14 Dividend Growth Stocks Rewarding Shareholders With A Raise

Every week I go through the list of dividend increases, as part of my monitoring process. I monitor the dividend increases from companies I own, and for companies I may be interested in the future. I find it helpful to see companies that I have bought almost a decade ago still delivering consistent annual increases. I also find it helpful to observe companies that have raised dividends for at least a decade.

The rate of dividend increases shows how confident company executives are of near-term business conditions. It may be worth taking a second look at these companies, in order to determine suitability for the income investor’s portfolio.

Over the past week, there were 14 companies with a long streak of annual dividend increases, which raised dividends to their shareholders. The companies include:

Air Products & Chemicals, Inc. (NYSE:APD) provides atmospheric gases, process and specialty gases, electronics and performance materials, equipment, and services worldwide. This dividend champion raised its quarterly dividends by 10.50% to 95 cents/share. This marked the 35th consecutive annual dividend increase for Air Products & Chemicals, Inc. (NYSE:APD). Over the past decade, the company has managed to increase its dividends at a rate of 9.90%/year. Earnings per share have increased from $4.67 in 2007 to an estimated $6.39/share for 2017. Currently, the stock is overvalued at 22.20 times forward earnings and yields 2.70%. Since I already have a sizeable position in this company already, I would not be interested even at a P/E below 20. But in general, I like the recurring nature of the business, and the strong relationship with clients. Check my analysis of APD for more information.

Parker-Hannifin Corp (NYSE:PH) manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The company operates in two segments, Diversified Industrial and Aerospace Systems. This dividend king (1) raised its quarterly dividends by 4.80% to 66 cents/share. This marked the 61th consecutive annual dividend increase
Parker-Hannifin Corp (NYSE:PH). PH fiscal year is at June 30, which is how ”annual” dividend payments are calculated in this case. If you look at calendar year 12/31, you get different results. Over the past decade, the company has managed to increase its dividends at a rate of 16%/year. Earnings per share have increased from $4.67 in 2007 to an estimated $6.83/share for 2017. Currently, the stock is selling at 21.80 times forward earnings and yields 1.80%. I may need to put it on my list for further research.

Polaris Industries Inc. (NYSE:PII), together with its subsidiaries, designs, engineers, manufactures, and markets off-road vehicles, snowmobiles, motorcycles, and on-road vehicles in the United States, Canada, Western Europe, Australia, and Mexico. It operates through three segments: Off-Road Vehicles (ORVs)/Snowmobiles, Motorcycles, and Global Adjacent Markets. This dividend contender raised its quarterly dividends by 5.50% to 58 cents/share. This marked the 22nd consecutive annual dividend increase for Polaris Industries Inc. (NYSE:PII). Over the past decade, the company has managed to increase its dividends at a rate of 14.20%/year. Earnings per share have increased from $1.29/share in 2006 to an estimated $4.49/share for 2017. Currently, the stock is selling at 19.30 times forward earnings and yields 2.70%. I would put it on my list for further research.

Black Hills Corp (NYSE:BKH), through its subsidiaries, operates as a diversified energy company in the United States. This dividend champion raised its quarterly dividends by 6% to 44.50 cents/share. This marked the 48th consecutive annual dividend increase for Black Hills Corp (NYSE:BKH). Over the past decade, the company has managed to increase its dividends at a rate of 2.40%/year. Earnings per share have increased from $2.21/share in 2006 to an estimated $3.03/share for 2017. Currently, the stock is overvalued at 20.50 times forward earnings and yields 2.90%. I would be more interested in slow growing utilities at lower P/E ratios from here preferably in the 15 – 16 range, and yields of at least 4%.