During the past week, GuruFocus recognized seven companies as dividend growers. In order to be qualified for this list, the company had to:
Have a dividend of greater than 3%. Have a strong history of stable and increasing dividends. Maintain Guru ownership Have a market cap of greater than $10 billion.The following seven companies come from various industries and sectors of the market, but they all fit the necessary criteria needed to qualify them as dividend growers.
A comparison of the companies' historical dividend growth:
Ventas Inc (VTR)
On Feb. 14, Ventas declared a dividend of $0.725 per share, representing 4.50% dividend yield for the company. This dividend is payable on March 28 to shareholders of the record at the close of business on March 7, 2014.
The company's historical dividend growth is as follows:
- 10-year: 9.10%
- 5-year: 5.10%
- 3-year: 6.60%
Ventas is a REIT with a portfolio of seniors' housing and healthcare properties in the U.S. and Canada. The company currently operates through three reportable business segments: triple-net leased properties, senior living operations and MOB operations.
Ventas' historical revenue and net income:
The company reported its fourth quarter and year-end results last week which highlighted:
- Year-end FFO of $4.14 per diluted share, up 9% from last year.
- 2013 total normalized FFO topped $1.2 billion, an increase of 11%.
- Fourth quarter net income of $108.4 million, or $0.37 per share.
- Fourth quarter normalized FFO up 7% to $313.6 million.
As of the close of the fourth quarter there were seven gurus that held a position in Ventas. Check out their holdings here.
The analysis on Ventas reports that the company has issued $2.9 billion of debt over the past three years, its dividend yield is close to a 3-year high and its P/S and P/B ratios are trading at near historic lows.
The Peter Lynch Chart suggests that the company is currently overvalued:
Advanced Info Service Public Company Limited (AVIFY)
On Feb. 13, Advanced Info Service Public Company declared a dividend of $0.140 per share, representing 4.50% dividend yield for the company. This dividend is payable on May 2, to shareholders of the record at the close of business on Mar. 31, 2014.
The company's historical dividend growth is as follows:
- 10-year: 0%
- 5-year: 16.60%
- 3-year: 40.50%
Advanced Info Service Public Company is Thailand's largest GSM mobile phone operator with 35 million customers as of March 2013. The company is controlled by the Intouch PLC, which is headed by Temasek Holdings, a Singapore government owned agency.
Advanced Info Service's historical revenue and earnings growth:
The analysis on AVIFY reports that the company's operating margin is expanding, its dividend yield is close to a 2-year high and its P/E and P/S ratios are trading at historical lows.
The Peter Lynch Chart suggests that the company is currently overvalued:
Advanced Info Service has a market cap of $19.92 billion. Its shares are currently trading at around $6.70 with a P/E ratio of 17.80, a P/S ratio of 4.50 and a P/B ratio of 10.80. The company had an annual average earnings growth of 8.40% over the past five years.
Commonwealth Bank of Australia (CMWAY)
On Feb. 13 Commonwealth Bank of Australia declared a dividend of $1.632 per share, representing 5.10% dividend yield for the company. This dividend is payable on April 14 to shareholders of the record at the close of business on Feb. 24, 2014.
The company's historical dividend growth is as follows:
- 10-year: 8.10%
- 5-year: 9.80%
- 3-year: 15.40%
Commonwealth Bank of Australia is Australia's largest retail bank and one of the "Big Four." It also operates in New Zealand and Asia. Its core business is the provision of retail, business and institutional banking services. It is also a major fund manager and has increasing market shares in general and life insurance.
Bank of Australia's historical revenue and earnings growth:
The analysis on Commonwealth Bank reports that the price is nearing a 10-year high of $73.82, the company has enough cash to cover all of its debt, its operating margin is expanding and its revenue has shown predictable revenue and earnings growth.
The company recently released its half year results which reported:
- Statuatory net profit after tax was $4,207 million, representing a 16% increase.
- Declared an interim dividend of $1.83 per share, up 12% from last year.
- Cash on hand was $4,268 million, up 14% from last year.
- Cash return on equity of 18.7%
The Peter Lynch Chart suggests that the company is currently overvalued:
Commonwealth Bank of Australia has a market cap of $111.59 billion. Its shares are currently trading at around $69.23 with a P/E ratio of 16.30, a P/S ratio of 5.10 and a P/B ratio of 2.80.
British Sky Broadcasting Group PLC (BSYBY)
On Feb. 12, British Sky Broadcasting Group declared a dividend of $0.783 per share, representing 3.10% dividend yield for the company. This dividend is payable on April 29 to shareholders of the record at the close of business on March 28, 2014.
The company's historical dividend growth is as follows:
- 10.year: 22.10%
- 5-year: 12.80%
- 3-year: 14.80%
British Sky Broadcasting Group PLC is a television provider in the UK and Ireland and home communications services in the UK. Sky retails pay TV services to residential customers in SD, HD and 3D via satellite, on demand with anytime and on the move with Sky Go.
