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In light of low bond yields and the threat of interest rate risk, investing in dividends companies is attractive because of higher present yields and the opportunity for dividend growth. Income investors searching for growing dividends could benefit by adding service sector companies to their portfolios.

The service sector is the unsung hero of modern American economy. Among the most ridiculous of ironies, pundits in the financial media lament the decline of American manufacturing while working in the service sector themselves!

The following dividend paying stocks were screened for their long term performance. Each of the following service sector companies pays a dividend in excess of the 10-year treasury yield and had over a 5% average annual increase in dividend payments over the past 10 years. Thus, each of these dividend stocks pays more than treasuries and has a long-term trend of dividend growth, which is better than the static interest payments on fixed-rate treasuries.

Price multiples, dividend histories, and return of equity histories are provided below:

Brady Corp. (NYSE:BRC) recently traded at $32.63 per share. At this price level, the stock has a 2.2% dividend yield. For 10 out of the past 10 fiscal years, a share of BRC paid a total of $5.42 in dividends. Of these dividend payments, a total of $3.26 were paid in the last five years.

BRC shareholders have seen a 5.4% change in share price over the past year. At present, shares of this small cap stock trade at a price-to-book ratio of 1.5, a price-to-earnings multiple of 15.3, and a price-to-sales multiple of 1.3 (trailing twelve months). Over the past decade shareholders savored a 11.6% average annual return on equity.

Courier Corporation (NASDAQ:CRRC) recently traded at $11.67 per share. At this price level, the stock has a 7.1% dividend yield. For 10 out of the past 10 fiscal years, a share of CRRC paid a total of $5.46 in dividends. Of these dividend payments, a total of $4.04 were paid in the last five years.

CRRC shareholders have seen a 0.5% change in share price over the past year. At present, shares of this micro cap stock trade at a price-to-book ratio of 0.9, a price-to-earnings multiple of 1179.0, and a price-to-sales multiple of 0.6 (trailing twelve months). Over the past decade shareholders enjoyed a 9.9% average annual return on equity.

H&R Block, Inc. (NYSE:HRB) recently traded at $16.4 per share. At this price level, the stock has a 4.9% dividend yield. For 10 out of the past 10 fiscal years, a share of HRB paid a total of $4.86 in dividends. Of these dividend payments, a total of $2.88 were paid in the last five years.

HRB shareholders have seen a 0.4% change in share price over the past year. At present, shares of this mid cap stock trade at a price-to-book ratio of 5.6, a price-to-earnings multiple of 12.3, and a price-to-sales multiple of 1.4 (trailing twelve months). Over the past decade shareholders savored a 19.1% average annual return on equity.

Meredith Corp. (NYSE:MDP) recently traded at $31.53 per share. At this price level, the stock has a 4.8% dividend yield. For 10 out of the past 10 fiscal years, a share of MDP paid a total of $6.52 in dividends. Of these dividend payments, a total of $4.25 were paid in the last five years.

MDP shareholders have sustained a -2.1% change in share price over the past year. At present, shares of this small cap stock trade at a price-to-book ratio of 1.8, a price-to-earnings multiple of 11.5, and a price-to-sales multiple of 1.1 (trailing twelve months). Over the past decade shareholders savored a 13.2% average annual return on equity.

McGrath Rentcorp (NASDAQ:MGRC) recently traded at $29.96 per share. At this price level, the stock has a 3.1% dividend yield. For 10 out of the past 10 fiscal years, a share of MGRC paid a total of $5.86 in dividends. Of these dividend payments, a total of $3.86 were paid in the last five years.

MGRC shareholders have seen a 3.4% change in share price over the past year. At present, shares of this small cap stock trade at a price-to-book ratio of 2.3, a price-to-earnings multiple of 15.0, and a price-to-sales multiple of 2.2 (trailing twelve months). Over the past decade shareholders savored a 16.8% average annual return on equity.

The McGraw-Hill Companies, Inc. (MHP) recently traded at $46.09 per share. At this price level, the stock has a 2.2% dividend yield. For 10 out of the past 10 fiscal years, a share of MHP paid a total of $7.07 in dividends. Of these dividend payments, a total of $4.27 were paid in the last five years.

MHP shareholders have seen a 2.3% change in share price over the past year. At present, shares of this large cap stock trade at a price-to-book ratio of 6.1, a price-to-earnings multiple of 16.6, and a price-to-sales multiple of 2.2 (trailing twelve months). Over the past decade shareholders savored a 35.0% average annual return on equity.

Omnicom Group Inc. (NYSE:OMC) recently traded at $46.46 per share. At this price level, the stock has a 2.2% dividend yield. For 10 out of the past 10 fiscal years, a share of OMC paid a total of $5.18 in dividends. Of these dividend payments, a total of $3.08 were paid in the last five years.

OMC shareholders have seen a 2.9% change in share price over the past year. At present, shares of this large cap stock trade at a price-to-book ratio of 3.7, a price-to-earnings multiple of 14.4, and a price-to-sales multiple of 0.9 (trailing twelve months). Over the past decade shareholders savored a 23.0% average annual return on equity.

Owens & Minor Inc. (NYSE:OMI) recently traded at $27.96 per share. At this price level, the stock has a 2.8% dividend yield. For 10 out of the past 10 fiscal years, a share of OMI paid a total of $3.96 in dividends. Of these dividend payments, a total of $2.70 were paid in the last five years.

OMI shareholders have seen a 2.7% change in share price over the past year. At present, shares of this small cap stock trade at a price-to-book ratio of 2.0, a price-to-earnings multiple of 16.0, and a price-to-sales multiple of 0.2 (trailing twelve months). Over the past decade shareholders savored a 13.5% average annual return on equity.

Paychex, Inc. (NASDAQ:PAYX) recently traded at $30.99 per share. At this price level, the stock has a 4.1% dividend yield. For 10 out of the past 10 fiscal years, a share of PAYX paid a total of $8.16 in dividends. Of these dividend payments, a total of $5.71 were paid in the last five years.

PAYX shareholders have seen a 3.4% change in share price over the past year. At present, shares of this large cap stock trade at a price-to-book ratio of 7.2, a price-to-earnings multiple of 20.9, and a price-to-sales multiple of 5.2 (trailing twelve months). Over the past decade shareholders savored a 32.4% average annual return on equity.

Watsco Inc. (NYSE:WSO) recently traded at $67.8199 per share. At this price level, the stock has a 3.6% dividend yield. For 10 out of the past 10 fiscal years, a share of WSO paid a total of $9.36 in dividends. Of these dividend payments, a total of $7.94 were paid in the last five years.

WSO shareholders have seen a 4.6% change in share price over the past year. At present, shares of this mid cap stock trade at a price-to-book ratio of 2.8, a price-to-earnings multiple of 25.6, and a price-to-sales multiple of 0.8 (trailing twelve months). Over the past decade shareholders savored a 11.3% average annual return on equity.

All of these stocks have impressive histories of providing shareholder income and growing shareholder wealth. At present, investors ought to consider MDP and HRB as additions to their income portfolios and CRRC as a possible turnaround candidate.

Source: Service Sector Dividends Growing Like Weeds