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A Trio of Long-Term Payers Increasing Dividends

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- By Alberto Abaterusso

KB Home (NYSE:KBH), RPM International Inc (NYSE:RPM) and Bassett Furniture Industries Inc (NASDAQ:BSET) announced higher quarterly dividends on Thursday, Oct. 8.

These stocks attract the interest of dividend investors as they represent loyal payers who have outperformed the S&P 500 index in terms of a higher dividend growth rates over the last few years. The benchmark index for the U.S. market has grown its real dividends per share at a compound annual growth rate (CAGR) of 5.07% over the past three years and of 5.11% over the past five years.


KB Home

The Los Angeles-based homebuilder announced that on Nov. 26, it will pay a 15 cents per common share quarterly cash dividend to shareholders of record as of Nov. 12.

The ex-dividend date is scheduled for Nov. 10. The distribution represents a 66.7% increase from the previous one.

Based on Thursday's closing price of $40.06 per share, the quarterly dividend generates a forward yield of 1.5%.

KB Home has paid dividends for approximately 31 years and increased them by a CAGR of 32% and 18.13% over the last three years and five years, respectively.

The company sustains the quarterly dividend with $722 million available in cash on hand and proceeds from operating cash flow of $586 million over the prior 12 months.

GuruFocus has assigned a score of 5 out of 10 to the company's financial strength and a score of 6 out of 10 to its profitability.

The share price has risen by 17.6% over the past year, fluctuating between the 52-week range of $9.82 to $40.86.

A Trio of Long-Term Payers Increasing Dividends
A Trio of Long-Term Payers Increasing Dividends

The stock has a market capitalization of $3.92 billion and a price-earnings ratio of 12.07 versus the industry median of 11.72.

On Wall Street, the stock has a hold recommendation rating with an average target price of $44.83 per share.

RPM International Inc

The Medina, Ohio-based specialty chemicals producer announced that on Oct. 30, it will distribute a quarterly cash dividend of 38 cents per common share to the shareholders of record as of Oct. 19.

The ex-dividend date is scheduled for Oct. 16. The distribution represents a 5.6% increase from the previous payment.

Based on Thursday's closing price of $86.71 per share, the quarterly cash dividend generates a forward dividend yield of 1.75%.

RPM International Inc has distributed dividends for approximately 31 years and increased them by a CAGR of 7.82% and 7.55% over the past three years and five years, respectively.

The company backs the payment of the dividend with cash on hand of $252 million and with an operating cash flow of $723 million over the trailing 12-months.

GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and a score of 7 out of 10 to its profitability.

The share price has increased by 27.3% over the past year, determining a 52-week range of $42.85 to $90.84.

A Trio of Long-Term Payers Increasing Dividends
A Trio of Long-Term Payers Increasing Dividends

The stock has a market capitalization of $11.27 billion and a price-earnings ratio of 29.8 versus the industry median of 19.9.

On Wall Street, the stock has an overweight recommendation rating with an average target price of $96.08 per share.

Bassett Furniture Industries Inc

The Bassett, Virginia-based manufacturer, marketer and retailer of home furnitures in the U.S. and internationally announced that on Nov. 27, it will pay a quarterly cash dividend of 12.5 cents per common share to its shareholders of record as of Nov. 13.

The ex-dividend date is scheduled for Nov. 12. The payment represents a 56.3% increase from the prior distribution.

Based on Thursday's closing price of $15.77 per share, the quarterly dividend produces a forward dividend yield of 3.17%.

Bassett Furniture Industries Inc has been distributing dividends for almost 30 years and increasing them by a CAGR of 10.28% and 13.12% over the last three years and five years, respectively.

The company finances the payment of the quarterly dividend with nearly $50 million in cash on hand and nearly $30 million in trailing 12-month operating cash flow.

GuruFocus has assigned a score of 3 out of 10 to the financial strength of the company and a score of 6 out of 10 to its profitability.

The share price has climbed by 13.5% over the past year for a 52-week range of $4.25 to $18.24.

A Trio of Long-Term Payers Increasing Dividends
A Trio of Long-Term Payers Increasing Dividends

The market capitalization is $157.33 million.

On Wall Street, the stock has one recommendation rating of hold and a price target of $17 per share.

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.