Dividend Contenders: 35 Increases Expected In The Next 11 Weeks

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Includes: ADI, ALB, AMP, BBY, CATC, COST, DGICA, DGICB, DLR, ELS, ESS, GD, GIS, GPS, IPCC, JKHY, MGRC, NATL, NHI, NWFL, PBCT, PDER, RNR, ROST, RTN, SCG, SKT, SLGN, SRE, SYT, TMK, TPL, WR, WSM, XEL
by: David Fish

Summary

General Dynamics to become the next Champion.

Will Costco repeat its double-digit increases?

Plenty of Diversity available among these Contenders.

In compiling the Dividend Champions list (found here) I get to see which companies are nearing the anniversaries of their previous dividend increases. Since most of these firms raise their payout about the same time every year, I can say with some confidence that they are likely to do so again. I have separated the Champions (25 or more years of higher dividends), Contenders (10-24 years), and Challengers (5-9 years) into distinct groupings, so please look for the other articles, which I hope will be published about the same time. Note that "CCC" refers to the combination of Champions, Contenders, and Challengers.

Momentum Continues

As previously mentioned, dividend increase announcements pick up in February and March, following Annual Earnings announcements, and then remain strong heading into Shareholder Meeting Season in April and May. So, after activity picked up in recent weeks, you can see in the table below that it should remain robust as we head into Spring. The number of announcements for all Champions, Contenders, Challengers, and Near-Challengers expected in the next 11 weeks has decreased from to 190 a month ago to 128 now, but anything over 100 falls in the "above average" category.

The table below coincides with the usual "forward look" of about 11 weeks for this article. Based on last year's announcements, I'm expecting the following companies to announce dividend increases between now and the anniversary of the Ex-Dividend Date of their previous increase:

Dividend Contenders (10-24 years):

Company

Ticker

No.

1/29

Div.

MR%

LY

Ann.

DGR

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

5-yr

Analog Devices Inc.

(NYSE:ADI)

13

53.86

2.97

8.11

2/25/15

1.60

13.2

Pardee Resource Company

(OTCPK:PDER)

10

155.00

4.65

2.86

2/25/15

7.20

10.4

Jack Henry & Associates

(NASDAQ:JKHY)

23

81.18

1.23

13.64

2/27/15

1.00

21.4

Ross Stores Inc.

(NASDAQ:ROST)

21

56.26

0.84

17.50

3/5/15

0.47

24.0

Texas Pacific Land Trust

(NYSE:TPL)

12

121.91

0.24

7.41

3/5/15

0.29

7.7

Westar Energy

(NYSE:WR)

11

43.56

3.31

2.86

3/5/15

1.44

3.1

Cambridge Bancorp

(OTCQB:CATC)

17

46.00

3.91

7.14

3/6/15

1.80

5.2

National Interstate Corp.

(NASDAQ:NATL)

11

24.53

2.12

8.33

3/6/15

0.52

10.2

SCANA Corp.

(NYSE:SCG)

15

62.95

3.46

3.81

3/6/15

2.18

2.7

Digital Realty Trust

(NYSE:DLR)

11

80.08

4.25

2.41

3/11/15

3.40

11.9

Infinity Property & Casualty

(NASDAQ:IPCC)

13

79.39

2.17

19.44

3/11/15

1.72

25.2

RenaissanceRe Holdings

(NYSE:RNR)

20

112.65

1.07

3.45

3/11/15

1.20

3.7

Albemarle Corp.

(NYSE:ALB)

21

52.64

2.20

5.45

3/12/15

1.16

15.4

Silgan Holdings Inc.

(NASDAQ:SLGN)

12

52.87

1.21

6.67

3/12/15

0.64

8.8

Xcel Energy

(NYSE:XEL)

12

38.22

3.35

6.67

3/13/15

1.28

4.8

Best Buy Corp.

(NYSE:BBY)

13

27.93

3.29

21.05

3/20/15

0.92

9.1

Equity LifeStyle Properties

(NYSE:ELS)

11

65.92

2.28

15.38

3/25/15

1.50

19.3

Sempra Energy

(NYSE:SRE)

12

94.75

2.96

6.06

3/25/15

2.80

12.1

Essex Property Trust

(NYSE:ESS)

21

213.11

2.70

10.77

3/27/15

5.76

6.4

National Health Investors

(NYSE:NHI)

13

60.68

5.60

10.39

3/27/15

3.40

7.6

Raytheon Company

(NYSE:RTN)

11

128.24

2.09

10.74

3/30/15

2.68

12.8

Torchmark Corp.

(NYSE:TMK)

10

54.34

0.99

6.58

3/31/15

0.54

14.4

Gap Inc.

(NYSE:GPS)

11

24.72

3.72

4.55

4/6/15

0.92

18.8

General Dynamics

(NYSE:GD)

24

133.77

2.06

11.29

4/8/15

2.76

10.4

General Mills

(NYSE:GIS)

12

56.51

3.11

7.32

4/8/15

1.76

10.5

Norwood Financial

(NASDAQ:NWFL)

17

27.76

4.47

3.33

4/13/15

1.24

3.9

McGrath Rentcorp

(NASDAQ:MGRC)

23

24.41

4.10

2.04

4/14/15

1.00

2.1

Williams-Sonoma Inc.

(NYSE:WSM)

10

51.66

2.71

6.06

4/22/15

1.40

20.2

Tanger Factory Outlet Centers

(NYSE:SKT)

22

31.99

3.56

18.75

4/28/15

1.14

7.2

Costco Wholesale

(NASDAQ:COST)

12

151.12

1.06

12.68

4/29/15

1.60

14.4

Donegal Group Inc. A

(NASDAQ:DGICA)

13

14.11

3.83

2.66

4/29/15

0.54

3.2

Donegal Group Inc. B

(NASDAQ:DGICB)

13

15.47

3.04

1.29

4/29/15

0.47

2.8

People's United Financial

(NASDAQ:PBCT)

23

14.37

4.66

1.52

4/29/15

0.67

1.4

Ameriprise Financial Inc.

(NYSE:AMP)

11

90.65

2.96

15.52

4/30/15

2.68

29.5

Syngenta AG

(NYSE:SYT)

14

73.88

3.16

2.96

4/30/15

2.33

15.7

Click to enlarge

MR=Most Recent; LY=Last Year; DGR=Dividend Growth Rate through 2015

Not all of the above companies will meet the strict standards of every investor, but some may be appropriate for portfolio diversification. Potential investors should do more research before committing funds.

Every Picture Tells a Story

As a bonus, I'm inserting one of Chuck Carnevale's F.A.S.T. Graphs below, highlighting one of the companies listed above. When the stock's price line has moved into the green area, it indicates that the stock is undervalued in relation to its earnings. I'm attaching the chart below.

Click to enlarge

Disclosure: I am/we are long SCG,COST,GIS.

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.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.