In a market focused on short-term gains, some companies maintain steady growth and consistent dividend increases. Investors seeking long-term returns often look to businesses that raise dividends and compound value over time.
Using a stock screener, four companies were identified based on specific filters. The criteria included a 5-year dividend growth rate of 20% or higher, basic EPS growth of at least 1% last year, a 5-year price change greater than 10%, an analyst rating between 3.5 and 5, and coverage by 8 to 16 analysts.
The screening process yielded four results, listed from highest to lowest 5-year dividend growth.
Nordson Corp, a precision manufacturing leader, reported sales of $752 million, up 1% year-over-year. Net income increased 24% to $152 million, with basic EPS growing 4.77%. The company pays a forward annual dividend of $3.28, yielding about 1.2%, and has a 5-year dividend growth rate over 106%. Eleven analysts rate it a "Moderate Buy," with a potential 8% upside to a $295 target.
Cincinnati Financial, a major U.S. insurer, saw sales rise 12% to $3.7 billion year-over-year. Net income grew 37% to $1.1 billion, with basic EPS up 24.79%. It has a 5-year dividend growth rate above 44% and pays a forward annual dividend of $3.48, yielding approximately 2.15%. Ten analysts rate it a "Moderate Buy," with a 17% upside potential to $191.
RPM International, a building materials company, reported sales up 3.5% to $1.9 billion year-over-year. Net income fell 12% to $161 million due to higher costs, but basic EPS grew 17.47%. It pays a forward annual dividend of $2.16, yielding around 1.9%, with a 5-year dividend growth rate near 40%. Sixteen analysts rate it a "Moderate Buy," seeing up to 34% upside to $151.
Altria Group, a tobacco company, reported sales down 3% to $6.1 billion year-over-year, but net income grew 3.6% to $2.4 billion. Basic EPS increased 43.11%, the highest among the group. It pays a quarterly dividend of $1.06, yielding about 6.8%, with a 5-year dividend growth rate around 22%. Fourteen analysts rate it a "Moderate Buy," with nearly 17% upside potential to $72.