Dividend growth investing is a very popular approach which can fit within the ModernGraham methods. Â This article will look at companies reviewed by ModernGraham which have grown their dividends annually for at least the last 20 years.
Recently, I began tracking the number of years a company has grown its dividend, and providing that information in my individual company valuations.  I have covered 125 companies since that tracking began.  Eventually I will have this data on each of the more than 550 companies covered by ModernGraham, so this list should continue to grow for the next few months.
Out of the 125 companies on which IÂ have dividend growth data, only 17 have grown dividends annually for at least the last 20 years. Â Here is an overview of those companies:
The Elite
The following companies have been rated as the most undervalued and suitable for either the Defensive Investor or the Enterprising Investor:
Franklin Resources Inc. (BEN)
Franklin Resources Inc. qualifies for both the Defensive Investor and the Enterprising Investor.  The company passes all of the requirements of both investor types, a rare accomplishment indicative of the company’s strong fundamentals. As a result, all value investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company.
As for a valuation, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $2.23 in 2011 to an estimated $3.41 for 2015.  This level of demonstrated earnings growth outpaces the market’s implied estimate of 1.47% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.  (See the full valuation)
Dover Corporation (DOV)
Dover Corporation qualifies for both the Defensive Investor and the Enterprising Investor.  Both investor types are only initially concerned with the low current ratio. As a result, all value investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company.
As for a valuation, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $3.58 in 2011 to an estimated $5.03 for 2015.  This level of demonstrated earnings growth outpaces the market’s implied estimate of 1.72% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.  (See the full valuation)
Helmerich & Payne Inc. (HP)
Helmerich & Payne Inc. qualifies for the more conservative Defensive Investor or the Enterprising Investor.  The company passes all of the requirements of both investor types, a rare accomplishment. As a result, all value investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with the valuation.
As for a valuation, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $3.24 in 2011 to an estimated $4.77 for 2015.  This level of demonstrated earnings growth outpaces the market’s implied estimate of 1.85% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.  (See the full valuation)
People’s United Financial Inc. (PBCT)
People’s United Financial Inc. is suitable for either the Defensive Investor or the Enterprising Investor.  The company passes all of the requirements of both investor types, a rare accomplishment indicative of the strong fundamentals. As a result, all Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with the next stage of the analysis.
As for a valuation, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $0.40 in 2011 to an estimated $0.78 for 2015.  This level of demonstrated earnings growth outpaces the market’s implied estimate of 5.44% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.  (See the full valuation)
Ross Stores Inc. (ROST)
Ross Stores Inc. qualifies for the Enterprising Investor but not the more conservative Defensive Investor.  The Defensive Investor is concerned with the low current ratio and the high PEmg and PB ratios.  The Enterprising Investor is only initially concerned with the low current ratio. As a result, all Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company.
As for a valuation, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $1.07 in 2012 to an estimated $2.11 for 2016.  This level of demonstrated earnings growth outpaces the market’s implied estimate of 7.57% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.  (See the full valuation)
The Good
The following companies have been rated as fairly valued and suitable for either the Defensive Investor or the Enterprising Investor:
Cintas Corpoartion (CTAS)
Cintas Corporation qualifies for the Enterprising Investor but not the more conservative Defensive Investor.  The Defensive Investor is concerned with the high PEmg and PB ratios.  The Enterprising Investor is only initially concerned with the level of debt relative to the net current assets. As a result, all Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company.
As for a valuation, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $1.83 in 2012 to an estimated $3.33 for 2015.  This level of demonstrated earnings growth outpaces the market’s implied estimate of 8.17% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.  (See the full valuation)
Genuine Parts Company (GPC)
Genuine Parts Company qualifies for the Enterprising Investor but not the more conservative Defensive Investor.  The Defensive Investor is concerned with the low current ratio and the high PB ratio.  The Enterprising Investor is only initially concerned by the low current ratio. As a result, all Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company.
As for a valuation, the company appears to be fairly valued after growing its EPSmg (normalized earnings) from $3.08 in 2011 to an estimated $4.43 for 2015.  This level of demonstrated earnings growth supports the market’s implied estimate of 5.18% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value within a margin of safety relative to the price.  (See the full valuation)
Parker-Hannifin Corporation (PH)
Parker Hannifin Corporation qualifies for both the Defensive Investor and the Enterprising Investor.  The company meets all of the initial requirements of both investor types, a rare accomplishment indicative of the company’s strong fundamentals. As a result, all value investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company.
As for a valuation, the company appears to be fairly valued after growing its EPSmg (normalized earnings) from $5.65 in 2011 to an estimated $6.78 for 2015.  This level of demonstrated earnings growth supports the market’s implied estimate of 3.64% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value within a margin of safety relative to the price.  (See the full valuation)
VF Corporation (VFC)
VF Corporation qualifies for the Enterprising Investor but not the more conservative Defensive Investor.  The Defensive Investor is concerned with the low current ratio and the high PEmg and PB ratios.  The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company.
