Johnson & Johnson (NYSE:JNJ), together with its subsidiaries, engages in the research and development, manufacture, and sale of various products in the health care field worldwide. This dividend king raised quarterly distributions by 8.20% to 66 cents/share. This marked the 51st consecutive annual dividend increase for the company. Despite the recent run, the company is attractively priced at 15.70 times forward earnings and a yield of 3.10%. The dividend is adequately covered, and has been raised by 11.70%/year over the past decade. I added to my position in Johnson & Johnson in April. Check my analysis of Johnson & Johnson.
Chevron Corporation (NYSE:CVX), through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. This dividend champion raised quarterly distributions by 11.10% to $1/share. This marked the 26th consecutive annual dividend increase for Chevron. The stock is trading at 9.70 times forward earnings, has an adequately covered dividend and yields 3.40%. The company has managed to boost annual distributions by 9.60%/year over the past decade. I recently added to my position in Chevron in April. Check my analysis of Chevron.
Exxon Mobil Corporation (NYSE:XOM) engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products. This dividend champion raised quarterly distributions by 10.50% to 63 cents/share. This marked the 31st consecutive annual dividend increase for Exxon. Over the past decade, Exxon has managed to boost annual dividends by 9%/year. The stock trades at 11 times forward earnings, yields 2.90% and has a sustainable dividend coverage. Back in 2012 I replaced Exxon Mobil with ConocoPhillips (NYSE:COP), because Exxon seemed stingier than its peers with dividend payments. Instead, the company has been one of the most active share repurchases in the US for several years in a row.
Ameriprise Financial, Inc. (NYSE:AMP), through its subsidiaries, provides a range of financial products and services in the United States and internationally. The company boosted quarterly dividends by 15.60% to 52 cents/share. This was the second dividend increase over the past year, bringing the total increase to 48.605 since the second quarter of 2012. The company has only raised distributions for 7 years, and has been public since 2005. It was spun off from American Express (AXP) in 2005, and since then it has managed to boost earnings from $2.32/share to $4.70/share by 2012. Forward earnings expectations are for $6.60/share in 2013 and $7.26/share by 2014, which means that Ameriprise Financial would have no problem becoming a dividend achiever by 2015. I like the fact that the company is attractively valued at 11.10 times forward earnings, yields 2.80% and has a sustainable dividend coverage. I plan on analyzing the stock before committing any funds to it.
These four stocks are a testament that income investors can find quality companies at reasonable valuations even in this overheated market. By looking through the list of dividend increases, I was once again able to uncover a hidden dividend gem, Ameriprise Financial, which has the potential to pay dividends in my portfolio for the next 20 years.
Full Disclosure: Long JNJ, CVX, COP
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