Seven Dividend Stocks Rewarding Shareholders With A Raise

Avista Corp (NYSE:AVA) operates as an electric and natural gas utility company. The company operates in two segments, Avista Utilities, and Alaska Electric Light and Power Company. The company raised its quarterly dividend by 4.40% to 35.75 cents/share. This marked the 15th consecutive annual dividend increase for this dividend contender.

Over the past decade, Avista Corp (NYSE:AVA) has managed to boost annual dividends at a rate of 9.20%/year. This was supported by an increase in earnings per share from $1.46 in 2006 to $1.89/share in 2015. Avista Corp (NYSE:AVA) is expected to earn $2.08/share in 2016 and $2.07/share in 2018. The stock is selling at 19 times forward earnings and yields 3.70%. I think that given the slow rate of earnings and dividend growth, the stock is fully valued today. It may be an interesting idea at a P/E of 15 – 16 however.

Church & Dwight Co., Inc. (NYSE:CHD) develops, manufactures, and markets household, personal care, and specialty products in the United States. It operates through three segments: Consumer Domestic, Consumer International, and Specialty Products Division. Church & Dwight Co., Inc. (NYSE:CHD) raised its quarterly dividend by 7% to 19 cents/share. This marked the 21st consecutive annual dividend increase for this dividend contender.

Over the past decade, the company has managed to boost annual dividends at a rate of 27.30%/year. This was supported by an increase in earnings per share from $0.52 in 2006 to $1.54/share in 2015. Church & Dwight Co., Inc. (NYSE:CHD) is expected to earn $1.75/share in 2016 and $1.89/share in 2017. The stock is overvalued at 27.60 times forward earnings and yields 1.60%. I really like the company, but would be more interested in it on dips below $35/share. I do not want to overpay for my investments, which is why I will wait for the price to come down.

Bemis Company, Inc. (NYSE:BMS) manufactures and sells packaging products in North America, Latin America, Europe, and the Asia-Pacific region. The company operates through two segments, U.S. Packaging and Global Packaging. The company raised its quarterly dividend by 3.30% to 30 cents/share. This marked the 34th consecutive annual dividend increase for this dividend champion. Over the past decade, Bemis Company, Inc. (NYSE:BMS) has managed to boost annual dividends at a rate of 4.50%/year. This was supported by an increase in earnings per share from $1.74 in 2007 to $2.48/share in 2016.

Bemis Company, Inc. (NYSE:BMS) is expected to earn $2.90/share in 2017 and $3.16/share in 2018. The stock is attractively valued at 16.80 times forward earnings and yields 2.50%. Even using the past year’s numbers of $2.48/share, to account for the slow rate of dividend increase, the stock is cheap below 20 times earnings. I would need to post an analysis of the stock, but it does look like an interesting idea at this time.

Dr Pepper Snapple Group Inc. (NYSE:DPS) operates as a brand owner, manufacturer, and distributor of non-alcoholic beverages in the United States, Mexico, and Canada. The company operates through three segments: Beverage Concentrates, Packaged Beverages, and Latin America Beverages. The company raised its quarterly dividend by 9.40% to 58 cents/share. This marked the 8th consecutive annual dividend increase for this dividend contender. Despite the fact that Dr Pepper Snapple Group Inc. (NYSE:DPS) has not raised dividends for at least a decade, I made an exception because I think it has strong fundamentals, recurring cash flows that are supported by the nature of its products and the repeated sales for those same products by consumers.

Over the past five years, the company has managed to boost annual dividends at a rate of 18.30%/year. Earnings per share increased from $2.01 in 2006 all the way to $3.97 in 2015. Dr Pepper Snapple Group Inc. (NYSE:DPS) is expected to earn $4.41/share in 2016 and $4.75/share in 2017. The stock is overvalued at 21.20 times forward earnings and yields 2.50%. I would be interested in the stock on dips below $88/share.

Full Disclosure: Long MMM, DPS

Additional Links:

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

(2) http://www.dividendgrowthinvestor.com/2017/02/8-dividend-growth-stocks-on-sale.html

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