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 in own. I also like to track projected annual dividend income, a measure of the dividend income potential of the portfolio over the next 12 months.
In the past week, 12 of the companies on my watch list announced dividend increases.
The table is sorted by last column, %Incr. Dividends are annualized and in US$, unless otherwise indicated. Yield indicates the new dividend yield for the market close Price in US$ on the date listed. Yrs are years of consecutive dividend increases, while 5-year DGR is the compound annual growth rate of the dividend over a five-year period.
Previous Post: 12 Dividend Increases, December 20, 2015 To January 15, 2016
In the table, two DivGro holdings that announced dividend increases in this period are highlighted:
• Intel Corporation (NASDAQ:INTC)
Founded in 1968, INTC is an American multinational semiconductor chip maker corporation with headquarters in Santa Clara, California. The company makes motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphic chips, embedded processors and other devices related to communications and computing. INTC is the world's largest and highest valued semiconductor chip maker, based on revenue.
On Friday, 22 January, the company increased its quarterly dividend to 26¢ per share. The dividend is payable on 1 March to shareholders of record on 5 February.
I bought shares of INTC in January 2013 shortly after founding DivGro. My initial YoC of 4.34% has increased to 4.90%.
• Dominion Resources (NYSE:D)
Founded in 1909 and headquartered in Richmond, Virginia, D produces and distributes energy in the United States. The company provides electricity, natural gas and related services to customers primarily in the eastern region of the United States. Operations are conducted through various subsidiaries, including Virginia Electric and Power Company.
On 21 January, the board of directors declared a quarterly dividend of 70¢ per share, payable on 20 March to shareholders of record on 4 March. The new dividend represents an increase of 8.11%.
I bought shares of D in 2 batches, first in August 2014 and then in July 2015. Original YoC was 3.47% and 3.69%, respectively. Now my average YoC is 4.03%.
With these increases, DivGro's projected annual dividend income is raised to $7,274.
OTHER DIVIDEND INCREASES
• Brown & Brown Inc (NYSE:BRO)
BRO markets and sells a range of insurance and reinsurance products and services, as well as risk management, third party administration, managed health care, and Medicare set-aside services and programs. Customers include businesses, public entities, individuals, trade and professional associations. BRO was founded in 1939 and is headquartered in Daytona Beach, Florida. BRO will pay a quarterly dividend of 12.25¢ per share on 17 February to shareholders of record on 3 February. The ex-dividend date is 1 February.
• First Interstate Bancsystem Inc (NASDAQ:FIBK)
With headquarters in Billings, Montana, FIBK is a financial and bank holding company. Through its wholly-owned bank subsidiary, the company delivers a range of banking products and services to individuals, businesses, municipalities and other entities throughout Montana, Wyoming and western South Dakota. The company also offers internet and mobile banking services. The company increased its quarterly dividend by 10.00%, from 20¢ per share to 22¢ per share. The dividend is payable on 12 February, to shareholders of record on 1 February.
• Washington Federal Inc (NASDAQ:WAFD)
WAFD is a non-diversified unitary savings and loan holding company. Its principal subsidiary is Washington Federal, National Association, which operates about 250 offices in eight western states. The company attracts savings deposits from the general public and invests these funds in loans secured by first mortgage liens on single-family dwellings. It also originates other types of loans and invests in certain United States Government and agency obligations. WAFD was founded in 1917 and is headquartered in Seattle, Washington. On Wednesday, 20 January, WAFD increased its quarterly dividend to 14¢ per share. The dividend is payable on 12 February to shareholders of record on 1 February.
• AptarGroup Inc (NYSE:ATR)
Founded in 1992, ATR develops, manufactures, and sells consumer product dispensing systems worldwide. The company serves the beauty, personal care, home care, prescription drug, consumer health care, injectables, food and beverage markets. Based in Crystal Lake, Illinois, ATR sells its products through its own sales force, as well as through independent representatives and distributors. On 22 October, the company declared a quarterly dividend of 30¢ per share, payable on 25 November to shareholders of record on 4 November.
• CMS Energy Corp (NYSE:CMS)
CMS is an energy company operating primarily in Michigan in the U.S.A. It is the parent holding company of several subsidiaries, including Consumers, an electric and gas utility, and CMS Enterprises, primarily a domestic independent power producer. CMS was founded in 1987 and is headquartered in Jackson, Michigan. Recently, CMS increased its quarterly dividend by 6.90% to 31¢ per share. The dividend is payable on 29 February, to shareholders of record on 5 February.
• Linear Technology Corp (NASDAQ:LLTC)
LLTC is engaged in designing, manufacturing and marketing a line of high performance analog integrated circuits for companies across the world. The company produces power management, data conversion, signal conditioning, RF and interface ICs, module subsystems, and wireless sensor network products. It markets its products primarily through direct sales staff and electronics distributors. LLTC was founded in 1981 and is headquartered in Milpitas, California. The board of directors has declared a quarterly dividend of 32¢ per share, payable on 24 February to stockholders of record on 12 February. The new dividend is 6.67% above the prior dividend of 30¢ per share.
• CenterPoint Energy (NYSE:CNP)
CNP is a domestic energy delivery company that includes electric transmission and distribution, natural gas distribution and sales, and interstate pipeline and gathering operations. The company serves more than five million customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company was founded in 1882 and is headquartered in Houston, Texas. On Wednesday, 20 January, the company increased its quarterly dividend to 25.75¢ per share. The dividend is payable on 10 March to shareholders of record on 16 February.
• Tesoro Logistics LP (NYSE:TLLP)
TLLP is a limited partnership that owns, operates, develops and acquires crude oil and refined products logistics assets, primarily in the western and mid-continent regions of the United States. The Company's logistics assets are used to gather, transport and store crude oil and to distribute, transport and store refined products. TLLP was founded in 2010 and is headquartered in San Antonio, Texas. TLLP's board of directors approved an increase in its quarterly dividend to 78¢ per share, an increase of nearly 4.00%. The dividend is payable on 12 February, to shareholders of record on 2 January.
• First American Financial Corp (NYSE:FAF)
Based in Santa Ana, California, and incorporated in 2008, FAF provides financial services through its subsidiaries. The company issues title insurance policies and provides escrow and real estate closing services on residential and commercial property. It also provides property and casualty insurance and loan quality analytics, decision support tools, and loan review services for the mortgage industry. The company's board of directors approved an increase in the quarterly dividend of 4.00% to 26¢ per share. The dividend is payable on 15 March to shareholders of record at the close of business on 8 March.
• Western Gas Partners LP (NYSE:WES)
WES is a master limited partnership that owns, operates, acquires and develops midstream energy assets. The company is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids and crude oil. WES was founded in 2007 and is headquartered in The Woodlands, Texas. The company increased its quarterly dividend by 3.23%, from 77.5¢ per share to 80¢ per share. The dividend is payable on 11 February, to shareholders of record on 1 February.
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 INTC,D.
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.