7 Stocks With The Longest Dividend Growth History

Many investors love dividend growth but there is only a dozen of stocks with a dividend history over 50 consecutive years. Those stocks are called "Dividend Kings".

Today I like to highlight stocks that could hit a new record this year by jumping over the magic 60th years barrier.

As of today, only one stock has managed this goal; it's the water utility American States Water. Attached are seven top stocks that could hit the magic 60 rule within the next two years.

41 UK Dividend Growth Kings You Must Know

Recently, I stumbled on Twitter and found an interesting tweet about a UK stock that has hiked currently its dividend. 

As you might know, I love stocks that increase dividends, not because I'm an event driven investor, but because I love it to see that the company has a good running operational business and wants to share its success with their shareholders.

The tweet came from a Guy named @UKDividendKings. I check out his site and saw his impressing work. He compiled all stocks from the FTSE 350 with more than 10 consecutive years of dividend growth in a list. 

These are his detailed criteria:

- FTSE 350 member (excluding Trusts)

- £1bn+ market cap

- Minimum of 10 years consecutive, unbroken dividend raises – no cuts, no holding static

41 UK-Dividend Kings

UK Dividend Kings (Click to Enlarge);
Source: http://ukdividendkings.com/list

For sure, I never thought that there were so many companies with a long history of consecutive dividend growth. I knew that the American market offers around 500 or a few companies but 41 in the UK?

Well, back to the list, I love the overview with dividend cover ratio and picked a few companies that I personally like or I often hear from. 

Tesco is not on the list but pays one of the highest yields but the market rumors that Tesco will cut future dividends. There are also rumours about Vodafone's dividend safeness. 

The list shows a dividend cover ratio of 1.59.

Stocks are not cheap

Everybody tells it and it's somehow true: stocks aren't cheap for the moment. With P/E's above 20 or more, the market is definitely highly valuated.

My favorite UK-Dividend Kings are... 

Vodafone Group (NASDAQ:VOD) has a market capitalization of $89.62 billion. The company employs 92,812 people, generates revenue of $63.711 billion and has a net income of $18.794 billion. Vodafone Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18.477 billion. The EBITDA margin is 29.00 percent (the operating margin is -10.20 percent and the net profit margin 29.50 percent).

Financial Analysis: The total debt represents 20.82 percent of Vodafone Group’s assets and the total debt in relation to the equity amounts to 35.82 percent. Due to the financial situation, a return on equity of 15.67 percent was realized by Vodafone Group. Twelve trailing months earnings per share reached a value of $6.98. Last fiscal year, Vodafone Group paid $2.32 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 4.78, the P/S ratio is 1.41 and the P/B ratio is finally 0.75. The dividend yield amounts to 7.00 percent and the beta ratio has a value of 0.79.

Long-Term Stock Price Chart Of Vodafone Group (VOD)

Long-Term Dividend Payment History of Vodafone Group (VOD)

Long-Term Dividend Yield History of Vodafone Group (VOD)

GlaxoSmithKline (NYSE:GSK) has a market capitalization of $114.57 billion. The company employs 99,817 people, generates revenue of $44.037 billion and has a net income of $9.350 billion. GlaxoSmithKline’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15.174 billion. The EBITDA margin is 34.46 percent (the operating margin is 27.58 percent and the net profit margin 21.23 percent).

Financial Analysis: The total debt represents 43.35 percent of GlaxoSmithKline’s assets and the total debt in relation to the equity amounts to 260.75 percent. Due to the financial situation, a return on equity of 84.96 percent was realized by GlaxoSmithKline. Twelve trailing months earnings per share reached a value of $3.23. Last fiscal year, GlaxoSmithKline paid $2.59 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.80, the P/S ratio is 2.60 and the P/B ratio is finally 9.89. The dividend yield amounts to 5.60 percent and the beta ratio has a value of 0.59.

Long-Term Stock Price Chart Of GlaxoSmithKline (GSK)

Long-Term Dividend Payment History of GlaxoSmithKline (GSK)

Long-Term Dividend Yield History of GlaxoSmithKline (GSK)

British American Tobacco (NYSEMKT:BTI) has a market capitalization of $111.66 billion. The company employs 87,485 people, generates revenue of $25.354 billion and has a net income of $6.976 billion. British American Tobacco’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10.339 billion. The EBITDA margin is 40.78 percent (the operating margin is 36.21 percent and the net profit margin 27.52 percent).

