During the past week, GuruFocus recognized two 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 two 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:
Spectra Energy Corp (SE, Financial)
On Oct. 9, Spectra Energy declared a dividend of $0.305 per share, representing a 3.50% dividend yield for the company. This dividend is payable on Dec. 9 to shareholders of the record at the close of business on Nov. 11, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 0%
· 5-year: 4.2%
· 3-year: 4.6%
Spectra, through its subsidiaries and equity affiliates, own and operate a portfolio of complementary natural gas-related energy assets and are one of the U.S.’s largest natural gas infrastructure companies. The company has developed pipelines and related energy infrastructure connecting natural gas supply sources to other premium markets.
Spectra Energy’s historical revenue and net income:
The company announced that they expect to raise the 2014 annual dividend to shareholders by $0.12 per share, or 9.8%, beginning with a $0.03 per share increase in the first quarter.
Spectra also announced that they would be releasing their third quarter 2013 results before market open on Nov. 4.
The analysis on Spectra reports that the company’s operating margin is expanding, the dividend yield is near a 5-year low, the price is nearing a 10-year high and the revenue has slowed down over the past year.
The Peter Lynch Chart suggests that the company is currently overvalued:
Spectra Energy has a market cap of $23.16 billion. Its shares are currently trading at around $34.60 with a P/E ratio of 22.00, a P/S ratio of 4.40 and a P/B ratio of 2.64. The company has had an annual average earnings growth of 1% over the past ten years.
There are currently seven gurus that hold a stake in Spectra Energy.
HSBC Holdings PLC (HBC)
On Oct. 7, HSBC Holdings declared a dividend of $0.50 per share, representing a 4.30% dividend yield for the company. This dividend is payable on Dec. 11 to shareholders of the record at the close of business on Oct. 25, 2013.
The company’s historical dividend growth is as follows:
· 10-year: -13.2%
· 5-year: -22.2%
· 3-year: 3.7%
HSBC Holdings is a banking and financial services organization. Its products and services are delivered to its clients through four global businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking.
HSBC Holdings’ historical revenue and net income:
The analysis on HSBC Holdings reports that their revenue has been in decline over the past five years, they have no debt and that their operating margin is expanding.
The Peter Lynch Chart suggests that the company is currently undervalued:
HSBC Holdings has a market cap of $206.18 billion. Its shares are currently trading at around $55.60 with a P/E ratio of 11.70, a P/S ratio of 4.40 and a P/B ratio of 1.10. The company had an annual average earnings growth of 18.2% over the past five years.
HSBC Holdings is currently being held by 10 gurus.
To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.
Try a free 7-day premium membership.
· 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 two 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:
Spectra Energy Corp (SE, Financial)
On Oct. 9, Spectra Energy declared a dividend of $0.305 per share, representing a 3.50% dividend yield for the company. This dividend is payable on Dec. 9 to shareholders of the record at the close of business on Nov. 11, 2013.
The company’s historical dividend growth is as follows:
· 10-year: 0%
· 5-year: 4.2%
· 3-year: 4.6%
Spectra, through its subsidiaries and equity affiliates, own and operate a portfolio of complementary natural gas-related energy assets and are one of the U.S.’s largest natural gas infrastructure companies. The company has developed pipelines and related energy infrastructure connecting natural gas supply sources to other premium markets.
Spectra Energy’s historical revenue and net income:
The company announced that they expect to raise the 2014 annual dividend to shareholders by $0.12 per share, or 9.8%, beginning with a $0.03 per share increase in the first quarter.
Spectra also announced that they would be releasing their third quarter 2013 results before market open on Nov. 4.
The analysis on Spectra reports that the company’s operating margin is expanding, the dividend yield is near a 5-year low, the price is nearing a 10-year high and the revenue has slowed down over the past year.
The Peter Lynch Chart suggests that the company is currently overvalued:
Spectra Energy has a market cap of $23.16 billion. Its shares are currently trading at around $34.60 with a P/E ratio of 22.00, a P/S ratio of 4.40 and a P/B ratio of 2.64. The company has had an annual average earnings growth of 1% over the past ten years.
There are currently seven gurus that hold a stake in Spectra Energy.
HSBC Holdings PLC (HBC)
On Oct. 7, HSBC Holdings declared a dividend of $0.50 per share, representing a 4.30% dividend yield for the company. This dividend is payable on Dec. 11 to shareholders of the record at the close of business on Oct. 25, 2013.
The company’s historical dividend growth is as follows:
· 10-year: -13.2%
· 5-year: -22.2%
· 3-year: 3.7%
HSBC Holdings is a banking and financial services organization. Its products and services are delivered to its clients through four global businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking.
HSBC Holdings’ historical revenue and net income:
The analysis on HSBC Holdings reports that their revenue has been in decline over the past five years, they have no debt and that their operating margin is expanding.
The Peter Lynch Chart suggests that the company is currently undervalued:
HSBC Holdings has a market cap of $206.18 billion. Its shares are currently trading at around $55.60 with a P/E ratio of 11.70, a P/S ratio of 4.40 and a P/B ratio of 1.10. The company had an annual average earnings growth of 18.2% over the past five years.
HSBC Holdings is currently being held by 10 gurus.
To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.
Try a free 7-day premium membership.
