During the past week GuruFocus recognized five companies as dividend growers. In order to be considered for this list, the company had to:
· Have a dividend yield of more 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 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 dividend growth:
Raytheon Company (RTN)
On May 30, Raytheon Company declared a dividend of $0.55 per share, setting the dividend yield for the company at 3.08%. The dividend is payable on Aug. 8, 2013, to shareholders of record at the close of business July 3.
The company’s dividend growth history is as follows
· 10-year: 10.9%
· 5-year: 16%
· 3-year: 12.7%
Raytheon has offered a stable and growing quarterly dividend since 1982.
Raytheon Company is a technology and innovation leader specializing in defense, security and civil markets throughout the world. Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems; as well as a broad range of mission support systems.
The analysis on Raytheon reports:
· Their operating margin is expanding.
· The company’s revenue has slowed down in the past year.
· The P/B ratio is at a two-year high of 2.71.
· The P/S ratio is at a three-year high of 0.91.
· The price is close to a 10-year high of $66.89
Raytheon Company has a market cap of $21.65 billion; its shares were traded at around $66.02 with a P/E ratio of 11.40 and P/S ratio of 0.90. Raytheon Company had an annual average earnings growth of 11.9% over the past 10 years. GuruFocus rated the company a business predictability rank of 3-stars.
Raytheon Company is currently held by 16 gurus. To see the full list of these gurus and the shares they hold, click here.
NextEra Energy (NEE)
On May 24, NextEra Energy declared a dividend of $0.66 per share, setting the dividend yield at 3.3%. This cash dividend is payable on June 17 to shareholders of the record at the close of business on June 3, 2013.
NextEra Energy’s dividend growth history is as follow:
· 10-year: 7.8%
· 5-year: 7.8%
· 3-year: 6.2%
NextEra Energy has offered a quarterly cash dividend since 1983. The dividend has been consistently stable and growing since May 1994.
NextEra Energy is a leading clean-energy company. NextEra Energy’s principal subsidiaries, Florida Power & Light Company and NextEra Energy Resources, together with affiliated entities is the largest generator in the U.S. of renewable energy from the wind and sun. Through its subsidiaries, NextEra Energy operates the third largest number of commercial nuclear power units in the U.S.
The analysis on NextEra Energy reports:
· The company’s revenue has been in decline for the past five years.
· The company’s operating margin has been consistently expanding.
· They have issued $8 billion of debt in the past three years.
· The price per share of NextEra is nearing its 10-year high.
NextEra Energy has a market cap of $32.45 billion; its shares were traded at around $76.32 with a P/E ratio of 18.70 and P/S ratio of 2.20. NextEra Energy had an annual average earnings growth of 7.1% over the past ten years.
There are currently 12 gurus that hold a stake in NextEra Energy.
Merck & Co. (MRK)
Merck declared a dividend of $0.43 per share on May 28, setting the dividend yield at 3.50%. This cash dividend is payable on July 8 to shareholders of the record at the close of business June 17, 2013.
The dividend growth history of Merck is as follow:
· 10-year: 1.3%
· 5-year: 2.4%
· 3-year: 2.7%
Merck has offered a quarterly dividend cash dividend since at least 1970. This dividend has been stably increasing since 1988.
Merck is a global, research-driven pharmaceutical company that discovers, develops, manufactures and markets a range of innovative products to improve human and animal health. The company’s operations are principally managed on a products basis and are comprised of four operating segments — Pharmaceutical, Animal Health, Consumer Care and Alliances.
The analysis on Merck reports the following:
· The gross margin has been in a long-term decline. The average annual rate of decline is 3.6%.
· The operating margin has been in a five-year decline. The average annual rate of decline is 5.4%.
· The company’s revenue has been in decline for the past year.
· The P/S ratio is close to a three-year high of 3.18.
· Merck has issued $1.8 billion of debt in the past three years.
· The price has exceeded its previous five-year high of $47.87.
Merck & Co. has a market cap of $149.29 billion; its shares were traded at around $49.05 per share with a P/E ratio of 24.90 and a P/S ratio of 3.20. Merck had an annual average earnings growth of 1.8% over the past ten years.
There are currently 32 gurus that maintain ownership of Merck & Co.
McDonald’s Corp. (MCD)
On May 22, McDonald’s declared a dividend of $0.77 per share, setting the company’s dividend yield at 3.10%. The dividend is payable on June 17 to shareholders of the record at the close of business on June 3, 2013.
