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:
Public Storage (PSA, Financial)
On Aug. 1, Public Storage declared a dividend of $1.40 per share, representing 3.20% dividend yield for the company. This dividend is payable on Sept. 30 to shareholders of the record at the close of business on Sept. 15, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 12.60%
- 5-year: 23.00%
- 3-year: 19.10%
Public Storage’s principal business activities include the acquisition, development, ownership and operation of self-storage facilities which offer storage spaces for lease, generally on a month-to-month basis, for personal and business use. The company owns and operates self-storage facilities in the US.
Public Storage’s historical revenue and net income:
The analysis on Public Storage reports that the company shows strong financial strength, its Altman Z-Score and Piotroski F-Score are high and its price is near a 10-year high. It also notes that the company’s operating margin is expanding and its P/S and P/B ratio are trading at 10-year highs.
The Peter Lynch Chart suggests that the company is currently overvalued:
Public Storage has a market cap of $29.8 billion. Its shares are currently trading at around $172.74 with a P/E ratio of 34.80, a P/S ratio of 14.70 and a P/B ratio of 5.70. The company had an annual average earnings growth of 6.00% over the past ten years.
Kimberly-Clark (KMB, Financial)
On Aug. 1, Kimberly-Clark declared a dividend of $0.840 per share, representing 3.10% dividend yield for the company. This dividend is payable on Oct. 2 to shareholders of the record at the close of business on Sept. 15, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 7.70%
- 5-year: 7.40%
- 3-year: 7.10%
Kimberly Clark Corporation is engaged in the manufacturing & marketing of products made from natural or synthetic fibers using technologies in fibers, nonwovens and absorbency.
Kimberly-Clark’s historical revenue and net income:
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The analysis on Kimberly-Clark reports that the company’s Piotroski F-Score is high, it has shown predictable revenue and earnings growth and its operating margin is expanding. It also notes that the company has issued $713 million of debt, its price is near a 10-year high and its dividend yield is near a 5-year low.
The Peter Lynch Chart suggests that the company is currently overvalued:
Kimberly-Clark has a market cap of $39.35 billion. Its shares are currently trading at around $105.23 with a P/E ratio of 18.80, a P/S ratio of 1.90 and a P/B ratio of 8.60. Kimberly-Clark had an annual average earnings growth of 5.70% over the past ten years.
GuruFocus rated Kimberly-Clark the business predictability rank of 4-star.
On Aug. 1, Linn Energy declared a dividend of $0.242 per share, representing 9.40% dividend yield for the company. This dividend is payable on Aug. 14 to shareholders of the record at the close of business on Aug. 11, 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 $10.23 billion. Its shares are currently trading at around $30.87 with a P/S ratio of 2.90 and a P/B ratio of 1.90. The company had an annual average earnings growth of 80.40% over the past five years.
CA Inc. (CA)
On July 31, CA Inc. declared a dividend of $0.250 per share, representing 6.50% dividend yield for the company. This dividend is payable on Sept. 9 to shareholders of the record at the close of business on Sept. 9, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 27.50%
- 5-year: 73.30%
- 3-year: 84.20%
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:
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 Peter Lynch Chart suggests that the company is currently overvalued:
CA has a market cap of $12.80 billion. Its shares are currently trading at around $28.81 with a P/E ratio of 16.10, a P/S ratio of 2.90 and a P/B ratio of 2.20. The company had an annual average earnings growth of 15.70% 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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