Printed on December twenty third, 2024 by Bob Ciura
The fantastic thing about purchase and maintain perpetually dividend progress investing is that:
- It takes little or no work to take care of a portfolio
- Your passive revenue is more likely to enhance considerably over time
Only a few optimistic issues in life have the above mixture.
Top quality dividend progress shares are inclined to pay rising dividends year-after-year. This implies a increase for traders yearly. However the investor must do virtually nothing to get their annual increase.
The one “work” required is to carry your dividend progress shares as long as they proceed to develop your revenue.
With this in thoughts, we created a downloadable record of over 130 Dividend Champions.
You possibly can obtain your free copy of the Dividend Champions record, together with related monetary metrics like price-to-earnings ratios, dividend yields, and payout ratios, by clicking on the hyperlink under:
The Dividend Champions have raised their dividends for no less than 25 years in a row. Consequently, they’re the perfect candidates for traders seeking to get raises for doing nothing.
This text will talk about the our prime 10 Dividend Champions to get raises for doing nothing. We’ll record the ten Dividend Champions within the Positive Evaluation Analysis Database with the very best 5-year dividend progress charges.
Desk of Contents
You possibly can immediately leap to any particular part of the article by clicking on the hyperlinks under:
Excessive-Progress Dividend Champion #10: Gorman-Rupp Co. (GRC)
- 5-year dividend progress charge: 9.0%
Gorman-Rupp started manufacturing pumps and pumping programs again in 1933. Since that point, it has grown into an trade chief with annual gross sales of practically $700 million and a market capitalization of $1 billion.
Right now, Gorman-Rupp is a centered, area of interest producer of crucial programs that many industrial shoppers rely on for their very own success.
Gorman Rupp generates about one-third of its whole income from exterior of the U.S.
Supply: Investor Presentation
Gorman-Rupp posted third quarter earnings on October twenty fifth, 2024. Outcomes have been weaker than the analysts’ estimates however nonetheless they mirrored robust progress over the prior 12 months.
Income grew marginally (0.4%), from $167.5 million to $168.2 million, as worth hikes offset a lower in volumes.
Adjusted earnings-per-share of $0.49 missed the analysts’ consensus by $0.06, however they have been 44% increased than these within the prior 12 months’s interval. The robust efficiency resulted primarily from worth hikes and decrease enter prices.
Click on right here to obtain our most up-to-date Positive Evaluation report on GRC (preview of web page 1 of three proven under):
Excessive-Progress Dividend Champion #9: Badge Meter Inc. (BMI)
- 5-year dividend progress charge: 10.0%
Badger Meter was based in 1905 in Milwaukee, WI. The corporate’s first product was a “frost proof” water meter.
Right now, Badger Meter manufactures and markets meters and valves which are used to measure and management the movement of liquids, akin to water, oil and varied chemical compounds. The corporate’s merchandise are additionally used to regulate the movement of air and different gases. Badger Meter generates ~$750 million in annual revenues.
On August twelfth, 2024, Badger Meter elevated its quarterly dividend 25.9% to $0.34 per share for the September sixth fee date, extending the corporate’s dividend progress streak to 32 consecutive years.
On October seventeenth, 2024, Badger Meter reported third quarter earnings outcomes for the interval ending September thirtieth, 2024. For the quarter, income grew 11.9% to $208.4 million, however this was $3.75 million lower than anticipated.
Earnings-per-share of $1.08 in contrast favorably to earnings-per-share of $0.88 within the prior 12 months and was $0.07 above estimates.
Click on right here to obtain our most up-to-date Positive Evaluation report on BMI (preview of web page 1 of three proven under):
Excessive-Progress Dividend Champion #8: Roper Applied sciences (ROP)
- 5-year dividend progress charge: 10.0%
Roper Applied sciences is a specialised industrial firm that manufactures merchandise akin to medical and scientific imaging gear, pumps, and materials evaluation gear.
Roper Applied sciences additionally develops software program options for the healthcare, transportation, meals, vitality, and water industries. The corporate was based in 1981, generates round $5.4 billion in annual revenues, and is predicated in Sarasota, Florida.
On October twenty third, 2024, Roper posted its Q3 outcomes for the interval ending September thirtieth, 2024. Quarterly revenues and adjusted EPS have been $1.76 billion and $4.62, indicating a year-over-year enhance of 13% and seven%, respectively.
The corporate’s momentum throughout the quarter remained robust, with natural progress coming in at 4% and acquisitions additional boosting top-line progress.
Natural progress was as soon as once more pushed by broad-based power throughout its portfolio of niche-leading companies.
Click on right here to obtain our most up-to-date Positive Evaluation report on ROP (preview of web page 1 of three proven under):
Excessive-Progress Dividend Champion #7: Nordson Corp. (NDSN)
- 5-year dividend progress charge: 10.0%
Nordson was based in 1954 in Amherst, Ohio by brothers Eric and Evan Nord, however the firm can hint its roots again to 1909 with the U.S. Computerized Firm.