McDonald’s historical dividend growth is as follows:
· 10-year: 24.9%
· 5-year: 14.4%
· 3-year: 8.8%
McDonald’s has offered a cash dividend since May 1976. From 2000 to 2007 the company offered an annual cash dividend in lieu of a quarterly dividend. The quarterly dividend has been steadily increasing since 2008.
McDonald’s is the world’s leading global foodservice retailer with over 34,500 locations serving more than 69 million customers in over 100 countries each day.
The analysis on McDonald’s reports:
· Its operating margin is expanding.
· The dividend yield is at a three-year high.
· The per share revenue has slowed in the past year.
· The P/B ratio is close to a one-year low of 5.79.
· The price is nearing the 10-year high of $103.59.
· The company has issued $2.9 billion in debt in the past year.
McDonald’s has a market cap of $98.14 billion; its shares were traded at around $97.39 with a P/E ratio of 18.10 and P/S ratio of 3.60. The company had an annual average earnings growth of 14.4% over the past ten years. GuruFocus rated McDonald’s the business predictability rank of 5-star.
There are currently 23 gurus that maintain holdings in McDonald’s.
National Grid PLC (NGG)
On May 23, National Grid PLC declared a dividend of $2.01 per share, setting the dividend yield for the company at 5.4%. The dividend is payable on Aug. 21 to shareholders of record at the close of business June 7, 2013.
National Grid’s dividend historical growth is as follows:
· 10-year: 5.8%
· 5-year: 3.5%
· 3-year: 6.2%
National Grid PLC has offered a biannual cash dividend to its shareholders since Nov. 2005.
National Grid is incorporated and domiciled in England. The company owns and operates regulated electricity and gas infrastructure networks in the UK and northeastern U.S. Its segments include UK Transmission, UK Gas Distribution and US Regulated.
The analysis on National Grid PLC reports:
· National Grid PLC revenue has been in decline for the last five years.
· The gross margin has been in long-term decline. The average rate of decline per year is 1.7%.
· The company’s operating margin is expanding.
· The price is nearing a 10-year high of $8.42.
National Grid has a market cap of $43.24 billion; its shares were traded at around $60.21 with a P/S ratio of 2.00. The company had an annual average earnings growth of 9.8% over the past 10 years.
There are currently three gurus that hold shares of National Grid.
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.
· Maintain Guru ownership.
· Have a market cap of 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 dividend growth:
Raytheon Company (RTN)
On May 30, Raytheon Company declared a dividend of $0.55 per share, setting the dividend yield for the company at 3.08%. The dividend is payable on Aug. 8, 2013, to shareholders of record at the close of business July 3.
The company’s dividend growth history is as follows
· 10-year: 10.9%
· 5-year: 16%
· 3-year: 12.7%
Raytheon has offered a stable and growing quarterly dividend since 1982.
Raytheon Company is a technology and innovation leader specializing in defense, security and civil markets throughout the world. Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems; as well as a broad range of mission support systems.
The analysis on Raytheon reports:
· Their operating margin is expanding.
· The company’s revenue has slowed down in the past year.
· The P/B ratio is at a two-year high of 2.71.
· The P/S ratio is at a three-year high of 0.91.
· The price is close to a 10-year high of $66.89
Raytheon Company has a market cap of $21.65 billion; its shares were traded at around $66.02 with a P/E ratio of 11.40 and P/S ratio of 0.90. Raytheon Company had an annual average earnings growth of 11.9% over the past 10 years. GuruFocus rated the company a business predictability rank of 3-stars.
Raytheon Company is currently held by 16 gurus. To see the full list of these gurus and the shares they hold, click here.
NextEra Energy (NEE)
On May 24, NextEra Energy declared a dividend of $0.66 per share, setting the dividend yield at 3.3%. This cash dividend is payable on June 17 to shareholders of the record at the close of business on June 3, 2013.
NextEra Energy’s dividend growth history is as follow:
· 10-year: 7.8%
· 5-year: 7.8%
· 3-year: 6.2%
NextEra Energy has offered a quarterly cash dividend since 1983. The dividend has been consistently stable and growing since May 1994.
NextEra Energy is a leading clean-energy company. NextEra Energy’s principal subsidiaries, Florida Power & Light Company and NextEra Energy Resources, together with affiliated entities is the largest generator in the U.S. of renewable energy from the wind and sun. Through its subsidiaries, NextEra Energy operates the third largest number of commercial nuclear power units in the U.S.
The analysis on NextEra Energy reports:
· The company’s revenue has been in decline for the past five years.
