The intention of this article is not to give you any hot tips, but to share my research on some of the companies which I found with consistent growth in profitability and increasing dividend every year for long term investment.
The information set out in this article is by no means exhaustive, readers are strongly recommended to do their own and further due diligence before investing in the stocks.
Independent Bank Group, Inc. (IBTX)
Brief introduction
Independent Bank Group, Inc. operates as the bank holding company for Independent Bank that provides various commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products, including demand deposits, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction, land, and land development loans; residential real estate loans; single-family interim construction loans; commercial loans comprising SBA guaranteed loans, business term loans, equipment financing, and lines of credit and energy related loans; agricultural loans for farmers and ranchers; consumer installment loans comprising loans to purchase cars, boats, and other recreational vehicles; and residential mortgages. In addition, it offers debit cards, online and mobile banking, eStatement, bank-by-mail, and direct deposit services; and business accounts and management services, including analyzed business checking, business savings, and treasury management services.
Revenue and Earning
Consistent Growth in the past 10 years
IBTX’s Earnings per share:
2011: 0.78
2012: 1.07
2013: 1.44
2014: 1.85
2015: 2.21
2016: 2.88
2017: 2.97
2018: 4.33
2019: 4.46
Dividend Payout
Generally increasing in the past 10 years
IBTX’s Dividends per share:
2011: 0.51
2012: 0.77
2013: 0.12
2014: 0.24
2015: 0.32
2016: 0.34
2017: 0.40
2018: 0.54
2019: 1.00
Price as of writing: $27.3
Farmers National Banc Corp. (FMNB)
Brief introduction
Farmers National Banc Corp., through its subsidiaries, operates in the banking, trust, retirement consulting, insurance, and financial management industries. The company offers commercial and retail banking services, including checking, savings, and time deposit accounts; commercial, mortgage and installment, and home equity loans; home equity lines of credit, night depository, safe deposit box, money order, bank check, automated teller machine, Internet banking, travel card, E bond transaction, MasterCard and Visa credit cards, brokerage, and other services. It also provides personal and corporate trust services in the areas of estate settlement, trust administration, and employee benefit plans; retirement services; property and casualty insurance products and services; and various insurance products through licensed representatives, as well as invests in municipal securities.
Revenue and Earning
Generally increasing in the past 10 years
FMNB’s Earnings per share:
2011: 2.62
2012: 2.63
2013: 2.65
2014: 2.81
2015: 2.53
2016: 3.38
2017: 3.55
2018: 3.74
2019: 4.01
Dividend Payout
Consistent and generally increasing in the past 5 years
FMNB’s Dividends per share:
2011: 0.12
2012: 0.12
2013: 0.12
2014: 0.12
2015: 0.12
2016: 0.16
2017: 0.22
2018: 0.30
2019: 0.38
Price as of writing: $12.29
Meridian Bancorp, Inc. (EBSB)
Brief introduction
Meridian Bancorp, Inc. operates as the holding company for East Boston Savings Bank that provides various financial products and services for individuals and businesses primarily in Suffolk, Norfolk, Middlesex and Essex Counties, Massachusetts. The company accepts various deposit products, including non-interest-bearing demand deposits, such as checking accounts; interest-bearing demand accounts comprising NOW and money market accounts; savings accounts; and certificates of deposit, as well as commercial checking accounts. Its loan portfolio includes commercial real estate loans, which are secured by properties used for business purposes, such as office buildings, industrial facilities, and retail facilities; one- to four-family residential loans comprising mortgage loans that enable borrowers to purchase or refinance existing homes; multi-family real estate loans; construction loans; commercial and industrial loans; home equity lines of credit; and consumer loans that include automobile loans, loans secured by savings or certificate accounts, credit builders, and annuity and overdraft loans. In addition, the company offers non-deposit financial products, which comprise mutual funds, annuities, stocks, and bonds through a third-party broker-dealer; and long-term care insurance products. Further, it is also involved in the securities transactions business; and holding foreclosed real estate properties. The company operates 37 full-service locations, as well as 1 mobile branch and 3 loan centers.
