Each month we take a look at some notable payout changes by some of the dividend stocks followed by the Joule Financial Dividend Growth Model. Below are the standouts from the month of October.

Eaton Vance (EV)

Raised By: 12.9%

New Dividend: $0.35/qtr

Eaton Vance is in the investment management business and has been a reliable dividend-paying company for decades now with 37 years of consecutive dividend raises offered to investors. The latest increase saw a double-digit percentage increase for the quarterly dividend even as the industry faces larger headwinds due to pressure on investments fees. While these headwinds may not subside quickly, investors may find some comfort in Eaton Vance’s history of consistent dividend growth with a 5-year average growth rate of 9.7% per year and a 10-year average of 8.4%. At a current yield around 3%, income focus investors will likely have this name on their watch list in the coming months.

 

VF Corporation (VFC)

Raised By: 10.9%

New Dividend: $0.51/qtr

While pressure has continued on retail stocks and their inventory providers have been pushed to provide products at deep discounts, this apparel provider has been consistent in providing income investors with a steadily increasing payout. This year’s 10.9% increase is not an anomaly in the company’s dividend history. With a 5-year average growth rate of 14.2% and a 10-year rate of 13.2%, VF Corp. has been proving over the near-term that its focus is returning value to shareholders. Under the surface, the recent negative free-cashflow should give income investors a slight pause in allocating to this name and will be something to watch in coming quarters and annual reports to ensure the company does not finance its dividend at the detriment of investing in future earnings.

 

TD Ameritrade (AMTD)

Raised By: 42.9%

New Dividend: $0.30/qtr

While TD Ameritrade makes this month’s list with only 8 years of dividend raises it does so with aggressive growth. The latest dividend increase was certainly delightful to any income investors holding the name. Further, the 20% average annual growth rate over the past five years communicates to investors the company’s focus on being a dividend grower in the near-term. While the company doesn’t have the dividend longevity of many others who regularly make this list the aggressive growth rate paired with its relatively low payout ratio gives the impression that dividend growth may continue to be a priority in the years to come. Investors who take the lower 2.30% will be focused on the potential for higher growth over current yield.

 

Merck (MRK)

Raised By: 12.7%

New Dividend: $0.55/qtr

While this relatively defensive pharmaceutical company has paid a dividend for quite some time it can only attest to six consecutive recent years of dividend growth. From 2004 to 2011 the company simply held its dividend steady. While the company’s 5-year average growth of 4.6% and the 10-year rate of 3.8% is substantially lower than some others on this list it does benefit from a higher current yield of 3%.

 

Daniel Czulno serves as portfolio manager for the Joule Financial Dividend Growth Model. This model seeks to provide investors income from dividends that grows over time more than inflation. For more information on the Joule Financial Dividend Growth Model please CONTACT US.
As of the time this article was published clients and/or employees of Joule Financial owned positions in VFC & MRK.
All data accurate as of the date of publication. Sources: MorningstarDividend.com