Eight Dividend Stocks Rewarding Shareholders With A Raise

WGL Holdings Inc (NYSE:WGL) sells and delivers natural gas; and provides energy-related products and services. The company operates through four segments: Regulated Utility, Retail Energy-Marketing, Commercial Energy Systems, and Midstream Energy Services. The company raised its quarterly dividend by 4.60% to 51 cents/share. This was the 41st consecutive year of dividend increases for WGL Holdings Inc (NYSE:WGL). This dividend champion (2) has managed to boost its payout at a rate of 3.70%/year over the past decade. Earnings per share rose from $2.19 to $3.31 over the past decade. WGL Holdings Inc (NYSE:WGL) is expected to earn $3.37/share over the next year. Currently, the stock is overvalued at 24.40 times forward earnings and yields 2.50%. I would give the company a pass at this time.

PPL Corp (NYSE:PPL) is a utility company that delivers electricity and natural gas in the United States and the United Kingdom. The company raised its quarterly dividend by 3.90% to 39.50 cents/share. This was the 16st consecutive year of dividend increases for PPL Corp (NYSE:PPL). This dividend contender has managed to boost its payout at a rate of 4%/year over the past decade. Earnings per share rose from $2.63 to $2.79 over the past decade. PPL Corp (NYSE:PPL) is expected to earn $2.16/share over the next year. Currently, the stock is attractively valued at 16.40 times forward earnings and yields 4.40%. Given the lack of earnings growth over the past decade however, I will have to give the company a pass. I do not want dividend growth that is only possible by expanding the dividend payout ratio.

Meredith Corporation (NYSE:MDP) operates as a diversified media company that focuses primarily on the home and family marketplace in the United States. It operates in two segments, Local Media and National Media. The company raised its quarterly dividend by 5.10% to 52 cents/share. This was the 25th consecutive year of dividend increases for Meredith Corporation (NYSE:MDP). This dividend champion (2) has managed to boost its payout at a rate of 12%/year over the past decade. Earnings per share rose from $3.44 to an estimated $3.75/share over the next year. Currently, the stock is attractively valued at 16.50 times forward earnings and yields 3.40%. Given the lack of earnings growth over the past decade however, I may have to give the company a pass.

Principal Financial Group Inc (NYSE:PFG) provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. It operates through Retirement and Income Solutions, Principal Global Investors, Principal International, and U.S. Insurance Solutions segments. The company raised its quarterly dividend by 4.70% to 45 cents/share. This was the 10th consecutive year of dividend increases for Principal Financial Group Inc (NYSE:PFG). This dividend contender has managed to boost its payout at a rate of 7.20%/year over the past decade. Earnings per share rose from $3.01 to $4.50/share over the past decade. Principal Financial Group Inc (NYSE:PFG) is expected to earn $4.85/share during the coming year. Currently, the stock is attractively valued at 12.30 times forward earnings and yields 3.00%. I would put it on my list for further research.

Cincinnati Financial Corporation (NASDAQ:CINF) engages in the property casualty insurance business in the United States. It operates through five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments. The company raised its quarterly dividend by 4.20% to 50 cents/share. This was the 58th consecutive year of dividend increases for Cincinnati Financial Corporation (NASDAQ:CINF). This dividend king has managed to boost its payout at a rate of 3.80%/year over the past decade.

Earnings per share declined from $5.30 to $3.83/share over the past decade. Cincinnati Financial Corporation (NASDAQ:CINF) is expected to earn $2.97/share during the coming year. Currently, the stock is overvalued at 24 times forward earnings and offers a current yield of 2.80%. Given the lack of earnings growth, and high valuation, I think that the stock is not a good value at the moment. I have been on record for selling Cincinnati Financial in early 2013 to buy the shares of the top 5 Canadian Banks (3). This is a good example of my assertion that selling a stock, and replacing it with something else is usually a mistake, despite the “reasons” one may have at the time.

Full Disclosure: Long DEO

Additional Links:

(1) http://www.dividendgrowthinvestor.com/2010/03/ten-year-dividend-growth-requirement.html

(2) http://www.dividendgrowthinvestor.com/2016/09/dividend-champions-best-list-for.html

(3) http://www.dividendgrowthinvestor.com/2014/10/canadian-banks-for-long-term-dividend.html