4 Large Caps With At Least 80% 5-Year Dividend Growth

 |  Includes: CF, KAOCF, RCI, UNH
by: Anh Hoang

Dividend is one of the important indicators of the business strength. Most of the companies, which pay sustainable, consistent and increasing dividend over a long period time, are quite reliable for investors to invest in. I run the screen to find large cap stocks (more than $10 Billion in market cap), which experience the high growth of more than 80% in their dividends over the past 5 years.

UnitedHealth Group (NYSE:UNH), a diversified health and well-being corporation, provides health services to consumers, employers and health plans to physicians and life sciences companies. In addition, the company operates its own clinical service assets, including Southwest Medical multi-specialty clinics in Nevada and Evercare nurse practitioners. Its dividend growth is more than 93% over the past 5 years. In 2011, it paid $0.612 dividend per share. The current share price is $53.2 at the time of writing, thus, its dividend yield is 1.15%. With more than 1 billion shares, the UNH's market capitalization is nearly 56.7 Billion. Currently the market values UNH at 11.6x P/E, 2x P/B and 6.5x P/CF.

Kao Corporation (OTC:KAOCF) is a Japanese corporation operating in two business segments: the Consumer Product segment and the Chemical Segment. The Consumer Product segment has three divisions. The Beauty Care offers prestige cosmetics, premium skin care products and hair care products including shampoos, hair styling and hair coloring products. The Human Health Care supplies foods and beverage products, sanitary products and personal health products such as bath additives. The Fabric and Home Care division provides detergents for apparel use and kitchen use. And the Chemical segment offers oil and fat products for plastic use. The company has the reputation of paying consistent dividends to its shareholders. Its dividend growth is nearly 85% in the last 5 years. Right now, the share price is trading at $26, with the market capitalization of $13.65 Billion. Last year, it paid out $0.73 dividend per share, thus the dividend yield is 2.8%. Currently, its P/E is 22.7x, P/B is 2x and P/CF is 7x.

Rogers Communications (NYSE:RCI) is a Canadian diversified holding company, operating in three main segments: wireless, cable and media. It is also well-known for its reliable dividend paying history. Its dividend growth is 83.25% in the last 5 years. In 2011, it paid out $1.42 dividend per share. With the current share price of $38.75, the dividend yield is 3.67%. The number of shares outstanding is nearly 535 million, with the total market capitalization of more than $20.7 Billion. At the current share price, the market values RCI at 13.4x earnings, 5.3x book value and 5.5x cash flow.

CF Industries Holdings (NYSE:CF) is a manufacturer and distributor of nitrogen and phosphate fertilizer products. It operates in two main segments: nitrogen and phosphate segments. Its market and distribution facilities are mainly in Midwestern US grain-producing states, and other agricultural areas of US and Canada. The dividend growth is 82% over the past 5 years. In 2011, it paid out $1 dividend per share. With the current price of $186 per share, its dividend yield is 0.54%. CF is the $12 Billion company with more than 65 million shares outstanding. During the past 1.05 years, its share price advanced more than 200%, from $61 to $186. The market values CF at 10.4x earnings, nearly 3x its book value and 5.4x its operating cash flow.

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