A lot can happen in 50 years. Cultures shift, celebrities die, wars are fought. But through it all, a select group of companies have continued their policies of yearly dividend increases uninterrupted.
These elite companies remain steadfast in their devotion to dividends, providing their lucky shareholders with an ever-increasing source of income.
Past performance is no guarantee of future success, but with companies like these, it's as close to a guarantee as you can get.
Diebold Incorporated (DBD)
- Years of Dividend Growth - 58
- Current Quarterly Dividend Rate - $0.28
- 10 Year Average Dividend Growth - 5.99%
- Current Price - $30.61
- Current Yield - 3.66%
Diebold Incorporated is engaged in providing integrated self-service delivery and security systems and services to the financial, commercial, government and retail markets. The company has two lines of business: Self-Service Solutions and Security Solutions.
You may not realize how much exposure you've had to Diebold - they are a major producer and servicer of ATMs, and derive about half their revenue from them. A 1-2 combination of recovering US banks, and international demand for ATMs from emerging markets should help DBD's bottom line in the coming years. They are also focusing on the service side of their business, since the margins are higher and the segment more profitable.
The company is optimistic for 2011, although Q1 had a revenue and earnings decrease stemming from heavy European losses and higher taxes. Still, they are expecting a good year with the help of an American banking recovery.
Dover Corporation (DOV)
- Years of Dividend Growth - 54
- Current Quarterly Dividend Rate - $0.275
- 10 Year Average Dividend Growth - 8.26%
- Current Price - $64.86
- Current Yield - 1.7%
Dover Corporation owns and operates a global portfolio of manufacturing companies providing components and equipment, specialty systems and support services for a variety of applications in the industrial products, engineered systems, fluid management and electronic technologies markets.
Dover had a rough time during the recession, but they have bounced back fairly well. In 2010, revenues jumped from 5 to 7.1 billion, and EPS rose from $1.99 to $3.74. They already have made a number of new acquisitions for 2011 (such as Harbison-Fischer and NV Sound Solutions), helping to diversify their already large portfolio of businesses. I especially like NV Sound Solutions, which makes speakers and receivers for mobile phones. 2011 looks like a good year, with full year earnings expected between $4.30 - $4.45.
3M Company (MMM)
- Years of Dividend Growth - 52
- Current Quarterly Dividend Rate - $0.55
- 10 Year Average Dividend Growth - 6.51%
- Current Price - $92.34
- Current Yield - 2.38%
3M Company (3M) is a diversified technology company with a presence in industrial and transportation; health care; display and graphics; consumer and office; safety, security and protection services, and electro and communications.
3M is a great company, and one that have been on my watchlist for a while. Over the past 10 years, even with the recession, revenue has grown by an average of 5.7% annually, while free cash flow has grown by 7.6%. They are involved in diverse businesses around the world, and own some serious brand power, such as Scotch tape, Post-It Notes, and Filtrete. After a great Q1, 2011 estimates were revised, and 3M now expects to earn between $6.27 and $6.47 a share, full year.
Genuine Parts Company (GPC)
- Years of Dividend Growth - 55
- Current Quarterly Dividend Rate - $0.45
- 10 Year Average Dividend Growth - 4.95%
- Current Price - $52.52
- Current Yield - 3.4%
Genuine Parts Company is engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials.
GPC had a nice Q1, and 2011 is expected to be solid. The company should see growth in the coming years from the emerging middle classes desire to own an automobile in countries like China and India. They are however getting squeezed in margins, and price competition is fierce for autoparts. They are moving more volume from their biggest customers, but at lower margins. Still, ample cash on the balance sheet should lead to some nice share buybacks in 2011, and good earnings.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.