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3 Dividend Champions Who Have Grown Their Dividend By 10% Annually Over The Past Decade

The stocks offer not just dividend growth, but high levels of dividend growth.

Companies that have increased their dividend for 25 years or more are known as Dividend Champions. Dividend Champions, unlike Dividend Aristocrats, are not required to be members of the S&P 500 index.

The Champions list's purpose is to identify all corporations in the United States that have grown their dividends paid for 25 years or more, regardless of their size.

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There are currently 133 companies that are on the Dividend Champions list for 2021.

What is a Dividend Yield?

The annual dividend payments to shareholders represented as a percentage of the stock's current price are dividend yields. This statistic indicates how much future income you may expect from a company based on the price you could buy now, assuming the dividend remains unchanged.

While looking for dividend stocks, it's crucial to remember that a high dividend yield alone does not make a good investment. Before purchasing any dividend-paying stocks, there are a few items you should think about, such as the dividend growth rate and the financial strength of the company, amongst other things.

What is Dividend Growth Rate?

The dividend growth rate is the annualized percentage rate of an increase in a stock's dividend over a given period. Many established organizations strive to boost their dividend payments to their shareholders consistently. The dividend growth rate is an important parameter for dividend discount models used to value stocks.

Robust dividend growth in the past could indicate future dividend increases, which can indicate long-term profitability.

The following three companies are excellent examples of Dividend Champions with dividend growth rates exceeding 10% over the last decade.

Franklin Resources Inc (BEN)

Franklin Resources Inc is an American multinational holding corporation known as Franklin Templeton Investments and its subsidiaries. It sells products under the Franklin, Templeton, Mutual Series, and Fiduciary brands, to mention a few. Although its Franklin brand, Templeton brand, and Mutual Series brand are most well-known for bond funds, international funds, and value funds, they offer a wide range of funds.

Franklin Templeton managed $1.5 trillion in assets (AUM) on behalf of private, professional, and institutional investors as of December 31, 2020.

Mutual Funds

Franklin Templeton's fund family includes approximately 470 open-ended mutual funds and six closed-end funds. There are 27 state and federal tax-free income funds, an area of investment that Franklin pioneered.

The Templeton Growth Fund, Inc. ($8.8 billion in AUM), the Mutual Shares Fund ($7.9 billion in assets), the Mutual Discovery Fund ($14.5 billion in assets), and the Templeton Growth (Euro) Fund A (acc) ($6.2 billion in assets) are all notable funds in the fund family.

The Franklin Income Fund (FKINX, $61.1 billion in assets) is a "large/value" mutual fund in Morningstar's "conservative allocation" category. The fund was established in 1948 and has paid dividends for the past 60 years. The Franklin Income Fund invests largely in equities and assets that produce dividends (2%).

Stock and Dividend News

Franklin Resources, Inc (BEN) stock is trading at $29.23 as of July 28, 2021.

BEN has been paying dividends for the last 41 consecutive years and currently has a dividend yield of 3.47%. The dividend growth rate over the previous five years has been 14.87%, and over the last ten years, the dividend growth rate has been 15.62%.

Second Quarter Financial Results - 2021

Franklin Resources released their second-quarter results in May 2021, for the quarter ended March 31, 2021. Here are some of the highlights:

  • For the quarter ended March 31, 2021, net income was $381.8 million, or $0.74 per diluted share, compared to $345.3 million, or $0.67 per diluted share, for the previous quarter and $79.1 million, or $0.16 per diluted share, for the quarter ended March 31, 2020.
  • Operating income for the quarter ending March 31, 2021, was $456.3 million, up from $409.1 million the previous quarter and $339.9 million the year before.
  • For the quarter ended March 31, 2021, adjusted net income was $403.5 million, and adjusted diluted earnings per share was $0.79, compared to $373.4 million and $0.73 for the previous quarter and $332.8 million and $0.66 for the quarter ended March 31, 2020.
  • For the quarter ended March 31, 2021, adjusted operating income was $581.1 million, up from $549.9 million the previous quarter and $385.9 million the year before.

Enbridge Inc (ENB)

Based in Calgary, Alberta, Enbridge Inc is a pipeline business focusing on crude oil and natural gas transportation, especially in North America. With nearly 5,000 kilometers (3,100 miles) of pipes in Canada and the United States, Enbridge has the largest pipeline system in North America.

