3 Strong Dividend Growth Stocks Announce Distributions
- By Alberto Abaterusso
Fortune Brands Home & Security Inc (NYSE:FBHS), Servisfirst Bancshares Inc (NASDAQ:SFBS) and Mackinac Financial Corp (NASDAQ:MFNC) announced quarterly dividends on Monday, Sept. 21.
These stocks draw the attention of dividend investors because they represent loyal payers who have topped the S&P 500 index in terms of a higher dividend growth rate over the last few years. As a benchmark for the U.S. market, the S&P 500 index has grown its real dividends per share at a compound annual growth rate (CAGR) of 5.77% over the past 12 months and 6.3% over the past year and three years.
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Fortune Brands Home & Security Inc
The Deerfield, Illinois-based provider of products for residential home repair, remodeling and new construction announced that on Dec. 16, it will pay a quarterly cash dividend of 24 cents per common share to its shareholders of record as of Nov. 27.
The ex-dividend date is scheduled for Nov. 25. The payment will be in line with the prior distribution.
Based on Monday's closing price of $82.34 per share, the quarterly dividend produces a forward dividend yield of 1.17%.
Fortune Brands Home & Security Inc has been distributing dividends for approximately seven years and increasing them by a CAGR of 9.3% and 11.2% over the last year and three years, respectively.
The company finances the payment of the quarterly dividend with nearly $400 million in cash on hand and with funds from operating cash flow of $786 million for the past four quarters.
GuruFocus has assigned a positive score of 5 out of 10 to the financial strength of the company and a high score of 8 out of 10 to its profitability.
The share price has increased by 55% over the past year for a 52-week range of $33.90 to $86.80.
The market capitalization is $11.38 billion and the price-earnings ratio stands at 26.65 compared to the industry median of 21.92.
Wall Street sell-side analysts recommend an overweight rating for the stock and have established an average target price of $83.79 per share.
Servisfirst Bancshares Inc
The Birmingham, Alabama-based regional provider of banking services to U.S. individual and corporate clients announced that on Oct. 9, it will distribute a quarterly cash dividend of 17.5 cents per common share to the shareholders of record as of Oct. 1.
The ex-dividend date is scheduled for Sept. 30. The distribution will be in line with the previous payment.
Based on Monday's closing price of $33.01 per share, the quarterly cash dividend generates a forward dividend yield of 2.12%.
Servisfirst Bancshares Inc has distributed dividends for approximately seven years and increased them by a CAGR of 20.5% and 48.7% over the past year and three years, respectively.
The company backs the payment of the dividend with cash on hand of $250 million and with operating cash flow of $210 million over the trailing 12-months.
GuruFocus has assigned a positive score of 5 out of 10 to the company's financial strength and a moderate score of 4 out of 10 to its profitability.
The share price was quite flat over the past year, for a 52-week range of $21.76 to $40.90.
The stock has a market capitalization of $1.78 billion and a price-earnings ratio of 11.62 versus the industry median of 9.7.
Wall Street sell-side analysts recommend a hold rating for this stock and have established an average target price of $37 per share.
Mackinac Financial Corp
The Manistique, Michigan-based regional provider of banking products and services to U.S. commercial and retail clients announced that on Oct. 12, it will pay a 14 cents per common share quarterly cash dividend to shareholders of record as of Oct. 1.
The ex-dividend date is scheduled for Sept. 30. The distribution will be in line with the previous one.
Based on Monday's closing price of $9.36 per share, the quarterly dividend generates a forward yield of 5.98%.
Mackinac Financial Corp has paid dividends for approximately 10 years and increased them by a CAGR of 16.7% and 9.1% over the last year and three years, respectively.
The company sustains the quarterly dividend with $163 million available in cash on hand and equivalents and funds from operating cash flow of $4.5 million over the prior 12 months.
GuruFocus has assigned a low score of 3 out of 10 to the company's financial strength and a moderate score of 4 out of 10 to its profitability.
The share price has fallen by 40% over the past year, determining a 52-week range of $6.52 to $17.75.
The stock has a market capitalization of $98.59 million and a price-earnings ratio of 7.37 versus the industry median of 9.7.
On Wall Street, the stock has one buy recommendation rating with a target price of $13 per share.
Disclosure: I have no positions in any securities mentioned.
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This article first appeared on GuruFocus.
