The Dividend Aristocrats List includes S&P 500 companies which have managed to increase annual dividends for at least 25 years in a row. 

This is not a small achievement, which is why there are only 66 companies which fit this. Typically, a long streak of annual dividend increases is a testament to a quality business, with competitive advantages or moats, which has managed to generate higher earnings per share for decades. These types of businesses typically manage to earn above average returns on investment, and end up generating more cashflows than they know what to do with. Hence, these companies end up growing those dividends year in and year out. 

The focus on paying a dividend unlocks value for shareholders, because it removes excess cash each year, and focuses management teams on the reinvestment projects with the highest return on investment for the companies.

In other words, growing dividends for a long period of time does not happen by accident. It is usually an indication of a great business.

That being said, things change. The long streak of annual dividend increases is just the first step in the process for me. It merely gets a company on my list. 

I went ahead and screened out the list of Dividend Aristocrats for 2023 using the following criteria:

1) Having increased annual dividends for 25 years in a row (being an Aristocrat covers this requirement easily)

2) Rising earnings per share over the past decade

I believe that rising earnings per share are the fuel behind future dividend increases. I reviewed the earnings history for each dividend aristocrat and excluded those with spotty earnings growth or lack of earnings growth. 

3) Five year dividend growth exceeding 3%

I am looking for companies that have managed to grow dividends above the historical rate of inflation. In general, higher yielding companies would have lower dividend growth rates. Lower yielding companies would be expected to have higher dividend growth rates.

4) Most recent dividend increase being higher than 3%

I am also looking for consistent dividend growth however. This is a good step to weed out companies whose near-term prospects are decelerating.

This simple screen narrowed the list of dividend aristocrats for further research to 36 companies. The companies include:

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This of course is simply a list for further research, not a recommendation. When reviewing each company, I would look at:

1) Trends in earnings per share over the past 5 and 10 years, along with near term earnings expectations. I look for stability of those earnings per share, and whether they are accelerating or decelerating. For example, while Hormel is on this list for research, it has been unable to grow earnings per share for the past 5 years. If earnings don't materially rise above $2, future dividend growth would be hard to come by.

2) Trends in dividends per share

I like to see trends in dividends per share, and watch how dividend growth ebbs and flows. Consistency is great, but it should also come from a consistent and dependable earnings stream. Some fluctuations are inevitable however. 

3) Dividend payout ratios

The payout ratio shows me how sustainable the dividend payment is. I evaluate dividend safety by looking at the dividend payout ratio, and preferably seeing it below 60%. I do also review the trends in this indicator, and generally like to see it sitting in a range. For certain companies, a higher dividend payout ratio may be appropriate, but then I would expect this ratio to always be high - e.g. tobacco companies or REITs. It's in general best to see dividends and earnings rising at a similar pace over time. 

I don't want companies paying too much in earnings to the point of jeopardizing the business and the dividend. We want safety, stability and dependability. Is that too much to ask for?

4) Valuation

Valuation is part art and part science. I do not have a ready formula for stating if a stock is cheap or expensive.

I do look at:

1) P/E ratios

2) Historical Rates of Dividend Growth

3) Understanding the industry/company/cyclicality of it

4) General level of interest rates

5) Dividend yield

I try to take all of these factors into consideration. I also try to compare between companies on my opportunity set. Plus I take into consideration whether I own a position in a company or not.

Some folks tend to look at the historical Highs and Lows in their favorite valuation technique such as P/E ratio or Dividend Yield too. I don't, because there were different conditions in the past in terms of growth and interest rates, but it could aid someone, hence I am mentioning it.

Relevant Articles:

- Rising Earnings – The Source of Future Dividend Growth

- My screening criteria for dividend growth stocks

I review the list of dividend increases as part of my monitoring process. This exercise helps me monitor existing holdings. It also helps me identify companies for further research.

I typically focus on the companies that have managed to increase annual dividends for at least ten years in a row.

There were 19 companies that increased dividends last week. There were three companies that raised dividends last week, which have also managed to increase dividends for at least ten years in a row. The companies include:

Realty Income (O) The Monthly Dividend Company, is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with our commercial clients.

Realty Income increased monthly dividends to $0.255/share. This is a 3.24% increase over the dividend paid during the same time last year. Realty Income is a dividend aristocrat which has managed to increase dividends since its IPO 1994.

The company has managed to increase dividends by 3.20%/year over the past 5 years and by 5.30%/year over the past decade.

"I'm pleased that our Board has once again determined to increase Realty Income's monthly dividend. This decision is in line with our foundational commitment to pay stockholders a reliable monthly dividend that grows over time," said Sumit Roy, President and Chief Executive Officer of Realty Income. "Today's dividend declaration represents the 633rd consecutive monthly dividend declared by Realty Income during our 54-year history."

Realty Income has managed to grow FFO from $2.41/share in 2013 to $4.04/share in 2022. The company is expected to generate $4.11/share in FFO in 2023.

The stock is fairly valued at 14.90 times forward FFO and yields 5%.

UDR, Inc. (UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. 

UDR raised quarterly dividends by 10.50% to $0.42/share. This is the 13th year of consecutive annual dividend increases for this dividend achiever. 

The company has managed to increase dividends by 4.20%/year over the past 5 years and by 5.60%/year over the past decade.

UDR has managed to grow FFO from $1.45/share in 2013 to $2.21/share in 2022. The company is expected to generate $2.50/share in FFO in 2023.

The stock is fairly valued at 15.50 times forward FFO and yields 4.32%.

Williams-Sonoma, Inc. (WSM) operates as an omni-channel specialty retailer of various products for home. 

The company raised quarterly dividends by 15.38% to $0.90/share. This is the 14th consecutive annual dividend increase for this dividend achiever.

“We are proud of our fourteen consecutive years of increased dividend payouts,” added Jeff Howie, Chief Financial Officer. “Over the last five years, we have returned over $3.2 billion to shareholders through dividends and share repurchases. These actions reflect our commitment to maximizing returns for our shareholders.”

The company has managed to increase dividends by 14.60%/year over the past 5 years and by 13.20%/year over the past decade.

Williams-Sonoma has managed to grow EPS from $2.89/share in 2014 to $16.58/share in 2023. The company is expected to generate $13.69/share in EPS in 2024.

The stock is fairly valued at 8.53 times forward earnings and yields 3.08%.

