Nine Cash Machines Hiking Dividend

I review the list of dividend increases every week, as part of my review process. I focus my attention on companies that raised dividends in the current week and have at least a ten-year track record of annual dividend increases.

Only a company with a strong cash flow generating business can afford to grow dividends for a long period of time. Therefore, a business growing dividends for at least a decade is worth looking at for further research.

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There were nine companies that fit the criteria. You can view the five companies in the table below:

AFLAC Incorporated (AFL)

AFLAC Incorporated (NYSE: AFL) provides supplemental health and life insurance products. It operates through two segments, Aflac Japan and Aflac U.S. The company raised its quarterly dividend by 17.86% to 33 cents/share. This marked the 38th consecutive annual dividend increase for this dividend aristocrat. During the past decade, Aflac has managed to grow dividends at an annualized rate of 6.80%. Between 2009 and 2019, Aflac managed to boost earnings from $1.59/share to $4.43/share. Aflac is expected to generate $4.93/share in 2020.  Right now the stock is attractively valued at 8.90 times forward earnings. Aflac yields 3%.

McCormick & Company, Incorporated (MKC)

McCormick & Company, Incorporated (NYSE: MKC) manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry. The company operates in two segments, Consumer and Flavor Solutions.  The company hiked quarterly dividends by 9.68% to 68 cents/share, marking the 34th year of consecutive annual dividend increases for this dividend aristocrat. McCormick has managed to increase dividends at an annualized rate of 9.04% during the past decade. Between 2009 and 2019, McCormick has managed to grow earnings from $2.27/share to $5.24/share. The company is expected to earn $5.71/share in 2020. The stock is not cheap at 32.20 times forward earnings. McCormick yields 1.50%.

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