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Verizon Communications Tops GuruFocus Dividend Growers of the Week

June 16, 2014 | About:
Monica Wolfe

Monica Wolfe

131 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 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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Equity Residential (EQR)

On June 12, Equity Residential declared a dividend of $0.500 per share, representing 3.20% dividend yield for the company. This dividend is payable on July 11 to shareholders of the record at the close of business on June 23, 2014.

The company’s historical dividend growth is as follows:

- 10-year: -0.50%

- 5-year: 4.40%

- 3-year: 13.60%

1402938045620.png

Equity Residential is focused on the acquisition, development and management of quality apartment properties in top United States growth markets. The company provides real estate operations, leasing, legal, financial, accounting, acquisition, disposition, development and other support functions.

Equity Residential’s historical revenue and net income:

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The analysis on Equity Residential reports that the company’s revenue per share has been in decline for the past five years, its price is near a 10-year high, and its operating margin is expanding.

Equity Residential has a market cap of $22.15 billion. Its shares are currently trading at around $61.31 with a P/E ratio of 24.80, a P/S ratio of 8.90 and a P/B ratio of 2.20. The company had an annual average earnings growth of 2.30% over the past ten years.

Philip Morris International (PM)

On June 11, Philip Morris International declared a dividend of $0.940 per share, representing 4.10% dividend yield for the company. This dividend is payable on July 11 to shareholders of the record at the close of business on June 26, 2014.

The company’s historical dividend growth is as follows:

- 10-year: 0.00%

- 5-year: 13.00%

- 3-year: 13.60%

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Philip Morris’ subsidiaries and affiliates and their licensees are engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside the United States of America. Its portfolio comprises both international and local brands. Its portfolio of international and local brands is led by Marlboro.

Philip Morris International’s historical revenue and net income:

1402939697627.png

The analysis on Philip Morris reports that the company’s operating margin is expanding and its dividend yield is near a 3-year high. The analysis also reports that the company’s revenue per share has slowed down over the past year, its price is near a 10-year high, and the company has issued $12.8 billion of debt over the past three years.

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

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Philip Morris has a market cap of $140.38 billion. Its shares are currently trading at around $89.25 with a P/E ratio of 17.40 and a P/S ratio of 4.70. The company had an annual average earnings growth of 13.00% over the past five years.

Verizon Communications (VZ)

On June 5, Verizon Communications declared a dividend of $0.530 per share, representing 4.30% dividend yield for the company. This dividend is payable on August 1 to shareholders of the record at the close of business on July 10, 2014.

The company’s historical dividend growth is as follows:

- 10-year: 3.60%

- 5-year: 2.80%

- 3-year: 2.80%

Verizon Communications is a provider of communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its two reportable segments are Verizon Wireless and Wireline.

Verizon Communications’ historical revenue and net income:

1402948992655.png

The analysis on Verizon reports that the company’s revenue growth has slowed down over the past year, its price is near a 10 year high, and over the past three years the company has issued $39.7 billion of debt. It also notes that the company’s Piotroski F-Score is high and that its operating margin is expanding.

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

1402949036624.png

Verizon has a market cap of $204.12 billion. Its shares are currently trading at around $49.29 with a P/E ratio of 11.00, a P/S ratio of 1.20, and its P/B ratio is at 16.00. The company had an annual average earnings growth of 4.60% over the past ten years.

GuruFocus rated Verizon the business predictability rank of 4-star.

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

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Rating: 4.0/5 (2 votes)

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Comments

carolineatwyatt
Carolineatwyatt - 4 months ago

Hi Monica, thanks for sharing! I work at an investment research publishing company, Wyatt Investment Research, and one of my colleagues just published an article on his favorite dividend growers. His findings were that some of the best dividend stocks are hiding in plain sight. By this I mean that these stocks are household cleaners. Have a look! 4 Exceptional Dividend Growers

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