This article series is designed to keep investors informed of upcoming dividend increases. For dividend growth investors, this can be an opportunity to start or add to positions prior to a new increased payout. This can be especially important for retirees who live on dividend checks.
The lists I’ve compiled provide various stats for the stocks that are increasing their dividends next week.
This list is a trimmed-down version only covering dividend increases. A full upcoming dividend calendar is always available here. If you know how this was built and the caveats, feel free to jump down to the lists themselves.
How It’s Assembled
The information presented below was created by combining the “U.S. Dividend Champions” spreadsheet hosted here with upcoming dividend information from Nasdaq. This meshes metrics about companies with dividend growth history with upcoming dividend payments (and whether those payments are increasing). These companies all have a minimum 5-year dividend growth history.
As a point of clarification, companies are included that may not raise their dividend every calendar year, but the total annual dividend received will still be higher each year. One such example is Bank of America (NYSE:BAC).
In the table here on SA, the annual dividend payout received by a shareholder increased for each year in this time frame. Thus, it is eligible for inclusion in the “CCC” list.
That said, it did pay out the same amount for eight quarters in a row, but again, the total annual amount increased each year.
United Technologies is another example.
What Is the Ex-Dividend Date?
The “ex-dividend” date is the date you are no longer entitled to the dividend or distribution. You need to have made your purchase by the preceding business day. If the date is a Tuesday, you need to have purchased (or already owned) shares by market close on Monday. Be aware that for any stock going ex-dividend on a Monday (or Tuesday, if Monday is a holiday), you must own it by the prior Friday.
Dividend Streak Categories
Here are the definitions of the streak categories, as I’ll be using them throughout the piece:
- King: 50+ years
- Champion/Aristocrat: 25+ years
- Contender: 10-24 years
- Challenger: 5+ years
The Main List
The data is sorted by the ex-dividend day (ascending) and then the streak (descending):
|Name||Ticker||Streak||Forward Yield||Ex-Div Date||Increase Percent||Streak Category|
|Macatawa Bank Corporation||(MCBC)||7||2.99||10-Feb-20||14.29%||Challenger|
|MarketAxess Holdings, Inc.||(MKTX)||12||0.7||11-Feb-20||17.65%||Contender|
|Valero Energy Corporation||(VLO)||10||4.68||11-Feb-20||8.89%||Contender|
|Church & Dwight Company, Inc.||(CHD)||23||1.29||13-Feb-20||5.26%||Contender|
|WEC Energy Group, Inc.||(WEC)||17||2.53||13-Feb-20||7.12%||Contender|
|Applied Industrial Technologies, Inc.||(AIT)||11||1.88||13-Feb-20||3.23%||Contender|
|Apartment Investment and Management Company||(AIV)||10||3.07||13-Feb-20||5.13%||Contender|
|Standard Motor Products, Inc.||(SMP)||10||1.9||13-Feb-20||8.70%||Contender|
|Booz Allen Hamilton Holding Corporation||(BAH)||8||1.59||13-Feb-20||14.81%||Challenger|
|Nexstar Media Group, Inc. – Class A Common Stock||(NXST)||7||1.79||13-Feb-20||24.44%||Challenger|
|Bankwell Financial Group, Inc.||(BWFG)||6||1.99||13-Feb-20||7.69%||Challenger|
|Berkshire Hills Bancorp, Inc.||(BHLB)||6||3.3||13-Feb-20||4.35%||Challenger|
|Eli Lilly and Company||(LLY)||6||2.01||13-Feb-20||14.73%||Challenger|
|Enviva Partners, LP Common units representing limit…||(EVA)||5||7||13-Feb-20||0.75%||Challenger|
|Alaska Air Group, Inc.||(ALK)||8||2.26||14-Feb-20||7.14%||Challenger|
|National Instruments Corporation||(NATI)||6||2.26||14-Feb-20||4.00%||Challenger|
Streak: This is years of dividend growth history sourced from the U.S. Dividend Champions spreadsheet.
Forward Yield: This is the new payout rate divided by the current share price.
Ex-Dividend Date: This is the date before which you need to own the stock.
Increase Percent: This is the amount by which the dividend is being increased.
Streak Category: This is the overall dividend history classification of the company.
Show Me The Money
Here’s a table mapping the new rates versus the old rates. It also reiterates the increase in percentage. This table is sorted the same way as the first table (ex-dividend day ascending, dividend streak descending).
|Ticker||Old Rate||New Rate||Increase Percent|
Here are some additional metrics related to these companies, including yearly pricing action and the P/E ratio. This table is sorted the same way as the table above. The value investor may find stock ideas with those companies near their 52-week lows. They may provide a larger margin of safety and inflated yield.
