4/24/2013

20 Dividend Champions With Highest 10-Year Dividend Growth Rates

Dividend Champions with fastest 10 year dividend growth originally published at "long-term-investments.blogspot.com". Dividend Champions are popular because of their long payment history. They increased dividend payments each year over a period of more than 25 years without an interruption.

In my view it’s for every high-quality stock possible to manage a 50 year dividend growth. The only requirement is a stable growing business with a high degree of self-financing. So, the only big difference between the longest dividend growers is the rate of the dividend growth. There are fast growing stocks and slow hikers. Which should you buy?

If you want to make money with dividend growth stocks, you need fast growth but it makes only sense to purchase them for an acceptable price. What return will you make when you pay a price that is 100 times of the expected earnings?

Today, I like to screen the investment category “Dividend Champions” by stocks with the highest rate of dividend growth over the recent 10 years. Linked is a full list of the top 20 champs with a double-digit dividend growth. Fourteen of the results have a current buy or better rating.

Here are my favorite stocks:
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McDonald's (NYSE:MCD) has a market capitalization of $100.04 billion. The company employs 440,000 people, generates revenue of $27.567 billion and has a net income of $5.464 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.965 billion. The EBITDA margin is 36.15 percent (the operating margin is 31.21 percent and the net profit margin 19.82 percent).


Financial Analysis: The total debt represents 38.52 percent of the company’s assets and the total debt in relation to the equity amounts to 89.14 percent. Due to the financial situation, a return on equity of 36.82 percent was realized. Twelve trailing months earnings per share reached a value of $5.39. Last fiscal year, the company paid $2.87 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.52, the P/S ratio is 3.63 and the P/B ratio is finally 6.54. The dividend yield amounts to 3.09 percent and the beta ratio has a value of 0.39.

Long-Term Stock Price Chart Of McDonald's (MCD)
Long-Term Dividend Payment History of McDonald's (MCD)
Long-Term Dividend Yield History of McDonald's (MCD)

PepsiCo (NYSE:PEP) has a market capitalization of $130.05 billion. The company employs 278,000 people, generates revenue of $65.492 billion and has a net income of $6.214 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $11.920 billion. The EBITDA margin is 18.20 percent (the operating margin is 13.91 percent and the net profit margin 9.49 percent).

Financial Analysis: The total debt represents 38.00 percent of the company’s assets and the total debt in relation to the equity amounts to 127.20 percent. Due to the financial situation, a return on equity of 28.62 percent was realized. Twelve trailing months earnings per share reached a value of $3.90. Last fiscal year, the company paid $2.13 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.56, the P/S ratio is 1.99 and the P/B ratio is finally 5.79. The dividend yield amounts to 2.56 percent and the beta ratio has a value of 0.50.

Long-Term Stock Price Chart Of PepsiCo (PEP)
Long-Term Dividend Payment History of PepsiCo (PEP)
Long-Term Dividend Yield History of PepsiCo (PEP)

Wal-Mart Stores (NYSE:WMT) has a market capitalization of $262.10 billion. The company employs 2,200,000 people, generates revenue of $469.162 billion and has a net income of $17.756 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $36.302 billion. The EBITDA margin is 7.74 percent (the operating margin is 5.93 percent and the net profit margin 3.78 percent).

Financial Analysis: The total debt represents 26.65 percent of the company’s assets and the total debt in relation to the equity amounts to 70.91 percent. Due to the financial situation, a return on equity of 23.02 percent was realized. Twelve trailing months earnings per share reached a value of $5.02. Last fiscal year, the company paid $1.59 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.75, the P/S ratio is 0.56 and the P/B ratio is finally 3.43. The dividend yield amounts to 2.38 percent and the beta ratio has a value of 0.34.

Long-Term Stock Price Chart Of Wal-Mart Stores (WMT)
Long-Term Dividend Payment History of Wal-Mart Stores (WMT)
Long-Term Dividend Yield History of Wal-Mart Stores (WMT)

Medtronic (NYSE:MDT) has a market capitalization of $47.23 billion. The company employs 45,000 people, generates revenue of $16.184 billion and has a net income of $3.415 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.127 billion. The EBITDA margin is 31.68 percent (the operating margin is 25.61 percent and the net profit margin 21.10 percent).

Financial Analysis: The total debt represents 32.14 percent of the company’s assets and the total debt in relation to the equity amounts to 62.13 percent. Due to the financial situation, a return on equity of 20.65 percent was realized. Twelve trailing months earnings per share reached a value of $3.28. Last fiscal year, the company paid $0.97 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.22, the P/S ratio is 2.92 and the P/B ratio is finally 2.82. The dividend yield amounts to 2.23 percent and the beta ratio has a value of 0.93.

Long-Term Stock Price Chart Of Medtronic (MDT)
Long-Term Dividend Payment History of Medtronic (MDT)
Long-Term Dividend Yield History of Medtronic (MDT)


Take a closer look at the full list of the fastest growing Dividend Champions. The average P/E ratio amounts to 19.19 and forward P/E ratio is 14.91. The dividend yield has a value of 2.09 percent. Price to book ratio is 3.84 and price to sales ratio 2.23. The operating margin amounts to 18.01 percent and the beta ratio is 1.0. Stocks from the list have an average debt to equity ratio of 0.52.

Here is the full table with some fundamentals (TTM):

Dividend Champions With Highest Dividend Growth (Click to enlarge)

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Here is the sheet with dividend growth rates and years of growth:

Company
Ticker
Years Of Dividend Growth
10Y Dividend Growth Rate in %




Lowe's Companies
LOW
50
31.1
McDonald's Corp.
MCD
36
28.4
Nucor Corp.
NUE
40
22.6
Walgreen Company
WAG
37
21.2
Raven Industries
RAVN
27
19.4
AFLAC Inc.
AFL
30
19.3
Target Corp.
TGT
45
18.6
Wal-Mart Stores Inc.
WMT
39
18.1
Eaton Vance Corp.
EV
32
18.0
Mine Safety Appliances
MSA
41
17.6
Becton Dickinson & Co.
BDX
41
16.8
Sigma-Aldrich Corp.
SIAL
37
16.6
W.W. Grainger Inc.
GWW
41
15.6
T. Rowe Price Group
TROW
26
15.6
Donaldson Company
DCI
27
15.5
Medtronic Inc.
MDT
35
15.5
Weyco Group Inc.
WEYS
31
14.8
Franklin Resources
BEN
32
14.7
RLI Corp.
RLI
37
14.2
PepsiCo Inc.
PEP
41
13.6


Related stock ticker symbols:
NUE, MCD, WEYS, AFL, PEP, WMT, MSA, MDT, WAG, TGT, BDX, EV, TROW, RLI, LOW, RAVN, GWW, DCI, SIAL, BEN

Selected Articles:


*I am long BDX, MCD, PEP, WMT, WAG, and SIAL. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.


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