I personally own Becton Dickinson.
I found him with two additional stocks from the industry a few years ago. Stocks from
the medical instruments and supplies industry looked cheap during that time. Becton and the others had a bad time and they were traded at a P/E ratio
of around 10 to 12 while earnings were forecasted to grow by double-digit rates for the mid-term.
As we can see, they still raise dividends despite the uncertain economic environment.
Not enough, they increased dividends by a rate of more than 10 percent! So my BDX
position is not big. It represents only 0.7 percent of my full stock portfolio.
Here are my favorite dividend growth stocks:
Here are my favorite dividend growth stocks:
The York Water Company (NASDAQ:YORW) has a market capitalization of $221.47 million. The company employs 106 people, generates revenue of $40.63 million and has a net income of $9.08 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $24.78 million. The EBITDA margin is 60.99 percent (the operating margin is 48.92 percent and the net profit margin 22.36 percent).
Financial Analysis: The total debt represents 31.00 percent of the company’s assets and the total debt in relation to the equity amounts to 89.24 percent. Due to the financial situation, a return on equity of 9.74 percent was realized. Twelve trailing months earnings per share reached a value of $0.70. Last fiscal year, the company paid $0.53 in the form of dividends to shareholders. The company announced to raise dividends by 3.5 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.40, the P/S ratio is 5.45 and the P/B ratio is finally 2.31. The dividend yield amounts to 3.22 percent and the beta ratio has a value of 0.46.
| Long-Term Stock History Chart Of The York Water Company (Click to enlarge) |
| Long-Term Dividends History of The York Water Company (YORW) (Click to enlarge) |
| Long-Term Dividend Yield History of The York Water Company (NASDAQ: YORW) (Click to enlarge) |
Hormel Foods (NYSE:HRL) has a market capitalization of $8.05 billion. The company employs 19,700 people, generates revenue of $8.230 billion and has a net income of $504.96 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $845.48 million. The EBITDA margin is 10.27 percent (the operating margin is 9.29 percent and the net profit margin 6.14 percent).
Financial Analysis: The total debt represents 5.48 percent of the company’s assets and the total debt in relation to the equity amounts to 8.85 percent. Due to the financial situation, a return on equity of 18.24 percent was realized. Twelve trailing months earnings per share reached a value of $1.86. Last fiscal year, the company paid $0.60 in the form of dividends to shareholders. The company announced to raise dividends by 13.3 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.48, the P/S ratio is 0.98 and the P/B ratio is finally 2.85. The dividend yield amounts to 2.22 percent and the beta ratio has a value of 0.45.
| Long-Term Stock History Chart Of Hormel Foods (Click to enlarge) |
| Long-Term Dividends History of Hormel Foods (HRL) (Click to enlarge) |
| Long-Term Dividend Yield History of Hormel Foods (NYSE: HRL) (Click to enlarge) |
Quest Diagnostics (NYSE:DGX) has a market capitalization of $9.22 billion. The company employs 42,000 people, generates revenue of $7.510 billion and has a net income of $507.23 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.278 billion. The EBITDA margin is 17.02 percent (the operating margin is 13.25 percent and the net profit margin 6.75 percent).
Financial Analysis: The total debt represents 43.22 percent of the company’s assets and the total debt in relation to the equity amounts to 108.99 percent. Due to the financial situation, a return on equity of 12.15 percent was realized. Twelve trailing months earnings per share reached a value of $4.30. Last fiscal year, the company paid $0.47 in the form of dividends to shareholders. The company announced to raise dividends by 76.5 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.50, the P/S ratio is 1.23 and the P/B ratio is finally 2.47. The dividend yield amounts to 2.07 percent and the beta ratio has a value of 0.66.
| Long-Term Stock History Chart Of Quest Diagnostics (Click to enlarge) |
| Long-Term Dividends History of Quest Diagnostics (DGX) (Click to enlarge) |
| Long-Term Dividend Yield History of Quest Diagnostics (NYSE: DGX) (Click to enlarge) |
Take a closer look at the full table of stocks with recent dividend hikes. The average dividend growth amounts to 53.70 percent and the average dividend yield amounts to 4.62 percent. Stocks from the sheet are valuated with a P/E ratio of 20.57. The average P/S ratio is 7.11 and P/B 2.83.