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- Nine Dividend Stocks Rewarding Patient Shareholders With A Raise

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I wanted to present some general discussion about fixed income securities. I will then present the companies I invested in this week, followed by a detailed review of each at the end of the newsletter. I included this commentary in the March 2023 Dividend Growth Investor Newsletter. I originally used Treasury Bills, but edited to Certificates of Deposit here.

For the past 15 years, we’ve had falling or low interest rates in the US. The last time I could buy a Certificate of Deposit (CD) yielding 5% was in 2008. Today, after 15 years, I could buy a Certificate of Deposit yielding 5%. I could theoretically lock money for up to 2 years at 5%/year using a Certificated of Deposit.

Naturally, I see some investors gravitating towards fixed income.

I see nothing wrong with owning some fixed income instruments, especially for short-term savings needs such as having your emergency fund, or saving for a major purchase within the next say 1 - 2 or 3 years. It may make sense for some older investors as well, especially if they have lower risk tolerance.

With Bonds, you are guaranteed to get your original principal back and you are guaranteed to earn your interest as well. We are going to assume you hold through the maturity date. Otherwise, you may end up losing money under some scenarios (if interest rates increase after you buy the bond). You may also end up making money if you sell early (if interest rates decrease after you buy the bond).

However, the downside of fixed income instruments is that they are fixed in terms of yield and term. This means that at the end of your term (when the bond expires), you would have to acquire another bond. However, we do not know today if those yields would be higher or lower.  In addition, your return is limited to the interest rate you settled on at the time of purchasing that bond. It would never increase, though you are guaranteed to get your principal back at maturity.

The other risk is that these fixed income instruments offer high nominal yields, but that doesn’t really tell you much about the real yields after inflation. A bond yielding 5% sounds nice, but is not as cool if inflation is more than 5%. In that case, you are losing real purchasing power for your principal AND income.

A third issue is that interest income on bonds is full taxable at ordinary tax rates. Treasury Bonds are exempt from state income taxes, though interest on CD’s is taxable at the State and Federal level. That could be avoided by buying them through a retirement account.

The fourth issue is reinvestment risk. One can buy a 1 year or 2-year Certificate of Deposit yielding 5% today. They are guaranteed that rate for the duration of the bond. At maturity however, they have to reinvest at the going rate. That rate could be higher or lower. Over the next decade, that’s several reinvestment risk scenarios out there. There is not a high likelihood that Short-term Bond would generate 5% annualized returns over the next decade. Investors could theoretically buy a 10 year Bond yielding 4%. However, the issue is that their coupon would not increase. In addition, the purchasing power of their principal and income would slowly lose value over time.

With dividend growth stocks, you may be getting a lower yield today, but there is a decent chance that over a longer period of time that dividend income will grow at or above the rate of inflation. This helps preserve and even increase purchasing power of that passive income. In addition, there is the opportunity to generate capital gains as well, as those businesses earn more money and distribute more to shareholders over time. Of course, nothing is guaranteed and there is risk, but if history is any guide, it is possible that a diversified portfolio of dividend growth stocks would be generating a higher income in 10 or 20 or 30 years from, while also being valued at higher prices over that same time period. Purchasing A bond that yields 4% that expires in a decade would yield income that doesn’t grow and a value that doesn’t change at maturity.

In addition, I wanted to share a longer-term view of total returns on US Equities, Bonds and Short-term bills between 1926 and 2022:

Source: https://www.newyorklifeinvestments.com/assets/documents/education/investing-essentials-growthofadollar.pdf

I believe that a long-term investor in equities over the next 10 – 20 - 30 years would do better than an investor in fixed income like T-Bills. A diversified dividend growth portfolio would likely generate much higher future yields on cost and total returns over the next 10 - 20 - 30 years. A bond portfolio would not.

I understand the logic to hold fixed income for items such as an emergency fund, or if someone is saving for a particular large expense over the next 1 – 3 years for example. In that case, using bonds or a savings account seem like a good idea. However, I would discourage folks who are buying Treasury Bills in an attempt to try and to time the market.

Warren Buffett discussed this in his 2022 letter to shareholders. He showed how his investments in Coca-Cola and American Express delivered higher incomes and strong total returns to Berkshire Hathaway Shareholders. The income and returns were much higher than an investment in fixed income.

 I believe what Buffett is trying to tells us is that for a long-term investor, the best bet is US Equities over Bonds. That's because equities would increase purchasing power for net worth and income over time. Fixed income instruments like Bonds or Treasury Bills or Certificates of Deposit are good places to park short-term cash. That in my opinion is cash that is needed in the next 1 - 2 - 3 years. 

Plenty of ink has been spilled over FDIC Insurance Limits this weekend being only $250,000.

But as an equity investor, are you aware that you are protected from Broker failure under SIPC for only $500,000 per separate account per brokerage?

SIPC stands for Security Investor Protection Corporation. It protects investors against the loss of securities and cash held at SIPC member brokerage firms.

If your broker fails, that shouldn't necessarily affect client investments. That's because client assets are segregated from the assets of the brokerage house. In that case, the SIPC may step in and help with the transfer of assets over to a new brokerage firm. In other words, investors would simply be able to access their investments at another brokerage house, if their original broker failed.

However, in the case of fraud or commingling of customer and brokerage assets, SIPC insurance can come in handy. SIPC gets involved in this case and provide the protection for customer assets.

It protects investor securities up to $500,000 per account per brokerage. Examples of securities include stocks like PepsiCo or bonds like US Treasury Bills for example. 

The protection for cash held in a brokerage account is only $250,000 however. This is in line with the FDIC protection limits.

SIPC protects the custody function of the broker. This means that the SIPC would restore missing stocks or bonds after a broker fails or is liquidated. In other words, if you have 100 shares in PepsiCo held at a brokerage firm that fails, you will receive 100 shares of PepsiCo back.

SIPC does not offer protection against decline in the value of your stocks or bonds and losses from selling stocks and bonds.  Just be aware that the SIPC is not created to insure against risk in quotational losses on investments.

The neat thing is that SIPC protection limit of $500,000 is per each separate account type. 

For example, if you have a brokerage account worth $500,000 and a Roth IRA worth $500,000 at the same broker, your entire amounts are protected by SIPC against the loss of securities due to brokerage failure. That's because the taxable account and the Roth IRA account are considered to be of separate capacity by the SIPC. 

