· Have a strong history of stable and increasing dividends.
· Maintain Guru ownership.
· Have a market cap of greater than $10 billion.
The following four 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:
General Electric (GE)
On June 14, General Electric declared a dividend of $0.19 per share, setting the dividend yield for the company at 3.10%. The dividend is payable on June 25 to share holders of the record at the close of business June 24, 2013.
The company’s dividend growth history is as follows:
· 10-year: -4.6%
· 5-year: -10.8%
· 3-year: 3.5%
General Electric has offered a quarterly cash dividend since Dec. 1995. The dividend has consistently grown since June 2009.
General Electric is a technology, media and financial services company. The Company provides products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content and industrial products.
In 2011 GE paid $6.45 billion in dividends, returning $17 million to shareholders every day.
The first quarter financial results reported:
· Operating earnings of $4.1 billion, or $0.39 per share, up 14% and 15% respectively from the first quarter of 2012.
· Twelfth consecutive quarter of strong operating earnings growth.
· GE Capital earnings up 9%; 1Q ENI balance of $402 billion.
· Profit growth in five of eight businesses versus prior-year period.
GE has a market cap of $247.14 billion; its shares were traded at around $23.75 with a P/E ratio of 16.60 and a P/S ratio of 1.70.
According to the Peter Lynch Valuation Chart, General Electric appears to be overvalued:
There are currently 22 gurus that hold stake in GE. Click here to see their holding histories.
Abbott Laboratories (ABT)
On June 14, Abbott Laboratories declared a dividend of $0.14 per share, making the dividend yield 3.5%. This dividend is payable on August 15 to shareholders of the record at the close of business July 15, 2013.
The company’s dividend growth history is as follows:
· 10-year: 8.9%
· 5-year: 9.5%
· 3-year: 6.5%
Abbott Laboratories has offered a quarterly cash dividend since 1983. This dividend marks the 358th consecutive quarterly dividend to be paid by Abbott since 1924.
Abbott’s board has also authorized the repurchase of up to $3 billion of the corporation’s common stock. The program replaces the previous $5 billion program announced in Oct. 2008 and was recently completed.
Abbott Laboratories is a global healthcare company devoted to the development of products and technologies that span the breadth of healthcare. The company’s portfolio consists of leading, science-based offerings in diagnostics, medical devices, nutritionals and branded generic pharmaceuticals. Abbott serves people in over 150 countries and employs approximately 70,000 people.
Abbott Laboratories has a market cap of $57.54 billion; its shares were traded at around $37.07 with a P/E ratio of 11.20 and a P/S ratio of 1.70. The company had an annual average earnings growth of 10.3% over the past ten years. GuruFocus rated Abbott the business predictability rank of 3.5 stars.
The Peter Lynch Valuation Chart shows Abbott Laboratories to be undervalued:
There are 22 gurus that currently hold stake in Abbott. Click here to see their holding histories.
Equity Residential (EQR)
On June 13, Equity Residential declared a dividend of $0.40 per share, setting the dividend yield at 3.30%. This cash dividend is payable on July 10 to shareholders of the record at the close of business on June 24, 2013.
Equity Residential’s dividend growth history is as follows:
· 10-year: -0.9%
· 5-year: -2%
· 3-year: 2.1%
Equity Residential has offered a consistent quarterly cash dividend since 1993.
Equity Residential is an S&P 500 company focused on the acquisition, development and management of high-quality apartment properties in top U.S. growth markets. Equity Residential owns or has investments in more than 400 properties in 13 states and the District of Columbia.
Equity Residential has a market cap of $20.33 billion; its shares were traded at around $56.38 with a P/E ratio of 227.20 and a P/S ratio of 8.50. The company had an annual average earnings growth of 2.4% over the past ten years.
The Peter Lynch Valuation shows that Equity Residential appears to be undervalued:
There are currently seven gurus that hold stake in Equity Residential. Click here to see their holding histories.
Philip Morris International (PM)
On June 12, Philip Morris International declared a dividend of $0.85 per share, setting the dividend yield for the company at 3.60%. This cash dividend is payable on July 12 to shareholders of the record at the close of business on June 27, 2013.
Philip Morris’ dividend growth history is as follows:
· 10-year: 0%
· 5-year: 18.7%
· 3-year: 9.7%
Philip Morris has offered a consistently increasing quarterly cash dividend since June 2008.
Philip Morris International is the leading international tobacco company, with seven of the world’s top 15 international brands, including Marlboro, the number one cigarette brand worldwide. PMI’s products are sold in more than 180 markets.
In 2012, the company held an estimated 16.3% share of the total international cigarette market outside of the U.S., or 28.8% excluding China.
Philip Morris has a market cap of $151.89 billion; its shares were traded at around $92.57 with a P/E ratio of 17.80 and a P/S ratio of 2.00. The company had an annual average earnings growth of 14.5% over the past five years.
According to the Peter Lynch Valuation Chart, Philip Morris appears to be overvalued:
There are currently 28 gurus that hold stake in Philip Morris. Click here to view their holding histories.
To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.