Right now the corporate has operations in over 35 international locations and engineers, manufactures, and markets merchandise used for allotting adhesives, coatings, sealants, biomaterials, plastics, and different supplies, with functions starting from diapers and straws to cell telephones and aerospace.
Supply: Investor Presentation
On August 14th, 2024, Nordson elevated its dividend by 15% to $0.78 per share quarterly, marking 61 years of will increase.
On August twenty first, 2024, Nordson reported third quarter outcomes for the interval ending July thirty first, 2024. (Nordson’s fiscal 12 months ends October thirty first.) For the quarter, the corporate reported gross sales of $662 million, 2% increased in comparison with $649 million in Q3 2023, which was pushed by a optimistic acquisition impression, and offset by natural lower of 1%.
The Industrial Precision noticed gross sales enhance by 9.6%, whereas the Medical and Fluid Options and Superior Expertise Options phase had gross sales declines of (2.4%) and (10.9%), respectively.
The corporate generated adjusted earnings per share of $2.41, a 6% lower in comparison with the identical prior 12 months interval.
Click on right here to obtain our most up-to-date Positive Evaluation report on NDSN (preview of web page 1 of three proven under):
Excessive-Progress Dividend Champion #6: Walmart Inc. (WMT)
- 5-year dividend progress charge: 11.0%
Walmart traces its roots again to 1945 when Sam Walton opened his first low cost retailer. The corporate has since grown into one of many largest retailers on the earth, serving over 230 million clients every week. Income will seemingly be round $600 billion this 12 months.
Walmart posted second quarter earnings on August fifteenth, 2024, and outcomes have been wonderful, sending the inventory hovering. Adjusted earnings-per-share beat estimates by two cents at 67 cents. Income was up virtually 5% year-over-year to $169.3 billion, and beat estimates by virtually $2 billion.
Walmart posted third quarter earnings on November nineteenth, 2024, and outcomes have been higher than anticipated on each the highest and backside traces, and by broad margins for each.
Adjusted earnings-per-share got here to 58 cents, which was a nickel forward of estimates, or virtually 10%. Income was up 5.5% to $170 billion, which beat estimates by virtually $3 billion.
Comparable gross sales within the US have been up 5.3%, 150 foundation factors higher than anticipated. Transactions have been 3.1% increased throughout the quarter, whereas common ticket was up 2.1%.
E-commerce gross sales rose 27% throughout the quarter and was accountable for greater than half of the full comparable gross sales acquire.
Click on right here to obtain our most up-to-date Positive Evaluation report on Walmart (preview of web page 1 of three proven under):
Excessive-Progress Dividend Champion #5: Casey’s Common Shops (CASY)
- 5-year dividend progress charge: 12.0%
Casey’s Common Shops owns and operates over 2,600 comfort shops underneath Casey’s model identify. The enterprise primarily serves rural markets and roughly 50% of Casey’s shops are in areas with populations of 5,000 or much less.
Throughout the corporate, Casey’s makes about 63% of income from promoting gas, 25% from groceries and normal merchandise, and 10% from ready meals & disbursed drinks, which incorporates the corporate’s made-from-scratch pizzas, donuts, subs, and sandwiches.
Casey’s elevated its quarterly dividend by 16% to $0.50 per share in June 2024, which marked its twenty fifth consecutive annual dividend enhance.
On November 1st, 2024, Casey’s accomplished its acquisition of Fikes Wholesale, Inc, the proprietor of CEFCO Comfort Shops. Casey’s bought Fikes for $1.145 billion in all-cash. Casey’s acquired 198 retail shops and a vendor community, which elevated the corporate’s retailer rely to roughly 2,900 shops.
On December ninth, 2024, Casey’s reported Q2 FY 2025 outcomes for the interval ending October thirty first, 2024. The corporate noticed diluted earnings-per-share of $4.85, up 14% from the year-ago interval, and beating analysts’ estimate by $0.58.
Click on right here to obtain our most up-to-date Positive Evaluation report on CASY (preview of web page 1 of three proven under):
Excessive-Progress Dividend Champion #4: Ecolab, Inc. (ECL)
- 5-year dividend progress charge: 12.0%
Ecolab Inc. is the worldwide chief in water, hygiene, and vitality applied sciences and providers, with a presence in additional than 170 international locations.
The corporate operates in 4 main enterprise segments: World Industrial, World Institutional, World Healthcare and World Pest Elimination.
In late October, Ecolab reported (10/29/24) monetary outcomes for the third quarter of fiscal 2024. Natural gross sales grew 4% over the prior 12 months’s quarter, primarily due to robust progress within the Institutional phase, which grew its gross sales 7%.
