Few FTSE 100 shares have raised their dividend per share annually over a period of decades. But some legendary dividend shares have managed that feat.

One of them is Bunzl (LSE: BNZL).

The company’s business-to-business model in the dowdy area of foodservice peripherals, such as serviettes and cleaning liquids, means it is far from a household name. But the company has grown its dividend per share annually for well over three decades.

It has had a challenging year, though, with weakening performance pushing the share price down by 29% in 12 months. I have taken advantage of that fall to add the FTSE 100 firm to my portfolio.

In the past month, the share price has moved up 7%. That is a short timeframe on which to make any judgements. But I am wondering if it might possibly be the start of a share price turnaround that I was looking for when I bought the share.

Interim dividend growth

This week brought the company’s interim results. The interim dividend per share edged up year on year, but only marginally – from 20.1p to 20.2p.

Still, growth is growth. The company said that it is committed to sustainable annual growth, which I see as an encouraging sign that we can hopefully expect more dividend increases in future, albeit possibly modest ones.

Dividends are never guaranteed, but Bunzl expects its dividend to be covered this year by around 2.4 times. In other words, it can more than afford its payout.

Business still needs to get its mojo back

Another potential driver for a Bunzl share price recovery could be evidence that its proven business model will continue to deliver. Alongside the interim results, the company announced its latest acquisition and said it has a pipeline of possible further deals. The matches its historical operating mode.

But first-half basic earnings per share fell 6% year on year, while revenue grew less than 1%. Neither of those figures is very impressive, in my view. After all, the company’s valuation of 17 times earnings suggests to me that investors are hoping for substantial business growth.

There is still a lot of work to be done. Although the company hopes the second-half decline in operating margin will be better than in the first half (when it fell from 8% to 7%), any decline is still movement in the wrong direction.

To regain investor confidence I think Bunzl needs to demonstrate that it can return to significant business growth without sacrificing profitability. I am not yet seeing enough evidence of that in the firm’s numbers, so wonder whether the latest share price boost may be a temporary blip rather than the start of a sustained recovery.

Why I’m holding

Still, as a long-term investor, I am looking at my Bunzl shareholding with more than short-term performance in mind.

The company remains solidly profitable and is taking steps to improve its performance after recent disappointments. The business model is simple but well-proven and Bunzl operates in markets with resilient customer demand.

It may take a while, but I am confident Bunzl will hit its stride again and hope its share price will follow. Meanwhile, I will hopefully earn growing dividends along the way. I have no plans to sell this renowned dividend share.