Dividend Challengers: 12 Increases Expected In The Next 11 Weeks

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Includes: ABC, AEP, AMTD, BBSI, BOKF, EL, EMCI, EVR, HCI, KKR, KR, LNGG, LTC, MAC, PETM, PLL, PRU, ROK, SBUX, SHLM, SIX, SNA, TECH, THO, V, WCN, WRK, WTI
by: David Fish

Summary

17 more Near-Challengers also expected to boost payments.

Does Visa's strong growth justify low yield and high P/E?

Can Starbucks perk up a Dividend Growth portfolio?

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.

Happy Thanksgiving

The pace of dividend increases should maintain a steadier pace for the remainder of the year, fueled by companies that typically boost their payouts in the fourth quarter. Note that I'm excluding foreign stocks that trade as ADRs (American Depository Receipts), unless they declare dividends in US$, since the declarations may only estimate the US$ amount prior to the Ex-Dividend Date and the exact amount won't be known until after payment, which can be as much as two months later and because it would be wrong to list these companies as "expected" to raise their dividend if the true outcome...at least in US$...is so uncertain.

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.

8/29

Div.

MR%

LY

Ann.

DGR

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

5-yr

Pall Corp.

(NYSE:PLL)

9

84.37

1.30

10.00

10/16/13

1.10

15.0

A. Schulman Inc.

(NASDAQ:SHLM)

6

38.83

2.06

2.56

10/24/13

0.80

5.7

PetSmart Inc.

(NASDAQ:PETM)

5

71.57

1.09

18.18

10/30/13

0.78

41.9

Rock-Tenn Company

(RKT)

5

49.16

1.42

16.67

11/1/13

0.70

24.0

Techne Corp.

(NASDAQ:TECH)

6

95.52

1.30

3.33

11/7/13

1.24

37.1

Kroger Company

(NYSE:KR)

8

50.98

1.29

10.00

11/13/13

0.66

12.3

Visa Inc.

(NYSE:V)

6

212.52

0.75

21.21

11/13/13

1.60

45.9

BOK Financial Corp.

(NASDAQ:BOKF)

9

67.38

2.37

5.26

11/14/13

1.60

12.0

AmerisourceBergen Corp.

(NYSE:ABC)

9

77.39

1.21

11.90

11/14/13

0.94

39.7

Prudential Financial Inc.

(NYSE:PRU)

5

89.70

2.36

32.50

11/22/13

2.12

24.4

Evercore Partners Inc.

(NYSE:EVR)

7

51.23

1.95

13.64

11/26/13

1.00

13.6

Hubbell Inc. B

(HUB.B)

6

120.90

1.65

11.11

11/27/13

2.00

6.3

MR=Most Recent; LY=Last Year; DGR=Dividend Growth Rate through 2013

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

Linn Energy LLC

(LINE)

4

10/8/13

Thor Industries Inc.

(NYSE:THO)

4

10/16/13

LTC Properties Inc.

(NYSE:LTC)

4

10/21/13

Kohlberg Kravis Roberts

(NYSE:KKR)

4

10/31/13

Waste Connections Inc.

(NYSE:WCN)

4

11/1/13

TD Ameritrade Holding

(NASDAQ:AMTD)

4

11/5/13

American Electric Power

(NYSE:AEP)

4

11/6/13

Macerich Company

(NYSE:MAC)

4

11/7/13

Starbucks Corp.

(NASDAQ:SBUX)

4

11/12/13

HCI Group Inc.

(NYSE:HCI)

4

11/13/13

Rockwell Automation Inc.

(NYSE:ROK)

4

11/14/13

W&T Offshore Inc.

(NYSE:WTI)

4

11/14/13

Barrett Business Services

(NASDAQ:BBSI)

4

11/20/13

Snap-on Inc.

(NYSE:SNA)

4

11/20/13

EMC Insurance Group Inc.

(NASDAQ:EMCI)

4

11/21/13

Six Flags Entertainment

(NYSE:SIX)

4

11/21/13

Estee Lauder Companies

(NYSE:EL)

4

11/26/13

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.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.