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Several companies have been delivering positive news to shareholders lately, including announcements of higher dividend payouts.
A company opts to raise its dividend when confident in its current standing and cash-generating abilities. Of course, it also reflects the company’s commitment to returning value to shareholders, which is undoubtedly encouraging.
Five companies – Genuine Parts (GPC - Free Report) , The Coca-Cola Company (KO - Free Report) , 3M (MMM - Free Report) , Hershey (HSY - Free Report) , and Home Depot (HD - Free Report) – have all recently declared a dividend hike. For those with an appetite for income, let’s take a closer look at how each company currently stacks up.
3M
3M is a diversified technology company that manufactures industrial, safety, and consumer products. The company recently announced a modest 0.7% boost to its quarterly payout, continuing its streak of dividend hikes.
3M is a member of the elite Dividend Aristocrats club, owing to its shareholder-friendly nature. Shares currently yield a sizable 6.6% annually.
Image Source: Zacks Investment Research
Shares have had a tough showing over the last year, down roughly 11% and underperforming relative to the general market. Nonetheless, analysts have begun positively revising their earnings expectations for its current fiscal year, with the $9.77 Zacks Consensus EPS estimate up 6% over the last year.
Image Source: Zacks Investment Research
Hershey
Hershey is a global leader in chocolate and non-chocolate confectionery. The company has long been a favorite of income-focused investors, paying an uninterrupted dividend since 1930.
Hershey announced a 15% boost to its quarterly payout following its latest set of quarterly results in early February, with the company posting a 3.6% beat relative to the Zacks Consensus EPS estimate. HSY’s shareholder-friendly nature is illustrated below.
Image Source: Zacks Investment Research
Home Depot
Home Depot offers a diverse range of branded and proprietary home improvement items, building materials, lawn and garden products, decor products, and related services. The company recently delivered a 7.7% boost to its quarterly payout following its latest set of better-than-expected quarterly results.
The company has consistently increasingly rewarded its shareholders.
Image Source: Zacks Investment Research
Shares didn’t see much movement following the release but have overall performed nicely over the last year, adding 26% and primarily tracking the S&P 500.
Image Source: Zacks Investment Research
Coca-Cola
Coca Cola’s portfolio includes many beverage products, spanning from sodas and sparkling water to energy drinks. The company’s board of directors recently approved a 5.4% boost to its quarterly payout, reflecting its 62nd consecutive annual dividend increase.
Not only is KO a Dividend Aristocrat, but a Dividend King as well.
Image Source: Zacks Investment Research
Genuine Parts
Genuine Parts distributes automotive and industrial replacement parts and materials. The company boosted its quarterly payout by 5.3% recently, bringing the quarterly payout to $1.00 per share.
Image Source: Zacks Investment Research
Shares aren’t overly stretched regarding valuation, with the current 14.7X forward earnings multiple beneath the 18.4X five-year median and a few ticks above the respective Zacks Automotive – Replacement Parts industry.
The stock sports a Style Score of ‘A’ for Value.
Image Source: Zacks Investment Research
Bottom Line
Dividends soften the blow from drawdowns in other positions, provide more than one way to reap a return from an investment, and allow maximum returns through dividend reinvestment.
Image: Bigstock
Dividend Watch: 5 Companies Boosting Payouts
Several companies have been delivering positive news to shareholders lately, including announcements of higher dividend payouts.
A company opts to raise its dividend when confident in its current standing and cash-generating abilities. Of course, it also reflects the company’s commitment to returning value to shareholders, which is undoubtedly encouraging.
Five companies – Genuine Parts (GPC - Free Report) , The Coca-Cola Company (KO - Free Report) , 3M (MMM - Free Report) , Hershey (HSY - Free Report) , and Home Depot (HD - Free Report) – have all recently declared a dividend hike. For those with an appetite for income, let’s take a closer look at how each company currently stacks up.
3M
3M is a diversified technology company that manufactures industrial, safety, and consumer products. The company recently announced a modest 0.7% boost to its quarterly payout, continuing its streak of dividend hikes.
3M is a member of the elite Dividend Aristocrats club, owing to its shareholder-friendly nature. Shares currently yield a sizable 6.6% annually.
Image Source: Zacks Investment Research
Shares have had a tough showing over the last year, down roughly 11% and underperforming relative to the general market. Nonetheless, analysts have begun positively revising their earnings expectations for its current fiscal year, with the $9.77 Zacks Consensus EPS estimate up 6% over the last year.
Image Source: Zacks Investment Research
Hershey
Hershey is a global leader in chocolate and non-chocolate confectionery. The company has long been a favorite of income-focused investors, paying an uninterrupted dividend since 1930.
Hershey announced a 15% boost to its quarterly payout following its latest set of quarterly results in early February, with the company posting a 3.6% beat relative to the Zacks Consensus EPS estimate. HSY’s shareholder-friendly nature is illustrated below.
Image Source: Zacks Investment Research
Home Depot
Home Depot offers a diverse range of branded and proprietary home improvement items, building materials, lawn and garden products, decor products, and related services. The company recently delivered a 7.7% boost to its quarterly payout following its latest set of better-than-expected quarterly results.
The company has consistently increasingly rewarded its shareholders.
Image Source: Zacks Investment Research
Shares didn’t see much movement following the release but have overall performed nicely over the last year, adding 26% and primarily tracking the S&P 500.
Image Source: Zacks Investment Research
Coca-Cola
Coca Cola’s portfolio includes many beverage products, spanning from sodas and sparkling water to energy drinks. The company’s board of directors recently approved a 5.4% boost to its quarterly payout, reflecting its 62nd consecutive annual dividend increase.
Not only is KO a Dividend Aristocrat, but a Dividend King as well.
Genuine Parts
Genuine Parts distributes automotive and industrial replacement parts and materials. The company boosted its quarterly payout by 5.3% recently, bringing the quarterly payout to $1.00 per share.
Shares aren’t overly stretched regarding valuation, with the current 14.7X forward earnings multiple beneath the 18.4X five-year median and a few ticks above the respective Zacks Automotive – Replacement Parts industry.
The stock sports a Style Score of ‘A’ for Value.
Image Source: Zacks Investment Research
Bottom Line
Dividends soften the blow from drawdowns in other positions, provide more than one way to reap a return from an investment, and allow maximum returns through dividend reinvestment.
And all five companies above – Genuine Parts (GPC - Free Report) , The Coca-Cola Company (KO - Free Report) , 3M (MMM - Free Report) , Hershey (HSY - Free Report) , and Home Depot (HD - Free Report) – have recently boosted their payouts.
For those seeking a reliable income stream, all three deserve consideration.