Dover (DOV) has increased its dividend for 60 consecutive years, trades at a dividend yield of 3.2%, and has a relatively low payout ratio of 30%. The stock also trades for just 13.5x forward earnings guidance. Why is this high quality industrial business looking so cheap? Energy markets. DOV generated over 30% of its [...]
Source: Los Angeles Times Clorox (CLX) has increased its dividend for nearly 40 straight years and owns some of the most well-known and recession-resistant consumer brands in the country. The company is a fraction of the size of P&G and has numerous growth opportunities to pursue over the coming years. While the [...]
V.F. Corporation (VFC) has been in business for more than 115 years and owns some of the most famous consumer apparel brands in the world (e.g. The North Face, Vans, Wrangler, Lee, etc.). Unseasonably warm winter weather, sluggish retail spending, unfavorable currency fluctuations, and several other transient factors have caused this dividend aristocrat to [...]
Genuine Parts Company (GPC) has grown its sales in 63 of the last 65 years and increased its profit in 50 of the last 54 years. How many of your holdings can make those claims? GPC also has a 3.1% dividend yield and has steadily increased its dividend for 59 consecutive years with dividend [...]
Ecolab (ECL) is one of the most reliable businesses that money can buy. Although its dividend yield is low (1.4%), the company’s long-term growth outlook is outstanding and supported by ECL’s moat (90% recurring revenue in the form of essential consumables; entrenched customer relationships; twice as large as its next biggest competitor; 25,000 customer-facing employees). [...]
Closed-end funds can provide dividend investors with significantly more income compared to basic mutual funds, ETFs, and common stocks. However, closed-end funds are not well known by most investors and come with several complexities. A closed-end fund is a type of investment company whose shares are traded on a stock exchange or in the [...]
Favorable macro trends and company-specific improvement have helped General Motors (GM) remain a strong performing holding in our Top 20 Dividend Stocks portfolio. Earlier this morning, the company announced some good news for shareholders. GM raised its 2016 earnings outlook by 5%, boosted its dividend by 6%, and increased its share repurchase plan by [...]
Parker-Hannifin (PH) is a high quality industrial business with entrenched market positions and excellent cash flow generation. The company has increased its dividend for 59 consecutive years, making it a Dividend King, and offers a 2.8% dividend yield today. Its dividend has also compounded at a double-digit annual rate over the last decade and should [...]
Paychex (PAYX) has paid uninterrupted dividends since going public in 1988. While the company held its dividend flat during the financial crisis, it has otherwise increased its dividend every year since the mid-1990s and currently yields 3.5%. PAYX has a very durable business model that throws off predictable free cash flow. We believe its [...]
Published on 1/9/2016 Warren Buffett only owns two stocks in the energy sector, and they both pay a dividend – Suncor (SU) and Phillips 66 (PSX). SU’s dividend yield is 3.7%, and it has increased its dividend for 13 consecutive years. Buffett first bought into SU in 2013, investing around $500 million at the [...]
Published on 1/8/2016 Compass Minerals (CMP) has increased its dividend every year since going public in 2003 and boasts an operating history dating back to 1844. Its businesses are simple to understand, largely uncorrelated with the economy, and meaningfully advantaged by a unique set of assets that is, in many cases, practically impossible to replicate. [...]
Published on 1/7/2016 Thomson Reuters (TRI) has raised its dividend for 22 straight years and is one of the most consistent free cash flow generators around. The company’s business benefits from significant amounts of recurring revenue (87% of sales), While TRI’s rate of dividend growth is modest, we believe the company’s 3.6% dividend yield [...]
Sysco (SYY) is a holding in our Conservative Retirees dividend portfolio. The company is a dividend aristocrat that has paid dividends since 1970 and appears to offer a very safe 3% yield today. While SYY’s growth rate is very moderate, the company’s durability has been noteworthy. The pace of change in the foodservice distribution [...]
Becton, Dickinson and Company (BDX) is a world leader in medication management and patient safety solutions. The company has been in operation for more than 115 years and has increased its dividend for 44 consecutive years. With a diverse portfolio of medical products, meaningful exposure to emerging markets and a large acquisition under its [...]
Diageo (DEO) is a leading player in the alcoholic beverages market. Up until the last few years, the company enjoyed great success. However, consumer trends have started to shift in DEO’s most profitable region – North America. The company has struggled to grow volumes and is now in a bit of a transitional period [...]