British Sky Broadcasting's historical revenue and net income:
The analysis on British Sky Broadcasting Group reports that the company has shown predictable revenue and earnings growth, its operating margin is expanding and its price is near a 10-year high.
There were no gurus holding a position in BSYBY as of the close of the fourth quarter.
The Peter Lynch Chart suggests that the company is currently overvalued:
British Sky Broadcasting Group has a market cap of $24.34 billion. Its shares were trading at around $61.80 with a P/E ratio of 16.20, a P/S ratio of 2.00 and a P/B ratio of 14.20. The company had an annual average earnings growth of 11.80% over the past ten years.
GuruFocus rated British Sky Broadcasting the business predictability rank of 4-star.
Reynolds American (RAI)
On Feb. 11, Reynolds American declared a dividend of $0.670 per share, representing 5.20% dividend yield for the company. This dividend is payable on April 1 to shareholders of the record at the close of business on March 10, 2014.
The company's historical dividend growth is as follows:
- 10.year: 10.80%
- 5-year: 10.10%
- 3-year: 10.50%
Reynolds American, through its subsidiaries, manufactures cigarettes and other tobacco products in the United States. The Company's reportable operating segments are RJR Tobacco, American Snuff and Santa Fe.
Reynolds' historical revenue and earnings growth:
The analysis on Reynolds reports that the company's operating margin is expanding, its dividend yield is near a 5-year low and its price, P/B ratio and P/S ratio are all sitting near 10-year highs.
The company announced that its most recent dividend is the 39th consecutive quarterly cash dividend. It also reports that RAI's policy is to return about 80% of the company's current-year net income to the shareholders in the form of dividends.
The Peter Lynch Chart suggests that the company is currently overvalued:
Reynolds American currently has a market cap of $25.67 billion. Its shares are trading at around $47.81 with a P/E ratio of 15.30, a P/S ratio of 3.20 and a P/B ratio of 5.00. The company had an annual average earnings growth of 7.70% over the past five years.
Clorox Company (CLX)
On Feb. 11, Clorox Company declared a dividend of $0.710 per share, representing 3.20% dividend yield for the company. This dividend is payable on May 9, to shareholders of the record at the close of business on March 10, 2014.
The company's historical dividend growth is as follows:
- 10.year: 11.70%
- 5-year: 8.80%
- 3-year: 8.60%
The company is a manufacturer and marketer of consumer and professional products. It sells its products through mass merchandisers, grocery stores, other retail outlets, distributors and medical supply providers.
Clorox's historical revenue and net income:
The analysis on Clorox reports that the company's price has been in decline over the past year, its dividend yield is near a 5-year low, its price is near a 10-year high and its P/E and P/S ratios are near historical highs.
The company recently reported its second quarter 2014 results which reported:
- $0.88 diluted EPS, a decrease of 5%.
- 1% volume increase.
- 0.4% sales increase from last year's second quarter.
- Earnings from continuing operations of $116 million, compared to $123 million last year.
The Peter Lynch Chart suggests that the company is currently overvalued:
Clorox Company has a market cap of $11.34 billion. Its shares are currently trading at around $87.29 with a P/E ratio of 20.60, a P/S ratio of 2.10 and a P/B ratio of 72.70. The company had an annual average earnings growth of 5.80% over the past ten years.
Thomson Reuters (TRI)
On Feb. 11, Thomson Reuters declared a dividend of $0.330 per share, representing 3.80% dividend yield for the company. This dividend is payable on March 17 to shareholders of the record at the close of business on Feb. 24, 2014.
The company's historical dividend growth is as follows:
- 10.year: 6.60%
- 5-year: 4.00%
- 3-year: 3.90%
Thomson Reuters is the world's leading source of intelligent info for professionals as well as businesses. The company creates technology that will deliver crucial information to decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets through the use of the world's most trusted news organization.
Thomson Reuters' historical revenue and net income:
The analysis on Thomson Reuters warns that the company's revenue has been in decline over the past year, its dividend yield is near a 2-year low and its price is near a 5-year high.
The company's recently reported full-year and fourth quarter 2013 results highlighted:
- Revenue grew 2% for the year and 1% for the quarter
- EBITDA was down 7% for the year and 32% for the quarter due to a $260 million charge.
- Full year adjusted EPS was $1.54, compared to $1.89 last year.
- EPS was $1.83 for the full year and $0.49 for the quarter.
- Approved dividend increase, represents 21st consecutive annual increase.
The Peter Lynch Chart suggests that the company is currently overvalued:
Thomson Reuters has a market cap of $28.32 billion. Its shares are currently trading at around $34.53 with a P/E ratio of 221.20, a P/S ratio of 2.20 and a P/B ratio of 1.80.
To view a complete list of high yielding dividend stocks found among the gurus' portfolios, click here.
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