|Ticker||Current Price||52-Week Low||52-Week High||PE Ratio||% Off Low||% Off High|
|NI||29.77||25.92||30.67||23.84||13% Off Low||3% Off High|
|MCBC||10.7||9.32||11.42||11.24||14% Off Low||6% Off High|
|MKTX||341.81||214.79||421.45||65.59||56% Off Low||14% Off High|
|VLO||83.79||69.44||101.99||14.44||18% Off Low||17% Off High|
|ADM||46.07||36.45||47.2||18.34||25% Off Low||2% Off High|
|ENB||41.84||32.23||41.89||19.25||29% Off Low||0% Off High|
|CHD||74.25||59.64||80.99||30.42||24% Off Low||7% Off High|
|WEC||100||72.44||101.37||27.9||37% Off Low||1% Off High|
|ABC||91.43||70.55||94.75||27.63||26% Off Low||2% Off High|
|AIT||68.21||49.45||68.6||18.91||37% Off Low||New High|
|AIV||53.36||47.55||55.49||16.73||12% Off Low||3% Off High|
|AMGN||232||166.3||244.99||16.77||35% Off Low||4% Off High|
|SMP||52.69||42.03||55.85||22.3||23% Off Low||6% Off High|
|ALE||83.6||75.36||88.6||21.91||10% Off Low||5% Off High|
|NP||72.23||56.67||77.55||21.52||23% Off Low||7% Off High|
|BAH||78.22||51.94||82||25.59||50% Off Low||4% Off High|
|NXST||125.16||82.06||133.25||21.39||49% Off Low||5% Off High|
|BWFG||28.12||24.67||31.89||11.7||10% Off Low||11% Off High|
|BHLB||29.1||26.21||33.72||14.37||10% Off Low||13% Off High|
|LLY||147.35||101.36||147.35||15.71||43% Off Low||New High|
|UTL||62.63||51.04||64.74||20.8||21% Off Low||3% Off High|
|EVA||38.57||28.44||38.78||0||35% Off Low||0% Off High|
|CVX||110.26||105.4||127.34||69.57||3% Off Low||13% Off High|
|ALK||66.33||53.39||72.22||10.43||24% Off Low||8% Off High|
|NATI||46.09||38.01||48.22||36.58||20% Off Low||4% Off High|
|WWD||116.89||88.25||129.06||28.9||30% Off Low||9% Off High|
Tickers By Yield And Growth Rates
Some investors are more interested in current yield, so this table is sorted descending by yield. This also includes some of the historical dividend growth rates as a bonus. Additionally, the “Chowder Rule” has been included, which is the current yield + 5-year dividend growth rate.
|Ticker||Yield||1-Yr DG||3-Yr DG||5-Yr DG||10-Yr DG||Chowder Rule|
I’ll cover Chevron this week as they are the biggest company in this list. With a forward yield between 4.6-4.7%, an 8% increase and yearly increases for over 33 years, Chevron has been able to successfully manage the oil cycles and reward shareholders.
I don’t follow the energy sector closely but oil has continued to be in a price glut and the recent outbreak of coronavirus in China has not helped matters either. Earnings (used loosely as they took a GAAP loss) in Q4 came in light with a hefty $10B writedown impairment charge on assets and lowered cash flow from operations from 2018.
I have a hard time valuing these oil majors because of how violent the earnings can be from year to year. It’s largely due to the price of the underlying oil commodity and it can be a “feast or famine” situation. Chevron is better poised being one of the titans along with Exxon Mobil but it can still be tricky. Just looking at the earnings changes (-57%, +94%, +43%, -10%, etc.) doesn’t give me a warm and fuzzy feeling that the projected next few years of +13%, +6%, +12% will be very close.
That said, they do have an AA-rated balance sheet so from that perspective they are and have been able to weather many storms.
From the aggregate stats listed earlier, while the 3 and 5-year increases have been in “famine” mode because of the price of oil, this increase and going out longer term, the increases have been quite nice and inflation-beating.
|Ticker||Yield||1-Yr DG||3-Yr DG||5-Yr DG||10-Yr DG||Chowder Rule|
From the new and improved Simply Safe Dividends site, here are the high level stats.
With the 8.4% increase going into effect and shares languishing where they’ve sat more or less for the past 3 years, this could be an opportunity here.
The trend of increases has remained intact for over 30 years though it can be a bit lumpy. We are coming off the heels of a relative flat few years and it remains to be seen if increases in this 8% range can continue.
Looking at the yield of the stock over time, the forward yield of 4.7% would actually put it up in the higher echelon of yields over the past 5 years. There was that brief spike in late 2015/early 2016 where it shot well over 5 and nearly 6%.
I ran a stock return calculation comparing CVX to the S&P since this time in 2010.Chevron was able to pump out about 50% more dividends during the time frame but the actual investment results were more muted. The S&P returned about 14.2% annually with Chevron returning just under 10%.
Here’s a look at the investments over time:
- CVX is the blue line.
- SPY is the black line
The black line of the S&P was a steady grower over time while Chevron bounced around more. In fact, Chevron had the lead for a few years over the S&P but has slipped as the price of oil has remained low for the past several years.
(Source: Custom Stock Alerts)
I hope you find this information valuable. Let me know if you want to see additional data points or what may help make this more useful.
As always, do your due diligence on any stock before buying or selling. Happy investing!
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.