Financial Analysis: The total debt represents 43.51 percent of British American Tobacco’s assets and the total debt in relation to the equity amounts to 176.30 percent. Due to the financial situation, a return on equity of 55.35 percent was realized by British American Tobacco. Twelve trailing months earnings per share reached a value of $6.80. Last fiscal year, British American Tobacco paid $8.72 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.18, the P/S ratio is 4.40 and the P/B ratio is finally 10.21. The dividend yield amounts to 4.11 percent and the beta ratio has a value of 0.74.

Long-Term Stock Price Chart Of British American Tobacco (BTI)

Long-Term Dividend Payment History of British American Tobacco (BTI)

Long-Term Dividend Yield History of British American Tobacco (BTI)

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Diageo (LON:DGE) has a market capitalization of $44.00 billion. The company employs 26,588 people, generates revenue of $10.258 billion and has a net income of $2.264 billion. Diageo’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.738 billion. The EBITDA margin is 36.44 percent (the operating margin is 26.39 percent and the net profit margin 22.07 percent).

Financial Analysis: The total debt represents 40.12 percent of Diageo’s assets and the total debt in relation to the equity amounts to 135.04 percent. Due to the financial situation, a return on equity of 33.64 percent was realized by Diageo. Twelve trailing months earnings per share reached a value of $0.93. Last fiscal year, Diageo paid $0.52 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.88, the P/S ratio is 4.33 and the P/B ratio is finally 6.50. The dividend yield amounts to 2.93 percent and the beta ratio has a value of 0.61.

Long-Term Stock Price Chart Of Diageo (DGE)

Long-Term Dividend Payment History of Diageo (DGE)

Long-Term Dividend Yield History of Diageo (DGE)

Sage Group (LON:SGE) has a market capitalization of $4.30 billion. The company employs 13,242 people, generates revenue of $1.376 billion and has a net income of $47.50 million. Sage Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $406.10 million. The EBITDA margin is 29.51 percent (the operating margin is 13.12 percent and the net profit margin 3.45 percent).

Financial Analysis: The total debt represents 24.92 percent of Sage Group’s assets and the total debt in relation to the equity amounts to 62.64 percent. Due to the financial situation, a return on equity of 4.13 percent was realized by Sage Group. Twelve trailing months earnings per share reached a value of $0.21. Last fiscal year, Sage Group paid $0.11 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.06, the P/S ratio is 3.13 and the P/B ratio is finally 5.08. The dividend yield amounts to 2.91 percent and the beta ratio has a value of 0.87.

Long-Term Stock Price Chart Of Sage Group (SGE)

Long-Term Dividend Payment History of Sage Group (SGE)

Long-Term Dividend Yield History of Sage Group (SGE)

Smith & Nephew (NYSE:SNN) has a market capitalization of $15.55 billion. The company employs 11,036 people, generates revenue of $4.351 billion and has a net income of $556.00 million. Smith & Nephew’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.323 billion. The EBITDA margin is 30.41 percent (the operating margin is 18.62 percent and the net profit margin 12.78 percent).

Financial Analysis: The total debt represents 6.72 percent of Smith & Nephew’s assets and the total debt in relation to the equity amounts to 9.66 percent. Due to the financial situation, a return on equity of 14.02 percent was realized by Smith & Nephew. Twelve trailing months earnings per share reached a value of $3.12. Last fiscal year, Smith & Nephew paid $1.37 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.90, the P/S ratio is 3.57 and the P/B ratio is finally 3.83. The dividend yield amounts to 1.58 percent and the beta ratio has a value of 0.87.

Long-Term Stock Price Chart Of Smith & Nephew (SNN)

Long-Term Dividend Payment History of Smith & Nephew (SNN)

Long-Term Dividend Yield History of Smith & Nephew (SNN)

Associated British Foods (LON:ABF) has a market capitalization of $22.37 billion. The company employs 112,652 people, generates revenue of $13.315 billion and has a net income of $628.00 million. Associated British Foods earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.610 billion. The EBITDA margin is 12.09 percent (the operating margin is 8.17 percent and the net profit margin 4.72 percent).

