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:
Linn Energy (LINE)
On Aug. 29, Linn Energy declared a dividend of $0.242 per share, representing 9.20% dividend yield for the company. This dividend is payable on Sept. 11 to shareholders of the record at the close of business on Sept. 8, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 0.00%
- 5-year: 5.70%
- 3-year: 7.20%
Linn Energy 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.
Linn Energy’s historical revenue and net income:
The analysis on Linn Energy reports that the company has issued $4.3 billion of debt over the past three years, its revenue per share has slowed down over the past year and its price is sitting near a 1-year high.
Leon Cooperman (Trades, Portfolio) is the only guru holding a position in Linn Energy. Check out his holding history here.
Linn Energy has a market cap of $10.33 billion. Its shares are trading at around $31.13 with a P/S ratio of 3.60 and a P/B ratio of 2.00. The company had an annual average earnings growth of 80.40% over the past five years.
Swire Pacific (SWRBY)
On Aug. 29, Swire Pacific declared a dividend of $0.125 per share, representing 3.30% dividend yield for the company. This dividend is payable on Oct. 17 to shareholders of the record at the close of business on Sept. 10, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 0.00%
- 5-year: 11.50%
- 3-year: 3.00%
Swire Pacific, through its subsidiaries, operates in five operating divisions: Property, Aviation, Beverages, Marine Services and Trading & Industrial.
Swire Pacific’s historical revenue and net income:
There are currently no gurus that are holding a position in the company.
Swire Pacific has a market cap of $18.81 billion. Its shares are currently trading at around $12.50 with a P/E ratio of 6.10 and a P/S ratio of 1.50. The company had an annual average earnings growth of 6.60% over the past ten years.
GuruFocus rated Swire Pacific the business predictability rank of 3-star.
Standard Bank Group (SGBLY)
On Aug. 26, Standard Bank Group declared a dividend of $0.181 per share, representing 3.10% dividend yield for the company. This dividend is payable on Sept. 25 to shareholders of the record at the close of business on Sept. 12, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 0.00%
- 5-year: 0.00%
- 3-year: 11.20%
Standard Bank Group offers banking and related financial services. It owns a stake in the South African listed wealth management group, Liberty Holdings. It has Personal & Business Banking, Corporate & Investment Banking and Liberty segments.
Standard Bank Group’s historical revenue and net income:
The analysis on Standard Bank reports that the company holds no debt, its dividend yield is near a 1-year high and its revenue per share has declined over the past year. It also notes that the company’s price is near a 1-year high and its Piotrosk F-Score is low.
The Peter Lynch Chart suggests that the company is currently undervalued:
Standard Bank Group has a market cap of $20.83 billion. Its shares are currently trading at around $13.12 with a P/E ratio of 16.50, a P/S ratio of 2.80 and a P/B ratio of 1.50. The company had an annual average earnings growth of 205.80% over the past five years.
PPL Corp (PPL)
On Aug. 22, PPL declared a dividend of $0.373 per share, representing % 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: 6.10%
- 5-year: 1.60%
- 3-year: 1.60%
PPL Corp is an energy and utility holding company. Through subsidiaries, PPL generates electricity from power plants in the northeastern, northwestern and southeastern U.S., markets wholesale and retail energy mainly in the northeastern and northwestern portions of the U.S., delivers electricity to customers in Pennsylvania, Kentucky, Virginia, Tennessee and the U.K.
PPL’s historical revenue and net income:
The analysis on PPL reports that the company’s revenue per share has been in decline over the past five years, it has issued $3.1 billion of debt over the past three years and its dividend yield is near a 5-year low. The analysis also notes that the company’s price is near a 5-year high and that its operating margin is expanding.
The Peter Lynch Chart suggests that the company is currently overvalued:
PPL has a market cap of $22.85 billion. Its shares are trading at around $34.39 with a P/E ratio of 26.60, a P/S ratio of 2.30 and a P/B ratio of 1.60. The company had an annual average earnings growth of 1.70% 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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