The problems in the macroeconomic environments globally are causing uncertainties in the stock markets. S&P500 lost over 13% during this month but recovered from the losses and is down 7.4% till date. In unsteady markets, investors typically look for low risk stocks that can yield (give dividends) in tough times. Historically consumer goods companies had low fluctuations in their performance in recessionary periods and these companies offer decent dividends. Stookle.com’s algorithms identified the following companies that had a history of exponentially increasing their dividends over the past 5 years in the Consumer Goods Sector.
Church & Dwight Co (NYSE:CHD): Church & Dwight Co., Inc., together with its subsidiaries, develops, manufactures, and markets a range of household, personal care, and specialty products. CHD had a steady growth in its top line (revenue) and bottom line (profits) over the past 5 years. The dividend payouts increased from $0.13 per share in 2006 to $0.31 per share in 2010. CHD is trading at 17.44 times forward earnings and has a return on assets (ROA) of 9.04%. Church &Dwight has a book value of $14.20 and is expected to grow earnings at an average of 11% over the next 5 years. The stock is currently trading at $42.06, raising $7.44 or 21.56% this year to date.
Coca Cola FEMSA (NYSE:KOF): Coca Cola FEMSA, S.A.B. de C.V. produces, markets, and distributes Coca-Cola trademark beverages and brands. It operates in Mexico, Central America, Colombia, Venezuela, Brazil, and Argentina. KOF has seen 78% growth in its revenue in the last 5 years. The dividend payouts almost tripled from 3.69 MEX pesos to 13.87 MEX pesos. KOF is trading at 16.44 times the forward earnings and has a book value of $31.79. KOF has a ROA of 9.98% and is expected to grow its earnings at an average of 12% over the next five years. The stock is currently trading at $96.32, raising $14.53 or 17.49% this year to date.
Bunge Ltd (NYSE:BG): Bunge Limited engages in the agriculture and food businesses. It buys, sells, stores, and transports oilseeds and grains; processes oilseeds to make protein meal for animal feed, and edible oil products. The dividend payouts increased from $0.62 per share in 2006 to $0.88 per share in 2010. BG is trading at 9.16 times forward earnings multiples. The company is trading well below its book value of $85.98 and has a ROA of 3.55% and Return on Equity (ROE) of 8.40%. The stock is currently trading at $62.90, falling $2.65 or 4% this year to date.
Flower Foods Inc. (NYSE:FLO): Flowers Foods, Inc. produces and markets bakery products. The revenues at Flower foods have consistently increased from $1.8 billion in 2006 to $2.54 billion in 2010. Earnings per share (NYSEARCA:EPS) increased at a similar pace. Flower Foods paid a dividend of $0.21 per share in 2006 and $0.52 in 2010, a 147% increase in the dividend. FLO is trading at 17.77 times forward earnings and is expected to grow earnings at 7.27% over the next 5 years. FLO has a book value of $5.90 and has a ROE of 17.79% and ROA of 9.93%. The stock is currently trading at $21.33, raising $3.39 or 18.9% this year to date.
Diageo Plc. (NYSE:DEO): Diageo plc engages in producing, distilling, brewing, bottling, packaging, distributing, developing, and marketing spirits, beer, and wine products. Diageo has seen a top line growth of 35% in the last five years. The company steadily increased its dividend payment from 1.24 pounds in 2006 to 1.49 pounds in 2010. DEO is trading at 14.01 times forward earnings and is expected to grow earnings at 10% over the next 5 years. DEO has a book value of $12.70 and has an impressive ROE of 37.87% and ROA of 8.90%. The stock is trading at $78.02, raising $3.69 or 4.96% this year to date.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Disclaimer: Algorithm Cabinet LLC and/or STOOKLE.com, is not a registered investment advisor and does not provide investment advice. The information contained in this website/blog is for general information purposes only.