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GuruFocus Recognizes Five Dividend Growers - July 15 to 19

Monica Wolfe

Monica Wolfe

118 followers
During the past week, GuruFocus recognized five companies as dividend growers. In order to be qualified for this list, the company had to:

· Have a dividend yield 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 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:

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McDonald’s Corporation (MCD)

On July 18, McDonald’s declared a dividend of $0.77 per share, representing a 3.10% dividend yield for the company. This dividend is payable on Sept. 17 to shareholders of the record at the close of business on Sept. 3, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 24.9%

· 5-year: 14.4%

· 3-year: 8.8%

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McDonald’s has paid its shareholders a quarterly cash dividend since 1976. From 2001 to 2008 the company offered an annual cash dividend.

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.

McDonald’s historical price, revenue and net income:

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McDonald’s released its second quarter results on July 22. The results highlighted the following:

· Consolidated revenues increased 2%.

· Diluted EPS of $1.38, up 5%.

· Returned $1.2 billion to shareholders through dividends and share repurchases.

· Global comparable sales increase of 1%.

The Peter Lynch Chart shows that McDonald’s appears to be overvalued:

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McDonald’s has a market cap of $97.78 billion. Its shares are currently trading at around $97.62 with a P/E ratio of 18.20, a P/S ratio of 3.60 and a P/B ratio of 6.40. McDonald’s has 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 24 gurus that hold a position in MCD. Click here to see their holding histories.

Kinder Morgan Energy Partners LP (KMP)

On July 17, Kinder Morgan Energy Partners declared a dividend of $1.32 per share, representing a 5.90% dividend yield for the company. This dividend is payable on Aug. 14 to shareholders of the record at the close of business on July 31, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 7.4%

· 5-year: 5.4%

· 3-year: 3.7%

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This dividend represents a 7 percent increase over the second quarter 2012 cash distribution per unit of $1.23 ($4.92 annualized) and is up from $1.30 per unit ($5.20 annualized) for the first quarter of 2013. KMP has increased the distribution 48 times since current management took over in February 1997.

Kinder Morgan is the largest midstream and third largest energy company (based on combined enterprise value) in North America.

Kinder Morgan Energy Partners' historical price, revenue and net income:

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The company’s second quarter financials reported:

· Distributable cash flow of $505 million, up 38% from $366 million for the second quarter 2012.

· EPS of $0.49, up 32.4% from the year-ago profit of $0.37.

· Revenues increased roughly 50.1% to $3,017 million, up from $2,010 million a year ago.

Kinder Morgan Energy Partners has a market cap of $36.69 billion. Its shares are currently being traded at around $86.19 with a P/E ratio of 3.10, a P/S ratio of 3.10 and a P/B ratio of 1.30. The company has had an annual average earnings growth of 5.5% over the past 10 years.

Four Gurus hold positions in KMP. Click here to see their holding histories.

Mattel Inc. (MAT)

On July 17, Mattel declared a dividend of $0.36 per share, representing a 3.20% dividend yield for the company. This dividend is payable on Sept. 20 to shareholders of the record at the close of business on Aug. 28, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 11.6%

· 5-year: 12.9%

· 3-year: 13.4%

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Mattel has offered a quarterly cash dividend since March 1982. The dividend has consistently increased since 1991.

Mattel designs, manufactures and markets toys and family products. The Mattel portfolio consists of products such as: Barbie, Hot Wheels, Monster High, American Girl, Thomas & Friends and Fisher-Price brands.

Mattel’s historical price, revenue and net income:

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The company’s second quarter financials were released on July 17 along with a third quarter dividend and increased share repurchase program. The company’s second quarter financials reported:

· Worldwide net sales up 1%.

· EPS of $0.21 versus prior year EPS of $0.28.

· The share repurchase program was increased by $500 million.

· The company repurchased 2.7 million shares of its commons stock during quarter two, costing approximately $119 million.

· Operating income of $94.8 million, compared to $131.4 million in second quarter 2012.

The Peter Lynch Chart shows that Mattel appears to be overvalued:

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Mattel has a market cap of $14.99 billion. Its shares are currently being traded at around $42.17 with a P/E ratio of 18.20, a P/S ratio of 2.30 and a P/B ratio of 5.00. The company had an annual average earnings growth of 5.8% over the past ten years. GuruFocus rated Mattel the business predictability rank of 2.5-star.

There are 12 gurus that hold a stake in MAT. Click here to see their holding histories.

Public Service Enterprise Group (PEG)

On July 16, Public Service Enterprise Group declared a dividend of $0.36 per share, representing a 4.20% dividend yield for the company. This dividend is payable on Sept. 30 to shareholders of the record at the close of business on Sept. 6, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 3.4%

· 5-year: 2.2%

· 3-year: 2.9%

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Public Service Enterprise Group has offered a quarterly cash dividend since June 2010.

Public Service Enterprise Group is an integrated generation and energy company. Its main subsidiaries are Public Service Electric and Gas Company (PSE&G), PSEG Power and PSEG Energy Holdings

Public Service Enterprise Group’s historical price, revenue and net income:

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The Peter Lynch Chart shows that the company appears to be undervalued:

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Public Service Enterprise Group has a market cap of $17.28 billion. Its shares are currently trading at around $34.21 with a P/E ratio of 15.80, a P/S ratio of 1.80 and a P/E ratio of 1.60. The company had an annual average earnings growth of 3.7% over the past ten years.

There are currently nine gurus that hold a position in PEG. Click here to see their holding histories.

Southern Co. (SO)

On July 15, Southern Co. declared a dividend of $0.508 per share, representing a 4.30% dividend yield for the company. This dividend is payable on Sept. 6 to shareholders of the record at the close of business on Aug. 5, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 4%

· 5-year: 4%

· 3-year: 2.9%

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This most recent dividend marks the 263rd consecutive quarterly dividend issued to shareholders. The company has been distributing quarterly dividends since 1948.

Southern Company is an Atlanta-based energy company that serves approximately 4.4 million customers and maintains nearly 46,000 megawatts of generating capacity.

Southern Co.’s historical price, revenue and net income:

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Southern Company is set to release its second quarter financial results on July 31.

The Peter Lynch Chart shows that Southern Co. appears to be overvalued:

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Southern Company has a market cap of $39.66 billion. Its shares are currently being traded at around $45.51 with a P/E ratio of 19.30, a P/S ratio of 2.40 and a P/B ratio of 2.20. The company had an annual average earnings growth of 3.5% over the past 10 years.

Ken Fisher is currently the only guru that maintains holdings in Southern Company. Click here to see his holding history.

To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.

Rating: 4.2/5 (5 votes)

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