I’ve been following in detail the S&P Dividend Aristocrats for the past four months. Sometimes you get quiet weeks, when not very much happens. And sometimes, you get weeks when that isn’t quite so true. This week was one of the latter – a busy, busy week where more than a quarter of the Aristocrats announced dividend events, including four that announced dividend increases.
The companies announcing dividend increases included the two largest oil companies in the United States: Exxon-Mobil (XOM) and Chevron (CVX). Both companies will pay their larger dividend on June 10th. Exxon-Mobil’s will increase their quarterly dividend to 69 cents per share from 63 cents to shareholders of record on May 13th, while Chevron will increase their quarterly dividend to $1.07 from $1.00 per share to shareholders of record on May 19th. Exxon-Mobil’s 9.5% increase is in line with a 5 year and 10 year compounded annual dividend growth rate (CADGR) of 9.68% and 9.64%. In contrast, Chevron’s 7% increase is slightly below its 5 and 10 year CADGR of 9.04% and 10.55%, respectively. At current prices, the new dividend gives Exxon-Mobil a yield of 2.71% and Chevron a yield of 3.43% on an annualized basis.
W. W. Grainger (GWW), a leading supplier of maintenance, repair and operating products, announced a 16.1% dividend increase. The new quarterly dividend will be $1.08, up from $.93 in the prior quarter, and is payable on June 1st to shareholders of record on May 12th. Grainger has increased their dividend for 43 consecutive years. On an annualized basis, Grainger’s new dividend yield is 1.71%.
Battle Creek, Michigan-based cereal and food manufacturer Kellogg Company (K) is increasing its quarterly dividend by 6.5%, from 46 cents to 49 cents. The new annual rate of $1.96 gives Kellogg’s a current yield of 2.99%. The dividend is payable on June 16th to shareholders of record on June 2nd. Kellogg’s has paid out dividends since 1925 and has provided shareholders a 54-year record of dividend growth.
Ten other Aristocrats announced regular quarterly dividends:
Diversified manufacturer Illinois Tool Works (ITW) will pay a dividend of 42 cents per share on July 8th to shareholders of record on June 30th. With an annualized payout of $1.68, the company yields 1.97% at current prices. Illinois Tool Works’ next dividend increase is expected to be announced in the 3rd quarter of 2014.
McGraw Hill Financial (MHFI), owner of Standard & Poor’s and J. D. Power brands, will pay a dividend of 30 cents per share on June 11th to shareholders of record on May 28th. McGraw Hill Financial has increased annual dividends for 41 consecutive years and has paid dividends each year since 1937. The company increased its dividend by 7.1% earlier this year; the increased dividend was paid out on March 12th. McGraw Hill Financial currently has an annual yield of 1.62%.
Insurer Aflac, Inc. (AFL) declared a regular dividend of 37 cents per share, payable on June 2nd to shareholders of record on May 21st. Aflac has increased dividends for 31 consecutive years and last increased its dividend payout by 5.7% in December 2013. The company’s next dividend increase is expected in the 4th quarter of 2014. At current prices, Aflac yields 2.34%.
Genuine Parts Company (GPC), distributor of automotive and industrial replacement parts and office supplies in North America and Australasia, will pay a regular cash dividend of 57.5 cents per share on July 1st to shareholders of record on June 6th. Genuine Parts has increased dividends for 54 consecutive years and most recently increased its dividend by nearly 7% in the 1st quarter of 2014. At current prices, Genuine Parts yields 2.69%.
Cincinnati Financial Corporation (CINF) will pay a dividend of 44 cents per share on July 15th to shareholders of record on June 18th. The insurer has increased dividends since 1962. The company’s most recent dividend increase was 4.76% in the 1st quarter of 2014. Cincinnati Financial currently yields 3.59% on an annualized basis.
Diversified manufacturer Dover Corporation (DOV) will pay a dividend of 37.5 cents on June 16th to shareholders of record on May 30th. Dover last increased their dividend in September 2013, when they raised the quarterly payout by 7.14% to the current rate. Dover has increased dividends for 58 consecutive years and the next dividend increase is expected to be announced in August. Dover currently yields 1.75%.
Bemis Company (BMS) will pay a regular quarterly dividend of 27 cents per share on Jne 2nd to shareholders of record on May 19th. Bemis manufactures packaging and pressure sensitive materials; in 2013, Bemis recorded sales of over $5 billion. The annual payout of $1.08 gives Bemis a current yield of 2.69%. Bemis has paid dividends since 1922 and has increased dividends annually for 31 years. Bemis’ last dividend increase was at the beginning of 2014 when the quarterly dividend went from 26 cents to 27 cents – an increase of 3.84%.
HCP, Inc. (HCP), a healthcare industry real estate investment trust, will pay 54.5 cents per share on May 27th to shareholders of record on May 12th. HCP has raised dividends for 29 consecutive years and last raised their quarterly payout in the 1st quarter of 2014, when they increased the payout by 3.67%. With a current yield of 5.18%, HCP has one of the highest dividend yields of the S&P Dividend Aristocrats.
Kimberly-Clark (KMB), manufacturer of consumer product brands such as Kleenex, Scott, Pull-Ups, and Huggies, announced a quarterly dividend payout of 84 cents per share. The dividend will be paid on July 2nd to shareholders of record on June 6th. Kimberly-Clark has paid dividends for 80 years, and increased their annual dividend for 42 straight years. Kimberly-Clark’s last increased the dividend in the 1st quarter by 3.70%. The stock currently yields 3.03%.
Finally, Archer Daniels Midland Company (ADM) announced a regular quarterly dividend of 24 cents, payable on June 5th to shareholders of record on May 15th. This is the second 24-cent payout, after ADM raised the quarterly payout from 19 cents, or 26.3%. Archer Daniels converts agriculture into products for food, animal feed, industrial and energy uses. The company has a record of 82 years of uninterrupted dividend payments and currently yields 2.20%.