During the past week GuruFocus recognized five companies as dividend growers. In order to make it on this list the company had to:
· Have a dividend yield of more than 3%
· Have a strong history of stable and increasing dividends
· Be in at least one guru’s portfolio
· Have a market cap greater than $10 billion.
The following five 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 growth:
Ventas Inc. (VTR)
On May 17, Ventas declared a dividend of $0.67 per share. This sets the company’s dividend yield at 3.3%. The dividend is payable on June 28 to shareholders of the record at the close of business June 5, 2013.
The company’s dividend growth history is as follows:
· 10-year: 9.1%
· 5-year: 5.1%
· 3-year: 4.9%
Ventas is a real estate investment trust 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.
The analysis on Ventas reports:
· The company’s operating and gross margin have been in a long-term decline. The average rate of decline per year is 2.8% and 3.6%, respectively.
· The company has issued $2.1 billion of debt in the past three years.
· The price is close to a 10-year high of $81.67.
· Ventas shows predictable revenue and earnings growth.
Ventas Inc. has a market cap of $22.94 billion; its shares were traded at around $76.07 with a P/E ratio of 59.80 and a P/S ratio of 8.60. Ventas had an annual average earnings growth of 5.6% over the past 10 years. GuruFocus rated Ventas the business predictability rank of 3-star.
There are currently seven gurus that hold a stake in Ventas.
Altria Group (MO)
On May 17, Altria Group declared a dividend of $0.44 per share. This puts the company’s dividend yield at 3.3%. The dividend is payable on July 10 to shareholders of record at the close of business June 14, 2013.
Altria Group’s dividend growth history is as follows:
· 10-year: -8.7%
· 5-year: 2.1%
· 3-year: 6.5%
Altria Group is a holding company of Philip Morris USA, which is engaged in the manufacture and sale of cigarettes and other tobacco products in the U.S., and John Middleton, which is engaged in the manufacture and sale of machine-made large cigars and pipe tobacco.
The analysis on Altria reports:
· The operating margin is expanding.
· The price is close to a 10-year high of $37.44.
· The P/B ratio is close to a 10-year high of 23.46.
· The P/S ratio is close to a 10-year of 4.32.
Altria Group has a market cap of $73.88 billion; its shares were traded at around $37.01 with a P/E ratio of 16.90 and a P/S ratio of 4.30. The company had an annual average earnings growth of 9.7% over the past five years.
There are currently nineteen gurus that hold stake in Altria Group
Sysco Corporation (SYY)
On May 17, Sysco declared a dividend of $0.28 per share. The dividend yield is currently at 3.2%. The dividend is payable on July 26 to shareholders of the record at the close of business July 5, 2013.
The company’s dividend growth history is as follows:
· 10-year: 11.1%
· 5-year: 5.7%
· 3-year: 3.3%
Sysco, through its subsidiaries and divisions, is a North American distributor of food and related products mainly to the foodservice or ‘food-away-from-home’ industry. It provides products and related services to approximately 400,000 customers, including restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers.
The analysis on Sysco Corp. reports:
· The company as issued $307.108 million of debt in the past three years.
· The company’s gross margin and operating margin have been in a long-term decline. The average rate of decline per year is 1.2% and 1.3%, respectively.
· The company’s P/S ratio is close to a three-year high of 0.5.
· Sysco has shown predictable revenue and earnings growth.
Sysco Corp. has a market cap of $20.69 billion; its shares were traded at around $35.11 with a P/E ratio of 20.30 and a P/S ratio of 0.50. The company had an annual average earnings growth of 5.8% over the past 10 years. GuruFocus rated Sysco the business predictability rank of 3.5-star.
There are currently sixteen gurus that hold stake in Sysco.
Williams Companies (WMB)
On May 17, Williams Companies declared a dividend of $0.35 per share; this makes the dividend yield 3.5%. The dividend is payable on June 24 to shareholders of the record at the close of business June 7, 2013.
