The Boston Consulting Group doesn’t discount the role that stock buybacks can play in boosting near-term returns for some companies. But the firm’s research indicates that stock buybacks do not change investors’ estimates for long-term earnings-per-share growth, or induce them to accord a company a higher valuation multiple. By contrast, it says, dividend growth has a far more positive long-term impact.
3M Company operates as a diversified technology company worldwide. The company operates in five segments: Health Care, Industrial, Safety & Graphics, Consumer, Electronics & Energy. This dividend king has paid dividends since 1916 and has increased them for 56 years in a row. The company’s latest dividend increase was announced in December 2013 when the Board of Directors approved a 34.60% increase in the quarterly annual dividend to 85.50 cents /share. The company’s peer group includes General Electric (GE), Carlisle Companies (CSL), and Raven Industries (RAVN).
I purchased 30 shares of The Coca-Cola Company (KO) on 1/24/13 for $38.98 per share. The Coca-Cola Company needs no introduction. A global juggernaut in beverages, the company owns or licenses more than 500 nonalcoholic beverage brands. Their products are available in over 200 countries, and they own 16 billion-dollar brands. They are the world’s largest beverage company.
Linked here is a detailed quantitative analysis of W.W. Grainger, Inc. (GWW). Below are some highlights from the above linked analysis: Company Description: Grainger Inc. is the largest global distributor of industrial and commercial supplies, such as hand tools, electric motors, light bulbs and janitorial items.
Just for kicks, because I have no idea what the future holds, I thought I’d share some financial predictions for 2014. Here they are: The Dow Jones Industrial Average will finish the year at 16,700. It opened the year around 16,441. The S&P/TSX Composite will finish the year at 14,200. It opened the year around 13,594. Our Canadian Dollar will finish the year at $0.90 compared to the US Dollar. It opened the year around $0.94.
The key to successfully selecting dividend growth stocks is the ability to identify companies that will not only maintain but grow their dividend. Often it can be boiled down to a simple question: “How committed is the company to paying its dividend?” Sure most CEOs give lip-service to their commitment to shareholders, but what happens when times are hard. When the economy turns down and the future looks bleak, will the company hoard cash and stop its dividend or put action behind its words?
I purchased 60 shares of Omega Healthcare Investors Inc. (OHI) on 1/24/13 for $32.02 per share. Omega is a real estate investment trust (REIT) that provides financing and capital to the long-term healthcare industry, with a primary focus on skilled nursing facilities. Their properties are located in the U.S., and spread out across 33 states. As of September 30, 2013 they owned or held mortgages on 477 skilled nursing facilities, assisted living facilities and other specialty hospitals.
There are many studies available demonstrating that dividend stocks have experienced superior results over time compared to their non dividend paying counterparts. If you saw my dividend growth video I created earlier this month, you would have saw a chart showing that from 1970 through 2010, S&P 500 dividend growth stocks performed at a compound annual growth rate of 9.27% compared to 1.82% for non dividend paying companies.
Linked here is a detailed quantitative analysis of The Clorox Company (CLX). Below are some highlights from the above linked analysis: Company Description: The Clorox Company is a diversified producer of household cleaning, grocery and specialty food products is also a leading producer of natural personal care products.
In the past month, I purchased several hours of freedom, by adding to my position in the Coca-Cola Company (KO). I believe that Coca-Cola is a core holding for long-term dividend investors. This one time effort of investing in Coca-Cola will result in a lifetime of dividend payments which increase annually above rate of inflation. I like situations where most of the work is in the initial set-up, after which I receive cash in the mail every 90 days, for many decades to come.