Dividend Contenders: 18 Increases Expected By July 31

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Includes: AWH, CASY, CAT, CBRL, CCFN, FDX, FLO, FMAO, HDB, MNRO, NOC, PSBQ, RBCAA, TCP, THVB, TIF, WRB
by: David Fish

Summary

CASY, CAT, and CBRL: Which will increase by 10% (or more)?

Will June be fruitful for Flowers?

How strong will Northrop's hike be?

In compiling the Dividend Champions list (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.

Lazy Days of Summer

Now that the tidal wave of Shareholder Meetings has subsided, I expect to see a lull in dividend increase announcements heading into Summer. The number of announcements for all Champions, Contenders, Challengers, and Near-Challengers expected in the next 11 weeks has decreased from 126 a month ago to just 63 now, putting it in the "below average" category. Aside from a couple of brief surges, I would expect the overall activity to remain relatively light until late in the third quarter and heading into the usual heavier activity in this year's fourth quarter and the first quarter of 2017.

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.

4/29

Div.

MR%

LY

Ann.

DGR

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

5-yr

CCFNB Bancorp Inc.

(OTCPK:CCFN)

18

39.60

3.59

2.90

5/21/15

1.42

3.6

Monro Muffler Brake Inc.

(NASDAQ:MNRO)

11

69.22

0.87

15.38

5/28/15

0.60

18.6

Northrop Grumman

(NYSE:NOC)

12

206.26

1.55

14.29

5/28/15

3.20

13.3

W.R. Berkley Corp.

(NYSE:WRB)

14

56.00

0.86

9.09

6/11/15

0.48

11.7

Thomasville Bancshares

(OTCPK:THVB)

14

30.50

1.48

12.50

6/11/15

0.45

8.4

FedEx Corp.

(NYSE:FDX)

14

165.11

0.61

25.00

6/16/15

1.00

13.9

Flowers Foods

(NYSE:FLO)

14

19.16

3.03

9.43

6/17/15

0.58

10.5

Republic Bancorp KY

(NASDAQ:RBCAA)

17

27.31

2.90

5.88

6/17/15

0.79

6.5

Tiffany & Company

(NYSE:TIF)

13

71.35

2.24

5.26

6/18/15

1.60

12.4

Allied World Assurance AG

(NYSE:AWH)

10

35.58

2.92

15.56

6/19/15

1.04

30.4

Farmers and Merchants Banc

(OTCQX:FMAO)

11

28.00

3.14

4.76

6/26/15

0.88

3.6

HDFC Bank Limited

(NYSE:HDB)

14

62.87

0.59

6.98

6/30/15

0.37

18.2

John Wiley & Sons Inc.

(JW-A)

22

49.59

2.42

3.45

7/2/15

1.20

14.5

PSB Holdings Inc.

(OTCPK:PSBQ)

22

45.75

1.84

5.00

7/10/15

0.84

5.0

Cracker Barrel Old Country

(NASDAQ:CBRL)

13

146.41

3.01

10.00

7/15/15

4.40

38.6

Caterpillar Inc.

(NYSE:CAT)

22

77.72

3.96

10.00

7/16/15

3.08

11.3

Casey's General Stores Inc.

(NASDAQ:CASY)

16

112.00

0.79

10.00

7/30/15

0.88

15.7

TC Pipelines LP

(NYSE:TCP)

16

54.77

6.50

5.95

7/31/15

3.56

3.3

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 CBRL.

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.

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