

1.56

11.99

31.90

22.09

17.30

16,245

21.7

18.1

Averages for

447

CCC Co's

16.7

47.91

2.91

8.20

68.18

21.94

12.39

16,745

12.5

10.3


Summary

In this final installment of the series on industries represented by the CCC companies, we have two seemingly dissimilar sectors of the economy. But that is also a good demonstration of the wide-ranging type of economic activity that exists in our society and can be included in portfolio diversification. When I started the series on March 3, I wrote that I hoped to cover the CCC universe in relatively quick fashion, so that the data would not have a chance to get “stale.” I think that has been accomplished, but I also hope that these articles will continue to act as a good starting point for investors to research high-quality companies and industries in their goal to own the best dividend growth companies available. I welcome feedback in the Comments section below.

Disclosure: I am long INTC, MSFT, CSX, UNP, R.

Source: Dividend Champions: Focus on Technology and Transportation