However, if you happen to have two taxable brokerage accounts with $500,000 each, your total protection by the SIPC is a total of $500,000. That's because accounts held in the same capacity are combined for purposes of the SIPC protection limits. In other words, the same types of accounts are combined and subject to the $500,000 protection limit.

Examples of separate capacities are:

• individual account;
• joint account;
• an account for a corporation;
• an account for a trust created under state law;
• an individual retirement account;
• a Roth individual retirement account;
• an account held by an executor for an estate; and
• an account held by a guardian for a ward or minor.

 As a dividend growth investor, I look for solid companies to invest my hard earned money in. I look for companies that can grow earnings, and afford to raise dividends regularly. A long dividend streak is the indicator of quality, that places companies on my list for further research. A long dividend streak is not an accident, but the result of a long period of a solid company generating excess cashflows. A byproduct of this solid competitive advantage ultimately results in companies showering their investors with more cash dividends every single year. In my research I look at trends in earnings per share, dividends per share, dividend payout ratios and valuation. I try to evaluate qualitative as well as quantitative factors at play as well.

 As part of my monitoring process, I review the list of dividend increases every week. This is helpful as a method to observe recent developments in companies I own. This process is helpful in identifying companies for further research, which may be exhibiting certain characteristics that look promising.

This list is not a recommendation to buy or sell any securities. It is just a list of companies for further research. It is also a list to update my existing observations on companies I own or plan to own at the right price. I analyze companies before buying the,

If I were to evaluate the companies on this list, I would leverage my screening criteria, which I first outlined in 2010.

Notably I would look for the following:

1) Ten years of annual dividend increases
2) Earnings per share that are increasing over the past decade
3) Dividend Payout Ratio below 60% ( however I am willing to make exceptions for REITs, MLPs, Utilities and Tobacco companies)
4) Dividend growth rate that exceeds the rate of inflation ( however this also needs to take into account the rate of earnings and dividend growth)
5) A P/E ratio below 20

Since I have some experience evaluating dividend companies, I also modify my criteria based on the environment we are in and the availability of quality companies. If I see a company with a strong business model and certain characteristics that I like, I may require a dividend streak that is lower than a decade. I have also found success in looking beyond screening criteria by purchasing stocks a little above the borders contained in a screen.

It is important to be flexible, without being too lenient.

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Warren Buffett is one of the most successful investors in the world. He is the chairman and controlling shareholder of Berkshire Hathaway, which he acquired in 1965.

The nice thing about Buffett is that he always treated his investors fairly. As a Chairman and CEO of Berkshire Hathaway he has earned an annual salary of $100,000/year. This is nothing, in comparison to high cost mutual fund managers or high cost hedge fund managers. You could have benefitted from the investment success of Warren Buffett for mere peanuts. The reason perhaps is because he had skin in the game, and the majority of his net worth is tied into the success of Berkshire Hathaway. This aligns Buffett’s interest with the interests of ordinary shareholders.

As investors, we can only focus on tools within our control to give us the best edge in success. These factors include our savings rate, selecting the right investing strategy, sticking to this strategy, maintaining a long-term investment horizon, learning constantly and keeping investment costs low.

The more fees you pay each year, the less money you have to compound for you. Unless you are paying for an exceptional investment manager, it is simply not worth it. 

For example, in the hedge fund industry we have the standard formula of 2 and 20. 

This means that if you invest with a hedge fund manager, they will charge you a 2% annual fee and take 20% of any investment gains your portfolio generates. This is highway robbery.

In the words of Terry Smith, Two and Twenty does not work, and is unsupportable.

I am not so much shocked as flabbergasted by the number of people who do not realize the impact of these performance-fee structures. I am not talking here about the fact that such a performance-fee structure clearly led many fund managers to gear up their funds as much as the credit bubble allowed and place bets which many attendees at Las Vegas would regard as outrageous, knowing that they had little or no downside and 20% of the upside.

I have had discussions with numerous professionals in sophisticated jobs in the investment industry who are either unaware of or disbelieve the mathematics of what I am about to demonstrate.

Let’s illustrate with a simple example from Terry Smith’s book “Investing for Growth”

If you had invested $1,000 in Berkshire Hathaway in 1965, your investment would be worth $4.3 million by 2009. Buffett’s company compounded your capital at 20.46%/year. 

If Warren Buffett had set up Berkshire Hathaway as a hedge fund however, he would have charged you 2% per year and gathered 20% of any annual gains. If you had the same performance numbers, your $1,000 would have only grown to $396,000 by 2009. Only $396,000 would belong to you, the investor. This means that of the $4.3 million that you would have earned without fees, $3.9 million would belong to the hedge fund manager. This of course is the result if your hedge fund manager had a performance that is as great as Warren Buffett’s. Most hedge funds do not generate good returns for investors. They only generate good returns for the hedge fund managers, because of their outrageously high fees.

Very few people understand the impact of investment fees on their returns. These fees compound over time, and rob you of a huge chunk of your investment potential. You as the investor are coming up with all the capital, and bearing all the risk. Yet, the hedge fund manager is getting most of the upside.

This is the reason why Warren Buffett made his famous bet with a hedge fund manager in 2007, stating that it won’t beat S&P 500. The reason why the hedge funds did not beat S&P 500 is due to the high impact of fees.

Buffett did run an investment partnership between 1956 and 1969 however, which was essentially a hedge fund. However, it only charged fees if Buffett earned a return that was higher than 6%. In effect, Buffett earned 25% of returns above an annual return of 6%. He definitely understands how fees helps investment managers earn a lot of money, because his partnership like hedge fund managed to turn $100 in 1956 to $20,000,000 by 1970. I discussed this in this article on Buffett Partnership. The whole partnership had approximately $100 million in assets by the time it was dissolved in 1970.

Buffett's net worth would likely be at least a couple hundred billion dollars today if he had structured Berkshire as a hedge fund, and taken a lions share of profits in the form of performance fees.

That being said, Buffett's fees were more fair than the fees imposed by your typical hedge fund today. That's because Buffett generated amazing performance, and he only charged a fee if he earned more than 6%/year. It is still fascinating however to see how fees compound and can eat a large portion of investment returns.

The other fascinating fact is that even if Buffett charged a 2% and 20% to run Berkshire, he would have still done better than S&P 500. A $1,000 investment in S&P 500 in 1965 would have turned to $54,900 by 2009, versus $396,000 for the investor in a Berkshire that was ran as a hedge fund.