Revenue and Earning
Generally increasing in the past 10 years
EBSB’s Earnings per share:
2011: 1.39
2012: 1.57
2013: 1.79
2014: 2.01
2015: 2.23
2016: 2.69
2017: 3.26
2018: 3.39
2019: 3.65
Dividend Payout
Generally increasing in the past 5 years
EBSB’s Dividend per share:
2011: -
2012: -
2013: -
2014: -
2015: 0.060
2016: 0.12
2017: 0.17
2018: 0.22
2019: 0.29
Price as of writing: $10.91
(SBBX)
Brief introduction
SB One Bancorp operates as a bank holding company for SB One Bank that provides commercial banking and related financial services to individual, business, and government customers. It operates in two segments, Banking and Financial Services, and Insurance Services. The company’s deposit products include personal and business checking, money market, and savings accounts, as well as time and demand deposits. Its loan portfolio comprises commercial, consumer, residential real estate, home equity, and personal loans. The company also operates as a full service general insurance agency, which offers commercial and personal lines of insurance.
Revenue and Earning
Generally increasing in the past 10 years
SBBX’s Earnings per share:
2011: 0.74
2012: 0.22
2013: 0.37
2014: 0.57
2015: 0.81
2016: 1.19
2017: 1.05
2018: 1.25
2019: 2.40
Dividend Payout
Generally increasing in the past 6 years
SBBX’s Dividend per share:
2011: -
2012: -
2013: -
2014: 0.090
2015: 0.16
2016: 0.16
2017: 0.22
2018: 0.29
2019: 0.32
Price as of writing: $13.5
Hingham Institution for Savings (HIFS)
Brief introduction
Hingham Institution for Savings provides various financial products and services to individuals and small businesses in the United States. The company’s deposit products include savings, demand, regular, checking, negotiable order of withdrawal, and money market accounts, as well as certificates of deposit. Its loan portfolio comprises commercial real estate, construction, residential real estate, home equity, commercial, and consumer loans. The company also provides ATM, and telephone and Internet banking services.
Revenue and Earning
Generally increasing in the past 10 years
HIFS’s Earnings per share:
2011: 5.67
2012: 6.25
2013: 6.28
2014: 10.4
2015: 9.02
2016: 10.9
2017: 11.8
2018: 13.9
2019: 17.8
Dividend Payout
Generally increasing in the past 10 years
HIFS’s Dividend per share:
2011: 0.99
2012: 1.03
2013: 1.06
2014: 1.10
2015: 1.16
2016: 1.24
2017: 1.32
2018: 1.42
2019: 1.58
Price as of writing: $165.22
Delta Air Lines, Inc. (DAL)
Brief introduction
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, London-Heathrow, Mexico City, Paris-Charles de Gaulle, and Seoul-Incheon. The company sells its tickets through various distribution channels, including delta.com and the Fly Delta app, telephone reservations, online travel agencies, traditional brick and mortar, and other agencies. It also provides aircraft maintenance, repair, and overhaul services; and vacation packages to third-party consumers, as well as aircraft charters, and management and programs. The company operates through a fleet of approximately 1,000 aircraft.
Revenue and Earning
Generally increasing in the past 10 years
DAL’s Earnings per share:
2011: 1.01
2012: 1.19
2013: 12.3
2014: 0.78
2015: 5.63
2016: 5.55
2017: 4.43
2018: 5.67
2019: 7.30
Dividend Payout
Generally increasing in the past 7 years
DAL’s Dividend per share:
2011: -
2012: -
2013: 0.12
2014: 0.30
2015: 0.45
2016: 0.68
2017: 1.02
2018: 1.31
2019: 1.51
Price as of writing: $21.51
JPMorgan Chase & Co. (JPM)
Brief introduction
JPMorgan Chase & Co. operates as a financial services company worldwide. It operates in four segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM). The CCB segment offers deposit and investment products and services to consumers; lending, deposit, and cash management and payment solutions to small businesses; mortgage origination and servicing activities; residential mortgages and home equity loans; and credit card, payment processing, auto loan, and leasing services.