Because of increased volumes, materials worth hikes and decrease provide chain prices, adjusted earnings-per-share grew 19%, from $1.54 to $1.83, and exceeded the analysts’ consensus by $0.01.
Furthermore, due to strong pricing and optimistic gross sales momentum, administration barely improved its steerage for earnings-per-share in 2024, from $6.50-$6.70 to $6.60-$6.70, implying 28% progress over the prior 12 months on the mid-point.
Click on right here to obtain our most up-to-date Positive Evaluation report on ECL (preview of web page 1 of three proven under):
Excessive-Progress Dividend Champion #3: Stryker Corp. (SYK)
- 5-year dividend progress charge: 12.0%
Stryker is a worldwide chief within the medical machine sector. Product traces embrace surgical gear, neurovascular merchandise and orthopedic implants.
Right now, the corporate employs greater than 46,000 individuals worldwide. In November of 2021, Stryker reorganized its companies into two reporting segments: MedSurg and Neurotechnology, and Orthopaedics and Backbone.
On October twenty ninth, 2024, Stryker reported third quarter earnings outcomes for the interval ending September thirtieth, 2024. For the quarter, income grew 12% to $5.5 billion, which was $130 million forward of estimates.
Adjusted earnings-per-share totaled $2.87, which in contrast favorably to $2.46 within the prior 12 months and was $0.10 higher than anticipated.
Natural income was up 11.5% for the quarter. Quantity grew 10.3% and better costs added 1.2% to outcomes. MedSurg and Neurotechnology had gross sales of $3.2 billion, which represented 12.7% natural progress, whereas Orthopaedics and Backbone was increased by 9.7% to $2.3 billion.
Click on right here to obtain our most up-to-date Positive Evaluation report on SYK (preview of web page 1 of three proven under):
Excessive-Progress Dividend Champion #2: S&P World Inc. (SPGI)
- 5-year dividend progress charge: 12.0%
S&P World is a worldwide supplier of monetary providers and enterprise data and income of over $13 billion. By way of its varied segments, it supplies credit score rankings, benchmarks and indices, analytics, and different information to commodity market contributors, capital markets, and automotive markets.
S&P World has paid dividends repeatedly since 1937 and has elevated its payout for 51 consecutive years.
S&P World posted third quarter earnings on October twenty fourth, 2024, and outcomes have been fairly robust as soon as once more. Adjusted earnings-per-share got here to $3.89, which was 25 cents forward of estimates. Earnings have been down from $4.04 in Q2, however a lot increased than $3.21 within the year-ago interval.
Income soared 16% increased year-on-year to $3.58 billion, which additionally beat estimates by $150 million. Progress within the Rankings and Indices phase led the highest line increased in Q3, though power was broad.
Click on right here to obtain our most up-to-date Positive Evaluation report on SPGI (preview of web page 1 of three proven under):
Excessive-Progress Dividend Champion #1: Stepan Co. (SCL)
- 5-year dividend progress charge: 15.0%
Stepan manufactures fundamental and intermediate chemical compounds, together with surfactants, specialty merchandise, germicidal and cloth softening quaternaries, phthalic anhydride, polyurethane polyols and particular components for the meals, complement, and pharmaceutical markets.
It’s organized into three distinct enterprise traces: surfactants, polymers, and specialty merchandise. These companies serve all kinds of finish markets, which means that Stepan will not be beholden to only a handful of industries.
Supply: Investor presentation
The surfactants enterprise is Stepan’s largest by income, accounting for ~68% of whole gross sales in the latest quarter. A surfactant is an natural compound that accommodates each water-soluble and water-insoluble elements.
Stepan posted third quarter earnings on October thirtieth, 2024, and outcomes have been combined. Adjusted earnings-per-share got here in effectively forward of expectations at $1.03, which was 38 cents higher than anticipated. Income, nevertheless, was off virtually 3% year-over-year to $547 million, and missed estimates by over $30 million.
World gross sales quantity fell 1% year-over-year, as double-digit progress in a number of of the corporate’s Surfactant finish markets have been totally offset by demand weak spot in Polymers.
Click on right here to obtain our most up-to-date Positive Evaluation report on SCL (preview of web page 1 of three proven under):
Remaining Ideas
The fantastic thing about dividend progress shares is that they offer shareholders a pay increase yearly, for doing virtually nothing. That is why we suggest high quality dividend progress shares, such because the Dividend Champions.
To ensure that an organization to boost its dividend for no less than 25 years, it will need to have sturdy aggressive benefits, extremely worthwhile companies, and management positions of their respective industries.
In addition they have long-term progress potential and the flexibility to navigate recessions whereas persevering with to boost their dividends.
The highest 10 Dividend Champions on this article have lengthy histories of dividend progress, and the flexibility to boost their dividends at a excessive charge going ahead.
The Dividend Champions record will not be the one option to rapidly display screen for shares that usually pay rising dividends.
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