The conclusion of this article is that keeping fees low matters. This is where being a do-it-yourself investor is an advantage, because you do not have a high fee mutual fund or hedge fund manager taking money from you each year.

Relevant Articles:

- How Warren Buffett built his fortune

- Buffett Partnership Letters

- Use these tools within your control to get rich

I review the list of dividend increases as part of my monitoring process. This process helps me review how the companies I own are doing. It also helps me identify companies for further research.

For this weekly review, I tend to focus my attention on companies with at least a ten year history of annual dividend increases, which also raised dividends last week. I provide a quick overview of each company that includes the amount of the most recent dividend increase, and compares it to its recent historical record. I also review the streak of annual dividend increases, and review earnings and valuation information.

There were 68 companies that increased dividends last week. Twenty five of these companies that raised dividends also have a ten year history of annual dividend increases. The companies include:

Successful people identify their goals, break them down into small actionable steps, and take action towards achieving them.

Unsuccessful people identify their goals, get discouraged and give up.

For example, assume that you need $12,000 in annual dividend income for your retirement. In theory, given todays environment, someone needs about $400,000 invested at a 3% yield to get to $12,000 in annual dividend income.

The ones that never make it would get discouraged, because having $400,000 looks like a big and insurmountable amount of money. They get discouraged, and give up.

The investors that make it, break this goal down to small manageable steps. They know that Rome was not built in a day. In other words, by regularly saving and investing, and holding patiently over a period of time, they can reach their goals and objectives. Good things take time.

I try to be in the second group of investors by investing with the end goal in mind. My goal has always been to reach a certain level of dividend income that covers expenses. This is the coveted dividend crossover point.

Getting to the dividend crossover point, where dividends cover expenses, is a function of:

1. Savings rate

2. Dividend Yield + Dividend Growth

3. Time you invest for

To put it into actionable steps, let's assume that this investor can save and invest $1,000/month. They can find reasonably priced dividend growth stocks that yield 3% today, which can also grow annualized dividends by 6%/year. Their process helps them identify such companies on a consistent basis.

A program of regular investments over a period of time can yield good results for patient investors after 10 - 15 years.

My basic rule of thumb is that by investing $1,000/month for 15 years, I can generate $1,000 in monthly dividend income in 15 years.

Once they invest the first $1,000, they have about $30 in annual dividend income. The next month, they invest another $1,000, and annual dividend income doubles to $60. 

After an year of saving and investing, their annualized dividend income would surely be over $360. That's because most companies would have raised dividends by an average of 6% and they would also have reinvested that annual dividend income into more dividend growth stocks.

Slowly, but surely, the investor would be able to monitor and measure their progress towards their goals and objectives. Once you start measuring your progress based on your inputs, your outputs will naturally line up with it.

The investor also keeps costs low by investing directly, using a commission free brokerage and not paying a mutual fund manager or a financial advisor. They invest through retirement and other tax-deferred accounts first, in order to minimize tax costs too.

This is of course just a projection, using a set of inputs such as amounts saved and invested, estimates for dividend yield and dividend growth, as well as amount of time to invest for. It presumes no transaction costs, no advisor fees and no taxes. In todays environment, US investors have a ton of tax-deferred/retirement accounts to choose from, which can help them defer or eliminate taxes on dividends and capital gains.

You can play around with the estimates using this spreadsheet. Check this post for more detail.

This is the model I use in my premium Dividend Growth Investor Newsletter in general.

Thank you for reading!

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Dividend growth investing involves the selection of companies based on a set of criteria such as valuation, strong brands, strong competitive advantages and long histories of annual dividend increases. 

It is not about chasing high yielders today, but more about finding the right stock that would grow distributions over time, and thus provide investors with inflation protection in their income. Only companies with strong business models are able to increase dividends every year for long stretches of time. Dividend investors should take the time to study these success stories as they unfold in front of their eyes and even consider adding some to their dividend portfolios.

I tend to review the list of dividend increases every week, in an effort to monitor existing holdings. It is also an effort to identify promising companies for further research. February and March tend to be busy times for dividend increases. 

There were 56 companies that increased dividends last week. Of those, 23 had managed to increase dividends last week and also increase annual dividends for at least ten years in a row. These companies have a dividend culture which encourages sharing profits with shareholders. 

The companies include:

As part of my monitoring process, I monitor dividend increases each month. This helps me monitor existing holdings, and also to identify companies for further research.

I usually focus my attention on companies that have managed to increase dividends for at least 10 years in a row. Of course, this is just the first step in the process. A long streak of dividend increases put a company on my list for further research. If the company can show promising fundamentals, and is available at a good price, only then would I consider buying its shares in the first place.

Over the past week, there were 57 companies in the US which increased dividends to shareholders. I reviewed the list, and narrowed it down to the companies with a 10 year track record of annual dividend increases. You can view the list of the 20 companies that both increased dividends last week and have a ten year track record of annual dividend increases:

Sadly, last week we witnessed a dividend cut from former dividend king V.F. Corporation (VFC). The company cut dividends by 41% to $0.30/share, which was the lowest dividend payment since 2014. Ironically, the company increased dividends in October 2022. 

This dividend cut is an automatic sell signal for me. I sold VFC right after the announcement.

Earnings per share had been largely flat over the past decade for V.F. Corporation. This is why I had not found this position attractive enough to buy for over 6 years or so.

As a result, the number of Dividend Kings drops from 45 to 44 and the Dividend Aristocrats from 67 to 66.

While the occasional dividend cut will happen, it should not be a big deal for a diversified portfolio.

Imagine having a portfolio of 40 dividend kings. Each of them pays $100/year in dividend income, for a total of $4,000. 

One company cuts dividends by 40%. That means dividend income from this company is cut to $60/year. This brings total dividend income for the portfolio to $3960.

While that 40% dividend cut looks big on the surface, it is barely noticeable at the portfolio level. Total portfolio income drops by only 1%. If the other 39 companies increased dividends by an average of 1.026%, total portfolio income would reach $4,000 again.

On average, annualized dividend growth has tended to exceed inflation. If the companies in the portfolio hiked dividends by an average of 5%, the total dividend income would still grow by about 4% at the portfolio level.

