A list of long term dividend paying stocks

Investment Analysis Clubs Dividend Growth Investing
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YRS OF Current
COMPANY NAME SYMB SECTOR INDUSTRY INCR DIV PRICE Qtr div Annual Div Yield Ex-D
Best Buy Co., Inc. BBY Consumer Discretionary Specialty Retail 20 69.55 0.9200 3.6800 5.3% 14-Dec
Black Hills Corporation BKH Utilities Multi-Utilities 52 58.07 0.6250 2.5000 4.3% 17-Nov
Sonoko Industries SON Materials Containers & Packaging 41 56.81 0.5100 2.0400 3.6% 9-Nov
Stanley Black & Decker, Inc. SWK Industrials Machinery 56 84.00 0.8100 3.2400 3.9% 1-Dec
Leggett & Platt, Incorporated LEG Consumer Discretionary Household Durables 52 24.88 0.4600 1.8400 7.4% 14-Dec
Medtronic plc MDT Health Care Health Care Equipment & Supplies 46 79.71 0.6900 2.7600 3.5% 22-Dec
RGC Resources, Inc. RGCO Utilities Gas Utilities 19 17.80 0.1975 0.7900 4.4% 14-Oct
New Jersey Resources Corporation NJR Utilities Gas Utilities 27 42.24 0.3900 1.5600 3.7% 19-Dec
Southwest Gas Holdings, Inc. SWX Utilities Gas Utilities 16 62.22 0.6200 2.4800 4.0% 14-Nov
Spire Inc. SR Utilities Gas Utilities 20 58.24 0.7200 2.8800 4.9% 8-Dec
Essex Property Trust, Inc. ESS Real Estate Equity Residential REIT 29 215.64 2.3100 9.2400 4.3% 29-Sep
Federal Realty Investment Trust FRT Real Estate Equity Retail REIT 55 92.90 1.0900 4.3600 4.7% 21-Dec
Alliant Energy Corporation LNT Utilities Electric Utilities 20 50.74 0.4525 1.8100 3.6% 28-Oct
Xcel Energy Inc. XEL Utilities Electric Utilities 20 59.01 0.5200 2.0800 3.5% 14-Dec
Alerus Financial Corporation ALRS Financials Diversified Financial Services 25 19.79 0.1900 0.7600 3.8% 14-Dec
T. Rowe Price Group, Inc. TROW Financials Capital Markets 37 105.82 1.2200 4.8800 4.6% 14-Dec
Franklin Resources, Inc. BEN Financials Capital Markets 43 24.90 0.3000 1.2000 4.8% 29-Sep
Aflac AFL Financials Insurance 41 74.20 0.4200 1.6800 2.3% 15-Nov
Community Bank System, Inc. CBU Financials Banks 32 53.87 0.4500 1.8000 3.3%
Tompkins Financial Corporation TMP Financials Banks 36 59.15 0.6000 2.4000 4.1%
Bar Harbor Bankshares BHB Financials Banks 20 27.15 0.2800 1.1200 4.1%
The First of Long Island Corporation FLIC Financials Banks 27 13.85 0.2100 0.8400 6.1%
Arrow Financial Corporation AROW Financials Banks 29 20.44 0.2700 1.0800 5.3%
Community Trust Bancorp, Inc. CTBI Financials Banks 43 38.28 0.4600 1.8400 4.8%
First Farmers Financial Corporation FFMR Financials Banks 33 62.75 0.4700 1.8800 3.0%
Cambridge Bancorp CATC Financials Banks 25 62.96 0.6700 2.6800 4.3%
Bank OZK OZK Financials Banks 27 38.44 0.3600 1.4400 3.7%
Norwood Financial Corp. NWFL Financials Banks 25 30.57 0.2900 1.1600 3.8%
Landmark Bancorp, Inc. LARK Financials Banks 19 21.18 0.2100 0.8400 4.0%

Thought others in persuit of long-term dividend payers may be interested in this list. It is from the Justin Law (formerly David Fish) CCC list. I sorted it for those companies who have been paying a growing dividend for at least 17 years with the dividend growing each year by at least 3% with a current yield of at least 3%. This potentially provides the most robust of dividend payers as the dividend history is thru two recessions (2008/9 and 2020)

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Just an observation. The list seems to be dominated by two sectors - financials and utilities. The latter has traditional been viewed as a defensive sector and/or a good inflation hedge.

