Dividend Champions For August 2016

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Includes: CAKE, CIVB, COBZ, EXPE, FMBM, PBSK, RMD, SIR, SMBC
by: David Fish

Summary

CCC Universe expands to 786 companies.

Summer Lull coming to an end.

Average yields edge lower with Bull run.

The Dividend Champions spreadsheet and PDF have been updated through 7/29/16 and are available here. Note that all references to Champions mean companies that have paid higher dividends for at least 25 straight years; Contenders have streaks of 10-24 years; Challengers have streaks of 5-9 years. "CCC" refers to the universe of Champions, Contenders, and Challengers.

Expansion Resumes

As mentioned previously, June and July featured a noticeable seasonal drop-off in dividend increases and new Challengers, but activity picked up toward the end of July. After the CCC universe held steady at 778 CCC companies from May to June, that number grew to 786 in July, with 9 new Challengers, one deletion, and no promotions. The Near Challengers listing picked up 10 "NEW" notations (in Appendix B on the Notes tab), bringing the number of Near-Challengers to 145, up from 143 last month, but well below the record of 281 companies in September 2014. After June's action saw the average price of CCC stocks rise by 74¢, that figure gained another 39¢ in July, as many stocks hit new all-time highs. The average "age" of the dividend streaks ticked down from 13.8 years to 13.7, the average yield declined to 2.88% from 2.89% and the average of the Most Recent Increases dipped to 8.70% from 8.82%.

As always, please use the CCC only as a starting point for more in-depth research. Feel free to leave any suggestions in the Comment area below.

Quick Summary

The Summary tab includes a table comparing the composite numbers from the latest update to those from the previous month and the end of the previous year. Below that is a summary of the latest month's activity, in terms of companies added, deleted, or promoted. That is reflected below:

Quick Summary:

7/29/16

Champions

Contenders

Challengers

Total

No. of Companies

108

242

436

786

Ave. No. of Years

41.3

15.3

6.0

13.7

Average Price

79.65

69.35

51.65

60.94

Average % Yield

2.43

2.78

3.04

2.88

Ave. MR % Increase

5.90

7.68

10.52

8.70

6/30/16

Champions

Contenders

Challengers

Total

No. of Companies

108

242

428

778

Ave. No. of Years

41.3

15.3

6.0

13.8

Average Price

78.47

67.99

51.83

60.55

Average % Yield

2.47

2.83

3.04

2.89

Ave. MR % Increase

5.91

7.85

10.68

8.82

12/31/15

Champions

Contenders

Challengers

Total

No. of Companies

107

250

396

753

Ave. No. of Years

41.0

14.9

5.8

13.8

Average Price

69.72

63.23

50.28

57.34

Average % Yield

2.76

3.21

3.37

3.23

Ave. MR % Increase

6.76

7.81

11.96

9.44

MR = Most Recent

Additions:

Cheesecake Factory Inc. (NASDAQ:CAKE) to Challengers

Civista Bancshares Inc. (NASDAQ:CIVB) to Challengers

CoBiz Financial Inc. (NASDAQ:COBZ) to Challengers

Expedia Inc. (NASDAQ:EXPE) to Challengers

F&M Bank Corp. (OTCQX:FMBM) to Challengers

Poage Bankshares Inc. (NASDAQ:PBSK) to Challengers

ResMed Inc. (NYSE:RMD) to Challengers

Select Income REIT (NYSE:SIR) to Challengers

Southern Missouri Bancorp Inc. (NASDAQ:SMBC) to Challengers

Deletions:

Fox Chase Bancorp Inc. (NASDAQ:FXCB) from Challengers

Promotions:

(none)

Click to enlarge

(Table from author; may include underlying data from FinViz.com)

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 price line is in the green area, it suggests possible undervaluation.

Click to enlarge

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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.