High 10 Highest Yielding Dividend Champions

Printed on October nineteenth, 2022 by Bob Ciura

Earnings traders are seemingly aware of the Dividend Aristocrats, a choose group of 65 shares within the S&P 500 Index which have elevated their dividends for not less than 25 consecutive years.

However there may be a good larger group of shares which have additionally raised their dividends for not less than 25 years, often known as the Dividend Champions. There are almost 150 Dividend Champions proper now.

The principle distinction between the 2 teams is that the Dividend Aristocrats are topic to extra standards comparable to market capitalization, each day buying and selling quantity, and extra. As well as, the Dividend Aristocrats have to be members of the S&P 500 Index.

Due to this fact, there are extra high-quality dividend progress shares to select from among the many Dividend Champions.

You’ll be able to obtain your free copy of the Dividend Champions checklist, together with related monetary metrics like price-to-earnings ratios, dividend yields, and payout ratios, by clicking on the hyperlink beneath:

Excessive yield Dividend Champions like the ten on this checklist, may very well be interesting selections for traders seeking to improve their revenue. For instance, retirees in search of alternative revenue might think about excessive yield Dividend Champions.

This text will focus on the highest 10 excessive yielding Dividend Champions, ranked in keeping with dividend yields within the Certain Evaluation Analysis Database.

Every of the excessive yield Dividend Champions beneath has a present yield above 5%, and has elevated its dividend for not less than 25 consecutive years.

Desk of Contents

You’ll be able to immediately bounce to any particular part of the article by clicking on the hyperlinks beneath:

Excessive Yield Dividend Champion #10: Leggett & Platt (LEG)

Leggett & Platt is an engineered merchandise producer. The corporate’s merchandise embody furnishings, bedding parts, retailer fixtures, die castings, and industrial merchandise. Leggett & Platt has 14 enterprise models and greater than 20,000 workers. The corporate qualifies for the Dividend Kings because it has 50 years of consecutive dividend will increase.

Within the 2022 second quarter, income of $1.33 billion rose 4.7% year-over-year. Earnings-per-share of $0.70 beat estimates by a penny. The corporate lowered full-year steerage, now anticipating gross sales in a variety of $5.2 billion to $5.4 billion, and earnings-per-share of $2.65 to $2.80 for 2022.

Click on right here to obtain our most up-to-date Certain Evaluation report on Leggett & Platt (preview of web page 1 of three proven beneath):

Excessive Yield Dividend Champion #9: Worldwide Enterprise Machines (IBM)

IBM is a world datarmation expertise firm that gives built-in enterprise options for software program, {hardware}, and companies. IBM’s focus is working mission essential methods for massive, multi-nationwide clients and governments. IBM usually gives end-to-end options.

The corporate now has 4 enterprise segments: Software program, Consulting, Infrastructure, and Financing. IBM had annual income of ~$57.4B in 2021 (not together with Kyndryl).

IBM reported strong outcomes for Q2 2022 on July 18th, 2022. Firm-wide income elevated 16% whereas diluted adjusted earnings per share rose 43% to $2.31 on a year-over-year foundation. Diluted GAAP earnings per share rose 79% to $1.61 within the quarter from $0.90 within the prior yr.

Income for Software program elevated 12% on account of 9% progress in Hybrid Platform & Options and a 19% improve in Transaction Processing. Income was up 17% for RedHat, 8% for Automation, 4% for Knowledge & AI, and 5% for Safety. Consulting income elevated 18%. The book-to-bill ratio is a wholesome 1.1X.

Click on right here to obtain our most up-to-date Certain Evaluation report on IBM (preview of web page 1 of three proven beneath):

Excessive Yield Dividend Champion #8: Canadian Utilities (CDUAF)

Canadian Utilities is a utility inventory with roughly 5,000 workers. ATCO owns 53% of Canadian Utilities. Based mostly in Alberta, Canadian Utilities is a diversified international power infrastructure company delivering options in electrical energy, pipelines & liquid, and retail power.

The corporate has an extended historical past of producing regular progress and constant income by means of the financial cycle.

Supply: Investor Presentation

On July twenty eighth, 2022, Canadian Utilities reported its Q2-2022 outcomes for the interval ending June thirtieth, 2022. Income for the quarter amounted to $726, 18.1% greater year-over-year, whereas EPS got here in at $0.39 in comparison with a lack of $0.03 in Q2-2022. Increased income was primarily the results of fee reduction supplied to clients in 2021 in mild of the COVID-19 international pandemic and, subsequently, the choice to maximise the gathering of 2021 deferred revenues in 2022.

The corporate’s aggressive benefit lies within the moat surrounding regulated utilities. With no simple entry into the sector, regulated utilities get pleasure from an oligopolistic market with little competitors menace. The corporate’s resiliency has been confirmed decade after decade.

One other aggressive benefit is the corporate’s sturdy monetary place. CDUAF has investment-grade credit score rankings of BBB+ from Normal & Poor’s and A- from Fitch. This permits the corporate to lift capital at engaging phrases.