They transport almost 20% of the natural gas consumed in the United States and manage North America's third-largest natural gas utility in terms of consumer count. Enbridge was one of the first companies to engage in renewable energy and now has a sizable offshore wind portfolio.

Enbridge's four core businesses work together every day to offer safe, dependable energy by connecting energy supply with rising markets in North America. The four core businesses are as follows:

  • Liquids pipelines
  • Natural gas pipelines
  • Gas distribution and storage
  • Renewable energy

Stock and Dividend News

Enbridge, Inc (ENB) stock is trading at $39.14 as of July 28, 2021.

ENB has been paying dividends for the last 26 consecutive years and currently has a dividend yield of 6.80%. The dividend growth rate over the previous five years has been 11.39%, and over the last ten years, the dividend growth rate has been 10.86%.

First Quarter Financial Results - 2021

Enbridge released their first-quarter results in May 2021, for the quarter ended March 31, 2021. Here are some of the highlights (in Canadian dollars):

  • GAAP earnings of $1.9 billion, or $0.94 per common share, in the first quarter of 2021, compared to a GAAP loss of $1.4 billion, or $0.71 per common share in 2020.
  • $1.6 billion in adjusted earnings, or $0.81 per common share, compared to $1.7 billion in adjusted earnings, or $0.83 per common share, in 2020.
  • $3.7 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), compared to $3.8 billion in 2020.
  • $2.6 billion in cash provided by operating activities, compared to $2.8 billion in 2020.
  • Distributable cash flow (DCF) of $2.8 billion, or $1.37 per common share, compared to $2.7 billion, or $1.34 per common share, in 2020.
  • Reaffirmed full-year outlook of $13.9 billion to $14.3 billion in EBITDA and $4.70 to $5.00 in DCF per share for 2021.

Walgreens Boots Alliance (WBA)

Walgreens Boot Alliance is a global leader in retail pharmacy, making a difference in millions of people's lives every day by dispensing medications and providing accessible, high-quality care. WBA's mission is to assist people worldwide to live healthier and happier lives by using its more than 170 years of trusted healthcare legacy and community pharmacy innovation.

Walgreens in the USA and Boots in the UK and many pharmaceutical production, wholesale, and distribution companies are all owned by the company. Duane Reade, the No7 Beauty Company, Benavides in Mexico, and Ahumada in Chile are among WBA's retail and commercial brands.

WBA is one of the largest buyers of prescription drugs and other health and wellness products globally. The company's size, scale, and experience play a critical role in addressing industry concerns, such as the growing cost of prescription drugs in the United States and worldwide.

Walgreens Boots Alliance is divided into three divisions, namely:

  • Retail Pharmacy USA (Walgreens and Duane Reade)
  • Retail Pharmacy International (Boots and other retail operations internationally)
  • Pharmaceutical Wholesale (Alliance Healthcare)

Stock and Dividend News

Walgreens Boot Alliance (WBA) stock is trading at $46.88 as of July 28, 2021.

WBA has been paying dividends for the last 46 consecutive years and currently has a dividend yield of 3.84%. The dividend growth rate over the previous five years has been 5.37%, and over the last ten years, the dividend growth rate has been 10.33%.

Third Quarter Financial Results - 2021

Walgreens Boot Alliance released its third-quarter results in July 2021, ending May 31, 2021. Here are some of the highlights:

  • Total adjusted EPS (earnings per share) grew 83.4% to $1.51, up 81.4% on a constant currency basis, from a loss of $1.95 in the prior quarter.
  • Sales climbed by 12.1% to $34.0 billion, or 10.4% in constant currency terms.
  • EPS from continuing operations was $1.27, compared to a loss of $2.05 in the prior quarter; adjusted EPS from continuing operations climbed 95.1% to $1.38, up 93.6% in constant currency.
  • Sales rose 7.2% to $98.2 billion, or 6.1% in constant currency.
  • Continuing operations EPS was $1.89, compared to a loss of $0.18 in the prior year. Adjusted earnings per share from continuing operations was $3.74, up 10.7% on a reported basis and 9.9% in constant currency.
  • WBA's third-quarter sales from continuing operations increased 12.1 to $34.0 billion, or 10.4 in constant currency, reflecting strong growth in the International segment, aided by the company's joint venture in Germany being formed during the fiscal year solid growth in the United States segment.

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