The two dividend paying companies in focus today include:
Lockheed Martin Corporation (LMT), a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of advanced technology systems and products for defense, civil, and commercial applications in the United States and internationally. The company raised its quarterly dividend by 15.60% to $1.33/share. This marked the eleventh consecutive annual dividend increase for this dividend achiever. Over the past decade, Lockheed Martin has managed to increase dividends at a rate of 24.70%/year. The company is projected to earn $9.46/share in 2013 and $9.64 by 2014.
Currently, Lockheed Martin trades at 13.60 times forward earnings and yields 4.10%. Values like this are hard to come by in the current environment. I analyzed the company back in 2010, and liked everything except for the fact it hadn’t raised distributions for ten years in a row. I plan on reviewing the company in more detail in a future post, and make a decision on whether I should buy it or not.
Accenture plc (ACN) provides management consulting, technology, and business process outsourcing services worldwide. The company raised its semi-annual dividend by 15% to 93 cents/share. This marked the ninth consecutive annual dividend increase for Accenture. Over the past five years, Accenture has managed to increase dividends at a rate of 28.70%/year. The company is projected to earn $4.47/share in 2014 and $4.94 by 2014.
Currently, Accenture trades at 16.60 times forward earnings and yields 2.50%. I like how the company has managed to grow earnings and dividends over the past decade, and I also like the strong brand name that company has.
I am going to place these quality companies on top of my list for further research. I like the fact that I still can find value even in an overextended market like todays.
Full Disclosure: None
- High Yield Dividend Stocks in Gurus' Portfolio
- Top dividend stocks of Warren Buffett
- Top dividend stocks of George Soros