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GuruFocus' Weekly Top Dividend Growers

November 11, 2013 | About:
Monica Wolfe

Monica Wolfe

129 followers
During the past week, GuruFocus recognized three 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 three 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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CA Inc. (CA)

On Nov. 7, CA declared a dividend of $0.25 per share, representing a 3.10% dividend yield for the company. This dividend is payable on Dec. 10 to shareholders of the record at the close of business on Nov. 21, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 22.90%

· 5-year: 58.10%

· 3-year: 84.20%

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CA Inc. is provider of enterprise information technology (IT) software and solution. It develops and delivers software and services that help organizations manage and secure their IT infrastructures and deliver more flexible IT services.

CA’s historical revenue and net income:

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The analysis on CA reports that the company’s operating margin is expanding, its revenue has slowed down over the past year, and its price is near a 10-year high. The analysis also notes that the company has issued $322 million of debt over the past three years, but that overall its debt level is acceptable.

The company recently reported its 2014Q2 results which reported:

· GAAP EPS grew 8% to $240 million in constant currency and 10% as reported.

· Non-GAAP EPS grew 46% to $390 in constant currency and as reported.

· Revenue remained flat from last year, at $1,140 million.

· Their cash flow from operations declined 7%.

· Diluted EPS of $0.53, up 10% from last year.

CA Technologies is also set to present at three upcoming investor conferences: UBS Global Technology Conference on Nov. 20, Credit Suisse’s Annual Technology Conference on Dec. 4 and Raymond James 2013 Systems, Semiconductors, Software & Supply Chain Investor Conference on Dec. 10.

The top guru shareholders of CA:

1. NWQ Managers: 16,261,539 shares, representing 3.57% of the company’s shares outstanding.

2. James Barrow: 7,785,373 shares, representing 1.7% of the company’s shares outstanding.

3. HOTCHKIS & WILEY: 3,606,517 shares, representing 0.79% of the company’s shares out.

The Peter Lynch Chart suggests that the company is currently undervalued:

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CA has a market cap of $14.48 billion. Its shares are currently trading at around $32.09 with a P/E ratio of 13.80, a P/S ratio of 3.10 and a P/B ratio of 2.50. The company had an annual average earnings growth of 14.90% over the past ten years.

GuruFocus rated CA the business predictability rank of 4.5-star.

Ensco PLC (ESV)

On Nov. 5, Ensco PLC declared a dividend of $0.75 per share, representing a 3.10% dividend yield for the company. This dividend is payable on Dec. 20 to shareholders of the record at the close of business on Dec. 9, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 39.30%

· 5-year: 123.80%

· 3-year: 146.60%

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Ensco is a global offshore contract drilling company. It is a provider of offshore contract drilling services to the international oil and gas industry.

Ensco’s historical revenue and net income:

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The analysis on Ensco reports that the company’s price is near a 5-year high, its gross and operating margin have been in a 5-year decline and its Piotroski F-Score is high, indicating a healthy situation for the company.

The company’s recently released third quarter financials reported:

· Diluted EPS increased 9% to $1.62, up from $1.48 per share.

· Record earnings of $379 million, increasing $35 million.

· Record revenues totaling $1.3 billion, up 13% from last year.

Ensco is also set to present at the Jefferies 2013 Global Energy Conference on Tuesday, Nov. 12, 2013.

The top guru shareholders of Ensco:

1. First Pacific Advisors: 1,886,100 shares, representing 0.81% of the company’s shares out.

2. Pioneer Investments: 1,021,106 shares, representing 0.44% of the company’s shares out.

3. Robert Rodriguez: 842,600 shares, representing 0.36% of the company’s shares outstanding.

The Peter Lynch Chart suggests that the company is currently undervalued:

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Ensco has a market cap of $14.48 billion. Its shares are currently trading at around $62.02 with a P/E ratio of 11.30, a P/S ratio of 3.00 and a P/B ratio of 1.10. The company had an annual average earnings growth of 15.90%

National Australia Bank Limited (NABZY)

On Nov. 1, National Australia Bank declared a dividend of $0.97 per share, representing a 3.40% dividend yield for the company. This dividend is payable on Dec. 30 to shareholders of the record at the close of business on Nov. 12, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 3.70%

· 5-year: 3.50%

· 3-year: 7.60%

National Australia Bank Limited provides banking services, credit and access card facilities, leasing, housing and general finance, wealth management, funds management, life insurance and custodian, trustee and nominee services, among others.

National Australia Bank’s historical revenue and net income:

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The analysis on National Australia Bank reports that the company’s price is nearing a 5-year high, its revenue has been in decline over the past three years, the company holds no debt and its operating margin is expanding.

The company’s recently announced its 2013 full year results which highlight:

· Net profit was $5.45 billion, up 33.6% from last year.

· Cash earnings were $5.94 billion, up 9.3% from last year.

· Revenue increased by 2% and net interest margin was 9 basis points lower.

· Dividend increased by $0.07 to $0.97 per share.

Ken Fisher is the only guru that currently holds shares of NABZY.

The Peter Lynch Chart suggests that the company is currently overvalued:

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National Australia Bank Limited has a market cap of $76.17 billion. Its shares are currently trading at around $32.43 with a P/E ratio of 15.00 and a P/B ratio of 1.80.

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

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Rating: 3.7/5 (3 votes)

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