Financial Analysis: The total debt represents 11.24 percent of Associated British Foods assets and the total debt in relation to the equity amounts to 18.94 percent. Due to the financial situation, a return on equity of 9.76 percent was realized by Associated British Foods. Twelve trailing months earnings per share reached a value of $0.79. Last fiscal year, Associated British Foods paid $0.32 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 35.95, the P/S ratio is 1.72 and the P/B ratio is finally 3.72. The dividend yield amounts to 1.12 percent and the beta ratio has a value of 0.63.

Long-Term Stock Price Chart Of Associated British Foods (ABF)

Long-Term Dividend Payment History of Associated British Foods (ABF)

Long-Term Dividend Yield History of Associated British Foods (ABF)

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*I am long GSK, BTI, DGE, SNN. 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.

Yields Dividend Champions | Yields Dividend Contenders | Yields Dividend Kings | High-Yield Large Cap | +10% Yielding Stocks | Dividend Aristocrats |

Dividend Yield List Updates May 2013

I've recently updated all of my Dividend Yield lists on my blog long-term-investments.blogspot.com. It's a completely free tool for my friends and fellow investors. I hope you can share these stock ideas and give me a little feedback. If so, I can steadily improve this service for you. Below is a small link list of the new yield pages with the best dividend paying stocks of the category:

- Dividend Kings

- Dividend Aristocrats

- Dividend Champions

- Dividend Contenders

- Dividend Challengers

- Safe Dividends

- +10% Yields

- High-Yield Large Caps

- Monthly Dividend Paying Stocks

5 Canadian And 7 American Stocks With More Than 100 Years Of Dividend Payments

Stocks with over 100 years of dividend payment history originally published at "long-term-investments.blogspot.com". Everybody loves a long history. The longer the history of a company the bigger the database for investors and the more information’s are available for your desk research.

It’s also a deeply trust building when a company has paid dividends over more than a decade. A great list of the best dividend paying stocks with more than 25 years of consecutive dividend growth can be found on my blog. You can find there also stocks with 5 to 10 years and 10 to 25 years of consecutive growth.

The longest investment categories I cover are Dividend Kings. Those stocks have increased their payments over a period of more than 50 years without an interruption.

Today I like to top all these lists with a compilation of stocks that have paid dividends over more than 100 years. I discovered U.S. stocks as well as Canadian companies.

These U.S. companies have been paying dividends for well over 100 years:

Stanley Works (SWK) – paid dividends since 1877.

Exxon Mobil (XOM) – paid dividends since 1882.

Consolidated Edison (ED) – paid dividends since 1885, increased for 38 years.

Proctor & Gamble (PG) – paid dividends since 1890.

Coca-Cola (KO) – paid dividends since 1893 and a quarterly dividend since 1920.

Colgate-Palmolive (CL) – paid dividends since 1895.

Dupont (DD) – paid dividends since 1904.

These Canadian companies have been paying dividends for well over 100 years:

Bank of Montreal (BMO) – paid dividends since 1829.

Bank of Nova Scotia (BNS) – paid dividends since 1832.

TD (TD) – paid dividends since 1857.

CIBC (CM) – paid dividends since 1868.

Royal Bank (RY) – paid dividends since 1870.

Genuine Parts Company Decorates My Dividend Yield Passive Income Portfolio

I bought 20 shares of the American auto parts company Genuine Parts Company (GPC) at $77.06 per share. The total purchase amount was $1,546.25 and represents roughly 1.4% of the full portfolio.

Genuine Parts Company distributes automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials in the United States, Puerto Rico, the Dominican Republic, Mexico, and Canada. The company distributes automotive replacement parts for imported vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, and heavy duty equipment; and accessory items used in the automotive aftermarket, such as repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, industrial concerns, and individuals through 64 NAPA automotive parts distribution centers and 1,100 NAPA AUTO PARTS stores.

The current P/E amounts to 18.61 and the forward P/E is expected at 15.86. Earnings are forecasted to grow at rates of 8.9% for the next year and 8.9% for the next half decade.

Earnings and Dividend Payments of Genuine Parts (GPC)

It’s very interesting and impressive to see how good the industry works for long-term investors. The autoparts wholesale industry is a very small niche and GPC is one of the leading companies. GPC is a Dividend Champion and King combined. It hiked its dividends over 57 consecutive years.

