I monitor dividend increases for stocks in my watch list of dividend growth stocks to identify candidates for further analysis. Companies that regularly increase dividends show confidence in future earnings growth potential.
Another reason I monitor dividend increases is so I can make yield on cost (YoC) adjustments for stocks I own. I also like to track projected annual dividend income, a measure of the dividend income potential of my portfolio over the next 12 months.
In the past 3 weeks, 12 of the companies on my watch list announced dividend increases, including 3 I hold in my portfolio.
The following table provides a summary of these dividend increases. The table is sorted by last column, %Incr. Dividends are annualized and in US$, unless otherwise indicated. Yield indicates the new dividend yield for the market close Price on the date listed. Yrs are years of consecutive dividend increases and 5-yr DGR is the compound annual growth rate of the dividend over a five-year period.
Dividend Increases: December 20, 2015-January 15, 2016
Previous Post: 7 Dividend Increases, December 7 To December 18, 2015
In the table, the 3 DivGro holdings that announced dividend increases in this period are highlighted:
• Realty Income Corp (NYSE:O)
Known as The Monthly Dividend Company®, Realty Income is an equity real estate investment trust dedicated to providing shareholders with dependable monthly income. The company earns income from nearly 4,500 properties owned under long-term lease agreements with regional and national retail chains and other commercial tenants. Realty Income Corporation was founded in 1969 and is based in Escondido, California.
On Thursday, 14 January, Realty Income increased its dividend to 19.85¢ per share. The dividend is payable on 16 February to shareholders of record on 2 February. Realty Income has increased its dividend by 5.03% in the past 12 months.
With this increase, my Realty Income holding has a YoC of 4.68%.
• AT&T Inc (NYSE:T)
Incorporated on October 5, 1983 and based in Dallas, Texas, AT&T is a holding company providing telecommunications services in the United States and internationally. Services and products include wireless communications, data/broadband and Internet services, video services, local exchange services, long-distance services, telecommunications equipment, managed networking and wholesale services. Through its subsidiary, DIRECTV Group Holdings, LLC, it provides pay television in the United States and across the world.
On 18 December, the board of directors approved an increase to its regular quarterly dividend from 47¢ per share to 48¢ per share, an increase of 2.13%. The first payment will be on 16 February to stockholders of record on 8 January.
My AT&T holding now has a YoC of 5.62%.
• Omega Healthcare Investors (NYSE:OHI)
OHI is a self-administered REIT (real estate investment trust) that invests in income-producing healthcare facilities located throughout the United States. The company provides lease or mortgage financing to healthcare operating companies, funding investments through loans under revolving credit facilities, from private or public offerings of debt or equity securities, or through secured indebtedness.
OHI's board of directors approved an increase in its quarterly dividend to 57¢ per share, an increase of about 1.79%. The dividend is payable on 16 February, to shareholders of record on 2 February. The company has increased its dividend by 5.67% in the past year.
This dividend increase raises the YoC of my OHI holding to 6%.
OTHER DIVIDEND INCREASES
• DDR Corp (NYSE:DDR)
Based in Beachwood, Ohio, DDR is an equity real estate investment trust that owns and manages retail properties in the continental United States and Puerto Rico. The company owns and manages 367 value-oriented shopping centers representing 115 million square feet. Assets are concentrated in high barrier-to-entry markets with stable populations and high growth potential and its portfolio is actively managed to create long-term shareholder value. The company increased its quarterly dividend by 10.14%, from 17.25¢ per share to 19¢ per share. The dividend is payable on 5 April, to shareholders of record on 10 March.
• Spectra Energy Corp (NYSE:SE)
SE is a leading pipeline and midstream energy company. Based in Houston, Texas, the company's operations include more than 21,000 miles of natural gas, natural gas liquids, and crude oil pipelines; approximately 300 billion cubic feet of natural gas storage; 4.8 million barrels of crude oil storage; as well as natural gas gathering, processing, and local distribution operations. On 5 January, the company declared a quarterly dividend of 40.5¢ per share, payable on 8 March to shareholders of record on 12 February. The new dividend represents an increase of 9.46%.
