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:
Thomson Reuters Corp (TRI)
On Oct. 30, Thomson Reuters declared a dividend of $0.330 per share, representing 3.50% dividend yield for the company. This dividend is payable on Dec. 15 to shareholders of the record at the close of business on Nov. 20, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 4.50%
- 5-year: 5.00%
- 3-year: 7.20%
Thomson Reuters is the world’s leading source of intelligent info for professionals as well as businesses. The company creates technology that will deliver crucial information to decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets through the use of the world’s most trusted news organization.
Thomson Reuters’ historical revenue and net income:
The analysis on Thomson Reuters warns that the company has issued $1.5 billion of debt over the past three years, its price is near a 5-year high and that its dividend yield is near a 3-year low.
The Peter Lynch Chart suggests that the company is currently overvalued:
Thomson Reuters has a market cap of $29.81 billion. Its shares are currently trading at around $37.09 with a P/E ratio of 75.00, a P/S ratio of 2.50 and a P/B ratio of 2.00. The company had an annual average earnings growth of 8.30% over the past five years.
Health Care REIT (HCN)
On Oct. 30, Health Care REIT declared a dividend of $0.795 per share, representing 4.40% dividend yield for the company. This dividend is payable on Nov. 20 to shareholders of the record at the close of business on Nov. 10, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 3.10%
- 5-year: 3.20%
- 3-year: 7.20%
This is Health Care REIT’s 174th consecutive quarterly dividend payment.
Health Care REIT is a REIT that invests in senior housing and health care real estate. The company also provides property management and development services. Its property types include investment properties and medical office buildings.
Health Care’s historical revenue and net income:
The analysis on Health Care REIT reports that the company has issued $1.8 billion of debt over the past three years, the company’s price is near a 10-year high and its asset growth is currently faster than its revenue growth.
The Peter Lynch Chart suggests that the company is currently overvalued:
Health Care REIT has a market cap of $21.86 billion. Its shares are currently trading at around $70.84 with a P/E ratio of 136.20 and a P/S ratio of 6.50. The company had an annual average earnings growth of 6.30% over the past ten years.
HCP Inc (HCP)
On Oct. 30, HCP Inc. declared a dividend of $0.545 per share, representing 4.90% dividend yield for the company. This dividend is payable on Nov. 25 to shareholders of the record at the close of business on Nov. 10, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 4.10%
- 5-year: 3.40%
- 3-year: 4.10%
HCP is a REIT that invests mainly in real estate serving the healthcare industry in the U.S. The company acquires, develops leases, manages and disposes of healthcare real estate, and provides financing to healthcare providers.
HCP’s historical revenue and net income:
The analysis on HCP reports that the company’s price is sitting near a 1-year high, its operating margin is expanding and its Piotroski F-Score is high – indicating a healthy situation.
The Peter Lynch Chart suggests that the company is currently overvalued:
HCP has a market cap of $20.08 billion. Its shares are currently trading at around $43.76 with a P/E ratio of 20.10, a P/S ratio of 9.40 and a P/B ratio of 1.90. The company had an annual average earnings growth of 15.60% over the past ten years.
Royal Dutch Shell PLC (RDS.A)(RDS.B, Financial)
On Oct. 30, Royal Dutch Shell declared a dividend of $0.940 per share, representing 5.20% dividend yield for the company. This dividend is payable on Dec. 22 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: 0.00%
- 5-year: 0.30%
- 3-year: 1.50%
Royal Dutch Shell’s historical revenue and net income:
The analysis on Royal Dutch Shell reports that the company’s dividend yield is near a 3-year high, its revenue per share has been in decline over the past year and its price is sitting near a 10-year high.
The Peter Lynch Chart suggests that the company is currently undervalued:
Royal Dutch Shell has a market cap of $225.15 billion. Its shares are currently trading at around $70.74 per share with a P/E ratio of 14.40, a P/S ratio of 0.50 and a P/B ratio of 1.30. The company had an annual average earnings growth of 4.60% 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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