Click on right here to obtain our most up-to-date Certain Evaluation report on Canadian Utilities (preview of web page 1 of three proven beneath):

Excessive Yield Dividend Champion #7: Walgreens Boots Alliance (WBA)

Walgreens Boots Alliance is the most important retail pharmacy in each the US and Europe. Via its flagship Walgreens enterprise and different business ventures, the firm employs extra than 325,000 folks and has greater than 13,000 shops.

On June thirtieth, 2022, Walgreens reported Q3 outcomes for the interval ending Might thirty first, 2022. Gross sales from persevering with operations dipped -4% and adjusted earnings-per-share decreased -30% over the prior yr’s quarter, from $1.37 to $0.96, principally on account of peak COVID-19 vaccinations within the prior yr’s interval.

Supply: Investor Presentation

Earnings-per-share exceeded analysts’ consensus by $0.03. The corporate has crushed analysts’ estimates for 8 consecutive quarters.

Walgreens reiterated its steerage for low-single digit progress of its annual earnings-per-share.

Click on right here to obtain our most up-to-date Certain Evaluation report on Walgreens (preview of web page 1 of three proven beneath):

Excessive Yield Dividend Champion #6: W.P. Carey (WPC)

W.P. Carey is a industrial actual property targeted REIT that operates two segments: actual property possession and funding administration. The REIT operates greater than 1,200 single tenant properties on a internet lease foundation, throughout the US and Northern and Western Europe.

W. P. Carey reported its second quarter earnings outcomes on July 29. The belief reported that its revenues totaled $340 million in the course of the quarter, which was 9% greater than the revenues that W. P. Carey generated in the course of the earlier yr’s interval. Revenues got here in above the analyst consensus estimate, beating it by $2 million.

Through the second quarter, the belief was extra worthwhile than what the analyst neighborhood anticipated, as funds-from operations got here in at $1.31 on a per-share foundation, which was $0.04 greater than the analyst consensus. Funds-from operations have been up by 3% on a per-share foundation in comparison with the earlier yr’s quarter.

W. P. Carey has up to date and elevated its steerage for 2022, forecasting funds from operations in a variety of $5.22 to $5.30 on a per-share foundation, which suggests a significant enchancment versus 2021 on the midpoint of the steerage vary.

Click on right here to obtain our most up-to-date Certain Evaluation report on WPC (preview of web page 1 of three proven beneath):

Excessive Yield Dividend Champion #5: Common Well being Realty Earnings Belief (UHT)

Common Well being Realty Earnings Belief operates as an actual property funding belief (REIT), specializing within the healthcare sector. The belief owns healthcare and human service-related amenities. Its property portfolio contains acute care hospitals, medical workplace buildings, rehabilitation hospitals, behavioral healthcare amenities, sub-acute care amenities and childcare facilities. Common Well being’s portfolio consists of 69 properties in 20 states.

On July twenty fifth, 2022 Common Well being launched Q2 outcomes. Web revenue decreased to $2.20 from $3.79 within the year-ago interval. Q2 adjusted internet revenue decreased to $163.9 million from $322.3 million year-over-year. Q2 funds from operations stood at $0.88. Q2 internet revenues elevated by 3.9% to $3.323 billion from $3.198 billion within the year-ago interval. In the meantime, UHT declared $1.056 billion of mixture out there borrowing capability and $1.21 billion of mixture out there repurchase authorization as of June 30,2022.

Click on right here to obtain our most up-to-date Certain Evaluation report on UHT (preview of web page 1 of three proven beneath):

Excessive Yield Dividend Champion #4: Common Corp. (UVV)

Common Company is a tobacco inventory. It’s the world’s largest leaf tobacco exporter and importer. The corporate is the wholesale purchaser and processor of tobacco that operates as an middleman between tobacco farms and the businesses that manufacture cigarettes, pipe tobacco, and cigars. Common additionally has an elements enterprise that’s separate from the core leaf section.

In the newest quarter, income was up 23% year-over-year, whereas price of products rose 22%. That meant gross margins rose 70 foundation factors to 18.5% of income, and adjusted working revenue was up 5% to $13.3 million. Components income soared 46% greater year-over-year due principally to the corporate’s 2021 acquisition of Shank’s Extracts.

Supply: Investor Presentation, web page 26

Because the chief in a declining business, we don’t anticipate the corporate to ship sturdy progress sooner or later. The corporate’s earnings-per-share might nonetheless rise over the subsequent couple of years, nevertheless. Common’s shares commerce at a reasonable valuation based mostly on the earnings and money flows that the corporate generates.

Common additionally doesn’t want to speculate massive quantities of cash into its enterprise, which provides it the power to make the most of a considerable quantity of its free money flows for share repurchases and dividends.

With a dividend payout of ~79% for the present fiscal yr, we view Common’s dividend as reasonably secure, with the caveat that the corporate faces headwinds because of the regular decline of the tobacco business.

