Best Of The Best: Dividend Champions That Have A Record Of Stellar Increases - Part I

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 |  Includes: ABM, CTBI, CWT, FRT, MO, SJW, SWK, T
by: Tactical Investor

This is the first article of the "Best of the Best Series”, where I will examine companies with lengthy stellar records for making timely and ever increasing dividend payments. In total, over 33 companies will be examined in this series; in this article, 8 companies will be examined.

Companies will be required to have at least a 40 year history of dividend payments to make this list. Roughly, less than 1 in 18 dividend-paying stocks can lay claim to such a title. Investors looking for stocks with more of a sizzle might find this article interesting: Dividend Scorchers With Yields As High As 18.1%: REITS, Part IV.

Stock

Yield

Debt to Equity ratio

Market Cap

Fwd PE

Total Cash

Operating margins

Revenue

Cash flow

Consecutive Dividend

Increases

ABM

3.70

47%

1.03B

12.87

39.6M

3.2%

4.07B

154M

46

CWT

3.5

117%

741M

15.4

32.8M

18.54%

481.3M

98.3M

43

SJW

3.00

138%

426M

21

45.3M

19.83%

223.8M

44.7M

43

SWK

3.00

49%

9B

8.7

1.93B

8.67%

9.7B

848M

43

FRT

3.2

143%

4.9B

19

19.8M

42.5%

549M

246M

42

MO

6.3

295%

55.92

12

2.06B

38.8%

16.54B

2.96B

45

T

6.00

58%

167B

11

3.83B

15.5%

125.6B

35.9B

27

CTBI*

5.00

24%

369M

9.8

196M

38.6

153.6M

62.4M

31

Click to enlarge

*=Bonus play M= million B= Billion

ABM Industries, Inc. (NYSE: ABM)

Additional Information:

  • % shares held by institutions: 85.9%
  • % Held by Insiders : 17.35%
  • Short % of Float: 8.9%
  • ROE : 9.5%
  • Book Value : 14.74
  • Forward Dividend: 3.00
  • Dividend Yield 5 year average: 2.50%
  • Dividend Growth Rate 5yr Avg: 5.19%
  • Dividend payout ratio: 44%
  • Dividend 5 year payout ratio: 43%
  • Qtrly Earnings Growth (y-o-y):33%
  • Forward Annual Dividend Rate: $.56

California Water Service Group (NYSE: CWT)

Additional Information:

  • % shares held by institutions: 52.4
  • % Held by Insiders : 5.3
  • Short % of Float: 3.7
  • ROE : 9.35
  • Book Value : 10.50
  • Forward Dividend: 3.5%
  • Dividend Yield 5 year average: 5.6%
  • Dividend Growth Rate 5yr Avg: -9.04%
  • Dividend payout ratio: 63%
  • Dividend 5 year payout ratio: 118%
  • Qtrly Earnings Growth (y-o-y): 17.4%
  • Forward Annual Dividend Rate: $0.62

SJW Corp. (NYSE: SJW)

Additional Information:

  • % shares held by institutions: 41.6
  • % Held by Insiders : 36.5
  • Short % of Float: 13.3
  • ROE : 9.85
  • Book Value : 13.73
  • Forward Dividend: 3.20
  • Dividend Yield 5 year average: 2.5%
  • Dividend Growth Rate 5yr Avg: 4.3%
  • Dividend payout ratio: 51%
  • Dividend 5 year payout ratio: 56%
  • Qtrly Earnings Growth (y-o-y): 20.7%
  • Forward Annual Dividend Rate: $.069

Stanley Black & Decker, Inc. (NYSE: SWK)

Additional Information:

  • Paying dividends since: 1877
  • % shares held by institutions: 82.4%
  • % Held by Insiders : 0.79%
  • Short % of Float: 2.8%
  • ROE : 8.67%
  • Book Value : 44.73
  • Forward Dividend: 3.3%
  • Dividend Yield 5 year average: 2.71
  • Dividend Growth Rate 5yr Avg: 6.21%
  • Dividend payout ratio: 42%
  • Dividend 5 year payout ratio: 77%
  • Qtrly Earnings Growth (y-o-y): 330%
  • Forward Annual Dividend Rate: 1.64

Federal Realty Investment Trus (NYSE: FRT)

Additional Information:

  • % shares held by institutions: 99.4%
  • % Held by Insiders : 0.6%
  • Short % of Float: 7.1%
  • ROE : 10.74%
  • Book Value : 19.47%
  • Forward Dividend: 3.3
  • Dividend Yield 5 year average: 3.4%
  • Dividend Growth Rate 5yr Avg: 0.7%
  • Dividend payout ratio: 133%
  • Dividend 5 year payout ratio: 142%
  • Qtrly Earnings Growth (y-o-y): 11.7%
  • Forward Annual Dividend Rate: 2.76

FRT total cash flow from operating activities is 256.7 million, dividend payments amount to 163 million so even though the payout ratio is rather high it will be able to maintain these payments as long as its cash flow remains unaffected.

Altria Group Inc (NYSE : MO)

Additional Information:

  • Paying dividends since 1928
  • % shares held by institutions 60.3%
  • % Held by Insiders 0.07%
  • Short % of Float 1.5%
  • ROE 74.4%
  • Book Value $2.24
  • Forward Dividend 6.4%
  • Payout ratio 93%
  • Dividend payout ratio 5 yr average 103%
  • Dividend Yield 5yr average 8.9%
  • Dividend Growth Rate 5yr Avg:-11.26
  • Qtrly Earnings Growth (y-o-y): -57%
  • Forward Annual Dividend Rate: 1.64

AT&T Inc (NYSE: T)

Additional Information:

  • Paying dividends since 1861
  • % shares held by institutions 58%
  • % Held by Insiders 0.03
  • Short % of Float 1.1%
  • ROE 18.29%
  • Book Value $19.2.
  • Forward Dividend 6.2%
  • Payout ratio 51%
  • Dividend payout ratio 5 yr average 64%
  • Dividend Yield 5yr average 5.4%
  • Dividend Growth Rate 5yr Avg: 5.36%
  • Qtrly Earnings Growth (y-o-y): -10.3%
  • Forward Annual Dividend Rate: 1.72

Community Trust Bancorp, Inc. (NASDAQ: CTBI)

Additional Information:

  • % shares held by institutions: 46.8%
  • % Held by Insiders : 3.4%
  • Short % of Float: 6.54%
  • ROE : 10.5%
  • Book Value : 23.01
  • Forward Dividend: 5.3%
  • Dividend Yield 5 year average: 4.2%
  • Dividend Growth Rate 5yr Avg: 3.36%
  • Dividend payout ratio: 52%
  • Dividend 5 year payout ratio: 60%
  • Qtrly Earnings Growth (y-o-y): 4.90%
  • Forward Annual Dividend Rate: 1.24
  • Beta 0.66

Conclusion

Investing in stocks that pay dividends in contrast to those that pay no dividends leads to far superior returns over time. A portfolio of dividend-paying stocks can also produce a steady stream of income over time.

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