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Alberto Abaterusso
Alberto Abaterusso
Articles (2380) 

A Trio of Long-Term Payers Increasing Dividends

Their dividend growth rates have risen considerably

October 09, 2020 | About:

KB Home (NYSE:KBH), RPM International Inc (NYSE:RPM) and Bassett Furniture Industries Inc (NASDAQ:BSET) announced higher quarterly dividends on Thursday, Oct. 8.

These stocks attract the interest of dividend investors as they represent loyal payers who have outperformed the S&P 500 index in terms of a higher dividend growth rates over the last few years. The benchmark index for the U.S. market has grown its real dividends per share at a compound annual growth rate (CAGR) of 5.07% over the past three years and of 5.11% over the past five years.

KB Home

The Los Angeles-based homebuilder announced that on Nov. 26, it will pay a 15 cents per common share quarterly cash dividend to shareholders of record as of Nov. 12.

The ex-dividend date is scheduled for Nov. 10. The distribution represents a 66.7% increase from the previous one.

Based on Thursday's closing price of $40.06 per share, the quarterly dividend generates a forward yield of 1.5%.

KB Home has paid dividends for approximately 31 years and increased them by a CAGR of 32% and 18.13% over the last three years and five years, respectively.

The company sustains the quarterly dividend with $722 million available in cash on hand and proceeds from operating cash flow of $586 million over the prior 12 months.

GuruFocus has assigned a score of 5 out of 10 to the company's financial strength and a score of 6 out of 10 to its profitability.

The share price has risen by 17.6% over the past year, fluctuating between the 52-week range of $9.82 to $40.86.

The stock has a market capitalization of $3.92 billion and a price-earnings ratio of 12.07 versus the industry median of 11.72.

On Wall Street, the stock has a hold recommendation rating with an average target price of $44.83 per share.

RPM International Inc

The Medina, Ohio-based specialty chemicals producer announced that on Oct. 30, it will distribute a quarterly cash dividend of 38 cents per common share to the shareholders of record as of Oct. 19.

The ex-dividend date is scheduled for Oct. 16. The distribution represents a 5.6% increase from the previous payment.

Based on Thursday's closing price of $86.71 per share, the quarterly cash dividend generates a forward dividend yield of 1.75%.

RPM International Inc has distributed dividends for approximately 31 years and increased them by a CAGR of 7.82% and 7.55% over the past three years and five years, respectively.

The company backs the payment of the dividend with cash on hand of $252 million and with an operating cash flow of $723 million over the trailing 12-months.

GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and a score of 7 out of 10 to its profitability.

The share price has increased by 27.3% over the past year, determining a 52-week range of $42.85 to $90.84.

The stock has a market capitalization of $11.27 billion and a price-earnings ratio of 29.8 versus the industry median of 19.9.

On Wall Street, the stock has an overweight recommendation rating with an average target price of $96.08 per share.

Bassett Furniture Industries Inc

The Bassett, Virginia-based manufacturer, marketer and retailer of home furnitures in the U.S. and internationally announced that on Nov. 27, it will pay a quarterly cash dividend of 12.5 cents per common share to its shareholders of record as of Nov. 13.

The ex-dividend date is scheduled for Nov. 12. The payment represents a 56.3% increase from the prior distribution.

Based on Thursday's closing price of $15.77 per share, the quarterly dividend produces a forward dividend yield of 3.17%.

Bassett Furniture Industries Inc has been distributing dividends for almost 30 years and increasing them by a CAGR of 10.28% and 13.12% over the last three years and five years, respectively.

The company finances the payment of the quarterly dividend with nearly $50 million in cash on hand and nearly $30 million in trailing 12-month operating cash flow.

GuruFocus has assigned a score of 3 out of 10 to the financial strength of the company and a score of 6 out of 10 to its profitability.

The share price has climbed by 13.5% over the past year for a 52-week range of $4.25 to $18.24.

The market capitalization is $157.33 million.

On Wall Street, the stock has one recommendation rating of hold and a price target of $17 per share.

Disclosure: I have no positions in any securities mentioned.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master\\\'s Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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