It would be nice to know which companies are going to raise their dividends in the future and buy them now, before their price increases as people try to take advantage of the growing payout. It is possible to choose such companies with a high degree of conviction by using several GuruFocus screeners.
Setting the All-in-One Guru Screener to filter stocks with a yield between 1.9% and 3.1%, a dividend growth rate between 10% and 15% and a minimum yield on cost of 5%, produces companies with a growing dividend that will be higher than 5% in five years. To separate out companies that are most likely to reach that level, however, set predictability requirement of the companies to at least 2 stars.
Five companies make the cut: Clorox Company (CLX, Financial), Raytheon Company (RTN, Financial), Oil-Dri Corporation of America (ODC, Financial), Enbridge Inc. (ENB, Financial) and Omnicom Group Inc. (OMC, Financial). More information about these companies’ dividends is available under the new, free dividend page for each of them.
Clorox (CLX)
The Clorox Company owns global brands in household cleaning, food, charcoal, water filtration, natural skin care and other areas. Clorox has a $11.23 billion market cap and $85.35 stock price Thursday, after moving up 16.5% year to date.
It has the highest yield of the group at 3.1%. Its current dividend growth rate stands at 12%, and it has a yield on cost of 5.1%, which means the two-star rated predictable company should have a dividend yield at that level in five years.
The company’s steady growth is demonstrated below in charts from its dividend page.
Clorox Dividend Yield History:
Dividend Per Share History:
Clorox is also paying out a comfortable 60% of its profits, with a comfortable dividend payout ratio of 0.6%.
Raytheon Company (RTN)
Raytheon is an aerospace and defense company serving government and commercial customers with a $22.64 billion market cap. After moving up 21% year to date, its share price is $69.75 Thursday.
Raytheon has a current dividend yield of 3.0% and dividend growth rate of 11%. The 3-star predictable company has a yield on cost of 6.3%.
The growing dividend of the company is reflected in its charts from its dividend yield page.
Dividend Yield History:
Dividend Per Share History:
It has a low payout ratio of above 25%.
Oil-Dri Corporation of America (ODC)
Oil-Dri creates value from sorbent materials, and is divided into four segments: pet care, agri/sports, industrial and purification. Its market cap stands at $218.79 million and stock price at $31.24 after moving up 13% year to date.
Oil-Dri has a 2.9% dividend yield and 12% dividend growth rate. Its yield on cost equals 5.4%. The company’s predictability ranking is 2.5 stars.
From the dividend page of Oil-Dri:
Dividend Yield History:
Dividend Per Share History:
The payout ratio has exceeded 1, which means it paid out more than all of its earnings in dividends. Usually, this means the dividend is endangered:
Enbridge Inc. (ENB)
Enbridge specializes in safe and reliable energy delivery in North America, transporting, generating crude oil and liquids, generating renewable and green energy, and distributing natural gas in Canada and New York. The market cap of Enbridge is $37.09 billion and share price is $45.03 Thursday, after moving up almost 4% year to date.
Enbridge has a dividend yield of 2.7% and growth rate of 12%. Its yield on cost is 5.1% and it has a predictability ranking of 4.5, the highest of the group.
From Enbridge’s dividend page:
Dividend Yield History:
Dividend Per Share History:
Enbridge’s dividend appears possibly unsustainable as its payout ratio surpassed 1.25.
Omnicom Group Inc. (OMC)
Omnicom Group is an advertising and marketing holding company with a portfolio of global and national businesses. The $16.63 billion market cap company has a share price of $64.30 Thursday, after moving up 29% year to date.
Omnicom’s yield is 2.2% and growth rate 12%. Its yield on cost is 5.7, with a predictability ranking of 3.5 stars.
From its dividend page:
Omnicom Dividend Yield History:
Dividend Per Share History:
Omnicom’s dividend yield sits comfortably at just over 0.3.
See the screener that was used to make this article here.
Continue researching dividend-paying companies that are only growing their payouts using the all-in-one guru screener, a premium feature. Or, see more about the new dividend page, a free feature.
