Revealed on December twenty third, 2024 by Bob Ciura
The great thing about purchase and maintain endlessly dividend development investing is that:
It takes little or no work to keep up a portfolio
Your passive earnings is more likely to enhance considerably over time
Only a few optimistic issues in life have the above mixture.
Top quality dividend development shares are likely to pay rising dividends year-after-year. This implies a increase for buyers yearly. However the investor must do nearly nothing to get their annual increase.
The one “work” required is to carry your dividend development shares as long as they proceed to develop your earnings.
With this in thoughts, we created a downloadable record of over 130 Dividend Champions.
You may 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 beneath:
The Dividend Champions have raised their dividends for at the least 25 years in a row. In consequence, they’re the most effective candidates for buyers seeking to get raises for doing nothing.
This text will focus on the our high 10 Dividend Champions to get raises for doing nothing. We’ll record the ten Dividend Champions within the Positive Evaluation Analysis Database with the best 5-year dividend development charges.
Desk of Contents
You may immediately soar to any particular part of the article by clicking on the hyperlinks beneath:
Excessive-Development Dividend Champion #10: Gorman-Rupp Co. (GRC)
5-year dividend development charge: 9.0%
Gorman-Rupp started manufacturing pumps and pumping programs again in 1933. Since that point, it has grown into an business chief with annual gross sales of practically $700 million and a market capitalization of $1 billion.
At this time, Gorman-Rupp is a centered, area of interest producer of important programs that many industrial shoppers depend on for their very own success.
Gorman Rupp generates about one-third of its complete income from outdoors 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 sturdy development over the prior yr.
Income grew marginally (0.4%), from $167.5 million to $168.2 million, as value 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 yr’s interval. The sturdy efficiency resulted primarily from value 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 beneath):
Excessive-Development Dividend Champion #9: Badge Meter Inc. (BMI)
5-year dividend development charge: 10.0%
Badger Meter was based in 1905 in Milwaukee, WI. The corporate’s first product was a “frost proof” water meter.
At this time, Badger Meter manufactures and markets meters and valves which might be used to measure and management the movement of liquids, corresponding to water, oil and varied chemical substances. The corporate’s merchandise are additionally used to manage 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 development 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 yr 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 beneath):
Excessive-Development Dividend Champion #8: Roper Applied sciences (ROP)
5-year dividend development charge: 10.0%
Roper Applied sciences is a specialised industrial firm that manufactures merchandise corresponding 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 in the course of the quarter remained sturdy, with natural development coming in at 4% and acquisitions additional boosting top-line development.
Natural development was as soon as once more pushed by broad-based energy 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 beneath):
Excessive-Development Dividend Champion #7: Nordson Corp. (NDSN)
5-year dividend development 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. Automated Firm.
At this time the corporate has operations in over 35 international locations and engineers, manufactures, and markets merchandise used for dishing out adhesives, coatings, sealants, biomaterials, plastics, and different supplies, with purposes 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 yr 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 influence, 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 Know-how 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 yr 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 beneath):
Excessive-Development Dividend Champion #6: Walmart Inc. (WMT)
5-year dividend development 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 this planet, serving over 230 million clients every week. Income will possible be round $600 billion this yr.
Walmart posted second quarter earnings on August fifteenth, 2024, and outcomes have been glorious, sending the inventory hovering. Adjusted earnings-per-share beat estimates by two cents at 67 cents. Income was up nearly 5% year-over-year to $169.3 billion, and beat estimates by nearly $2 billion.
Walmart posted third quarter earnings on November nineteenth, 2024, and outcomes have been higher than anticipated on each the highest and backside strains, and by broad margins for each.
Adjusted earnings-per-share got here to 58 cents, which was a nickel forward of estimates, or nearly 10%. Income was up 5.5% to $170 billion, which beat estimates by nearly $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 in the course of the quarter, whereas common ticket was up 2.1%.
E-commerce gross sales rose 27% in the course of the quarter and was accountable for greater than half of the full comparable gross sales achieve.
