I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis. Companies that regularly raise their dividend payments show confidence in future earnings growth potential. This past week, 2 companies on my watch list announced dividend increases. The following table provides a summary of these increases.
The table is sorted by the percentage increase, %Incr. Dividends are annualized and in US$, unless otherwise indicated. Yield is the new dividend yield for the market close Price on the date listed. Yrs are years of consecutive dividend increases, while 5-yr DGR is the compound annual growth rate of the dividend over a 5-year period. 1-yr %Incr is the percentage increase from the year-ago dividend. (Some companies increase their dividends more than once a year, so this puts the most recent dividend increase in context).
Summary of Dividend Increases: December 18-22, 2017 |
|
Previous Post: 12 Dividend Increases: December 11-15, 2017 |
• Pfizer (PFE)
Headquartered in New York and founded in 1849, PFE is one of the world's largest pharmaceutical firms. The company discovers, develops and manufactures healthcare products. Prescription drugs and vaccines account for almost 90% of PFE's sales. Its brands include Prevnar 13, Xeljanz, Eliquis, Lipitor, Celebrex, Pristiq, and Viagra.
The board of directors of PFE has declared a quarterly dividend of 34¢ per share. The new dividend is 6.25% above the prior dividend of 32¢ per share. PFE will trade ex-dividend on February 1. The dividend is payable on March 1 to shareholders of record on February 2.
• Andersons (ANDE)
ANDE is a diversified agriculture-focused company that conducts business in the grain, ethanol, plant nutrient and rail sectors. The company also produces turf and cob products. It operates The Andersons retail stores and a specialty food store called The Andersons Market. ANDE was founded in 1947 and is headquartered in Maumee, Ohio.
The company increased its quarterly dividend by 3.13%, from 16¢ per share to 16.5¢ per share. The dividend is payable on January 23 to shareholders of record on January 2.
Please note that I'm not recommending any of these stocks. Readers should do their own research on these companies before buying shares.
As a bonus, I include charts from F.A.S.T. Graphs for this week's dividend raisers, PFE and ANDE.
In these charts, the black line represents the share price, and the blue line represents the calculated P/E multiple at which the market has tended to value the stock over time. The orange line is the primary valuation reference line. It is based on one of three valuation formulas depending on the earnings growth rate achieved over the time frame in question. (The Adjusted Earnings Growth Rate represents the slope of the orange line in the chart).
PFE's price line (black) is below the primary valuation line (orange) and above the stock's normal P/E ratio (BLUE). The stock is trading at about fair value. An investment in PFE in January 2007 would have returned 5.6% on an annualized basis (with dividends included).
ANDE's price line is above the stock's normal P/E ratio and above the primary valuation line. The stock is trading at a premium to fair value. An investment in ANDE in January 2007 would have returned 2.3% on an annualized basis (with dividends included).
Thanks for reading! If you like this article and would like to read similar ones in future, please click the Follow link at the top of this article.
