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Dividend Kings Analysis: Valuations Are Down

Published Mon, 16 Mar 2020 12:30:58 -0400 on Seeking Alpha

A dividend growth analysis of the Dividend Kings is presented.
Hormel, Commerce Bancshares, Nordson, Parker-Hannifin, and Stanley, Black & Decker are the top five Dividend Kings in the ranking model.
Stepan Company and Target are no longer in the Top 5.
A summary analysis of Stanley, Black & Decker is presented.
The valuation of the Dividend Kings are down due to market volatility. Some of the Dividend Kings are yielding over 4% now.

Introduction
I published my first article for the new year on the Dividend Kings in January 2020 with an article entitled “Dividend Kings Analysis: Most Are Overvalued.” I skipped February’s article on the Dividend Kings and instead wrote about the Dividend Champions in an article entitled "Dividend Champions Analysis: Canadian National Railways Is The Newest Champion.” What a difference one month makes? The market was trending down in February and of course that has only accelerated in the first half of March. The mean PE [TTM] ratio of the Dividend Kings came down to ~24.4 from ~29.9 in early January. The median PE [TTM] ratio came down to ~22.6 from ~26.8 in early January. This is a large drop. But obviously the recent market action and volatility in the past week resulting from the continued coronavirus scare compounded by the oil price war and travel restrictions tells us that further drops in valuation may occur.
Source: Dividend Power
In this article I analyze the 29 Dividend Kings, an exclusive group of stocks that have increased their dividend for 50+ consecutive years. The top five stocks in the ranking model have changed due to change in valuations and a slowdown in earnings and dividend growth rates. The top five stocks in the ranking model in order are Hormel Foods Corp (HRL) [DP Score = 9.26], Commerce Bancshares (CBSH) [DP Score = 9.12], Nordson Corp (NDSN) [DP Score = 9.08], Parker-Hannifin Corp (PH) [DP Score = 9.08], and Stanley Black & Decker (SWK) [DP Score =... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ALTRIA GROUP 44.46   13.2 3.36 3.36 7.23
3M 170.58   20.6 8.28 5.76 3.41
GENUINE PARTS 97.52   18.1 5.38 3.05 3.14
EMERSON ELECTRIC 64.71   18.4 3.52 1.96 3.02
FEDERAL REALTY INVESTMENT TRUST 135.76   40.4 3.36 4.20 3.00
COCA-COLA 55.11   33.6 1.64 1.60 2.94
JOHNSON & JOHNSON 130.43   21.6 6.03 3.80 2.93
NORTHWEST NATURAL GAS 72.03   30.5 2.36 1.90 2.72
PROCTER & GAMBLE 122.77   90.3 1.36 2.98 2.49
TARGET 108.94   18.0 6.04 2.64 2.43
COLGATE PALMOLIVE 72.29   27.5 2.63 1.72 2.38
SYSCO 77.72   24.3 3.20 1.56 2.03
DOVER 99.67   24.4 4.08 1.96 2.02
ABM INDUSTRIES 36.85   27.5 1.34 0.72 2.00
CINCINNATI FINANCIAL 113.24   15.3 7.41 2.24 2.00
PARKER HANNIFIN 181.60   15.8 11.46 3.52 1.94
HORMEL FOODS 44.00   24.3 1.81 0.84 1.92
LOWES COMPANIES 113.88   35.6 3.20 2.20 1.91
STANLEY BLACK & DECKER 147.12   31.3 4.70 2.76 1.87
SJW 68.28   37.5 1.82 1.20 1.81
LANCASTER COLONY 146.18   26.8 5.46 2.60 1.79
COMMERCE BANCSHARES 60.78   16.2 3.75 1.04 1.74
CALIFORNIA WATER SERVICE GROUP 54.31   44.2 1.23 0.79 1.49
AMERICAN STATES WATER 90.79   44.1 2.06 1.22 1.37
HB FULLER 48.08   19.6 2.45 0.64 1.35
NORDSON 146.80   26.7 5.50 1.52 1.05
STEPAN 98.17   21.9 4.48 1.00 1.02
TOOTSIE ROLL INDUSTRIES 37.68   0.0 0.00 0.36 0.99

ALTRIA GROUP - MO
ALTRIA GROUP - MO  


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