Revealed on December twenty third, 2024 by Bob Ciura
The great thing about purchase and maintain without end dividend development investing is that:
- It takes little or no work to keep up a portfolio
- Your passive earnings is prone to enhance considerably over time
Only a few optimistic issues in life have the above mixture.
Prime quality dividend development shares are inclined to pay rising dividends year-after-year. This implies a elevate for buyers yearly. However the investor must do nearly nothing to get their annual elevate.
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 listing of over 130 Dividend Champions.
You’ll be able to obtain your free copy of the Dividend Champions listing, 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 very least 25 years in a row. Because of this, they’re one of the best candidates for buyers trying to get raises for doing nothing.
This text will talk about the our high 10 Dividend Champions to get raises for doing nothing. We’ll listing the ten Dividend Champions within the Certain Evaluation Analysis Database with the very best 5-year dividend development charges.
Desk of Contents
You’ll be able to immediately bounce to any particular part of the article by clicking on the hyperlinks beneath:
Excessive-Progress Dividend Champion #10: Gorman-Rupp Co. (GRC)
- 5-year dividend development fee: 9.0%
Gorman-Rupp started manufacturing pumps and pumping techniques 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.
In the present day, Gorman-Rupp is a targeted, area of interest producer of vital techniques that many industrial shoppers depend upon 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 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% larger than these within the prior 12 months’s interval. The sturdy efficiency resulted primarily from worth hikes and decrease enter prices.
Click on right here to obtain our most up-to-date Certain Evaluation report on GRC (preview of web page 1 of three proven beneath):
Excessive-Progress Dividend Champion #9: Badge Meter Inc. (BMI)
- 5-year dividend development fee: 10.0%
Badger Meter was based in 1905 in Milwaukee, WI. The corporate’s first product was a “frost proof” water meter.
In the present day, Badger Meter manufactures and markets meters and valves which might be used to measure and management the move of liquids, comparable to water, oil and numerous chemical substances. The corporate’s merchandise are additionally used to regulate the move 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 cost 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 12 months and was $0.07 above estimates.
Click on right here to obtain our most up-to-date Certain Evaluation report on BMI (preview of web page 1 of three proven beneath):
Excessive-Progress Dividend Champion #8: Roper Applied sciences (ROP)
- 5-year dividend development fee: 10.0%
Roper Applied sciences is a specialised industrial firm that manufactures merchandise comparable to medical and scientific imaging tools, pumps, and materials evaluation tools.
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 relies 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 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 Certain Evaluation report on ROP (preview of web page 1 of three proven beneath):
Excessive-Progress Dividend Champion #7: Nordson Corp. (NDSN)
- 5-year dividend development fee: 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.
In the present day the corporate has operations in over 35 nations and engineers, manufactures, and markets merchandise used for allotting 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 12 months ends October thirty first.) For the quarter, the corporate reported gross sales of $662 million, 2% larger in comparison with $649 million in Q3 2023, which was pushed by a optimistic acquisition affect, 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 section 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 Certain Evaluation report on NDSN (preview of web page 1 of three proven beneath):
Excessive-Progress Dividend Champion #6: Walmart Inc. (WMT)
- 5-year dividend development fee: 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 planet, serving over 230 million clients every week. Income will possible be round $600 billion this 12 months.
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 traces, and by vast 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% larger throughout the quarter, whereas common ticket was up 2.1%.
E-commerce gross sales rose 27% throughout the quarter and was answerable for greater than half of the whole comparable gross sales achieve.
Click on right here to obtain our most up-to-date Certain Evaluation report on Walmart (preview of web page 1 of three proven beneath):
Excessive-Progress Dividend Champion #5: Casey’s Common Shops (CASY)
- 5-year dividend development fee: 12.0%
Casey’s Common Shops owns and operates over 2,600 comfort shops below 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 basic 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 depend 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 Certain Evaluation report on CASY (preview of web page 1 of three proven beneath):
Excessive-Progress Dividend Champion #4: Ecolab, Inc. (ECL)
- 5-year dividend development fee: 12.0%
Ecolab Inc. is the worldwide chief in water, hygiene, and vitality applied sciences and providers, with a presence in additional than 170 nations.
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 12 months’s quarter, primarily due to sturdy development within the Institutional section, which grew its gross sales 7%.
Due to larger 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 steering for earnings-per-share in 2024, from $6.50-$6.70 to $6.60-$6.70, implying 28% development over the prior 12 months on the mid-point.
Click on right here to obtain our most up-to-date Certain Evaluation report on ECL (preview of web page 1 of three proven beneath):
Excessive-Progress Dividend Champion #3: Stryker Corp. (SYK)
- 5-year dividend development fee: 12.0%
Stryker is a worldwide chief within the medical machine sector. Product traces embody surgical tools, neurovascular merchandise and orthopedic implants.
In the present day, 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 development, whereas Orthopaedics and Backbone was larger by 9.7% to $2.3 billion.
Click on right here to obtain our most up-to-date Certain Evaluation report on SYK (preview of web page 1 of three proven beneath):
Excessive-Progress Dividend Champion #2: S&P International Inc. (SPGI)
- 5-year dividend development fee: 12.0%
S&P International is a worldwide supplier of economic providers and enterprise data and income of over $13 billion. Via its numerous segments, it supplies credit score rankings, benchmarks and indices, analytics, and different information 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 larger than $3.21 within the year-ago interval.
Income soared 16% larger year-on-year to $3.58 billion, which additionally beat estimates by $150 million. Progress within the Rankings and Indices section led the highest line larger in Q3, though energy was broad.
Click on right here to obtain our most up-to-date Certain Evaluation report on SPGI (preview of web page 1 of three proven beneath):
Excessive-Progress Dividend Champion #1: Stepan Co. (SCL)
- 5-year dividend development fee: 15.0%
Stepan manufactures primary 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 traces: surfactants, polymers, and specialty merchandise. These companies serve all kinds of finish markets, that means that Stepan just isn’t 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 accommodates each water-soluble and water-insoluble elements.
Stepan posted third quarter earnings on October thirtieth, 2024, and outcomes have been blended. Adjusted earnings-per-share got here in nicely 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 point in Polymers.
Click on right here to obtain our most up-to-date Certain Evaluation report on SCL (preview of web page 1 of three proven beneath):
Last Ideas
The great thing about dividend development shares is that they offer shareholders a pay elevate yearly, for doing nearly nothing. This is the reason we suggest high quality dividend development shares, such because the Dividend Champions.
To ensure that an organization to lift its dividend for at the very least 25 years, it should have sturdy aggressive benefits, extremely worthwhile companies, and management positions of their respective industries.
In addition they have long-term development potential and the power to navigate recessions whereas persevering with to lift their dividends.
The highest 10 Dividend Champions on this article have lengthy histories of dividend development, and the power to lift their dividends at a excessive fee going ahead.
The Dividend Champions listing just isn’t the one technique to rapidly display screen for shares that commonly pay rising dividends.
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