14 Dividend Growth Stocks Rewarding Shareholders With A Raise

Rollins, Inc. (NYSE:ROL), through its subsidiaries, provides pest and termite control services to residential and commercial customers. This dividend contender raised its quarterly dividends by 15% to 11.50 cents/share. This marked the 15th consecutive annual dividend increase for Rollins, Inc. (NYSE:ROL). Over the past decade, the company has managed to increase its dividends at a rate of 18.40%/year. Earnings per share have increased from $0.25/share in 2006 to an estimated $0.86/share for 2016. Currently, the stock is very overvalued at 41 times forward earnings and yields 1.30%. I really like the company, and its business model. Unfortunately, it would have to drop by half, before I would even consider it for my portfolio.

Kimberly Clark Corporation (NYSE:KMB), together with its subsidiaries, manufactures and markets personal care, consumer tissue, and professional products worldwide. This dividend champion raised its quarterly dividends by 5.40% to 97 cents/share. This marked the 45th consecutive annual dividend increase for this quality dividend paying company. Over the past decade, Kimberly Clark Corp (NYSE:KMB) has managed to increase its dividends at a rate of 7.60%/year. Earnings per share have increased from $4.09/share in 2007 to an estimated $6.29/share for 2017. Currently, the stock is close to being fully valued at 19.20 times forward earnings and yields 3.20%. Given the slowing growth in earnings per share, I am not interested in adding more shares at this valuation levels. I expect future dividend growth to be slower over the next decade.

A. O. Smith Corp (NYSE:AOS) manufactures and markets a range of water heaters, boilers, and other products for residential and commercial end markets in the United States, China, Canada, Europe, and India. This dividend contender raised its quarterly dividends by 16.70% to 14 cents/share. This marked the 14th consecutive annual dividend increase for A. O. Smith Corp (NYSE:AOS). Over the past decade, the company has managed to increase its dividends at a rate of 13.50%/year. Earnings per share have increased from $0.41/share in 2006 to an estimated $1.84/share for 2016. Currently, the stock is overvalued at 26.30 times forward earnings and yields 1.20%

Magellan Midstream Partners, L.P. (NYSE:MMP) engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. It operates through Refined Products, Crude Oil, and Marine Storage segments. This dividend contender raised its quarterly distributions to 85.50 cents/unit. This master limited partnership has raised distributions for 14 years in a row. Over the past decade, the partnership has managed to increase its distributions at a rate of 11.50%/year. Currently, the partnership yields 4.30%

Welltower Inc (NYSE:HCN) is an independent equity real estate investment trust which invests in senior living and health care properties. This dividend contender raised its quarterly dividends to 87 cents/share. This marked the 13th consecutive annual dividend increase for Welltower Inc (NYSE:HCN). Over the past decade, the company has managed to increase its dividends at a rate of 3%/year. Currently, the stock yields 5.30%.

Full Disclosure: Long APD, D, KMB

Additional Links:

(1) http://www.dividendgrowthinvestor.com/2016/12/dividend-kings-list-for-2017.html