Dividend Challengers (And Near-Challengers): 55 Increases Expected By The End Of May

|
Includes: AAPL, ABR, AHL, ANCX, AON, AWK, BBT, BKMU, CE, CHCO, CHU, COLB, DFS, FRC, GS, HFWA, HNI, HPT, HY, IBOC, IEX, IVZ, JNS, KEY, LAD, LAZ, LBAI, LKFN, LYB, MAN, MAR, MKSI, MOV, MTRN, OXM, PBSK, PETS, PIR, PNC, POOL, PROV, PSX, RSE, SCS, SIR, SSW, STI, TEL, TSCO, UDR, WBS, WFC, WHR, WINA, WTBA
by: David Fish

Summary

New Challengers should include Pier 1, Apple, and Phillips 66.

Many possible double-digit increases on tap.

Several former Champion Banks on the comeback trail.

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.

Meeting Season Prompts Rewards

After the pick-up in dividend increases during February and March, following Annual Earnings announcements, the next impetus for hikes in the payouts will be Shareholder Meetings in April and May. You can see in the table below that the pace should remain robust as we head into those. The number of announcements for all Champions, Contenders, Challengers, and Near-Challengers expected in the next 11 weeks has decreased from to 128 a month ago to 87 now, but may still be 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 Challengers (5-9 years):

Company

Ticker

No.

2/29

Div.

MR%

LY

Ann.

DGR

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

5-yr

International Bancshares

(NASDAQ:IBOC)

6

22.55

2.57

7.41

3/30/15

0.58

10.0

Steelcase Inc.

(NYSE:SCS)

5

12.49

3.60

7.14

4/2/15

0.45

22.6

Movado Group Inc.

(NYSE:MOV)

5

29.21

1.51

10.00

4/8/15

0.44

n/a

PNC Financial Services Group

(NYSE:PNC)

5

81.31

2.51

6.25

4/13/15

2.04

38.1

UDR Inc.

(NYSE:UDR)

5

34.33

3.23

6.73

4/14/15

1.11

8.5

Oxford Industries Inc.

(NYSE:OXM)

5

72.63

1.38

19.05

4/15/15

1.00

18.0

Seaspan Corp.

(NYSE:SSW)

5

16.88

8.89

8.70

4/16/15

1.50

26.7

IDEX Corp.

(NYSE:IEX)

6

75.16

1.70

14.29

4/17/15

1.28

16.8

Celanese Corp.

(NYSE:CE)

6

60.34

1.99

20.00

4/30/15

1.20

44.9

Lakeland Bancorp Inc.

(NASDAQ:LBAI)

5

10.00

3.40

13.33

4/30/15

0.34

12.7

Lazard Limited

(NYSE:LAZ)

8

35.18

3.98

16.67

4/30/15

1.40

22.0

Webster Financial Corp.

(NYSE:WBS)

5

33.61

2.74

15.00

4/30/15

0.92

86.0

Access National Corp.

(NASDAQ:ANCX)

5

18.60

3.23

7.14

4/30/15

0.60

71.3

Columbia Banking System

(NASDAQ:COLB)

5

28.83

2.50

12.50

5/4/15

0.72

77.3

West Bancorp Inc.

(NASDAQ:WTBA)

5

17.56

3.64

14.29

5/4/15

0.64

65.5

Heritage Financial Corp.

(NASDAQ:HFWA)

5

17.44

2.52

10.00

5/5/15

0.44

n/a

Janus Capital Group Inc.

(NYSE:JNS)

5

12.93

2.78

12.50

5/6/15

0.36

54.3

Wells Fargo & Co.

(NYSE:WFC)

5

46.92

3.20

7.14

5/6/15

1.50

49.1

American Water Works

(NYSE:AWK)

8

64.82

2.10

9.68

5/7/15

1.36

9.1

Winmark Corp.