Not a GuruFocus Premium Member? Take a 7-Day Free Trial.
Setting the All-in-One Guru Screener to filter stocks with a yield between 1.9% and 3.1%, a dividend growth rate between 10% and 15% and a minimum yield on cost of 5%, produces companies with a growing dividend that will be higher than 5% in five years. To separate out companies that are most likely to reach that level, however, set predictability requirement of the companies to at least 2 stars.
Five companies make the cut: Clorox Company (CLX, Financial), Raytheon Company (RTN, Financial), Oil-Dri Corporation of America (ODC, Financial), Enbridge Inc. (ENB, Financial) and Omnicom Group Inc. (OMC, Financial). More information about these companies’ dividends is available under the new, free dividend page for each of them.
Clorox (CLX)
The Clorox Company owns global brands in household cleaning, food, charcoal, water filtration, natural skin care and other areas. Clorox has a $11.23 billion market cap and $85.35 stock price Thursday, after moving up 16.5% year to date.
It has the highest yield of the group at 3.1%. Its current dividend growth rate stands at 12%, and it has a yield on cost of 5.1%, which means the two-star rated predictable company should have a dividend yield at that level in five years.
The company’s steady growth is demonstrated below in charts from its dividend page.
Clorox Dividend Yield History:
Dividend Per Share History:
Clorox is also paying out a comfortable 60% of its profits, with a comfortable dividend payout ratio of 0.6%.
Raytheon Company (RTN)
Raytheon is an aerospace and defense company serving government and commercial customers with a $22.64 billion market cap. After moving up 21% year to date, its share price is $69.75 Thursday.
Raytheon has a current dividend yield of 3.0% and dividend growth rate of 11%. The 3-star predictable company has a yield on cost of 6.3%.
The growing dividend of the company is reflected in its charts from its dividend yield page.
Dividend Yield History:
Dividend Per Share History:
It has a low payout ratio of above 25%.
Oil-Dri Corporation of America (ODC)
Oil-Dri creates value from sorbent materials, and is divided into four segments: pet care, agri/sports, industrial and purification. Its market cap stands at $218.79 million and stock price at $31.24 after moving up 13% year to date.
Oil-Dri has a 2.9% dividend yield and 12% dividend growth rate. Its yield on cost equals 5.4%. The company’s predictability ranking is 2.5 stars.
From the dividend page of Oil-Dri:
Dividend Yield History:
Dividend Per Share History:
The payout ratio has exceeded 1, which means it paid out more than all of its earnings in dividends. Usually, this means the dividend is endangered:
Enbridge Inc. (ENB)
Enbridge specializes in safe and reliable energy delivery in North America, transporting, generating crude oil and liquids, generating renewable and green energy, and distributing natural gas in Canada and New York. The market cap of Enbridge is $37.09 billion and share price is $45.03 Thursday, after moving up almost 4% year to date.
Enbridge has a dividend yield of 2.7% and growth rate of 12%. Its yield on cost is 5.1% and it has a predictability ranking of 4.5, the highest of the group.
From Enbridge’s dividend page:
Dividend Yield History:
Dividend Per Share History:
Enbridge’s dividend appears possibly unsustainable as its payout ratio surpassed 1.25.
Omnicom Group Inc. (OMC)
Omnicom Group is an advertising and marketing holding company with a portfolio of global and national businesses. The $16.63 billion market cap company has a share price of $64.30 Thursday, after moving up 29% year to date.
Omnicom’s yield is 2.2% and growth rate 12%. Its yield on cost is 5.7, with a predictability ranking of 3.5 stars.
From its dividend page:
Omnicom Dividend Yield History:
Dividend Per Share History:
Omnicom’s dividend yield sits comfortably at just over 0.3.
See the screener that was used to make this article here.
Continue researching dividend-paying companies that are only growing their payouts using the all-in-one guru screener, a premium feature. Or, see more about the new dividend page, a free feature.
Not a GuruFocus Premium Member? Take a 7-Day Free Trial.
