Dividend Challengers (And Near-Challengers): 78 Increases Expected By July 4

|
Includes: AAPL, ABR, AGR, AHL, AIMC, AIN, ASH, AVY, AWK, AXP, BBOX, BBT, BKMU, CE, CMA, CNO, COLB, CVG, DFS, EE, ESCA, EXR, FFIN, FNV, FRME, GNTX, GRMN, GS, HFC, HFWA, HNI, HY, IVZ, JNS, JPM, KEY, LAD, LAZ, LBAI, LHO, LII, LM, LUV, LYB, M, MAN, MAR, MBFI, MEOH, MKSI, MTRN, NSP, NTRS, PBSK, PETS, PFG, POOL, PRIM, PROV, PSA, PSX, SCVL, SIR, STI, STT, TEL, TG, TOWN, TSCO, UNH, USB, VCBP, VIAB, WBS, WFC, WHR, WINA, WTBA
by: David Fish

Summary

Apple about to become Challenger.

Can new Challengers build on short streak of increases?

Dividend Growth found in many industries.

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 Climaxes

As expected, the current impetus for hikes in the payouts is the plethora of Shareholder Meetings in April and May, after which we should see a lull in June and July. The number of announcements for all Champions, Contenders, Challengers, and Near-Challengers expected in the next 11 weeks has increased from to 87 a month ago to 126 now, putting it 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.

3/31

Div.

MR%

LY

Ann.

DGR

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

5-yr

Celanese Corp.

(NYSE:CE)

6

65.50

1.83

20.00

4/30/15

1.20

44.9

Lakeland Bancorp Inc.

(NASDAQ:LBAI)

5

10.15

3.35

13.33

4/30/15

0.34

12.7

Lazard Limited

(NYSE:LAZ)

8

38.80

3.61

16.67

4/30/15

1.40

22.0

Webster Financial Corp.

(NYSE:WBS)

5

35.90

2.56

15.00

4/30/15

0.92

86.0

Columbia Banking System

(NASDAQ:COLB)

5

29.92

2.41

12.50

5/4/15

0.72

77.3

West Bancorp Inc.

(NASDAQ:WTBA)

5

18.23

3.51

14.29

5/4/15

0.64

65.5

Heritage Financial Corp.

(NASDAQ:HFWA)

5

17.57

2.50

10.00

5/5/15

0.44

n/a

Janus Capital Group Inc.

(NYSE:JNS)

5

14.63

2.46

12.50

5/6/15

0.36

54.3

Wells Fargo & Co.

(NYSE:WFC)

5

48.36

3.10

7.14

5/6/15

1.50

49.1

American Water Works

(NYSE:AWK)

8

68.93

1.97

9.68

5/7/15

1.36

9.1

Winmark Corp.

(NASDAQ:WINA)

6

97.98

0.29

16.67

5/11/15

0.28

35.1

PetMed Express Inc.

(NASDAQ:PETS)

7

17.91

4.02

5.88

5/13/15

0.72

9.5

HNI Corp.

(NYSE:HNI)

5

39.17

2.71

6.00

5/13/15

1.06

4.0

Lithia Motors Inc.

(NYSE:LAD)

6

87.33

0.92

25.00

5/13/15

0.80

38.3

BB&T Corp.

(NYSE:BBT)

5

33.27

3.25

12.50

5/13/15

1.08

11.8

Discover Financial Services

(NYSE:DFS)

5

50.92

2.20

16.67

5/13/15

1.12

68.3

Invesco Limited

(NYSE:IVZ)

6

30.77

3.51

8.00

5/13/15

1.08

19.6

Whirlpool Corp.

(NYSE:WHR)

5

180.34

2.00

20.00

5/13/15

3.60

14.9

Tractor Supply Company

(NASDAQ:TSCO)

6

90.46

0.88

25.00

5/14/15

0.80

40.3

Provident Financial Hdngs

(NASDAQ:PROV)

5

17.05

2.82

9.09

5/15/15

0.48

63.7

Pool Corp.

(NASDAQ:POOL)

5

87.74

1.19

18.18

5/18/15

1.04

14.0

Marriott International Inc.

(NYSE:MAR)

6

71.18

1.40

25.00

5/20/15

1.00

37.1

TE Connectivity Ltd.

(NYSE:TEL)

5

61.92

2.13

13.79

5/27/15

1.32

14.9

Ashland Inc.

(NYSE:ASH)

6

109.96

1.42

14.71

5/27/15

1.56

23.5

SunTrust Banks Inc.

(NYSE:STI)

5

36.08

2.66

20.00

5/27/15

0.96

87.2

MKS Instruments Inc.

(NASDAQ:MKSI)

5

37.65

1.81

3.03

5/28/15

0.68

n/a

LyondellBasell Industries

(NYSE:LYB)

5

85.58

3.65

11.43

5/28/15

3.12

n/a

ManpowerGroup Inc.

