Four Companies Rewarding Shareholders with a Raise

Accenture Plc (NYSE:ACN) provides management consulting, technology, and outsourcing services worldwide. The company increased its semi-annual cash dividend 10%, to $1.21 per share. This marked the eleventh annual dividend increase for this dividend achiever. Over the past decade, Accenture Plc (NYSE:ACN) has managed to boost dividends at a rate of 20.80%/year. The company has managed to grow earnings per share from $1.59 in 2006 to $5.92 in 2016.

I bought the stock in 2013, because its business model was very similar to what Buffett described IBM to be. From my interactions in my daily life, I had figured that Accenture Plc (NYSE:ACN) has strong relationships with businesses around the world, to help with their consulting needs. Professional services is a good business to be in, with low capital requirements, and a lot of excess cash flow. I believe that Accenture is a great company to buy and hold, provided you initiate your position at a decent entry valuation

The stock is close to being fully valued at 19.60 times earnings and yields 2.10%. While not terribly overvalued, I would prefer a lower entry valuation if I were to initiate a position or add to it.

RPM International Inc. (NYSE:RPM) manufactures, markets, and sells specialty chemical products for industrial, specialty, and consumer markets worldwide. This dividend champion raised its quarterly dividend by 9.10% to 30 cents/share. This marked the 43rd consecutive annual dividend increase for RPM International Inc. (NYSE:RPM). Over the past decade, this dividend champion has managed to raise dividends for its loyal shareholders at a rate of 5.60%/year on average. The company understand how this growing dividend is a key component of total returns. Currently, the stock is attractively valued at 17.90 times forward earnings and yields 2.40%. While earnings growth has been volatile, this looks like a shareholder friendly company to research for you soon. Please stay tuned for my updated analysis.

Northwest Natural Gas Co (NYSE:NWN) stores and distributes natural gas in the United States. The company operates through two segments, Local Gas Distribution and Gas Storage. The company raised its quarterly dividend by 0.50% to 47 cents/share. This marked the 61st consecutive annual dividend increase for this dividend king. Over the past decade, this dividend king has managed to increase dividend at a rate of 3.50%/year. Unfortunately, the rate of dividend growth has been slowing down markedly over the past few years.

The stock is overvalued at 23.80 times earnings, and yields 3.30%. Despite the long track record of annual dividend increases, I do not believe that this company is a good selection at current valuations. Given the fact that the company has been unable to grow earnings per share over the past decade, and the high dividend payout ratio of 80%, I would expect that the dividend streak will be over within a few years. As we have repeated multiple times on this site, a long track record of annual dividend increases is just one factor to consider. However, there are other things to keep in mind when researching dividend growth stocks.

Full Disclosure: Long ACN