Here is the full table:
 |
| 23 Best Dividend Growth Stocks (Click to enlarge) |
Here are the market price ratios:
Ticker
|
Company
|
P/E
|
P/S
|
P/B
|
Dividend Yield
|
Dominion Resources Black Warrior Trust
|
6.23
|
5.13
|
2.63
|
15.77%
|
|
Enduro Royalty Trust
|
15.22
|
14.95
|
0.87
|
9.65%
|
|
Cross Timbers Royalty Trust
|
10.47
|
10.22
|
12.74
|
9.36%
|
|
Pacific Coast Oil Trust
|
24.17
|
N/A
|
2.56
|
9.11%
|
|
Mesa Royalty Trust
|
10.43
|
9.40
|
7.56
|
9.01%
|
|
Vanguard Natural Resources, LLC
|
123.65
|
6.45
|
1.63
|
8.44%
|
|
Hugoton Royalty Trust
|
10.28
|
9.73
|
2.90
|
8.25%
|
|
South Jersey Industries, Inc.
|
13.97
|
2.12
|
2.15
|
3.35%
|
|
First Interstate Bancsystem Inc.
|
12.38
|
2.29
|
0.85
|
3.26%
|
|
Erie Indemnity Co.
|
23.47
|
0.58
|
4.10
|
3.25%
|
|
Bancroft Fund Ltd.
|
N/A
|
25.92
|
0.85
|
3.13%
|
|
York Water Co.
|
24.54
|
5.38
|
2.25
|
3.11%
|
|
Becton, Dickinson and Company
|
14.58
|
2.01
|
3.66
|
2.32%
|
|
Montpelier Re Holdings Ltd.
|
4.70
|
1.47
|
0.70
|
2.00%
|
|
Hormel Foods Corp.
|
17.02
|
0.99
|
2.79
|
1.96%
|
|
Lancaster Colony Corporation
|
19.96
|
1.76
|
3.48
|
1.94%
|
|
PCTEL, Inc.
|
N/A
|
1.41
|
0.96
|
1.90%
|
|
International Game Technology
|
15.09
|
1.63
|
3.24
|
1.83%
|
|
Matthews International Corporation
|
13.52
|
0.90
|
1.70
|
1.37%
|
|
Quest Diagnostics Inc.
|
13.48
|
1.22
|
2.21
|
1.17%
|
|
Churchill Downs Inc.
|
17.63
|
1.47
|
1.63
|
0.98%
|
|
Japan Smaller Capitalization Fund Inc.
|
N/A
|
44.28
|
0.79
|
0.51%
|
|
Average
|
20.57
|
7.11
|
2.83
|
4.62%
|
Related Stock Ticker:
BCV, BDX, CHDN, CRT, DOM, NDRO, ERIE, FIBK, HRL,
HGT, IGT, JOF, LANC, MATW, MTR, MRH, ROYT, PCTI, PFK, DGX, SJI, VNR, YORW
*I am long BDX. 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.
Dividend growth investing is a strategy that I believe in and embrace. For me the idea of receiving a check, or as is the case now, a deposit in my brokerage, every three months from each of the companies I hold in my portfolio, and watching those deposits grow and grow each year, is exciting. This may not be the same excitement that some investors get by purchasing shares in an upstart technology company that doubles or triples its share price in a matter of weeks or months, but it is exciting enough for me. By purchasing share prices of high quality companies like Johnson and Johnson (JNJ), McDonald's (MCD), and Wal-Mart (WMT) investors will likely never see shares that double in the span of a year, but can rest assured that the company whose shares they own will not go bankrupt, and will continue to pay them to hold on to shares.
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