· The company’s operating margin has been consistently expanding.
· They have issued $8 billion of debt in the past three years.
· The price per share of NextEra is nearing its 10-year high.
NextEra Energy has a market cap of $32.45 billion; its shares were traded at around $76.32 with a P/E ratio of 18.70 and P/S ratio of 2.20. NextEra Energy had an annual average earnings growth of 7.1% over the past ten years.
There are currently 12 gurus that hold a stake in NextEra Energy.
Merck & Co. (MRK)
Merck declared a dividend of $0.43 per share on May 28, setting the dividend yield at 3.50%. This cash dividend is payable on July 8 to shareholders of the record at the close of business June 17, 2013.
The dividend growth history of Merck is as follow:
· 10-year: 1.3%
· 5-year: 2.4%
· 3-year: 2.7%
Merck has offered a quarterly dividend cash dividend since at least 1970. This dividend has been stably increasing since 1988.
Merck is a global, research-driven pharmaceutical company that discovers, develops, manufactures and markets a range of innovative products to improve human and animal health. The company’s operations are principally managed on a products basis and are comprised of four operating segments — Pharmaceutical, Animal Health, Consumer Care and Alliances.
The analysis on Merck reports the following:
· The gross margin has been in a long-term decline. The average annual rate of decline is 3.6%.
· The operating margin has been in a five-year decline. The average annual rate of decline is 5.4%.
· The company’s revenue has been in decline for the past year.
· The P/S ratio is close to a three-year high of 3.18.
· Merck has issued $1.8 billion of debt in the past three years.
· The price has exceeded its previous five-year high of $47.87.
Merck & Co. has a market cap of $149.29 billion; its shares were traded at around $49.05 per share with a P/E ratio of 24.90 and a P/S ratio of 3.20. Merck had an annual average earnings growth of 1.8% over the past ten years.
There are currently 32 gurus that maintain ownership of Merck & Co.
McDonald’s Corp. (MCD)
On May 22, McDonald’s declared a dividend of $0.77 per share, setting the company’s dividend yield at 3.10%. The dividend is payable on June 17 to shareholders of the record at the close of business on June 3, 2013.
McDonald’s historical dividend growth is as follows:
· 10-year: 24.9%
· 5-year: 14.4%
· 3-year: 8.8%
McDonald’s has offered a cash dividend since May 1976. From 2000 to 2007 the company offered an annual cash dividend in lieu of a quarterly dividend. The quarterly dividend has been steadily increasing since 2008.
McDonald’s is the world’s leading global foodservice retailer with over 34,500 locations serving more than 69 million customers in over 100 countries each day.
The analysis on McDonald’s reports:
· Its operating margin is expanding.
· The dividend yield is at a three-year high.
· The per share revenue has slowed in the past year.
· The P/B ratio is close to a one-year low of 5.79.
· The price is nearing the 10-year high of $103.59.
· The company has issued $2.9 billion in debt in the past year.
McDonald’s has a market cap of $98.14 billion; its shares were traded at around $97.39 with a P/E ratio of 18.10 and P/S ratio of 3.60. The company had an annual average earnings growth of 14.4% over the past ten years. GuruFocus rated McDonald’s the business predictability rank of 5-star.
There are currently 23 gurus that maintain holdings in McDonald’s.
National Grid PLC (NGG)
On May 23, National Grid PLC declared a dividend of $2.01 per share, setting the dividend yield for the company at 5.4%. The dividend is payable on Aug. 21 to shareholders of record at the close of business June 7, 2013.
National Grid’s dividend historical growth is as follows:
· 10-year: 5.8%
· 5-year: 3.5%
· 3-year: 6.2%
National Grid PLC has offered a biannual cash dividend to its shareholders since Nov. 2005.
National Grid is incorporated and domiciled in England. The company owns and operates regulated electricity and gas infrastructure networks in the UK and northeastern U.S. Its segments include UK Transmission, UK Gas Distribution and US Regulated.
The analysis on National Grid PLC reports:
· National Grid PLC revenue has been in decline for the last five years.
· The gross margin has been in long-term decline. The average rate of decline per year is 1.7%.
· The company’s operating margin is expanding.
· The price is nearing a 10-year high of $8.42.
National Grid has a market cap of $43.24 billion; its shares were traded at around $60.21 with a P/S ratio of 2.00. The company had an annual average earnings growth of 9.8% over the past 10 years.
There are currently three gurus that hold shares of National Grid.
To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.
