One way to identify dividend growth stocks for further analysis is to monitor dividend increases. Companies can only raise their dividends regularly if earnings grow sufficiently. In the past few weeks, 11 companies on my watch list announced dividend increases, including one of the stocks I own. The table below presents a summary of these increases.
The table is sorted by percentage increase, %Incr. Dividends are annualized and in US$, unless otherwise indicated. Yield is the new dividend yield for the market close Price on the date listed. Yrs are years of consecutive dividend increases, while 5-yr DGR is the compound annual growth rate of the dividend over a 5-year period. 1-yr %Incr is the percentage increase from the year-ago dividend. (Some companies increase their dividends more than once a year, so this puts the most recent dividend increase in context).
|Summary of Dividend Increases: September 5-16, 2016|
|Click to enlarge|
|Previous Post: 10 Dividend Increases: August 22-September 2, 2016|
• State Street Corp (NYSE:STT)
STT is a financial holding company that provides a range of financial services and products to institutional investors. Clients of the company include mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations, endowments and investment managers. STT was founded in 1792 and is headquartered in Boston, Massachusetts. On Thursday, September 15, the company increased its quarterly dividend by 11.76% to 38¢ per share. STT will trade ex-dividend on September 29. The dividend is payable on October 17, to shareholders of record on October 3.
• Flexsteel Industries Inc (NASDAQ:FLXS)
Together with its subsidiaries, FLXS is a manufacturer, importer, marketer and distributor of residential and commercial upholstered and wood furniture products in the United States. The company's offerings include chairs, sofas, benches, ottomans, pillows, barstools, tables, headboards, desks & hutches, presentation boards, bookcases, recliners and storage. FLSX was founded in 1929 and is headquartered in Dubuque, Iowa. The company increased its quarterly dividend by 11.11%, from 18¢ per share to 20¢ per share. The dividend is payable on September 30 to shareholders of record on September 23.
• International Bancshares Corp (NASDAQ:IBOC)
IBOC is a financial holding company that provides commercial and retail banking services. Founded in 1966 with headquarters in Laredo, Texas, IBOC has four bank subsidiaries with more than 200 main banking and branch facilities and a network of automated teller machines throughout South, Central and Southeast Texas and in the State of Oklahoma. Recently, IBOC increased its semi-annual dividend to 31¢ per share, an increase of 6.90% over the prior dividend of 29.¢ per share. The stock will trade ex-dividend on September 28, and shareholders can expect to receive the new dividend on October 17.
• New Jersey Resources (NYSE:NJR)
Founded in 1922 and headquartered in Wall, New Jersey, NJR is an energy services holding company that provides retail and wholesale energy services to customers in the Gulf Coast, Mid-Continent, Appalachian, Northeastern and Western regions in the United States. NJR operates within four reportable business segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services and Midstream (formerly Energy Holdings). On September 13, the company declared a dividend of 25.5¢ per share. The new dividend represents a 6.25% increase. The new dividend is payable on October 3 to shareholders of record on September 23. The ex-dividend date will be September 21.
• American Tower Corp (NYSE:AMT)
AMT is a real estate investment trust (REIT). The company owns, operates and develops multi-tenant communications real estate and presently has more than 143,000 communications sites in its portfolio. IT engages in leasing of space on multi-tenant communications sites to wireless service providers, radio and television broadcast companies, wireless data and data providers, government agencies and municipalities and tenants in a number of other industries. AMT was founded in 1995 and is headquartered in Boston, Massachusetts. Recently, AMT increased its quarterly dividend by 3.77% to 55¢ per share. All shareholders of record on September 30 will receive the new dividend on October 17.
• Lexington Realty Trust (NYSE:LXP)
Founded in 1991 and based in New York City, LXP is a self-managed and self-administered REIT (real estate investment trust). The company acquires, owns and manages a portfolio of office, industrial, and retail properties net-leased to corporate tenants in the United States. The Company also provides investment advisory and asset management services to investors in the single-tenant area. On September 16, the board of directors approved an increase to the regular quarterly dividend from 17¢ per share to 17.5¢ per share, an increase of 2.94%. The dividend is payable on October 17 to shareholders of record on September 30.
• Washington Trust Bancorp Inc (NASDAQ:WASH)
WASH is a bank holding company and financial holding company. Through its subsidiaries, WASH offers a range of financial services, including commercial, residential and consumer lending, retail and commercial deposit products, and wealth management. The company was founded in 1800 and is headquartered in Westerly, Rhode Island. Recently, WASH increased its quarterly dividend by 2.78% to 37¢ per share. The new dividend is payable on October 14 to shareholders of record on October 3. The ex-dividend date will be September 29.
• Philip Morris International (NYSE:PM)
Headquartered in New York City, PM is the leading international tobacco company, with 7 of the world's top 15 international brands, including Marlboro, the number one cigarette brand worldwide. The company's products are sold in more than 180 markets outside of the United States. PM was incorporated in 1987. Recently, PM increased its quarterly dividend by 1.96% to $1.04 per share. The dividend is payable October 13, with an ex-dividend date of December 26.
• Brady Corp (NYSE:BRC)
BRC manufactures and supplies identification solutions and workplace safety products that identify and protect premises, products and people. The company operates through two segments, Identification Solutions and Worksplace Safety. Customers include process industries, government, education, construction, automotive, aerospace, defense, electrical contractors and other industries. BRC was founded in 1914 and is headquartered in Milwaukee, Wisconsin. On September 8, the company declared a dividend of 20.5¢ per share. The new dividend represents a 1.23% increase. The dividend is payable October 31, with an ex-dividend date of October 7.
• Realty Income Corp (NYSE:O)
Known as The Monthly Dividend Company®, O is an equity real estate investment trust dedicated to providing shareholders with dependable monthly income. The company earns income from nearly 4,500 properties owned under long-term lease agreements with regional and national retail chains and other commercial tenants. Realty Income Corporation was founded in 1969 and is based in Escondido, California. Recently, O increased its monthly dividend from 20.15¢ per share to 20.2¢ per share, an increase of 0.25%. The first payment will be on October 17 to shareholders of record on October 3. The ex-dividend date is October 29.
• Federated National Holding Co (NASDAQ:FNHC)
Founded in 1991 and based in Sunrise, Florida, FNHC is an insurance holding company that engages in the insurance underwriting, distribution and claims processing in Florida and various other states in the United States. The company underwrites homeowners' multi-peril, commercial general liability, federal flood, personal auto and other lines of insurance. FNHC formerly was known as 21st Century Holding Company. On Wednesday, September 14, the company increased its quarterly dividend by 33.33% to 8¢ per share. The dividend is payable on December 1 to shareholders of record on November 1.
Please note that I'm not recommending any of these stocks. Readers should do their own research on these companies before buying shares.
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Disclosure: I am/we are long O.
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.