Click on right here to obtain our most up-to-date Certain Evaluation report on Common (preview of web page 1 of three proven beneath):

Excessive Yield Dividend Champion #3: V.F. Corp. (VFC)

V.F. Company is among the world’s largest attire, footwear and equipment firms. The corporate’s manufacturers embody The North Face, Vans, Timberland and Dickies. The corporate, which has been in existence since 1899, generated over $11 billion in gross sales within the final 12 months.

In late July, V.F. Corp reported (7/28/22) monetary outcomes for the fiscal 2023 first quarter. Income of $2.26 billion rose 3.2% yr over yr and beat analyst estimates by $20 million. The North Face model led the way in which with 37% currency-neutral income progress within the quarter.

Nevertheless, inflation took its toll on margins and income. Gross margin of 53.9% for the quarter declined 260 foundation factors, whereas working margin of two.8% declined 640 foundation factors. In consequence, adjusted EPS declined 68% to $0.09 per share.

Adjusted earnings-per-share grew 67%, from $0.27 to $0.45, however missed analysts’ consensus by $0.02. For the brand new fiscal yr, V.F. Corp expects income progress of not less than 7% and adjusted earnings-per-share of $3.30 to $3.40.

Click on right here to obtain our most up-to-date Certain Evaluation report on V.F. Corp. (preview of web page 1 of three proven beneath):

Excessive Yield Dividend Champion #2: Enbridge Inc. (ENB)

Enbridge is an oil & gasoline firm that operates the next segments: Liquids Pipelines, Gasoline Distributions, Vitality Providers, Gasoline Transmission & Midstream, and Inexperienced Energy & Transmission. Enbridge purchased Spectra Vitality for $28 billion in 2016 and has turn out to be one of many largest midstream firms in North America.

Supply: Investor Presentation

Enbridge reported its second quarter earnings outcomes on July 29. Through the quarter, Enbridge nonetheless managed to develop its adjusted EBITDA by 12% yr over yr, to CAD$3.7 billion, up from CAD$3.3 billion in the course of the earlier yr’s quarter. This was potential because of stronger contributions from the liquids pipelines section primarily.

Enbridge was in a position to generate distributable money flows of US$2.1 billion, or US$1.04 on a per-share foundation, which was up by 10% yr over yr in CAD. Enbridge is forecasting distributable money flows in a variety of USD$4.12 on the midpoint of the steerage vary, which might simply be a brand new report for the corporate.

Enbridge raised its dividend by 3% (in CAD), which was the twenty seventh yearly dividend improve in a row. Excessive yield Dividen Champions like Enbridge are interesting on account of their annual dividend progress, even throughout recessions. That is particularly uncommon for the oil and gasoline business, which is cyclical by nature.

Click on right here to obtain our most up-to-date Certain Evaluation report on Enbridge (preview of web page 1 of three proven beneath):

Excessive Yield Dividend Champion #1: Altria Group (MO)

Altria Group was based by Philip Morris in 1847. At this time, it’s a shopper staples large. It sells the Marlboro cigarette model within the U.S. and plenty of different non-smokeable manufacturers, together with Skoal and Copenhagen.

The flagship model continues to be Marlboro, which holds over 40% retail market share within the U.S.

Supply: Investor Presentation

Altria additionally has a 10% possession stake in international beer large Anheuser-Busch InBev, along with massive stakes in Juul, a vaping merchandise producer and distributor, in addition to hashish firm Cronos Group (CRON).

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On 07/28/22, Altria reported second quarter outcomes. Adjusted diluted earnings-per-share elevated 2.4% to $1.26 yearover-year. Web income stood at $6.5 billion, down by 5.7% year-over-year. Reported diluted earnings per share stood at $0.49, down by 57.8% year-over-year. Income decreased 4.1% to $5.37 billion year-over-year.

In the meantime, Altria reported roughly $750 million remaining underneath the corporate’s current $3.5 billion share repurchase program which is anticipated to finish by December 31, 2022. The corporate additionally reaffirmed full-year 2022 adjusted diluted earnings-per-share steerage of $4.79-$4.93 which represents an adjusted diluted earnings-per-share progress fee of 4% to 7%.

Altria takes the #1 spot amongst excessive yield Dividend Champions, because it has a present yield above 8%. With a goal dividend payout ratio of 80% of its annual adjusted EPS, the dividend seems secure.

Click on right here to obtain our most up-to-date Certain Evaluation report on Altria Group (preview of web page 1 of three proven beneath):

Closing Ideas & Extra Studying

Excessive yield Dividend Champions are engaging for revenue traders, not only for their excessive yields, but in addition for his or her lengthy monitor information of rising their dividends. Nonetheless, traders ought to assess every of the excessive yield Dividend Champions earlier than shopping for. That stated, these 10 excessive yield Dividend Champions seem to have secure dividends.

The excessive yield Dividend Champions checklist will not be the one technique to shortly display for shares that usually pay rising dividends.