I monitor dividend increases for stocks on 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. I own shares in 3 of these companies.
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: 17 Dividend Increases, January 25-January 29, 2016
In the table, 3 DivGro holdings that announced dividend increases in this period are highlighted:
• Meredith Corp. (NYSE:MDP)
Founded in 1902 and headquartered in Des Moines, Iowa, MDP is the leading media and marketing company serving American women. The company has two business segments: publishing and broadcasting. The publishing segment includes magazine and book publishing, integrated marketing, interactive media, brand licensing, and other related operations. The broadcasting segment includes the operations of network-affiliated television stations and syndicated television program marketing and development.
Recently, MDP increased its quarterly dividend from 45.75¢ per share to 49.5¢ per share, an increase of 8.20%. The dividend is payable on 15 March, to shareholders of record on 29 February.
I bought shares of MDP in March 2014 at an initial YoC of 3.81%. With this increase, my YoC goes up to 4.38%.
• Eversource Energy (NYSE:ES)
ES, formerly Northeast Utilities, is a utility holding company engaged in the transmission and distribution of electricity and natural gas. The company serves residential, commercial, and industrial customers in Connecticut, Massachusetts, and New Hampshire, the United States. It provides energy delivery services to approximately 3.6 million electric and natural gas customers. Eversource Energy was founded in 1927 and is based in Springfield, Massachusetts.
ES's board of directors declared an increase in its quarterly dividend to 44.5¢ per share, an increase of 6.59%. The ex-dividend date is 29 February and the dividend will be paid on 31 March.
I bought shares of ES in December 2013 at an initial YoC of 3.61%. After this dividend increase, YoC is 4.34%.
• Avista Corp. (NYSE:AVA)
AVA is a diversified energy company engaged in the generation, transmission and distribution of energy in North America. Avista Utilities is an operating division of AVA that comprises of its regulated utility operations. It serves customers in Washington, Idaho and Oregon and contributes over 90% of AVA's earnings. Ecova is the company's primary, non-utility subsidiary, providing energy efficiency and cost management services for multi-site customers. AVA was founded in 1889 and is headquartered in Spokane, Washington.
The company declared a quarterly dividend of 34.25¢ per share, an increase of 3.79% over the prior quarterly dividend. The dividend is payable 15 March to shareholders of record on 19 February.
In October 2014, I bought shares of AVA at an opening YoC of 3.75%. Following this dividend increase, my YoC is raised to 4.02%.
With these increases, DivGro's projected annual dividend income stands at $8,361.
OTHER DIVIDEND INCREASES
• L Brands Inc. (NYSE:LB)
Founded in 1963 and headquartered in Columbus, Ohio, LB is a specialty retailer of women's intimate and other apparel, beauty and personal care products, and accessories. The company offers its products under the Victoria's Secret, Pink, Bath & Body Works, La Senza, Henri Bendel, and other brand names. LB sells its merchandise through company-owned specialty retail stores in the United States, Canada, and the United Kingdom. LB's board of directors approved an increase in its quarterly dividend to 60¢ per share, an increase of nearly 20.00%. The dividend is payable on 4 March, to shareholders of record on 19 February.
• Harley-Davidson Inc. (NYSE:HOG)
HOG manufactures cruiser and touring motorcycles and conducts its business around the world. The company designs, manufactures, and sells street-legal Harley-Davidson motorcycles, as well as a line of motorcycle parts, accessories, general merchandise, and related services. Products are sold to retail customers through a network of independent dealers. HOG's financial services segment provides wholesale and retail financing as well as insurance-related products. The company was founded in 1903 and is headquartered in Milwaukee, Wisconsin. The company increased its quarterly dividend by 12.90%, from 31¢ per share to 35¢ per share. The dividend is payable on 4 March, to shareholders of record on 17 February.
• Corning Inc. (NYSE:GLW)
GLW manufactures and sells specialty glass and ceramics worldwide. The company creates and makes keystone components that enable systems for consumer electronics, mobile emissions control, optical communications and life sciences. The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989. GLW was founded in 1851 and is based in Corning, New York. On 3 February, the board of directors approved an increase to its regular quarterly dividend from 12¢ per share to 13.5¢ per share, an increase of 12.50%. The first payment will be on 31 March to stockholders of record on 25 February.
• Ingersoll-Rand plc (NYSE:IR)
IR is a diversified, global company that provides products and services to improve the quality and comfort of air in homes and buildings, and to transport and protect food and perishables. The company markets and sells its products through sales offices, distributors, and dealers in the United States; and through subsidiary sales and service companies with a supporting chain of distributors worldwide. IR was founded in 1872 and is headquartered in Swords, Ireland. The board of directors has declared a quarterly dividend of 32¢ per share, payable on 31 March to stockholders of record on 11 March. The new dividend is 10.34% above the prior dividend of 29¢ per share.
• 3M Company (NYSE:MMM)
MMM is a diversified technology company with worldwide operations. The company has leading positions in consumer and office; display and graphics; electronics and telecommunications; health care; industrial; safety, security and protection services; transportation and other businesses. MMM is an integrated enterprise characterized by substantial inter-company cooperation in research, manufacturing and marketing of products. MMM was founded in 1902 and is headquartered in St. Paul, Minnesota. The company declared a quarterly dividend of $1.11 per share, an increase of 8.29% over the prior quarterly dividend. The dividend is payable 12 March to shareholders of record on 12 February.
• Brookfield Infrastructure Partners LP (NYSE:BIP)
BIP owns and operates utility, transport and energy businesses. The company operates a port facility in Australia, transmission lines in North and South America, and electrify and natural gas connections in the United Kingdom and Colombia. The company also operates transmission pipelines and natural gas storage facilities. BIP provides transportation, storage and handling services for freight, bulk commodities, and the company was founded in 2007 and is based in Toronto, Canada. On 3 February, the company declared a quarterly dividend of 57¢ per share, payable on 31 March to shareholders of record on 29 February.
• Archer Daniels Midland (NYSE:ADM)
Founded in 1898 and headquartered in Chicago, Illinois, ADM is engaged in the processing of oilseeds, corn, wheat, cocoa, and other agricultural commodities. The company manufactures protein meal, vegetable oil, corn sweeteners, flour, and other value-added food and feed ingredients, as well as biodiesel and ethanol. On Tuesday, 2 February, the company increased its quarterly dividend to 30¢ per share. The dividend is payable on 8 March to shareholders of record on 12 February.
• Spectra Energy Partners LP (NYSE:SEP)
Based in Houston, Texas, SEP is a master limited partnership formed by Spectra Energy Corporation (NYSE:SE). SEP is one of the largest pipeline MLPs in the United States. It is engaged in the transmission, storage and gathering of natural gas, the transportation and storage of crude oil, and the transportation of natural gas liquids in the central, southern and eastern United States, as well as western Canada. The company increased its quarterly dividend by 2.00%, from 62.625¢ per share to 63.875¢ per share. The dividend is payable on 26 February, to shareholders of record on 15 February.
• PPL Corp. (NYSE:PPL)
Founded in 1920 and headquartered in Allentown, Pennsylvania, PPL is an energy and utility holding company. Through its subsidiaries, PPL delivers electricity and natural gas to customers in the United States and the United Kingdom. The company controls more than 12,000 megawatts of generating capacity in the United States. Recently, PPL increased its quarterly dividend from 37.75¢ per share to 38¢ per share, an increase of 0.66%. The dividend is payable on 1 April, to shareholders of record on 10 March.
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 AVA,ES,MDP.
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.