(NYSE:MAN)

5

81.42

1.97

63.27

5/28/15

1.60

16.7

KeyCorp

(NYSE:KEY)

5

11.04

2.72

15.38

5/29/15

0.30

48.6

Avery Dennison Corp.

(NYSE:AVY)

5

72.11

2.05

5.71

6/1/15

1.48

12.8

HollyFrontier Corp.

(NYSE:HFC)

5

35.32

3.74

3.13

6/3/15

1.32

34.3

Albany International Corp.

(NYSE:AIN)

5

37.59

1.81

6.25

6/3/15

0.68

6.6

Principal Financial Group

(NYSE:PFG)

7

39.45

3.85

5.56

6/4/15

1.52

22.2

Franco-Nevada Corp.

(NYSE:FNV)

7

61.38

1.37

5.00

6/9/15

0.84

23.1

Escalade Inc.

(NASDAQ:ESCA)

6

11.77

3.74

10.00

6/10/15

0.44

33.9

UnitedHealth Group Inc.

(NYSE:UNH)

6

128.90

1.55

33.33

6/11/15

2.00

35.9

Insperity Inc.

(NYSE:NSP)

5

51.73

1.70

15.79

6/11/15

0.88

10.3

Extra Space Storage Inc.

(NYSE:EXR)

6

93.46

2.53

25.53

6/11/15

2.36

41.1

Public Storage

(NYSE:PSA)

6

275.83

2.47

21.43

6/11/15

6.80

16.3

Comerica Inc.

(NYSE:CMA)

5

37.87

2.22

5.00

6/11/15

0.84

32.6

First Financial Bankshares

(NASDAQ:FFIN)

5

29.58

2.16

14.29

6/11/15

0.64

5.8

Macy's Inc.

(NYSE:M)

5

44.09

3.27

15.20

6/11/15

1.44

46.4

Viacom Inc. B

(NASDAQ:VIAB)

6

41.28

3.88

21.21

6/11/15

1.60

38.5

El Paso Electric Co.

(NYSE:EE)

5

45.88

2.57

5.36

6/12/15

1.18

n/a

Garmin Ltd.

(NASDAQ:GRMN)

6

39.96

5.11

6.25

6/12/15

2.04

6.0

Methanex Corp.

(NASDAQ:MEOH)

5

32.12

3.42

10.00

6/12/15

1.10

11.6

Legg Mason Inc.

(NYSE:LM)

5

34.68

2.31

25.00

6/12/15

0.80

33.5

Tredegar Corp.

(NYSE:TG)

5

15.72

2.80

22.22

6/17/15

0.44

20.1

Black Box Corp.

(NASDAQ:BBOX)

5

13.47

3.27

10.00

6/24/15

0.44

11.8

LaSalle Hotel Properties

(NYSE:LHO)

6

25.31

7.11

20.00

6/26/15

1.80

63.8

Lennox International Inc.

(NYSE:LII)

6

135.19

1.07

20.00

6/26/15

1.44

17.5

Primoris Services Corp.

(NASDAQ:PRIM)

5

24.30

0.91

37.50

6/26/15

0.22

13.7

U.S. Bancorp

(NYSE:USB)

5

40.59

2.51

4.08

6/27/15

1.02

38.0

State Street Corp.

(NYSE:STT)

5

58.52

2.32

13.33

6/29/15

1.36

100.0

JPMorgan Chase & Co.

(NYSE:JPM)

5

59.22

2.97

10.00

7/2/15

1.76

53.1

Gentex Corp.

(NASDAQ:GNTX)

5

15.69

2.17

6.25

7/3/15

0.34

8.4

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

Select Income REIT

(NYSE:SIR)

4

4/22/15

Aspen Insurance Holdings

(NYSE:AHL)

4

5/6/15

Apple Inc.

(NASDAQ:AAPL)

4

5/7/15

Poage Bankshares Inc.

(NASDAQ:PBSK)

4

5/7/15

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

Southwest Airlines Co.

(NYSE:LUV)

4

6/1/15

First Merchants Corp.

(NASDAQ:FRME)

4

6/3/15

Northern Trust Corp.

(NASDAQ:NTRS)

4

6/3/15

Valley Commerce Bancorp

(OTCPK:VCBP)

4

6/3/15

CNO Financial Group Inc.

(NYSE:CNO)

4

6/8/15

MB Financial Inc.

(NASDAQ:MBFI)

4

6/11/15

Altra Industrial Motion Corp.

(NASDAQ:AIMC)

4

6/16/15

Convergys Corp.

(NYSE:CVG)

4

6/16/15

Agrium Inc.

(NYSE:AGR)

4

6/26/15

Towne Bank

(NASDAQ:TOWN)

4

6/26/15

American Express Co.

(NYSE:AXP)

4

6/30/15

Shoe Carnival Inc.

(NASDAQ:SCVL)

4

7/1/15

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.