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 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:
Respol SA (REPYY)
On May 30, Respol SA declared a dividend of $0.515 per share, representing 3.70% dividend yield for the company. This dividend is payable on July 21 to shareholders of the record at the close of business on June 18, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 4.80%
- 5-year: -11.30%
- 3-year: 7.10%
Respol SA is an integrated oil and gas company engaged in exploration, development and production of crude oil & natural gas, transportation & marketing of petroleum products, LPG & natural gas.
Respol SA’s historical revenue and net income:
The analysis on Respol reports that the company’s revenue has been in decline over the past three years, the company has issued EUR$890 million of debt, its price is trading at a 2-year high, and its dividend yield is at a 10-year low.
The Peter Lynch Chart suggests that the company is currently overvalued:
Respol SA has a market cap of $33.86 billion. Its shares are currently trading at around $26.40 with a P/E ratio of 58.40, a P/S ratio of 0.50 and a P/B ratio of 0.90.
Li & Fung (LFUGY)
On June 2, Li & Fung declared a dividend of $0.07 per share, representing 3.7% dividend yield for the company. This dividend is payable on June 12 to shareholders of the record at the close of business on May 19, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 0.00%
- 5-year: 0.00%
- 3-year: 21.50%
Li & Fung is an investment holding company. The company, through its subsidiaries, is engaged in managing supply chain for brands and retailers. It manages the supply chain from product design & development, through raw material & factory sourcing.
Li & Fung’s historical revenue and net income:
The analysis on Li & Fung reports that the company’s asset growth is faster than its revenue growth, its revenue per share has slowed down over the past year and the company has issued $18.843 million of debt over the past year. It also notes that the company’s operating margin is expanding and that its dividend yield is near a 5-year high.
Li & Fung has a market cap of $11.79 billion. Its shares are currently trading at around $2.82 with a P/E ratio of 16.20, a P/S ratio of 0.60 and a P/B ratio of 2.10. The company had an annual average earnings growth of 18.30% over the past five years.
To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.
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