• Fastenal Company (NASDAQ:FAST)
FAST sells industrial and construction supplies grouped into eleven different product lines. The company distributes the supplies through a network of approximately 2,600 company-owned stores. Most of its customers are in the manufacturing and non-residential construction markets. Fastenal began paying annual dividends in 1991, semi-annual dividends in 2003, and then expanded to quarterly dividends in 2011. The company declared a quarterly dividend of 30¢ per share, an increase of 7.14% over the prior quarterly dividend. The dividend is payable 18 March to shareholders of record on 29 January.
• Alliant Energy Corp (NYSE:LNT)
Headquartered in Madison, Wisconsin, LNT operates as a regulated investor-owned public utility holding company. LNT provides electricity and natural gas services to customers in the U.S. Midwest through its two subsidiaries, Interstate Power and Light Company and Wisconsin Power and Light Company. Alliant Energy Resources, Inc, is the parent company of LNT's non-regulated businesses. It has operations throughout the United States as well as in Australia, Brazil, China, Mexico and New Zealand. On Friday, 15 January, the company increased its quarterly dividend to 58.75¢ per share. The dividend is payable on 12 February to shareholders of record on 29 January.
• EPR Properties (NYSE:EPR)
EPR is a specialty real estate investment trust (REIT) that invests in properties in the United States and Canada. The company develops, owns, leases and finances properties in select market segments primarily related to entertainment, education and recreation. Total investments exceed $4.5 billion. EPR was founded on August 22, 1997 and is based in Kansas City, Missouri. On Friday, 15 January, EPR increased its dividend to 32¢ per share. The dividend is payable on 15 February to shareholders of record on 29 January.
• BlackRock Inc (NYSE:BLK)
Headquartered in New York City, BLK is one of the largest investment management firms in the United States. The company offers a variety of investment and risk management services to institutional and individual investors in the U.S. and internationally. Products offered include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. The company increased its quarterly dividend by 5.05%, from $2.18 per share to $2.29 per share. The dividend is payable on 23 March, to shareholders of record on 7 March.
• ADT Corp (NYSE:ADT)
ADT provides security and automation solutions for homes and businesses in the United States and Canada. The company's products and services include ADT Pulse, ADT Select, Access Control, Business Intrusion Detection, Business Video Surveillance, Carbon Monoxide Detection, Fire/Smoke Detection, Home Security Systems, Home Video Surveillance, Medical Alert Systems and Monitoring Services. ADT was founded in 1874 and is headquartered in Boca Raton, Florida. The board of directors has declared a quarterly dividend of 22¢ per share, payable on 17 February to stockholders of record on 27 January. The new dividend is 4.76% above the prior dividend of 21¢ per share.
• Genesis Energy LP (NYSE:GEL)
GEL was founded in 1996 and is based in Houston, Texas. GEL is a limited partnership focused on the midstream segment of the oil and gas industry in the Gulf Coast region of the United States, primarily Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida and in the Gulf of Mexico. GEL's board of directors approved an increase in its quarterly dividend to 65.5¢ per share, an increase of nearly 2.34%. The dividend is payable on 12 February, to shareholders of record on 29 January.
• Enterprise Products Partners LP (NYSE:EPD)
EPD is one of the largest publicly traded partnerships and a leading integrated provider of processing and transportation services to producers of Natural Gas Liquids (NGLS) and consumers of NGL products. The partnership's assets include approximately 49,000 miles of pipelines; 225 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 billion cubic feet of natural gas storage capacity. EPD was founded in 1968 and is based in Houston, Texas. Recently, EPD increased its quarterly dividend from 38.5¢ per share to 39¢ per share, an increase of 1.30%. The dividend is payable on 5 February, to shareholders of record on 29 January.
Please note that I'm not recommending any of these stocks. Readers should do their own research on these companies before buying shares.
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Disclosure: I am/we are long T, O, OHI.
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.