GuruFocus Names Five in Dividend Growers of the Week

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Oct 22, 2014
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During the past week, GuruFocus recognized five 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 five 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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Wisconsin Energy Corp (WEC)

On Oct. 16, Wisconsin Energy declared a dividend of $0.390 per share, representing 3.30% dividend yield for the company. This dividend is payable on Dec. 1 to shareholders of the record at the close of business on Nov. 14, 2014.

The company’s historical dividend growth is as follows:

- 10-year: 15.60%

- 5-year: 21.30%

- 3-year: 21.80%

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Wisconsin Energy conducts its operations mainly in two operating segments: a utility energy segment and a non-utility energy segment. Its utility energy segment consists of Wisconsin Electric and Wisconsin Gas. The company's non-utility energy segment consists mainly of We Power, which owns and leases to Wisconsin Electric generation plants constructed as part of its PTF strategy.

Wisconsin Energy’s historical revenue and net income:

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The analysis on Wisconsin Energy reports that the company has issued $182.2 million of debt over the past year, its Piotroski F-Score is high and its dividend yield is near a 10-year high. The analysis also notes that the company’s price is also nearing a 10-year high.

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

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Wisconsin Energy has a market cap of $10.79 billion. Its shares are currently trading at around $47.83 with a P/E ratio of 17.50, a P/S ratio of 2.20 and a P/B ratio of 2.40. The company had an annual average earnings growth of 3.30% over the past ten years.

Consolidated Edison (ED)

On Oct. 16, Consolidated Edison declared a dividend of $0.630 per share, representing 4.10% dividend yield for the company. This dividend is payable on Dec. 15 to shareholders of the record at the close of business on Nov. 12, 2014.

The company’s historical dividend growth is as follows:

- 10-year: 0.90%

- 5-year: 1.00%

- 3-year: 1.10%

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Consolidated Edison is a holding company which owns all of the outstanding common stock of Consolidated Edison Company of New York, Orange and Rockland Utilities and the competitive energy businesses. It provides a range of energy-related products and services to its customers through its subsidiaries.

Consolidated Edison’s historical revenue and net income:

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The analysis on Consolidated Edison reports that the company’s revenue per share has been in decline over the past five years and that the company has issued $2.2 billion of debt over the past three years. The analysis also notes that the company’s operating margin is expanding and its price is near a 10-year high.

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

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Consolidated Edison has a market cap of $18 billion. Its shares are currently trading at around $61.46 with a P/E ratio of 14.20 and a P/S ratio of 1.40. The company had an annual average earnings growth of 3.90%.

Paychex (PAYX)

On Oct. 15, Paychex declared a dividend of $0.380 per share, representing 3.30% dividend yield for the company. This dividend is payable on Nov. 20 to shareholders of the record at the close of business on Nov. 3, 2014.

The company’s historical dividend growth is as follows:

- 10-year: 7.60%

- 5-year: -4.00%

- 3-year: 4.10%

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Paychex is a provider of payroll and integrated human resource and employee benefits outsourcing solutions for small to medium sized businesses.

Paychex’s historical revenue and net income:

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

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The analysis on Paychex reports that the company’s Piotroski F-Score is high, it has not debt and it has shown predictable revenue and earnings growth. The analysis also notes that the company’s operating margin is expanding, its dividend yield is near a 1-year high and its price is sitting near a 10-year high.

Paychex has a market cap of $15.87 billion. Its shares are currently trading at around $43.75 with a P/E ratio of 25.00 and a P/S ratio of 6.20. The company had an annual average earnings growth of 5.40% over the past ten years.

Dominion Resources (D)

On Oct. 15, Dominion Resources declared a dividend of $0.60 per share, representing 3.40% dividend yield for the company. This dividend is payable on Dec. 20 to shareholders of the record at the close of business on Nov. 28, 2014.

The company’s historical dividend growth is as follows:

- 10-year: 6.70%

- 5-year: 6.70%

- 3-year: 7.10%

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Dominion Resources is provider of electricity, natural gas and related services to customers mainly in the eastern region of the U.S. It manages its daily operations through three operating segments: Dominion Virginia Power of DVP, Dominion Energy and Dominion Generation.

Dominion Resources’ historical revenue and net income:

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The analysis on Dominion reports that the company’ revenue has been in decline over the past five years, it has issued $5.3 billion of debt over the past five years and its operating margin is expanding. The analysis also notes that the company’s dividend yield is near a 5-year low and its price is near a 10-year high.

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

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Dominion Resources has a market cap of $40.77 billion. Its shares are currently trading at around $69.97 with a P/E ratio of 26.50 and a P/S ratio of 3.10. The company had an annual average earnings growth of 3.00% over the past ten years.

Blackstone Group (BX)

On Oct. 15, Blackstone Group declared a dividend of $0.440 per share, representing 5.90% dividend yield for the company. This dividend is payable on Nov. 3 to shareholders of the record at the close of business on Oct. 27, 2014.

The company’s historical dividend growth is as follows:

- 10-year: 0.00%

- 5-year: 4.10%

- 3-year: 25.30%

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Blackstone is an alternative asset manager and a provider of financial advisory services. It is managed and operated by its general partner, Blackstone Group Management L.L.C. Its four business segments are: Corporate Private Equity, Real Estate, Marketable Alternative Asset Management and Financial Advisory.

Blackstone Group’s historical revenue and net income:

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The analysis on Blackstone reports that the company shows strong financial strength, its dividend yield is near a 3-year high and its Altman Z-Score is in the grey area.

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

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Blackstone has a market cap of $35.53 billion. Its shares are currently trading at around $30.81 with a P/E ratio of 11.70, a P/S ratio of 2.30 and a P/B ratio of 3.30.