Free Annual Reports
3 Companies With Growing Dividends
The number of firms that have been raising dividends recently is growing, which is a positive sign for those seeking evidence of a general business recovery. Below, we highlight three companies that have just hoisted their annual payouts and are worthy of a look because of their recent price performance, too. A couple of them carry very long track records of raising the dividend, and a couple hail from the food and beverage sector.
IN PICTURES: 9 Simple Investing Ratios You Need To Know
Sour Mash Profits
Brown-Forman Corporation (NYSE:BF.B) is in the booze business; it manufactures, bottles and sells alcoholic beverages, including Jack Daniels, Finlandia Vodka and Southern Comfort. Brown-Forman stock is up 29% year-to-date, compared to a 12% gain for the broad market, as represented by the SPDR S&P 500 ETF (NYSE:SPY) over that same period.
Brown-Forman shares trade with a relatively high 22.8 P/E ratio and pay an annual dividend of 1.8%. That's a dividend, by the way, that has been raised annually without fail for the last 27 years. The company last raised dividends by 6.7%, to 32 cents.
Two recent developments have driven the share price higher in recent months. The first is a stock repurchase program that was initiated in the summer and is due to wind up by year's end. According to the company's board of directors, $250 billion worth of stock will be retired over that period. The second development was the company's beating analysts' most recent EPS estimates. Whereas the street had been expecting $1, the company delivered $1.05. Growth this quarter was attributed to strong overseas sales.
The Cleaner Air Business
Another firm with a long history of dividend raises is Donaldson Company (NYSE:DCI), makers of filtration systems and exhaust and emission control products for engines and industrial applications. The company recently upped its annual payout by 4%, making for an annual yield of 0.9%. That was the second dividend increase in a year, bringing the company to 25 straight years of annual dividend increases. The shares are currently priced at 25 times last year's earnings and are up an outsized 38% since January.
Soup's On!
The Campbell Soup Company (NYSE:CPB) is a household name to most Americans, but how many know thatCampbell Campbell
CPB shares have underperformed the broader food and beverage sector, as represented by the PowerShares Dynamic Food and Beverage ETF (NYSE:PBJ), which is up 29% in 2010. Campbell's Soup has managed a gain of just 2.8%.
The Wrap
Dividends are great when they're big, but they're greater still when they're continually raised. When this is coupled with a strong record of capital appreciation, you've got a great stock on your hands.
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
IN PICTURES: 9 Simple Investing Ratios You Need To Know
Sour Mash Profits
Brown-Forman Corporation (NYSE:BF.B) is in the booze business; it manufactures, bottles and sells alcoholic beverages, including Jack Daniels, Finlandia Vodka and Southern Comfort. Brown-Forman stock is up 29% year-to-date, compared to a 12% gain for the broad market, as represented by the SPDR S&P 500 ETF (NYSE:SPY) over that same period.
Brown-Forman shares trade with a relatively high 22.8 P/E ratio and pay an annual dividend of 1.8%. That's a dividend, by the way, that has been raised annually without fail for the last 27 years. The company last raised dividends by 6.7%, to 32 cents.
Two recent developments have driven the share price higher in recent months. The first is a stock repurchase program that was initiated in the summer and is due to wind up by year's end. According to the company's board of directors, $250 billion worth of stock will be retired over that period. The second development was the company's beating analysts' most recent EPS estimates. Whereas the street had been expecting $1, the company delivered $1.05. Growth this quarter was attributed to strong overseas sales.
Another firm with a long history of dividend raises is Donaldson Company (NYSE:DCI), makers of filtration systems and exhaust and emission control products for engines and industrial applications. The company recently upped its annual payout by 4%, making for an annual yield of 0.9%. That was the second dividend increase in a year, bringing the company to 25 straight years of annual dividend increases. The shares are currently priced at 25 times last year's earnings and are up an outsized 38% since January.
Soup's On!
The Campbell Soup Company (NYSE:CPB) is a household name to most Americans, but how many know that
CPB shares have underperformed the broader food and beverage sector, as represented by the PowerShares Dynamic Food and Beverage ETF (NYSE:PBJ), which is up 29% in 2010. Campbell's Soup has managed a gain of just 2.8%.
The Wrap
Dividends are great when they're big, but they're greater still when they're continually raised. When this is coupled with a strong record of capital appreciation, you've got a great stock on your hands.
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
Free Annual Reports