As for a valuation, the company appears to be fairly valued after growing its EPSmg (normalized earnings) from $1.48 in 2011 to an estimated $2.70 for 2015.  This level of demonstrated earnings growth supports the market’s implied estimate of 9.13% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value within a margin of safety relative to the price.  (See the full valuation)
The Full List
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Clicking on the company name will take you to the company’s latest valuation. Â For the investor type, a “D” indicates the company is suitable for the Defensive Investor, an “E” indicates the company is suitable for the Enterprising Investor, and an “S” indicates the company is considered speculative at this time.
| Ticker | Name with Link | Investor Type | Latest Valuation Date | MG Value | Recent Price | Price as a percent of Value | PEmg Ratio | Div. Yield |
| ALB | Albemarle Corporation | D | 8/12/2015 | $21.94 | $43.03 | 196.13% | 14.20 | 2.70% |
| AOS | A. O. Smith Corp | E | 8/21/2015 | $43.86 | $67.46 | 153.81% | 27.88 | 1.13% |
| BDX | Becton, Dickinson and Co. | S | 8/19/2015 | $57.33 | $135.71 | 236.72% | 24.67 | 1.77% |
| BEN | Franklin Resources, Inc. | D | 9/4/2015 | $83.40 | $39.66 | 47.55% | 11.63 | 1.51% |
| BMS | Bemis Company, Inc. | E | 9/4/2015 | $32.27 | $42.09 | 130.43% | 20.33 | 2.66% |
| CTAS | Cintas Corporation | E | 8/24/2015 | $110.24 | $85.04 | 77.14% | 25.54 | 1.00% |
| DOV | Dover Corp | E | 9/1/2015 | $103.80 | $60.51 | 58.29% | 12.03 | 2.78% |
| GPC | Genuine Parts Company | E | 9/8/2015 | $96.04 | $82.99 | 86.41% | 18.73 | 2.96% |
| HP | Helmerich & Payne, Inc. | D | 8/16/2015 | $108.12 | $50.66 | 46.86% | 10.62 | 5.43% |
| JNJ | Johnson & Johnson | D | 9/3/2015 | $81.84 | $92.24 | 112.71% | 17.81 | 3.25% |
| MKC | McCormick & Company, Incorporated | S | 8/15/2015 | $50.89 | $79.88 | 156.97% | 25.52 | 2.00% |
| NEE | NextEra Energy Inc | S | 8/13/2015 | $72.64 | $95.30 | 131.19% | 18.47 | 3.23% |
| PBCT | People’s United Financial, Inc. | D | 8/24/2015 | $29.05 | $15.41 | 53.05% | 19.76 | 4.35% |
| PH | Parker-Hannifin Corp | D | 9/8/2015 | $98.43 | $105.47 | 107.15% | 15.56 | 2.39% |
| ROST | Ross Stores, Inc. | E | 8/23/2015 | $79.79 | $49.38 | 61.89% | 23.40 | 0.95% |
| SYY | SYSCO Corporation | S | 9/8/2015 | $5.10 | $39.60 | 776.47% | 25.06 | 3.03% |
| VFC | VF Corp | E | 9/8/2015 | $88.94 | $70.77 | 79.57% | 26.21 | 1.81% |
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To view the MG Value and PEmg information, Â you must be logged in as a premium member. Â Clicking on the company name will take you to the company’s latest valuation.
For the investor type, a “D” indicates the company is suitable for the Defensive Investor, an “E” indicates the company is suitable for the Enterprising Investor, and an “S” indicates the company is considered speculative at this time.
| Ticker | Name with Link | Investor Type | Latest Valuation Date | MG Value | Recent Price | Price as a percent of Value | PEmg Ratio | Div. Yield |
| ALB | Albemarle Corporation | D | 8/12/2015 | — | $43.03 | — | — | 2.70% |
| AOS | A. O. Smith Corp | E | 8/21/2015 | — | $67.46 | — | — | 1.13% |
| BDX | Becton, Dickinson and Co. | S | 8/19/2015 | — | $135.71 | — | — | 1.77% |
| BEN | Franklin Resources, Inc. | D | 9/4/2015 | — | $39.66 | — | — | 1.51% |
| BMS | Bemis Company, Inc. | E | 9/4/2015 | — | $42.09 | — | — | 2.66% |
| CTAS | Cintas Corporation | E | 8/24/2015 | — | $85.04 | — | — | 1.00% |
| DOV | Dover Corp | E | 9/1/2015 | — | $60.51 | — | — | 2.78% |
| GPC | Genuine Parts Company | E | 9/8/2015 | — | $82.99 | — | — | 2.96% |
| HP | Helmerich & Payne, Inc. | D | 8/16/2015 | — | $50.66 | — | — | 5.43% |
| JNJ | Johnson & Johnson | D | 9/3/2015 | — | $92.24 | — | — | 3.25% |
| MKC | McCormick & Company, Incorporated | S | 8/15/2015 | — | $79.88 | — | — | 2.00% |
| NEE | NextEra Energy Inc | S | 8/13/2015 | — | $95.30 | — | — | 3.23% |
| PBCT | People’s United Financial, Inc. | D | 8/24/2015 | — | $15.41 | — | — | 4.35% |
| PH | Parker-Hannifin Corp | D | 9/8/2015 | — | $105.47 | — | — | 2.39% |
| ROST | Ross Stores, Inc. | E | 8/23/2015 | — | $49.38 | — | — | 0.95% |
| SYY | SYSCO Corporation | S | 9/8/2015 | — | $39.60 | — | — | 3.03% |
| VFC | VF Corp | E | 9/8/2015 | — | $70.77 | — | — | 1.81% |
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Disclaimer:Â
The author held a long position in Dover Corporation but did not hold a position in any other company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours. See my current holdings here.  This article is not investment advice and all readers are encouraged to speak to a registered investment adviser prior to making any investing decisions.  Please also read our full disclaimer.
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