While it may seem obvious in hindsight that someone buying VF Corp in 2022/2023 probably should have seen a dividend cut on the horizon, It was not obvious in 2008/2013/2018. It may not be wise to sell at the first glimpse of "trouble", because that means sitting 100% in cash.

Telling which one is the future winner and which one is the future loser is hard.

Many claim to have forecasted VF Corp's dividend cut, unfortunately after the fact. But many also claimed that Exxon would cut dividends in 2020 as well, and they were wrong.

It's a bigger risk to sell a potential big winner early, than to experience a dividend cut however That's because the most dividends can fall by is 100% - a loss of $100 in this example. But a company growing dividends by 15%/year can take dividends from $100 to $400 in a decade.

Telling which one is the future winner and which one is the future loser is hard. Many claim to have forecasted VF Corp's dividend cut, unfortunately after the fact. But many also claimed that Exxon would cut dividends in 2020 as well, and they were wrong.

The most important factor is to have your own process that you stick to. A streak of annual dividend increases is helpful, but should be only the first part of the process to review companies, not an automatic signal for anything.

There are two British companies that raised dividends over the past week or two. I have discussed them in the past, so I wanted to continue monitoring them here.

British American Tobacco (BTI) increased quarterly dividends by 6% to 57.72 pence/share. This is the 26th consecutive annual dividend increase for this international dividend aristocrat. The stock yields 7.60%.

Diageo (DEO) increased interim dividends by 5% to 30.83 pence/share. It's likely that they'd hike the final dividend by 5% in a few months to 49.16 pence/share as well. Diageo pays dividends twice per year, and has split it in a roughly 40:60 ratio.

This international dividend aristocrat has increased dividends since 1998. The stock yields 2.23%.

Thank you for reading!

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I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me monitor existing holdings, and review the dividend growth investing universe for potential new ideas.

There were 49 dividend increases in the past week. I reviewed each one. I loved reading through the press releases, in order to gauge what management is saying about their dividend policies. The paragraph below includes a few snippets from companies about their dividend policies.

An increase in regular cash dividends demonstrates the strength of a company's balance sheet and its ongoing commitment to creating value for our shareholders.  It reflects confidence that companies will again deliver on their promises. Companies treasure track record of dividend growth and remain committed to extending it, supported by the strength of capital and cash flows.

Of the companies raising dividends, I narrowed it down to those companies that have managed to boost dividends for at least ten years in a row. This leaves us with 23 companies that increased dividends last week and have a ten year track record of annual dividend increases:

This list is not a recommendation to buy or sell anything. Just a listing of companies that raised dividends last week.

I did go ahead and sort through it for companies I own, like Aflac, Church & Dwight, CME, Intercontinental Exchange or UPS. I do plan to add to at least one of these companies over the next month or two, and would share that with my premium newsletter list. If things go according to plan, I keep adding, provided the valuation is still attractive.

I was disappointed in the small dividend increase from Church & Dwight (CHD). I typically expect higher dividend growth from lower yielding companies that are also overvalued for example. This means that I would refrain from adding to this position for the time being.

This list also put a few companies on my list for research, or continued monitoring. I would love to invest in MSCI if it is ever available at a more attractive valuation.

When I review companies, in general I look for:

1) Track record annual dividend increases

2) Earnings per share growth over the past decade, as well as forward estimates

3) Dividend growth over the past decade, as well as recent dividend increase

4) A defensible dividend payout ratio

5) Qualitative assessments

6) Attractive valuation

I can get a pretty decent picture of whether I like a company or not, by looking at all of those together For a sample analysis of CME Group (CME), you can click this link.

Essex Property Trust, Inc (ESS) is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in California and the Pacific Northwest. Essex currently has ownership interests in 253 apartment communities comprising approximately 63,000 apartment homes.

This REIT is a dividend aristocrat, which has managed to increase annual dividends to shareholders since going public in 1994.

The last dividend increase occurred in February 2022, when Essex Property Trust hikedquarterly dividends by 5.26% to $2.20/share.

This REIT has managed to increase dividends by 7.20% annualized over the past decade. The pace of annualized dividend growth has slowed down to 4.90% over the past five years.

The REIT has managed to grow FFO/share from $6.71 to $14.24. It’s expected to generate $15.14/share in FFO in 2022.

Future growth in FFO/share will be a result of raising rents, buying new properties and keeping debt costs in check. Large portion of the debt is fixed rate with an average life of about 8 years. This bodes well in the current environment of potentially rising long-term rates. Existing properties should be fine, but acquiring new properties may come at higher interest costs. Financing further expansion could come at an increased equity dilution, which should be accretive for as long as yields on apartments is higher than yields on equity/debt.

Apartment rents are cyclical, as is demand. They are dependent in the short-run on job growth and the economic environment. In the long run they are driven by household formation, and economic trends. The west cost is a vibrant economy, and it would likely do great in the future. Owning existing properties may be a nice asset to have, as zoning and red tape may make it harder to build competing apartments nearby. On the other hand, some states like California have tenant friendly laws, which make it harder to evict tenants during downturns and cut into profitability.

Having scale of operations, and specialization into its markets could be a form of competitive advantage in my opinion.

The FFO payout ratio has ranged between 56% and 66% over the past decade. This means that growth in dividends has closely tracked growth in FFO/share over the past decade.

The number of shares outstanding has been largely flat over the past 5 – 7 years.

I find this REIT to be attractively priced at 15.70 times forward FFO and a dividend yield of 3.90%.

Relevant Articles:

- Dividend Aristocrats List for 2023

As part of my monitoring process, I review the list of dividend increases every single week. This process helps me to identify patterns, and find out more about companies that regularly raise dividends. That's helpful information if you want to review existing holdings and identify companies for review early in their journey.

Last week was very busy for dividend increases. There were 64 companies that increased dividends last week. I reviewed the list, and narrowed it down to the companies that managed to increase dividends for at least a decade.

You can view the full list of 29 companies that met the criteria below: 

 The S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years in a row. The index is equally weighted, and rebalanced every quarter.

For 2023, there were several changes. The index added:

- C.H. Robinson Worldwide (CHRW)

- J.M. Smucker (SJM)

- Nordson Corp (NDSN)

The index removed no companies.

One company left the index in 2022 - People's United Financial (PBCT), because it was acquired by M&T Bank.