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https://www.investors.com/research/ibd-stock-analysis/fro-stock-among-best-dividend-stocks-with-whoppng-yield-327-earnings-growth/

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One of the shipping stocks has made the news for its great dividend. Also one of the top stocks with a 99 composite rating. Actually TNK is another one that you shared a report with us too…doc

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How different is this list from the “dividend aristocrats” list? I haven’t looked at it lately, but isn’t it based on the same principle - long term dividend with regular increases?

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I think the difference is that FRO and TNK are not actually dividend aristocrats. I posted these for Hohum because he follows the shipping stocks and the high dividend stocks on another thread. This article being from IBD and the lofty composite rating caught my attention…doc

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This list is certainly a subset of Dividend Aristocrats, but its refined an additional four steps. Here were my sorting criteria;

  1. Companies that have been paying an annually growing dividend for at least 17 years. The reason for this is it puts the company thru two recessions: 2008-09 and 2020

  2. Dividends have grown annually by at least 3% per year over this period.

  3. The slope on the graph line of dividend growth rate over the 17 year period is not steadily declining. I have not quantified this yet, just observation.

  4. The current yield is at least 3.5%

I was surprised how many stocks came up on this sort, although 11 of them are financials, suggesting the market is not very comfortable with interest rates and how this will impact financial companies. Personally, I don’t hold any pure financials, as their earnings tends to be ephemeral and subject to wide swings and they are very hard to analyze for cash flow progression.

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Hi Bruce. I have been looking at O recently. I think it meets your criteria. It is getting historically very cheap and has a dividend a little over 6 percent. The more I read the more I am interested. The management sold all their office inventory awhile back and didn’t even cut their dividend, like WPC did, because they are so diverse.

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Andy

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Hey Andy
I’m inserting the data table I use to check the trend in company cash flows so as to see trends. I use primarily the Statement of Cash Flows, as dividends are paid with cash and trending problems in cash does not bode well for future dividends.

To get this data, I use Morningstar Premium (available thru local library), where I can download into Excel a quarterly history of Revenues, Interest Expense, number of shares, Consolidated Funds From Operations (CFFO or operational cash flow), Investing activities (CFFI) , Common Dividends, Preferred Dividends and distributions to non-controlling interest, if any. I subtract that latter two from CFFO to get net CFFO as these two distributions must be paid first before common dividends.

Once the data is loaded, the colored cells are the actual calculations per share of Revenues, CFFO, Dividends, Dividend to CFFO payout ratio and interest expense as a % of CFFO + Interest. This latter measure tells us how much of operational cash goes to debt, and one of the best correlations to future dividend growth rate.

To take out the effect of quarterly fluctuations, I use rolling 4Q in calculating ratios.

Realty Income’s cash flows look as good as they’ve ever looked. The dividend to CFFO payout ratio at 70% is very low for a net lease REIT. Interest expense at 16% is very low for a net lease or any REIT…which typically runs around 20% in the best REITs.

With the sharp up-tick in # of shares outstanding in late 2021and low interest expense tells me O is funding acquisitions…and they’ve had a lot of them…with stock, not debt. Is this a visionary move by management in anticipation of high borrowing rates coming? Did O jump on some RE buying oppotunities? Whatever, it is, its working.

So why the continued price decline and a current yield of 6.2%? Just a guess, but I suspect all highly leveraged financials and REITs are getting hit. If O is as healthy as they appear, this by any definition is a buying opportunity.

NNN is a close cousin, but I haven’t updated their CF numbers yet.

