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:
General Electric (GE)
On Sept. 5, General Electric declared a dividend of $0.220 per share, representing 3.30% dividend yield for the company. This dividend is payable on Oct. 27 to shareholders of the record at the close of business on Sept. 22, 2014.
The company’s historical dividend growth is as follows:
- 10-year: -4.90%
- 5-year: 9.80%
- 3-year: 19.80%
General Electric is a diversified infrastructure and financial services company. The company provides products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content and industrial products.
GE’s historical revenue and net income:
The analysis on GE reports that the company’s operating margin is expanding, its price is near a 5-year high and its P/S ratio is also a 5-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
General Electric has a market cap of $260.18 billion. Its shares are currently trading at around $25.93 with a P/E ratio of 20.30, a P/S ratio of 1.80 and a P/B ratio of 1.94. The dividend yield of General Electric is at 3.30%.
Verizon Communications (VZ, Financial)
On Sept. 4, Verizon Communications declared a dividend of $0.550 per share, representing 4.30% dividend yield for the company. This dividend is payable on Nov. 3 to shareholders of the record at the close of business on Sept. 22, 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 with a presence in over 150 countries around the world.
Verizon’s historical revenue and net income:
The analysis on Verizon reports that the company’s price is near a 10-year high, its operating margin is expanding and its Piotroski F-Score is high. It also notes that the company has issued $47.8 billion of debt and that its revenue per share has been in decline over the past year.
The Peter Lynch Chart suggests that the company is currently undervalued:
Verizon Communications has a market cap of $201.29 billion. Its shares are currently trading at around $48.56 with a P/E ratio of 10.30, a P/S ratio of 1.28 and a P/B ratio of 13.49. The company had an annual average earnings growth of 5.40% over the past ten years.
GuruFocus rated Verizon the business predictability rank of 3.5-star.
Tractebel Energia SA (TBLEY)
On Sept. 4, Tractebel Energia SA declared a dividend of $0.296 per share, representing 4.30% dividend yield for the company. This dividend is payable on Oct. 6 to shareholders of the record at the close of business on Sept. 16, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 0.00%
- 5-year: 49.30%
- 3-year: 62.80%
Tractebel Energia is engaged in the generation and sale of electricity, regulated by the National Electric Power Agency, which is linked to the Ministry of Mines and Energy.
Tractabel’s historical revenue and net income:
The analysis on Tractebel Energia reports that the company’s gross and operating margins have been in a long-term decline.
The Peter Lynch Chart suggests that the company is currently overvalued:
Tractebel Energia has a market cap of $10.69 billion. Its shares are currently trading at around $16.38 with a P/E ratio of 22.00 and a P/S ratio of 3.91. The dividend yield of Tractebel Energia stocks is at 3.10% and had an annual average earnings growth of 6.60% over the past five years.
Ventas (VTR)
On Sept. 3, Ventas declared a dividend of $0.725 per share, representing 4.50% dividend yield for the company. This dividend is payable on Sept. 30 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: 8.00%
- 5-year: 7.50%
- 3-year: 8.50%
Ventas is a REIT with a portfolio of seniors’ housing and healthcare properties in the U.S. and Canada. The company currently operates through three reportable business segments: triple-net leased properties, senior living operations and MOB operations.
Ventas’ historical revenue and net income:
The analysis on Ventas reports that the company Piotroski F-Score is high, it has shown predictable revenue and earnings growth and its price is near a 1-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Ventas has a market cap of $18.75 billion. Its shares are currently trading at around $63.71 with a P/E ratio of 38.70, a P/S ratio of 6.44 and a P/B ratio of 2.17. The company had an annual average earnings growth of 8.50% over the past ten years.
GuruFocus rated Ventas the business predictability rank of 3-star.
Northeast Utilities (NU)
On Sept. 2 declared a dividend of $0.393 per share, representing 3.30% 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: 9.80%
- 5-year: 11.90%
- 3-year: 12.80%
Northeast Utilities is the parent company of the Northeast Utilities system. The NU system furnishes franchised retail electric service to customers in 419 cities and towns in Connecticut, New Hampshire and western Massachusetts through three of NU's wholly-owned subsidiaries.
Northeast Utilities historical revenue and earnings growth:
The analysis on the company reports that its revenue has been in decline over the past five years, its price is nearing a 10-year high and its operating margin is expanding.
The Peter Lynch Chart suggests that the company is currently overvalued:
Northeast Utilities has a market cap of $14.39 billion. Its shares are currently trading at around $45.47 with a P/E ratio of 19.30, a P/S ratio of 1.89 and a P/B ratio of 1.47. NU had an annual average earnings growth of 2.60% 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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