(NASDAQ:WINA)

6

96.90

0.29

16.67

5/11/15

0.28

35.1

PetMed Express Inc.

(NASDAQ:PETS)

7

16.50

4.36

5.88

5/13/15

0.72

9.5

HNI Corp.

(NYSE:HNI)

5

33.81

3.14

6.00

5/13/15

1.06

4.0

Lithia Motors Inc.

(NYSE:LAD)

6

92.72

0.86

25.00

5/13/15

0.80

38.3

BB&T Corp.

(NYSE:BBT)

5

32.16

3.36

12.50

5/13/15

1.08

11.8

Discover Financial Services

(NYSE:DFS)

5

46.42

2.41

16.67

5/13/15

1.12

68.3

Invesco Limited

(NYSE:IVZ)

6

26.74

4.04

8.00

5/13/15

1.08

19.6

Whirlpool Corp.

(NYSE:WHR)

5

155.32

2.32

20.00

5/13/15

3.60

14.9

Tractor Supply Company

(NASDAQ:TSCO)

6

84.57

0.95

25.00

5/14/15

0.80

40.3

Provident Financial Holdings

(NASDAQ:PROV)

5

17.53

2.74

9.09

5/15/15

0.48

63.7

Pool Corp.

(NASDAQ:POOL)

5

80.27

1.30

18.18

5/18/15

1.04

14.0

Marriott International Inc.

(NASDAQ:MAR)

6

68.15

1.47

25.00

5/20/15

1.00

37.1

TE Connectivity Ltd.

(NYSE:TEL)

5

56.92

2.32

13.79

5/27/15

1.32

14.9

SunTrust Banks Inc.

(NYSE:STI)

5

33.18

2.89

20.00

5/27/15

0.96

87.2

MKS Instruments Inc.

(NASDAQ:MKSI)

5

32.90

2.07

3.03

5/28/15

0.68

n/a

LyondellBasell Industries NV

(NYSE:LYB)

5

80.21

3.89

11.43

5/28/15

3.12

n/a

ManpowerGroup Inc.

(NYSE:MAN)

5

77.44

2.07

63.27

5/28/15

1.60

16.7

KeyCorp

(NYSE:KEY)

5

10.55

2.84

15.38

5/29/15

0.30

48.6

Click to enlarge

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

In addition, there's a number of Near-Challengers that are on schedule to record their fifth year of increases during this period:

Company

Ticker

No.

LY

Name

Symbol

Yrs

Ex-Div

City Holding Co.

(NASDAQ:CHCO)

4

4/13/15

Rouse Properties Inc.

(NYSE:RSE)

4

4/13/15

Pier 1 Imports Inc.

(NYSE:PIR)

4

4/17/15

Hospitality Properties Trust

(NYSE:HPT)

4

4/22/15

Lakeland Financial Corp.

(NASDAQ:LKFN)

4

4/22/15

Select Income REIT

(NYSE:SIR)

4

4/22/15

First Republic Bank

(NYSE:FRC)

4

4/28/15

Aon plc

(NYSE:AON)

4

4/29/15

Aspen Insurance Hdgs Ltd.

(NYSE:AHL)

4

5/6/15

Apple Inc.

(NASDAQ:AAPL)

4

5/7/15

Poage Bankshares Inc.

(NASDAQ:PBSK)

4

5/7/15

China Unicom HK Limited

(NYSE:CHU)

4

5/11/15

Arbor Realty Trust Inc.

(NYSE:ABR)

4

5/13/15

Bank Mutual Corp.

(NASDAQ:BKMU)

4

5/13/15

Phillips 66

(NYSE:PSX)

4

5/14/15

Meterion Corp.

(NYSE:MTRN)

4

5/19/15

Goldman Sachs Group Inc.

(NYSE:GS)

4

5/28/15

Hyster-Yale Materials

(NYSE:HY)

4

5/28/15

Click to enlarge

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 AAPL.

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 covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.