<--------------------------------------------- Rolling 4 Quarter ----------------------------------------------------------------->
% of CFFI
Realty Income non-Controlling Interest Comm Div Paid with
$Millions Common Preferred Interests Total as a % of Revenue CFFI CFFO Net CFFO to Net CFFO Net CFFO ROI to CFFO/ Common Div
symbol==> O Revenue Interest CFFO Net CFFO 1 CFFI Dividends Dividends Distributions Distribtuions # Shares (CFFO+ Int) per Share per Share per Share per share POR after Div CFFO Revenue per share
1 3Q13 199 50 124 113 512 107 10 0.5 117.8 196 0.55
2 4Q13 228 51 173 162 121 111 10 0.5 121.6 192 0.58
3 1Q14 222 52 114 103 593 113 10 0.5 124.4 207 27% 1.09 2.06 0.69 0.64 88% 4% 0.02 63% 0.55
4 2Q14 229 53 185 174 294 121 10 0.5 132.2 221 26% 1.08 1.86 0.73 0.68 82% 7% 0.12 68% 0.55
5 3Q14 236 53 141 130 167 122 10 0.5 133.0 222 25% 1.09 1.40 0.73 0.68 82% 9% 0.01 67% 0.55
6 4Q14 248 59 188 181 121 123 7 0.5 129.8 218 26% 1.08 1.35 0.72 0.68 82% 9% 0.01 67% 0.56
7 1Q15 247 58 118 111 164 127 7 0.4 133.9 225 26% 1.08 0.84 0.71 0.67 83% 14% 0.01 66% 0.56
8 2Q15 254 59 204 197 711 132 7 0.4 138.8 232 26% 1.10 1.29 0.72 0.69 81% 10% 0.02 66% 0.57
9 3Q15 259 64 151 144 120 134 7 0.4 141.7 236 27% 1.10 1.22 0.72 0.69 82% 10% 0.01 66% 0.57
10 4Q15 264 52 219 212 184 140 7 0.4 147.7 236 25% 1.10 1.27 0.74 0.71 80% 11% 0.03 68% 0.60
11 1Q16 267 61 136 129 295 147 7 0.4 154.5 250 25% 1.09 1.37 0.74 0.71 81% 10% 0.01 68% 0.59
12 2Q16 271 57 225 218 296 151 7 0.4 158.4 253 24% 1.09 0.92 0.75 0.72 82% 14% 0.02 69% 0.60
13 3Q16 277 53 218 211 382 155 7 0.3 162.2 258 22% 1.08 1.16 0.80 0.77 77% 15% 0.06 74% 0.60
14 4Q16 288 61 225 207 728 157 7 11.7 175.2 255 22% 1.08 1.67 0.79 0.75 80% 9% 0.00 73% 0.61
15 1Q17 298 59 213 206 365 163 6 0.6 169.3 263 21% 1.10 1.72 0.86 0.82 74% 12% 0.04 78% 0.62
16 2Q17 300 61 247 247 300 173 - 0.3 173.1 273 21% 1.11 1.69 0.86 0.83 74% 13% 0.01 78% 0.63
17 3Q17 307 63 179 178 248 175 - 0.8 175.4 276 22% 1.12 1.54 0.81 0.79 80% 10% (0.02) 72% 0.63
18 4Q17 311 61 237 235 342 179 - 2.0 181.4 273 22% 1.12 1.16 0.81 0.80 80% 14% 0.01 72% 0.66
19 1Q18 318 59 214 213 493 186 - 0.3 185.9 284 22% 1.12 1.25 0.79 0.79 82% 12% 0.00 71% 0.65
20 2Q18 329 65 264 263 297 187 - 0.4 187.9 285 22% 1.13 1.23 0.80 0.80 82% 12% 0.01 71% 0.66
21 3Q18 338 67 213 212 577 192 - 0.6 192.3 291 21% 1.14 1.51 0.82 0.81 81% 10% 0.02 72% 0.66
22 4Q18 343 66 251 250 272 197 - 0.5 197.4 298 21% 1.15 1.42 0.81 0.81 81% 11% 0.01 71% 0.66
23 1Q19 354 66 212 212 499 205 - 0.3 204.9 304 22% 1.16 1.40 0.80 0.80 83% 10% (0.00) 69% 0.67
24 2Q19 365 69 278 277 1,076 209 - 0.3 209.2 311 22% 1.16 2.01 0.79 0.79 84% 6% 0.01 68% 0.67
25 3Q19 374 69 288 288 395 216 - 0.4 216.6 320 21% 1.17 1.82 0.83 0.83 80% 9% 0.03 72% 0.68
26 4Q19 398 71 291 291 1,532 222 - 0.3 222.8 329 20% 1.18 2.77 0.85 0.85 80% 6% 0.01 72% 0.68
27 1Q20 414 72 265 265 351 234 - 0.4 234.2 337 20% 1.20 2.59 0.87 0.86 79% 7% 0.02 72% 0.69
28 2Q20 415 73 249 249 452 240 - 0.4 240.9 344 21% 1.20 2.05 0.82 0.82 84% 7% (0.01) 68% 0.70
29 3Q20 405 72 295 295 309 242 - 0.4 242.6 346 21% 1.20 1.95 0.81 0.81 85% 6% 0.00 68% 0.70
30 4Q20 418 74 306 305 921 248 - 0.4 248.0 355 21% 1.20 1.47 0.81 0.81 87% 7% 0.01 68% 0.70
31 1Q21 443 69 266 266 994 261 - 0.4 261.1 372 20% 1.19 1.89 0.79 0.79 89% 5% 0.00 66% 0.70
32 2Q21 464 70 315 314 1,032 263 - 0.4 263.7 374 19% 1.20 2.25 0.82 0.82 86% 5% 0.02 68% 0.70
33 3Q21 492 72 389 389 1,577 274 - 0.4 274.2 392 18% 1.22 3.03 0.85 0.85 82% 5% 0.02 70% 0.70
34 4Q21 682 108 352 352 2,835 371 - 0.5 371.7 520 19% 1.25 3.88 0.80 0.80 89% 2% 0.01 64% 0.71
35 1Q22 807 121 513 513 1,418 438 - 0.9 439.2 594 19% 1.30 3.65 0.83 0.83 86% 3% 0.04 64% 0.74
36 2Q22 810 105 743 742 1,502 446 - 0.9 446.7 602 17% 1.32 3.48 0.95 0.95 77% 6% 0.06 72% 0.74
37 3Q22 837 131 677 676 1,609 459 - 0.9 459.5 618 17% 1.34 3.16 0.98 0.98 75% 8% 0.04 73% 0.74
38 4Q22 889 70 630 629 3,858 471 - 1.3 472.0 634 14% 1.37 3.43 1.05 1.05 71% 9% 0.03 77% 0.74
39 1Q23 944 167 731 730 1,678 497 - 1.5 498.7 660 15% 1.38 3.44 1.11 1.10 67% 10% 0.03 80% 0.75
40 2Q23 1,019 178 735 733 2,969 515 - 1.6 516.7 674 16% 1.43 3.91 1.07 1.07 70% 8% (0.00) 75% 0.76
41 TTM 3,690 527 2,773 2,768 10,113 1,942 - 5.2 1,946.9 647 16% 2.50 7.12 1.86 1.86 70% 8% 0.11 74% 3.00
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Hi Bruce, On Reits I like to watch AFFO and how it is doing. With an AFFO payout of around 76 percent they are one of the better ones. O was really smart to get rid of their Office Rentals early, almost like they saw the turn coming. They bought up some casino’s recently from Wynn and renting them back triple net and they also went into the Bellagio Casino with Black rock. I do not know a whole lot about them yet but they are an aristocrat dividend payer and pay monthly.