Since the inception of the index in 1989, the number of holdings has fluctuated from 26 to 67 holdings. This year marks the highest number of dividend aristocrats ever, on record. It is still not even half the number of Dividend Champions however.


The 2023 Dividend Aristocrats are listed below:

Symbol	Name	Sector	Years of Annual Dividend Increases	10 year Dividend   Growth	Dividend Yield
ABBV	AbbVie Inc.	Health Care	50	13.90%	3.66%
ABT	Abbott Laboratories	Health Care	50	6.90%	1.86%
ADM	Archer-Daniels-Midland Co	Consumer Staples	47	8.62%	1.72%
ADP	Automatic Data Processing	Information Technology	47	11.66%	2.09%
AFL	AFLAC Inc	Financials	41	9.09%	2.34%
ALB	Albemarle Corp.	Materials	28	7.35%	0.73%
AMCR	Amcor	Materials	27	#N/A	4.08%
AOS	Smith A.O. Corp	Industrials	29	20.27%	2.10%
APD	Air Products & Chemicals Inc	Materials	40	9.79%	2.10%
ATO	Atmos Energy	Utilities	39	7.22%	2.64%
BDX	Becton Dickinson & Co	Health Care	51	6.67%	1.43%
BEN	Franklin Resources Inc	Financials	43	12.21%	4.55%
BF.B	Brown-Forman Corp B	Consumer Staples	38	7.00%	#N/A
BRO	Brown & Brown	Financials	29	9.37%	0.81%
CAH	Cardinal Health Inc	Health Care	26	8.11%	2.58%
CAT	Caterpillar Inc	Industrials	29	8.95%	2.00%
CB	Chubb Ltd	Financials	29	5.44%	1.50%
CHD	Church & Dwight	Consumer Staples	26	8.14%	1.30%
CHRW	C.H. Robinson Worldwide	Industrials	25	5.08%	2.66%
CINF	Cincinnati Financial Corp	Financials	62	5.27%	2.70%
CL	Colgate-Palmolive Co	Consumer Staples	59	4.31%	2.39%
CLX	Clorox Co	Consumer Staples	45	6.56%	3.36%
CTAS	Cintas Corp	Industrials	40	20.70%	1.02%
CVX	Chevron Corp	Energy	35	4.93%	3.16%
DOV	Dover Corp	Industrials	67	6.11%	1.49%
ECL	Ecolab Inc	Materials	31	9.81%	1.46%
ED	Consolidated Edison Inc	Utilities	48	2.70%	3.32%
EMR	Emerson Electric Co	Industrials	66	2.52%	2.17%
ESS	Essex Property Trust	Real Estate	28	7.19%	4.15%
EXPD	Expeditors International	Industrials	28	9.12%	1.29%
FRT	Federal Realty Invt Trust	Real Estate	55	4.36%	4.28%
GD	General Dynamics	Industrials	31	9.53%	2.03%
GPC	Genuine Parts Co	Consumer Discretionary	66	6.11%	2.06%
GWW	Grainger W.W. Inc	Industrials	51	8.28%	1.24%
HRL	Hormel Foods Corp	Consumer Staples	57	13.24%	2.41%
IBM	Intl Business Machines	Information Technology	27	7.16%	4.68%
ITW	Illinois Tool Works Inc	Industrials	48	13.03%	2.38%
JNJ	Johnson & Johnson	Health Care	60	6.37%	2.56%
KMB	Kimberly-Clark	Consumer Staples	50	5.14%	3.42%
KO	Coca-Cola Co	Consumer Staples	60	5.61%	2.77%
LIN	Linde plc	Materials	29	7.84%	1.43%
LOW	Lowe's Cos Inc	Consumer Discretionary	60	19.95%	2.11%
MCD	McDonald's Corp	Consumer Discretionary	47	7.03%	2.31%
MDT	Medtronic plc	Health Care	45	10.00%	3.50%
MKC	McCormick & Co	Consumer Staples	36	9.09%	1.88%
MMM	3M Co	Industrials	64	9.71%	4.97%
NEE	NextEra Energy	Utilities	28	10.98%	2.03%
NDSN	Nordson Corp	Industrials	59	15.30%	1.09%
NUE	Nucor Corp	Materials	50	3.20%	1.55%
O	Realty Income Corp.	Real Estate	30	5.29%	4.70%
PEP	PepsiCo Inc	Consumer Staples	50	7.77%	2.55%
PG	Procter & Gamble	Consumer Staples	66	5.02%	2.41%
PNR	Pentair PLC	Industrials	47	3.58%	1.96%
PPG	PPG Industries Inc	Materials	51	7.54%	1.97%
ROP	Roper Technologies, Inc	Industrials	30	16.25%	0.63%
SHW	Sherwin-Williams Co	Materials	44	16.53%	1.01%
SJM	J.M. Smucker	Consumer Staples	25	7.23%	2.57%
SPGI	S&P Global	Financials	49	12.53%	1.02%
SWK	Stanley Black & Decker	Industrials	55	5.86%	4.26%
SYY	Sysco Corp	Consumer Staples	52	5.92%	2.56%
TGT	Target Corp	Consumer Discretionary	55	11.61%	2.90%
TROW	T Rowe Price Group Inc	Financials	36	13.44%	4.40%
VFC	VF Corp	Consumer Discretionary	50	10.92%	7.39%
WBA	Walgreens Boots Alliance Inc	Consumer Staples	47	6.71%	5.14%
WMT	Wal-Mart	Consumer Staples	49	3.65%	1.58%
WST	West Pharmaceutical Services	Health Care	30	7.18%	0.32%
XOM	Exxon Mobil Corp	Energy	40	5.00%	3.30%

Note: Data as of 12/31/2022

The index has generated strong total returns over time past decade. I wanted to note that in 2008, the Dividend Aristocrats index declined by 21.88%. The S&P 500 however declined by 37%.

The dividend aristocrats index tends to shine during bear markets and low return environments. However, it also pulls its weight when we are in a bull market too. It is the best of both worlds really.

