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A Look at the Week's Top Dividend Growers

July 28, 2014 | About:
Monica Wolfe

Monica Wolfe

133 followers

During the past week, GuruFocus recognized four 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 four 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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CenterPoint Energy (CNP)

On July 24, CenterPoint Energy declared a dividend of $0.238 per share, representing 3.60% dividend yield for the company. This dividend is payable on Sept. 10 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: 9.80%

- 5-year: 2.20%

- 3-year: 2.10%

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CenterPoint Energy is an electric and natural gas utility company. Its operations are segmented into five areas - Electric Transmission & Distribution, Natural Gas Distribution, Competitive Natural Gas Sales and Services, Interstate Pipelines, Field Services and Other Operations.

CenterPoint Energy’s historical revenue and net income:

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The analysis on CenterPoint reports that the company’s revenue per share has been in decline over the past five years, its dividend yield is near a 5-year low, its operating margin is expanding and its price is sitting near a 10-year high.

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

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CenterPoint Energy has a market cap of $10.81 billion. Its shares are currently trading at around $25.15 with a P/E ratio of 31.00, a P/S ratio of 1.20 and a P/B ratio of 2.50.

MarkWest Energy Partners LP (MWE)

On July 24, MarkWest Energy Partners declared a dividend of $0.880 per share, representing 4.80% dividend yield for the company. This dividend is payable on Aug. 14 to shareholders of the record at the close of business on Aug. 5, 2014.

The company’s historical dividend growth is as follows:

- 10-year: 9.70%

- 5-year: 7.70%

- 3-year: 9.30%

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MarkWest is involved in the gathering, processing and transportation of natural gas; the gathering, transportation, fractionation, storage and marketing of NGLs; and the gathering and transportation of crude oil.

MarkWest’s historical revenue and net income:

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The analysis on MarkWest reports that the company’s revenue has been in decline for the past five years, it has issued $1.6 billion of debt over the past three years and its price is sitting at around its 10-year high.

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

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MarkWest Energy Partners has a market cap of $12.85 billion. Its shares are currently trading at around $72.02 with a P/E ratio of 177.00, a P/S ratio of 6.50 and a P/B ratio of 3.00. The company had an annual average earnings growth of 5.6% over the past ten years.

ONEOK Partners LP (OKS)

On July 24, ONEOK Partners declared a dividend of $0.760 per share, representing 5.10% dividend yield for the company. This dividend is payable on Aug. 14 to shareholders of the record at the close of business on Aug. 4, 2014.

The company’s historical dividend growth is as follows:

- 10-year: 6.40%

- 5-year: 7.40%

- 3-year: 8.80%

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ONEOK is engaged in the gathering, processing, storage and transportation of natural gas in the United States. The company's operations are divided into three business segments: Natural Gas Gathering and Processing, Natural Gas Pipelines, Natural Gas Liquids.

ONEOK’s historical revenue and net income:

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The analysis on ONEOK reports that the company’s price is near a 10-year high, its operating margin is expanding, and it has shown predictable revenue and earnings growth.

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

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ONEOK Partners reports that the company has a market cap of $13.43 billion. Its shares are trading at around $57.64 with a P/E ratio of 21.00, a P/S ratio of 1.10 and a P/B ratio of 2.60. The company had an annual average earnings growth of 4.90% over the past ten years.

GuruFocus rated ONEOK Partners the business predictability rank of 2.5-star.

GlaxoSmithKline PLC (GSK)

On July 23, GlaxoSmithKline declared a dividend of $0.648 per share, representing 5.30% dividend yield for the company. This dividend is payable on Sept. 10 to shareholders of the record at the close of business on Aug. 8, 2014.

The company’s historical dividend growth is as follows:

- 10-year: 7.20%

- 5-year: 6.50%

- 3-year: 6.40%

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GlaxoSmithKline PLC creates, discovers, develops, manufactures and markets pharmaceutical products including vaccines, over-the-counter (OTC) medicines and health-related consumer products.

GlaxoSmithKline’s historical revenue and net income:

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The analysis on GlaxoSmithKline reports that the company’s Piotroski F-Score is high, its operating margin is expanding, and its dividend yield is near a 10-year high. The analysis also notes that the company’s payout ratio might be too high, its revenue per share has been in decline over the past year and the company has issued GBP3.4 billion.

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

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GlaxoSmithKline has a market cap of $115.78 billion. Its shares are currently trading at around $48.20 with a P/E ratio of 14.60, a P/S ratio of 2.80 and a P/B ratio of 11.30. The company had an annual average earnings growth of 3.10% over the past ten years.

GuruFocus rated GlaxoSmithKline the business predictability rank of 2-star.

American Electric Power (AEP)

On July 22, American Electric Power declared a dividend of $0.500 per share, representing 3.90% dividend yield for the company. This dividend is payable on Sept. 10 to shareholders of the record at the close of business on Aug. 8, 2014.

The company’s historical dividend growth is as follows:

- 10-year: 3.90%

- 5-year: 4.50%

- 3-year: 4.50%

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This most recent dividend represents the company’s 417th consecutive quarter common stock cash dividend.

American Electric Power is a public utility holding company that owns, directly or indirectly, all of the outstanding common stock of its public utility subsidiaries and varying percentages of other subsidiaries.

AEP’s historical revenue and net income:

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The analysis on American Electric Power reports that the company’s price is near a 10-year high, its dividend yield is near a 5-year low and over the past three years the company issued $613 million of debt.

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

1406584475592.png

American Electric Power has a market cap of $26.67 billion. Its shares are currently trading at around $54.65 with a P/B ratio of 1.60, a P/S ratio of 1.60 and a P/E ratio of 15.80. The company had an annual average earnings growth of 1.20% over the past ten years.

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

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