The CIB segment provides investment banking products and services, including corporate strategy and structure advisory, and equity and debt markets capital-raising services, as well as loan origination and syndication; cash management and liquidity solutions; and cash securities and derivative instruments, risk management solutions, prime brokerage, and research. This segment also offers securities services, including custody, fund accounting and administration, and securities lending products for asset managers, insurance companies, and public and private investment funds.
The CB segment provides financial solutions, including lending, treasury, investment banking, and asset management to small business, large and midsized corporations, local governments, and nonprofit clients; and commercial real estate banking services to investors, developers, and owners of multifamily, as well as to office, retail, industrial, and affordable housing properties.
The AWM segment offers investment and wealth management services across equities, fixed income, alternatives, and money market fund asset classes; multi-asset investment management services; retirement products and services; and brokerage and banking services. The company also provides ATM, online and mobile, and telephone banking services.
Revenue and Earning
Generally increasing in the past 10 years
JPM’s Earnings per share:
2011: 4.48
2012: 5.20
2013: 4.34
2014: 5.29
2015: 6.00
2016: 6.19
2017: 6.31
2018: 9.00
2019: 10.7
Dividend Payout
Generally increasing in the past 10 years
JPM’s Dividend per share:
2011: 1.00
2012: 1.20
2013: 1.44
2014: 1.58
2015: 1.72
2016: 1.88
2017: 2.12
2018: 2.72
2019: 3.40
Price as of writing: $85.30
Kemper Corporation (KMPR)
Brief introduction
Kemper Corporation, a diversified insurance holding company, provides property and casualty, and life and health insurance in the United States. The company operates through three segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance, and Life & Health Insurance. It provides automobile, homeowners, renters, fire, umbrella, general liability, and other types of property and casualty insurance to individuals; and commercial automobile insurance to businesses.
The company also offers life insurance, including permanent and term insurance, as well as supplemental accident and health insurance products; Medicare supplement insurance, fixed hospital indemnity, home health care, specified disease, and accident-only plans to individuals in rural, suburban, and urban areas. It distributes its products through independent agents and brokers.
The company was formerly known as Unitrin, Inc. and changed its name to Kemper Corporation in August 2011.
Revenue and Earning
Generally increasing in the past 10 years
KMPR’s Earnings per share:
2011: 1.02
2012: 1.54
2013: 3.74
2014: 2.08
2015: 1.55
2016: 0.25
2017: 2.31
2018: 3.19
2019: 7.96
Dividend Payout
Generally increasing in the past 5 years
KMPR’s Dividend per share:
2011: 0.96
2012: 0.96
2013: 0.96
2014: 0.96
2015: 0.96
2016: 0.96
2017: 0.96
2018: 0.96
2019: 1.03
Price as of writing: $58.91
Universal Health Services, Inc. (UHS)
Brief introduction
Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, outpatient facilities, and behavioral health care facilities. The company operates through Acute Care Hospital Services, Behavioral Health Care Services, and Other segments. Its hospital offer general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, pediatric services, pharmacy services, and/or behavioral health services.
Revenue and Earning
Generally increasing in the past 10 years
UHS’s Earnings per share:
2011: 4.04
2012: 4.53
2013: 5.14
2014: 5.42
2015: 6.76
2016: 7.14
2017: 7.81
2018: 8.31
2019: 9.13
Dividend Payout
Generally consistent and slowly increasing in the past 10 years
UHS’s Dividend per share:
2011: 0.20
2012: 0.20
2013: 0.20
2014: 0.30
2015: 0.40
2016: 0.40
2017: 0.40
2018: 0.40
2019: 0.60
Price as of writing: $84.84
Note: this is not investment advice. I’m not a financial planning professional. Just sharing what is working for me as part of my investing strategy or what I have learnt on my investment journey. Please be reminded to do your own research and consider your own circumstances before making any financial decisions. You could also check with your financial professional to understand what would be best for your situation.
Source of information: Google, relevant companies’ websites, Jitta.
