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:
Australia and New Zealand Banking (ANZBY)
On July 2, Australia and New Zealand Banking declared a dividend of $0.772 per share, representing 4.90% dividend yield for the company. This dividend is payable on July 11 to shareholders of the record at the close of business on May 12.
The company’s historical dividend growth is as follows:
- 10-year: 3.90%
- 5-year: 7.80%
- 3-year: 12.10%
Australia and New Zealand Banking Group Limited provides banking and financial products and services to retail, small business, corporate, and institutional clients. It conducts its operations in Australia and New Zealand and the Asia Pacific region.
Australia and New Zealand Banking Group’s historical revenue and net income:
The analysis on ANZBY reports that the company’s price is near a 10-year high, it has issued AUD3.1 billion of debt over the past year and the company has shown predictable revenue and earnings growth. The analysis also notes that the company’s operating margin is expanding.
The Peter Lynch Chart suggests that the company is currently overvalued:
Australia and New Zealand Banking Group has a market cap of $87.1 billion. Its shares are currently trading at around $31.74 with a P/E ratio of 15.10 and a P/S ratio of 5.10. The dividend for the company is at 4.90%, and they had an annual average earnings growth of 2.80% over the past ten years.
Duke Energy Corp (DUK)
On July 1, Duke Energy declared a dividend of $0.795 per share, representing 4.40% dividend yield for the company. This dividend is payable on Sept. 16 to shareholders of the record at the close of business on Aug. 15, 2014.
The company’s historical dividend growth is as follows:
- 10-year: -1.50%
- 5-year: 2.30%
- 3-year: 12.10%
Duke Energy is an energy company headquartered in Charlotte, North Carolina. Its regulated utility operations serve 4 million customers located in five states in the Southeast and Midwest United States. Its Commercial Power and International Energy business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the U.S.
Duke Energy’s historical revenue and net income:
The analysis on Duke Energy reports that the company’s dividend yield is close to a 10-year low, its price is close to a 10-year high and the company has issued $8.2 billion in debt over the past three years. The analysis also notes that the P/E ratio and P/B ratio are both at 1-year lows.
The Peter Lynch Chart suggests that the company is currently overvalued:
Duke Energy has a market cap of $50.59 billion. Its shares are currently trading at around $71.53 with a P/E ratio of 26.00, a P/S ratio of 2.00 and a P/B ratio of 1.20. The dividend yield of Duke Energy is currently at around 4.40%. The company had an annual average earnings growth of 3.30% over the past five years.
Linn Energy LLC (LINE)
On July 1, Linn Energy declared a dividend of $0.242 per share, representing 9.00% dividend yield for the company. This dividend is payable on Sept. 3 to shareholders of the record at the close of business on Aug. 1, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 0.00%
- 5-year: 5.70%
- 3-year: 7.20%
Linn Energy LLC is an oil and natural gas company which seeks to acquire, develop and maximize cash flow from a growing portfolio of long-life oil and natural gas assets. The company is an operator of its properties so that it could develop drilling programs and optimization projects that not only replace production.
Linn Energy’s historical revenue and net income:
The analysis on Linn Energy reports that the company has issued $4.6 billion of debt over the past three years, its dividend yield is near 1-year low and its price is near a 1-year high.
Linn Energy has a market cap of $10.77 billion. Its shares are currently trading at around $32.50 with a P/S ratio of 3.10 and a P/B ratio of 1.90.
To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.
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