The new stake will give me around $43 in yearly dividends. The total portfolio dividend income is now expected at $1,377.55. I plan to increase this value to $3,000 - $4,000 by the end of this year. All I need to do is to find stocks with a yield on cost of more than 3%. The recent stock buy of GPC could only fulfill this criterion when it hikes one of the next dividend payments by more than 8.3%. It’s still possible because the latest hike was in December 05, 2012.

Dividend Yield Portfolio (click to enlarge)

Lastest Portfolio Transactions (Click to enlarge)

But my problem is still present. Yields go rapidly down because of higher stock prices. If the companies don’t hike their dividends, investors need to accept the new price levels and lower yields from equities.

It'S also possible that we are in a new situation where investors couldn’t expect higher returns from the income of their assets. The current yield-curve goes to zero and the national banks flooding the markets with cheap money. The result is a very low interest level and exploding asset prices.

I’ve no idea how it could end. I don’t think that chaos or a crisis is coming - but when inflation comes and lending rates are more expensive, something will be happen. People will realize that they have paid too high prices for low yielding assets. I could only hope that this will no painful bubble. As of now, it looks still solid and reasonable.

The current portfolio is up 3.16% since the date of funding October 03, 2012. Because of the high cash amount (61.4% is still not invested) and the slow buying process which is part of my strategy, the performance underperforms the market but has also a much lower volatility. 

The stock holdings alone delivered a return of 7.3% or $2,836.60. That's better than the performance of the Dow Jones, Nasdaq and S&P 500.

Portfolio Performance (Click to enlarge)

Here is the income perspective of the portfolio:

Sym	Name	P/E Ratio	Dividend Yield		Buy	# Shrs	Income	Value
TRI	Thomson Reuters C	12.76	4.04		28.90	50	$64.25	$1,589.50
LMT	Lockheed Martin C	11.41	4.51		92.72	20	$86.00	$1,890.60
INTC	Intel Corporation	9.92	4.19		21.27	50	$44.25	$1,047.00
MCD	McDonald's Corpor	18.77	2.92		87.33	15	$44.10	$1,521.30
WU	Western Union Com	8.69	3.07		11.95	100	$45.00	$1,432.00
PM	Philip Morris Int	18.28	3.55		85.42	20	$67.18	$1,854.40
JNJ	Johnson & Johnson	21.35	2.96		69.19	20	$48.80	$1,640.80
MO	Altria Group Inc	17.08	4.92		33.48	40	$69.20	$1,393.60
SYY	Sysco Corporation	18.88	3.2		31.65	40	$44.00	$1,375.20
DRI	Darden Restaurant	15.58	2.94		46.66	30	$45.00	$1,516.20
CA	CA Inc.	12.6	4.04		21.86	50	$50.00	$1,230.00
PG	Procter & Gamble	17.83	2.86		68.72	25	$56.20	$1,955.75
KRFT	Kraft Foods Group	18.85	3.90		44.41	40	$80.00	$2,049.60
MAT	Mattel Inc.	19.49	2.98		36.45	40	$51.60	$1,705.60
PEP	Pepsico Inc. Com	20.27	2.7		70.88	20	$43.00	$1,571.80
KMB	Kimberly-Clark Co	22.28	3.08		86.82	15	$45.45	$1,489.65
COP	ConocoPhillips Co	8.76	4.51		61.06	20	$52.80	$1,170.80
GIS	General Mills In	17.96	2.02		42.13	30	$29.70	$1,462.20
UL	Unilever PLC Comm	21.1	2.98		39.65	35	$43.89	$1,467.20
NSRGY	NESTLE SA REG SHR	20.57	2.88		68.69	30	$63.15	$2,176.80
GE	General Electric	17.86	3.12		23.39	65	$46.80	$1,490.45
ADP	Automatic Data Pr	22.57	2.56		61.65	25	$41.50	$1,594.25
K	Kellogg Company C	23.97	2.73		61.52	25	$43.75	$1,591.00
KO	Coca-Cola Company	20.58	2.58		38.83	40	$41.80	$1,603.20
RTN	Raytheon Company	10.56	3.5		57.04	20	$41.00	$1,163.60
RCI	Rogers Communicat	15.13	3.23		51.06	30	$48.69	$1,501.20
GPC	Genuine Parts Com	18.72	2.61		77.06	20	$40.44	$1,541.20
							$1,377.55	$42,024.90
							Average Yield	3.28%
							Yield On Cost	3.53%