These are the returns since the launch of the Dividend Aristocrats Index in 1989:

Year	Dividend  Aristocrats	S&P 500	Difference
1990	5.70%	-3.10%	8.80%
1991	38.50%	30.50%	8.00%
1992	10.10%	7.60%	2.50%
1993	4.30%	10.10%	-5.80%
1994	0.90%	1.40%	-0.50%
1995	34.60%	37.60%	-3.00%
1996	20.90%	23.00%	-2.10%
1997	35.50%	33.40%	2.10%
1998	16.80%	28.60%	-11.80%
1999	-5.40%	21.00%	-26.40%
2000	10.10%	-9.10%	19.20%
2001	10.80%	-11.90%	22.70%
2002	-9.90%	-22.10%	12.20%
2003	25.40%	28.70%	-3.30%
2004	15.50%	10.90%	4.60%
2005	3.70%	4.90%	-1.20%
2006	17.30%	15.80%	1.50%
2007	-2.10%	5.50%	-7.60%
2008	-21.90%	-37.00%	15.10%
2009	26.60%	26.50%	0.10%
2010	19.35%	15.06%	4.29%
2011	8.33%	2.11%	6.22%
2012	16.94%	16.00%	0.94%
2013	32.27%	32.39%	-0.12%
2014	15.76%	13.69%	2.07%
2015	0.93%	1.38%	-0.45%
2016	11.83%	11.96%	-0.13%
2017	21.73%	21.83%	-0.10%
2018	-2.73%	-4.38%	1.65%
2019	27.97%	31.49%	-3.52%
2020	8.68%	18.40%	-9.72%
2021	25.99%	28.71%	-2.72%
2022	-6.21%	-18.11%	11.90%

You can see the performance of the Dividend Aristocrats Index versus S&P 500 since 1989. The S&P 500 dominated during the 1990's. However, the Dividend Aristocrats index did very well during the next decade. During the past decade, the Dividend Aristocrats Index has basically matched S&P 500 until early 2020. Over the past two years, it has trailed S&P 500 slightly. 

I first stumbled upon the Dividend Aristocrats index in late 2007, and instantly understood why dividend growth investing is such a powerful wealth generating tool. If someone had invested in the Dividend Aristocrats index after reading my review of the list at the beginning of 2008, they would have tripled their money. 

An investment in the dividend aristocrats a decade ago, would have resulted in a total return of 236.32%. In other words, investing $100 in the Dividend Aristocrats list in December 2011 would have turned into $336.32 by December 31, 2022 . The same amount investing in S&P 500 would have turned into $326.54 however.

As I gained more experience however, I have gravitated more towards the Dividend Champions list, which was created by Dave Fish. The Dividend Champions list is more complete, as it doesn’t exclude companies due to low liquidity, or due to market capitalization below a certain threshold. In addition, I find that historically, the list of Dividend Champions has followed a more consistent approach than the list of Dividend Aristocrats. Sadly, Dave passed away last year. Luckily, another person has agreed to update it for the time being. You can view the 2023 Dividend Champions List here.

When I review the list of historical changes in the Dividend Aristocrats index, I see some inconsistencies in the way portfolio components are added or removed.

For example, the Dividend Aristocrats index removed Altria in 2007, after it spun-off Kraft Foods and as a result its dividend decreased. It could be argued that the dividend income for the investor was not decreased, because they kept getting a dividend from Altria as well as dividends from Kraft Foods.

The S&P committee seems to have rectified this issue, and have kept both Abbott and Abbvie after legacy Abbott Laboratories split in two companies in early 2013.

Ironically, Dave Fish had Altria listed as a Dividend Champion. However, he didn’t have Abbott nor Abbvie listed as a dividend champion ( they are listed as Dividend Aristocrats however).


This is why you need to perform your own checks as an investor.

In addition, I wanted to let you know that I would not purchase all companies from either lists blindly. I run my entry criteria screen to come up with a list of companies for further research. Before investing in any individual stock, I research it enough to gain some understanding of the business and its trends in fundamentals.

Relevant Articles:

- Dividend Champions, Contenders & Challengers: The most complete list of US dividend growth stocks available
- Dividend Aristocrats List for 2017
- Dividend Aristocrats for Dividend Growth and Total Returns
- Where are the original Dividend Aristocrats now?
- Historical changes of the S&P Dividend Aristocrats
- Why do I like the Dividend Aristocrats?
- Dividend Aristocrats List for 2016

As part of my monitoring process, I review the list of dividend increases every week. I use this exercise to review existing holdings, and to identify companies for further research. I tend to focus on the companies with a ten year history of annual dividend increases. That's in an effort to identify consistent dividend growth companies that could potentially reward me with higher dividends for many years.

Of course, that's just one step in the process for me. If I identify a company for review, I look at financials, such as the trends in dividends, earnings, payout ratios over the past decade. I try to understand the company, and determine if it is a suitable candidate for my portfolio. Last but not least, I also try to determine whether it is fairly valued today. If not, I set some mental entry points when the company may be worth re-visting at.

Over the past week, there were close to 40 dividend increases. I am including below the companies that raised dividends last week and also had a minimum 10 year streak of consecutive annual dividend increases:

Fastenal Company (FAST) engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, Mexico, North America, and internationally. 

The company increased quarterly dividends by 12.90% to $0.35/share. This is the 25th consecutive annual dividend increase for this newly minted dividend champion. Over the past decade, the company has managed to grow dividends at an annualized rate of 12.90%. 

Earnings per share rose from $0.76 in 2013 to $1.89 in 2022. The company is expected to earn $1.94/share in 2023.

The stock is selling for 25.29 times forward earnings and yields 2.86%.

Franco-Nevada Corporation (FNV) operates as a gold-focused royalty and streaming company in Latin America, the United States, Canada, and internationally. It operates in two segments, Mining and Energy. 

The company increased quarterly dividends by 6.30% to $0.34/share. This marks the 16th consecutive annual increase for Franco-Nevada shareholders. Over the past decade, the company has managed to grow dividends at an annualized rate of 9%. 

Earnings per share rose from $0.72 in 2012 to $3.84 in 2021. The company is expected to earn $3.65/share in 2022.

The stock is selling for 39.47 times forward earnings and yields 0.92%.

Enterprise Bancorp, Inc. (EBTC) operates as the holding company of Enterprise Bank and Trust Company that provides commercial banking products and services. It offers commercial and retail deposit products, including checking accounts, limited-transactional savings and money market accounts, commercial sweep products, and term certificates of deposit. 

The company increased quarterly dividends by 12.20% to $0.23/share.  This marks the 31st consecutive annual dividend increase for this dividend champion. Over the past decade, the company has managed to grow annualized dividends at a rate of 6.40%.

