At Reaves, we believe one signal of a company’s strength and the durability of future earnings is its ability to grow dividends. As such, it was encouraging to see the majority of our holdings grow their dividends over the past 12 months, many at a faster pace than their respective sector average.
In total, 17 of the 20 dividend-paying stocks1 in the Reaves LTV Wrap Composite2 either raised their dividend or initiated one in the past year. Two maintained the same level — Canadian National and Shaw Communications. While Exelon Corp reduced its dividend, its shareholders received shares of Constellation Energy and the dividends received from the combined companies increased slightly year over year.3 None of the companies held in the portfolio reduced their dividend. The average weighted rate of dividend growth for the composite was 8.5%.
In aggregate, we believe the dividend growth exhibited by these companies speaks to their ability to compound earnings and dividends over time and aligns with the long-term objectives of this investment strategy — to generate both income growth and capital appreciation.
In the tables below, we sorted by sector the companies owned in the composite, calculated dividend growth in the past year, and compared it to the average dividend growth rate of their respective sector.
The table below shows the annual dividend increase for each Real Estate stock owned as of March 31, 2022, in a composite of wrap portfolios managed with the Reaves Long Term Value Strategy.
Utilities
The table below shows the annual dividend increase for each Utility stock owned as of March 31, 2022, in a composite of wrap portfolios managed with the Reaves Long Term Value Strategy.
The table below shows the annual dividend increase for each Industrial stock owned as of March 31, 2022 in a composite of wrap portfolios managed with the Reaves Long Term Value Strategy.
The table below shows the annual dividend increase for each Communications Services stock owned as of March 31, 2022, in a composite of wrap portfolios managed with the Reaves Long Term Value Strategy.
The table below shows the annual dividend increase for each Materials stock owned as of March 31, 2022, in a composite of wrap portfolios managed with the Reaves Long Term Value Strategy.