During the past week, GuruFocus recognized two companies as dividend growers. In order to be qualified for this list, the company had to:
- Have a dividend of greater than 3%.
- Have a strong history of stable and increasing dividends.
- Maintain Guru ownership.
- Have a market cap of greater than $10 billion.
The following two companies come from various industries and sectors of the market, but they all fit the necessary criteria needed to qualify them as dividend growers.
A comparison of the companies’ historical dividend growth:
DTE Energy Holding (DTE, Financial)
On June 19, DTE Energy Holding declared a dividend of $0.690 per share, representing 3.40% dividend yield for the company. This dividend is payable on October 15 to shareholders of the record at the close of business on September 15, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 2.30%
- 5-year: 5.10%
- 3-year: 5.80%
DTE Energy Holdings, through its subsidiaries, is engaged in the business of providing electricity and natural gas sales, distribution and storage services throughout southeastern Michigan. Its main operating segments are Electric Utility, Gas Utility, Non-Utility Operations, and Corporate and Other.
DTE Energy Holdings’ historical revenue and net income:
The analysis on DTE Energy Holdings reports that company’s dividend yield is near a 10-year low, its price is near a 10-year high and over the past three years the company has issued $471 million of debt.
The Peter Lynch Chart suggests that the company is currently overvalued:
DTE Energy has a market cap of $13.67 billion. Its shares are currently trading at around $77.24 with a P/E ratio of 18.10, a P/S ratio of 1.20 and a P/B ratio of 1.69. The company had an annual average earnings growth of 4.30% over the past ten years.
Imperial Tobacco Group (ITYBY)
On June 16, Imperial Tobacco Group declared a dividend of $1.316 per share, representing 4.00% dividend yield for the company. This dividend is payable on August 26 to shareholders of the record at the close of business on July 18, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 9.50%
- 5-year: 14.50%
- 3-year: 12.70%
Imperial Tobacco Group PLC is an international tobacco company. Its two main business segments are tobacco and logistics.
Imperial Tobacco Group’s historical revenue and net income:
The analysis on Imperial Tobacco Group reports that the company’s revenue per share has been in decline over the past year, its price is near a 10-year high and the company has issued GBP1.2 billion of debt over the past three years. The analysis also notes that the company has a high Piotroski F-Score, indicating a very healthy situation.
The Peter Lynch Chart suggests that the company is currently overvalued:
Imperial Tobacco Group has a market cap of $43.7 billion. Its shares are currently trading at around $91.31 with a P/E ratio of 27.90, a P/S ratio of 0.90 and a P/B ratio of 4.60. The company had an annual average earnings growth of 9.40% over the past ten years.
GuruFocus rated Imperial the business predictability rank of 5-star.
To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.
Try a free 7-day premium membership.
