5 DRIP Dividend Champions To Consider Today

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 |  Includes: BAC, C, UBSI, UVV, VAL, VFC, VVC
by: Vatalyst

These five companies appear on the DRIP Investing Resource Center’s list of U.S. Dividend Champions for increasing dividends for at least 25 consecutive years. All of these stocks would make a nice addition to your income portfolio. We summarize a few key valuation measures below:

United Bankshares Inc. (NASDAQ:UBSI) – This Mid-Atlantic regional bank, with a market capitalization of $983.78 million, increased its dividend for 37 consecutive years. It has paid $0.30 a quarter since December 2009, up from $0.29 paid quarterly for eight consecutive periods prior. Its current forward annual dividend yield is 5.7%. There are no dividend reinvestment or stock purchase fees. It went ex-dividend on Sept. 7.

UBSI’s earnings per share is $1.65. Its price to earnings ratio is 11.88, and its five-year expected price/earnings to growth ratio is 1.57. It posted a quarterly loss of 5.9%. Its return on equity is 9.1 percent. Price to book value is 1.13.

UBSI is currently trading around $19.60 a share, which is near the bottom of its 52-week range of $19.44 to $30.84. Based on these metrics, this is a risk-averse bet, especially when compared to beleaguered giants like Citigroup (NYSE:C) and Bank of America (NYSE:BAC) which have opaque structural problems and heaps of questionable loans with which to contend.

Universal Corporation (NYSE:UVV) – This small-cap leaf tobacco processor has raised its dividend consistently for 40 years. It paid $0.48 for the past three quarters, which is up from $0.47 a quarter throughout 2010. Its forward annual dividend yield is 4.9%.

It charges no fees for its dividend reinvestment and stock purchase options. It trades ex-dividend on Oct. 6.

UVV shows earnings per share of $5.22. Its price to earnings ratio is 7.24, but its price/earnings to growth ratio is not available. It posted a quarterly loss in revenue of 11%. Return on equity is 13.57%, and debt to equity 56.44. Price to book value is 0.93.

UVV is currently trading around $37.82. Share price has ranged from $35.02 to $45.96 over the past 52 weeks. This is also a low-risk, steady bet.

Valspar Corporation (NYSE:VAL) – VAL, a paint and coatings manufacturer, boasts increases in dividends for 30 consecutive years. It announced Monday that it would pay $0.18 a share for the fourth consecutive quarter. This is up from $0.16 a share for the previous four quarters. VAL’s forward annual dividend yield is 2.2%. The company charges fees for its stock purchase plan but not for dividend reinvestment.

Earnings per share is $2.12, and price to earnings ratio is 14.76. Price/earnings to growth ratio is 1.12. It posted quarterly revenue growth of 22.5%. Return on equity is 13.2%, and debt to equity is 72.43. Price to book value is 1.86.

Currently trading around $31.10, VAL has ranged from $27.44 to $40.60 over the past year. Valspar is a slow-growth bet with solid input cost control. It is a wise option for risk-averse investors.

Vectren Corporation (NYSE:VVC) – With a market capitalization of $2.22 billion, this utility company, which serves customers in Indiana and Ohio, has increased its dividend for the past 51 years. It raised its payout a half a cent in November 2010 and has paid $0.345 a quarter for three periods. Its forward annual dividend yield is 5%. Its dividend reinvestment plan carries no fees. VVC went ex-dividend on Aug. 11.

Earnings per share is $1.49, and price to earnings ratio is 18.31. VVC’s price/earnings to growth ratio is 2.98. Quarterly revenue growth is strong at 18.2%. Return on equity is 8.48%, but debt to equity is high at 128.89. Price to book value is 1.58.

The utility is currently trading around $27.20, which is in the middle of its 53-week range of $23.65 to $28.85. This is one of the better stocks that few know about. We think interested investors should take a look.

VF Corp. (NYSE:VFC) – This shoe and clothing designer and manufacturer has a market capitalization of $13.27 billion. It has increased its dividend for 38 consecutive years. Earlier this month, it paid $0.63 a share for the fourth consecutive quarter. For last year’s four quarters it paid $0.60 a share. Both its dividend reinvestment and stock purchase plans carry fees. Its ex-date was Sept. 7.

Its dividend yield is 2%. Earnings per share is $5.70, and its price to earnings ratio is 21.21. Its price/earnings to growth ratio is 1.59. Quarterly revenue grew by 15.4%. Return on equity is 15.9%, and debt to equity is 22.95. Price to book value is 3.25.

VFC’s share price of $120.98 approaches it 52-week high of $131.30. The yearly low is $77.02. VFC is a bit more prone to consumers' spending swings and seasonal sales. Nonetheless, its brands have staying power. We think interested investors should take a look on further weakness.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.