The problem is the interest rates going up and everyone is harping that they want to get paid a dividend that is 2 percent over the 10 year. That would mean they would need to get to a dividend of around 8 percent before levelling off. I could see them dropping to around 40 dollars if the sell of continues but they are one of the best run reits out there. I am going to keep an eye on them and see how they do.

Andy

Oh and just another note. If you look At their AFFO it has been growing quarter over quarter but their AFFO per share has been staying flat due to all the shares they are selling.

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@physician - while some shipping companies might pay a nice dividend, or a rising dividend, the payout frequency might last for a few years, then quickly fall off. Two shipping entities, each with a longer streak of paying dividends, Nordic American Tankers (NAT) and SFL corp (SFL) have each paid a quarterly dividend for more than 15 years. But their streak of stable or rising dividends is less than a few years.
Since you mentioned FRO, I do think the company will continue to pay a nice dividend in the near term. However, the payout will very likely take a big hit in Q3 2023, then potentially recover in Q4 2023 (payout in early 2024). YMMV

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And that may be another reason stocks like O, VZ, and ED have seen their price’s decline over the past couple of years as their annual Dividend Growth Rate (DGR) is 2% - 3% even though they have >20 year dividend growth history and good looking cash flows today with dividends well covered.

So for the income investor in search of reliable and growing dividends, providing inflation does come back down thus allowing the dividend stream to keep stride with inflation, should see this as a buying opportunity.

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