Dividend Growth Stocks Raising The Bar

Torchmark Corporation (NYSE:TMK), through its subsidiaries, provides various life and health insurance products, and annuities in the United States, Canada, and New Zealand. It operates through Life Insurance, Health Insurance, and Annuities segments. Torchmark Corporation (NYSE:TMK) raised its quarterly dividends by 7.10% to 15 cents/share. This marked the 13th consecutive annual dividend increase for this dividend achiever. Over the past decade, Torchmark has managed to hike its annual distributions at a rate of 10%/year. The company grew profits from $2.44/share in 2007 to $4.41/share in 2016. Torchmark Corporation (NYSE:TMK) is expected to earn $4.69/share in 2017. The stock is attractively valued at 16.70 times forward earnings and yields 0.80%.

Waste Management, Inc. (NYSE:WM), through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. The company raised its quarterly dividend by 3.70% to 42.50 cents/share. This marked the 15th consecutive annual dividend increase for Waste Management, Inc. (NYSE:WM). Over the past decade, this dividend achiever has managed to boost dividends at a rate of 6.40%/year. The company grew profits from $2.23/share in 2007 to $2.65/share in 2016. Waste Management, Inc. (NYSE:WM) is expected to earn $3.17/share in 2017. The stock is overvalued at 23 times forward earnings and yields 2.30%. Given the low growth in earnings, and the high valuation I see the stock as a hold.

Full Disclosure: Long ROST, DLR, GD

Additional Links:

(1) http://www.dividendgrowthinvestor.com/2017/02/dividend-achievers-offer-income-growth.html

(2) http://www.dividendgrowthinvestor.com/2016/09/dividend-champions-best-list-for.html