Williams Companies’ dividend growth history is as follows:
· 10-year: 35.9%
· 5-year: 29.9%
· 3-year: 28.4 %
Williams Companies is a natural gas company, which mainly finds, produces, gathers, processes and transports natural gas. The company also maintains additional petroleum and electricity assets.
Williams Companies has a market cap of $25.58 billion; its shares were traded at around $36.95 with a P/E ratio of 40.10 and a P/S ratio of 3.30. Williams Companies had an annual average earnings growth of 2.3% over the past 10 years.
The analysis on Williams Companies reports:
· The per share revenue has been in decline for the past five years.
· The gross margin has been in a long-term decline. The average rate of decline per year is 21.1%.
· In the past three years the company has issued $2.7 billion of debt.
· The price is close to a 10-year high of $38.04.
· The dividend yield is at a three-year high.
There are 10 gurus that currently hold a stake in Williams Companies.
XCEL Energy (XEL)
On May 21, XCEL Energy declared a dividend of $0.28 per share. This sets the dividend yield at 3.6%. The dividend is payable on July 20 to shareholders of the record at the close of business June 20, 2013.
The company’s dividend growth history is as follows:
· 10-year: 3.7%
· 5-year: 3.2%
· 3-year: 2.4%
XCEL Energy is a holding company, with subsidiaries engaged mainly in the utility business. The company’s utility subsidiaries are engaged mainly in the generation, purchase, transmission, distribution and sale of electricity and in the purchase, transportation, distribution and sale of natural gas.
The analysis on XCEL Energy reports:
· The company’s revenue has been in decline for the past five years.
· They have issued $2.2 billion of debt in the past three years.
· The operating margin for the company is expanding.
· The price is close to a 10-year high of $31.22.
· The P/S ratio is close to a 10-year high of 1.48.
XCEL Energy has a market cap of $14.8 billion; its shares were traded at around $29.49 with a P/E ratio of 15.10 and a P/S ratio of 1.40. XCEL Energy had an annual average earnings growth of 3.5% over the past 10 years.
There are currently five gurus that hold positions in XCEL Energy.
To view a complete list of high yielding dividend stocks found among the Gurus’ portfolios, click here.
· Have a dividend yield of more than 3%
· Have a strong history of stable and increasing dividends
· Be in at least one guru’s portfolio
· Have a market cap greater than $10 billion.
The following five 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 growth:
Ventas Inc. (VTR)
On May 17, Ventas declared a dividend of $0.67 per share. This sets the company’s dividend yield at 3.3%. The dividend is payable on June 28 to shareholders of the record at the close of business June 5, 2013.
The company’s dividend growth history is as follows:
· 10-year: 9.1%
· 5-year: 5.1%
· 3-year: 4.9%
Ventas is a real estate investment trust 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.
The analysis on Ventas reports:
· The company’s operating and gross margin have been in a long-term decline. The average rate of decline per year is 2.8% and 3.6%, respectively.
· The company has issued $2.1 billion of debt in the past three years.
· The price is close to a 10-year high of $81.67.
· Ventas shows predictable revenue and earnings growth.
Ventas Inc. has a market cap of $22.94 billion; its shares were traded at around $76.07 with a P/E ratio of 59.80 and a P/S ratio of 8.60. Ventas had an annual average earnings growth of 5.6% over the past 10 years. GuruFocus rated Ventas the business predictability rank of 3-star.
There are currently seven gurus that hold a stake in Ventas.
Altria Group (MO)
On May 17, Altria Group declared a dividend of $0.44 per share. This puts the company’s dividend yield at 3.3%. The dividend is payable on July 10 to shareholders of record at the close of business June 14, 2013.
Altria Group’s dividend growth history is as follows:
· 10-year: -8.7%
· 5-year: 2.1%
· 3-year: 6.5%
Altria Group is a holding company of Philip Morris USA, which is engaged in the manufacture and sale of cigarettes and other tobacco products in the U.S., and John Middleton, which is engaged in the manufacture and sale of machine-made large cigars and pipe tobacco.
The analysis on Altria reports:
· The operating margin is expanding.
· The price is close to a 10-year high of $37.44.