Click on right here to obtain our most up-to-date Positive Evaluation report on Walmart (preview of web page 1 of three proven beneath):
Excessive-Development Dividend Champion #5: Casey’s Normal Shops (CASY)
5-year dividend development charge: 12.0%
Casey’s Normal Shops owns and operates over 2,600 comfort shops beneath Casey’s model title. 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 gasoline, 25% from groceries and normal merchandise, and 10% from ready meals & allotted 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 seller 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 beneath):
Excessive-Development Dividend Champion #4: Ecolab, Inc. (ECL)
5-year dividend development 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: International Industrial, International Institutional, International Healthcare and International 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 yr’s quarter, primarily because of sturdy development within the Institutional phase, which grew its gross sales 7%.
Because of increased volumes, materials value 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, because of sturdy pricing and optimistic gross sales momentum, administration barely improved its steering for earnings-per-share in 2024, from $6.50-$6.70 to $6.60-$6.70, implying 28% development over the prior yr 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 beneath):
Excessive-Development Dividend Champion #3: Stryker Corp. (SYK)
5-year dividend development charge: 12.0%
Stryker is a worldwide chief within the medical gadget sector. Product strains embody surgical gear, neurovascular merchandise and orthopedic implants.
At this time, the corporate employs greater than 46,000 folks 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 yr 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 development, 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 beneath):
Excessive-Development Dividend Champion #2: S&P International Inc. (SPGI)
5-year dividend development charge: 12.0%
S&P International is a worldwide supplier of monetary providers and enterprise data and income of over $13 billion. By its varied segments, it supplies credit score rankings, benchmarks and indices, analytics, and different knowledge to commodity market members, capital markets, and automotive markets.
S&P International has paid dividends repeatedly since 1937 and has elevated its payout for 51 consecutive years.
S&P International posted third quarter earnings on October twenty fourth, 2024, and outcomes have been fairly sturdy 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. Development within the Scores and Indices phase led the highest line increased in Q3, though energy 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 beneath):
Excessive-Development Dividend Champion #1: Stepan Co. (SCL)
5-year dividend development charge: 15.0%
Stepan manufactures fundamental and intermediate chemical substances, together with surfactants, specialty merchandise, germicidal and material softening quaternaries, phthalic anhydride, polyurethane polyols and particular substances for the meals, complement, and pharmaceutical markets.
It’s organized into three distinct enterprise strains: surfactants, polymers, and specialty merchandise. These companies serve all kinds of finish markets, which means that Stepan shouldn’t be beholden to only a handful of industries.
Supply: Investor presentation
The surfactants enterprise is Stepan’s largest by income, accounting for ~68% of complete gross sales in the newest quarter. A surfactant is an natural compound that incorporates each water-soluble and water-insoluble parts.
Stepan posted third quarter earnings on October thirtieth, 2024, and outcomes have been blended. Adjusted earnings-per-share got here in properly forward of expectations at $1.03, which was 38 cents higher than anticipated. Income, nevertheless, was off nearly 3% year-over-year to $547 million, and missed estimates by over $30 million.
International gross sales quantity fell 1% year-over-year, as double-digit development in a number of of the corporate’s Surfactant finish markets have been absolutely 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 beneath):
Remaining Ideas
The great thing about dividend development shares is that they provide shareholders a pay increase yearly, for doing nearly nothing. This is the reason we advocate high quality dividend development shares, such because the Dividend Champions.
To ensure that an organization to boost its dividend for at the least 25 years, it will need to have sturdy aggressive benefits, extremely worthwhile companies, and management positions of their respective industries.
Additionally they have long-term development potential and the power to navigate recessions whereas persevering with to boost their dividends.
The highest 10 Dividend Champions on this article have lengthy histories of dividend development, and the power to boost their dividends at a excessive charge going ahead.
The Dividend Champions record shouldn’t be the one strategy to rapidly display screen for shares that repeatedly pay rising dividends.
Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to assist@suredividend.com.
