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Several companies have been delivering positive news to shareholders lately, including dividend increases.
When a company opts to raise its dividend, it indicates confidence in its current standing. In addition, it reflects the company’s commitment to returning value to shareholders, which is undoubtedly encouraging.
Three companies – Clorox (CLX - Free Report) , The Hershey Company (HSY - Free Report) , and McKesson (MCK - 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.
Clorox
Clorox markets some of the most trusted and recognized brands, including its namesake bleach and cleaning products. The company recently announced a modest 2% hike to its quarterly dividend, up to $1.20 per share.
The company has increasingly rewarded its shareholders, as we can see illustrated below. Impressively, 2023 reflected Clorox’s 21st consecutive year of increased payouts.
Image Source: Zacks Investment Research
Clorox posted results that came in well above expectations in its latest print, exceeding the Zacks Consensus EPS Estimate by more than 40% and delivering a 7% revenue surprise. Shares saw bullish activity post-earnings, as the results impressed the market.
Image Source: Zacks Investment Research
The Hershey Company
Hershey is a well-known manufacturer of chocolate and non-chocolate confectionery. The company recently unveiled a solid 15% boost to its quarterly dividend to $1.19 per share. Like CLX, Hershey has been committed to increasingly rewarding its shareholders, paying an uninterrupted dividend since 1930.
Image Source: Zacks Investment Research
The company’s shares aren’t expensive on a relative basis, with the current 23.4X forward earnings multiple (F1) nicely beneath the 25.1X five-year median and highs of 29.2X in 2022. The stock carries a Value Style Score of “C.”
Image Source: Zacks Investment Research
In addition, the company has solid growth projections, with the Zacks Consensus EPS Estimate of $9.54 for its current year suggesting a 12% year-over-year improvement on 8% higher revenues. Looking ahead to FY24, expectations allude to a further 8% climb in earnings on 4% increased sales.
Image Source: Zacks Investment Research
McKesson
McKesson Corp. is a healthcare services and information technology company. Analysts have become positive surrounding the company’s earnings outlook, helping land the stock into a favorable Zacks Rank #2 (Buy).
The revisions trend has been particularly positive for its current year, with the $26.96 per share Zacks Consensus Estimate up nearly 4% since August of last year.
Image Source: Zacks Investment Research
The company recently announced a 15% increase to its quarterly dividend, bringing the payout to $0.62 per share. Like those above, McKesson has consistently increased its payout, fully reflecting its shareholder-friendly nature.
Image Source: Zacks Investment Research
Bottom Line
Investors love dividends, especially whenever the payouts received are consistently boosted by companies.
And that’s precisely what shareholders of all three companies above -– Clorox (CLX - Free Report) , The Hershey Company (HSY - Free Report) , and McKesson (MCK - Free Report) – have enjoyed, with all three increasingly rewarding their shareholders over the years.
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3 Stocks to Buy on Recent Dividend Hikes
Several companies have been delivering positive news to shareholders lately, including dividend increases.
When a company opts to raise its dividend, it indicates confidence in its current standing. In addition, it reflects the company’s commitment to returning value to shareholders, which is undoubtedly encouraging.
Three companies – Clorox (CLX - Free Report) , The Hershey Company (HSY - Free Report) , and McKesson (MCK - 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.
Clorox
Clorox markets some of the most trusted and recognized brands, including its namesake bleach and cleaning products. The company recently announced a modest 2% hike to its quarterly dividend, up to $1.20 per share.
The company has increasingly rewarded its shareholders, as we can see illustrated below. Impressively, 2023 reflected Clorox’s 21st consecutive year of increased payouts.
Image Source: Zacks Investment Research
Clorox posted results that came in well above expectations in its latest print, exceeding the Zacks Consensus EPS Estimate by more than 40% and delivering a 7% revenue surprise. Shares saw bullish activity post-earnings, as the results impressed the market.
Image Source: Zacks Investment Research
The Hershey Company
Hershey is a well-known manufacturer of chocolate and non-chocolate confectionery. The company recently unveiled a solid 15% boost to its quarterly dividend to $1.19 per share. Like CLX, Hershey has been committed to increasingly rewarding its shareholders, paying an uninterrupted dividend since 1930.
Image Source: Zacks Investment Research
The company’s shares aren’t expensive on a relative basis, with the current 23.4X forward earnings multiple (F1) nicely beneath the 25.1X five-year median and highs of 29.2X in 2022. The stock carries a Value Style Score of “C.”
Image Source: Zacks Investment Research
In addition, the company has solid growth projections, with the Zacks Consensus EPS Estimate of $9.54 for its current year suggesting a 12% year-over-year improvement on 8% higher revenues. Looking ahead to FY24, expectations allude to a further 8% climb in earnings on 4% increased sales.
Image Source: Zacks Investment Research
McKesson
McKesson Corp. is a healthcare services and information technology company. Analysts have become positive surrounding the company’s earnings outlook, helping land the stock into a favorable Zacks Rank #2 (Buy).
The revisions trend has been particularly positive for its current year, with the $26.96 per share Zacks Consensus Estimate up nearly 4% since August of last year.
Image Source: Zacks Investment Research
The company recently announced a 15% increase to its quarterly dividend, bringing the payout to $0.62 per share. Like those above, McKesson has consistently increased its payout, fully reflecting its shareholder-friendly nature.
Image Source: Zacks Investment Research
Bottom Line
Investors love dividends, especially whenever the payouts received are consistently boosted by companies.
And that’s precisely what shareholders of all three companies above -– Clorox (CLX - Free Report) , The Hershey Company (HSY - Free Report) , and McKesson (MCK - Free Report) – have enjoyed, with all three increasingly rewarding their shareholders over the years.