· The P/B ratio is close to a 10-year high of 23.46.
· The P/S ratio is close to a 10-year of 4.32.
Altria Group has a market cap of $73.88 billion; its shares were traded at around $37.01 with a P/E ratio of 16.90 and a P/S ratio of 4.30. The company had an annual average earnings growth of 9.7% over the past five years.
There are currently nineteen gurus that hold stake in Altria Group
Sysco Corporation (SYY)
On May 17, Sysco declared a dividend of $0.28 per share. The dividend yield is currently at 3.2%. The dividend is payable on July 26 to shareholders of the record at the close of business July 5, 2013.
The company’s dividend growth history is as follows:
· 10-year: 11.1%
· 5-year: 5.7%
· 3-year: 3.3%
Sysco, through its subsidiaries and divisions, is a North American distributor of food and related products mainly to the foodservice or ‘food-away-from-home’ industry. It provides products and related services to approximately 400,000 customers, including restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers.
The analysis on Sysco Corp. reports:
· The company as issued $307.108 million of debt in the past three years.
· The company’s gross margin and operating margin have been in a long-term decline. The average rate of decline per year is 1.2% and 1.3%, respectively.
· The company’s P/S ratio is close to a three-year high of 0.5.
· Sysco has shown predictable revenue and earnings growth.
Sysco Corp. has a market cap of $20.69 billion; its shares were traded at around $35.11 with a P/E ratio of 20.30 and a P/S ratio of 0.50. The company had an annual average earnings growth of 5.8% over the past 10 years. GuruFocus rated Sysco the business predictability rank of 3.5-star.
There are currently sixteen gurus that hold stake in Sysco.
Williams Companies (WMB)
On May 17, Williams Companies declared a dividend of $0.35 per share; this makes the dividend yield 3.5%. The dividend is payable on June 24 to shareholders of the record at the close of business June 7, 2013.
Williams Companies’ dividend growth history is as follows:
· 10-year: 35.9%
· 5-year: 29.9%
· 3-year: 28.4 %
Williams Companies is a natural gas company, which mainly finds, produces, gathers, processes and transports natural gas. The company also maintains additional petroleum and electricity assets.
Williams Companies has a market cap of $25.58 billion; its shares were traded at around $36.95 with a P/E ratio of 40.10 and a P/S ratio of 3.30. Williams Companies had an annual average earnings growth of 2.3% over the past 10 years.
The analysis on Williams Companies reports:
· The per share revenue has been in decline for the past five years.
· The gross margin has been in a long-term decline. The average rate of decline per year is 21.1%.
· In the past three years the company has issued $2.7 billion of debt.
· The price is close to a 10-year high of $38.04.
· The dividend yield is at a three-year high.
There are 10 gurus that currently hold a stake in Williams Companies.
XCEL Energy (XEL)
On May 21, XCEL Energy declared a dividend of $0.28 per share. This sets the dividend yield at 3.6%. The dividend is payable on July 20 to shareholders of the record at the close of business June 20, 2013.
The company’s dividend growth history is as follows:
· 10-year: 3.7%
· 5-year: 3.2%
· 3-year: 2.4%
XCEL Energy is a holding company, with subsidiaries engaged mainly in the utility business. The company’s utility subsidiaries are engaged mainly in the generation, purchase, transmission, distribution and sale of electricity and in the purchase, transportation, distribution and sale of natural gas.
The analysis on XCEL Energy reports:
· The company’s revenue has been in decline for the past five years.
· They have issued $2.2 billion of debt in the past three years.
· The operating margin for the company is expanding.
· The price is close to a 10-year high of $31.22.
· The P/S ratio is close to a 10-year high of 1.48.
XCEL Energy has a market cap of $14.8 billion; its shares were traded at around $29.49 with a P/E ratio of 15.10 and a P/S ratio of 1.40. XCEL Energy had an annual average earnings growth of 3.5% over the past 10 years.
There are currently five gurus that hold positions in XCEL Energy.
To view a complete list of high yielding dividend stocks found among the Gurus’ portfolios, click here.