Earnings per share rose from $1.29 in 2012 to $3.51 in 2021.

The stock is selling for 10.38 times trailing earnings and yields 2.59%.

J.B. Hunt Transport Services, Inc. (JBHT) provides surface transportation, delivery, and logistic services in North America. It operates through five segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS), and Truckload (JBT). 

The company increased quarterly dividends by 5% to $0.42/share. This marks is the 19th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to grow annualized dividends at a rate of 11.10%.

Earnings per share rose from $2.92 in 2013 to $9.21 in 2022.

The stock is selling for 20.11 times trailing earnings and yields 0.89%.

Consolidated Edison, Inc. (ED) engages in the regulated electric, gas, and steam delivery businesses in the United States. 

The company increased quarterly dividends by 2.50% to $0.81/share. This is the 49th consecutive annual dividend increase for this dividend aristocrat. Over the past decade, the company has managed to grow annualized dividends at a rate of 2.70%.

I like their comment in the press release: 

"The 49th consecutive annual increase for stockholders, the longest period of consecutive annual dividend increases of any utility in the S&P 500 index, reflects our continued emphasis on providing a return to our investors while meeting the needs of our customers during the clean energy transition," said Robert Hoglund, Con Edison's senior vice president and chief financial officer. The company continues to target a dividend payout ratio of between 60% and 70% of its adjusted earnings.

Earnings per share went from $3.89 in 2012 to $3.86 in 2021. Con Edison is expected to earn $4.54/share in 2022.

The stock is selling for 20.55 times forward earnings and yields 3.45%.

Union Bankshares, Inc. (UNB) operates as the bank holding company for Union Bank that provides retail, commercial, and municipal banking products and services in northern Vermont and New Hampshire. 

The company increased quarterly dividends by 2.90% to $0.36/share.  This marks the 11th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to grow annualized dividends at a rate of 3.40%.

Earnings per share rose from $1.54 in 2012 to $2.94 in 2021.

The stock is selling for 8.74 times trailing earnings and yields 5.76%.

Mercantile Bank Corporation (MWBM) operates as the bank holding company for Mercantile Bank of Michigan that provides commercial and retail banking services to small- to medium-sized businesses and individuals in the United States.

The company increased quarterly dividends by 3.10% to $0.33/share.  This marks the 11th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to grow annualized dividends at a rate of 30.20%. That high dividend growth is due to it cutting dividends in 2010 - 2011, and initiating a small dividend base in 2012.

Earnings per share rose from $1.96 in 2013 to $3.85 in 2022. The bank is expected to earn $4.49/share in 2023.

The stock is selling for 7.42 times forward earnings and yields 3.96%.

Relevant Articles:

- Twelve Companies Rewarding Shareholders With a Raise

- Three Dividend Achievers Rewarding Shareholders With Raises Last Week

- Two Dividend Achievers Rewarding Shareholders With Raises

- Dividend Increases for the Dividend Aristocrats in 2022

Peter Lynch is probably one of the best-known stock pickers of our time and certainly among the most successful. He was portfolio manager of Fidelity Investments' Magellan Fund for 13 years, starting out in 1977 with $20 million in assets and winding up his tenure in 1990, with more than 1 million shareholders and assets in excess of $14 billion. During that period, Lynch delivered an average annual return of just over 29 percent.

Lynch has served as executive vice president and director of Fidelity Management & Research Company and managing director of FMR Corp. He has also written three bestselling books on investing: "One Up on Wall Street" "Beating the Street" and his latest, "Learn to Earn: A Beginner's Guide to the Basics of Investing and Business"

I recently uncovered and shared a collection of articles that he wrote for Worth Magazine in the 1990s as well.

Yesterday was is his 79th Birthday. 

I have compiled 79 Peter Lynch investing quotes in celebration for his birthday (plus two additional ones as bonus at the end)

I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me review existing holdings, and also potentially identify companies for further research.

I typically focus on companies with a ten year track record of annual dividend increases. I then review the latest dividend increase and compare it to the pace of increases over the last decade. I find it helpful to review dividend growth along with earnings growth and current valuation multiples such as P/E ratio and dividend yield. 

Over the past week, there were three companies that raised dividends. These companies have also managed to increase annual dividends to shareholders for at least ten years in a row. The companies include:

Apogee Enterprises, Inc. (APOG) designs and develops glass and metal products and services in the United States, Canada, and Brazil. The company operates in four segments: Architectural Framing Systems, Architectural Glass, Architectural Services, and Large-Scale Optical Technologies (LSO).

The company increased quarterly dividends by 9.10% to $0.24/share.  This marks Apogee’s tenth consecutive year with a dividend increase, during which time the quarterly dividend has grown by 167 percent, from $0.09 per share to $0.24 per share. 

“This dividend increase reflects our improved operational performance, strong financial position, and ability to generate consistent cash flow,” said Ty R. Silberhorn, Chief Executive Officer. “As we continue to execute our strategy, we’re committed to delivering value through investing in profitable growth and returning capital to our shareholders.”

The stock sells for 11.60 times forward earnings and yields 2.07%.

STAG Industrial, Inc. (STAG) is a real estate investment trust focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. By targeting this type of property, STAG has developed an investment strategy that helps investors find a powerful balance of income plus growth.

The REIT hiked its monthly dividend by 0.70% to $0.1225/share. This marked the 12th consecutive annual dividend increases for this dividend achiever. Over the past decade, the company managed to boost dividends at an annualized rate of 3.20%. The pace of annualized dividend growth has been below 1% over the past 5 years however.

The stock sells for 15.80 times forward FFO and yields 4.20%.

Lakeland Financial Corporation (LKFN) operates as the bank holding company for Lake City Bank that provides various banking products and services. 

The company increased quarterly dividends by 15% to $0.46/share. This marked the 12th consecutive annual dividend increases for this dividend achiever. Over the past decade, the company managed to boost dividends at an annualized rate of 13.70%.

"We are pleased to announce another healthy increase to our dividend rate. Our consistent long-term operating performance and a strong capital foundation provide the capacity to comfortably increase dividends to shareholders," commented David M. Findlay, President and Chief Executive Officer.

The stock sells for 18.39 times forward earnings and yields 2.40%.

Relevant Articles:

- Two Dividend Achievers Rewarding Shareholders With Raises

- Twelve Companies Rewarding Shareholders With a Raise