Distributions In Danger: Spotlight On MLPs

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Includes: AET, AHGP, AHT, AIQUF, AME, AMID, APLP, APU, ARLP, AVGO, AVX, B, BBL, BBSI, BHP, BK, BMR, BP, BPL, BWL.A, CB, CBL, CCLP, CLB, CLMS, CLNS, CNL, CR, CVA, CVX, DAKT, DCP, DE, DV, DVN, EEP, EFSI, ENLK, EOG, EPD, EPR, ETE, FCBI, FISI, FITB, FKYS, FLXS, GAS, GE, GIL, GLP, GMLP, HEP, HP, HPY, HSNI, HST, HUM, IPHS, IRM, JMP, KLAC, KMI, LHO, LXK, LXP, MAIN, MAR, MFIN, MLAB, MMLP, MUR, NBL, NEXT, NGL, NOV, OCBI, OII, OKE, OKS, OLP, OMC, PAA, PACW, PH, PNY, PRA, PRE, PRGO, RAVN, RCII, RRMS, SAFT, SBGI, SBRA, SE, SEP, SFG, SHLM, SLH, SSW, STAG, STON, STWD, SXL, SYA, TCAP, TCP, TECH, TGP, THFF, TLP, TNC, TOO, TRGP, TUP, VMI, WAYN, WMB, WPZ, XEC
by: David Fish

Summary

20 firms with yields above 10%; Are any sustainable?

Will 7-10% yields last?

Will 2016 set records for deletions?

In compiling the Dividend Champions list (found here: http://dripinvesting.org/Tools/Tools.asp ) I get to see which companies are nearing the anniversaries of their previous dividend increases. Most of these firms raise their payout about the same time every year, but some companies go longer before boosting their dividends, and this can raise concerns about their streaks of increases. Other streaks end because of unsustainable yields (or payout ratios) or because the companies are acquired by other firms. Note that all references to "CCC" below refer to the collection of Dividend Champions (25 or more years of higher dividends), Contenders (10-24 years), and Challengers (5-9 years).

2015 Deletions Recap

The past year established a new record for CCC deletions, but that's a bit deceiving for two reasons. First, the number of CCC companies was 753 at the end of 2015 (and 820 when including the deletions during the year), up from just 417 at the end of 2010, so there has been a sizable increase in the number of possible deletions. Second, and perhaps more important, there were record numbers of companies acquired, as well as currency-related deletions (in the "Other" column). As you can see in the table below, the number of actual dividend Cuts was only slightly higher than in 2012 and well below the number in 2009 (when only Champions and a few Contenders were listed). The number of dividend Freezes was the same as in 2014 and has been remarkably constant, except for 2010, when a complete listing of Contenders and Challengers was added. (Unfortunately, most of those 2010 deletions were companies that were both added and deleted in the wake of the Great Recession.)

Notably, the 18 Cuts were just 2.2% of the 820 possible companies and the 67 deletions only accounted for 8.2% of the CCC "universe." And if there's such a thing as a "good" deletion, it would be the 18 acquisitions, which usually result in shareholders receiving a premium for their shares. As to the 19 currency-related deletions, the foreign shareholders enjoyed a dividend increase in their home currencies; otherwise, the deletion would be included in the Cuts column. (Only U.S. Owners of the American-listed stock received less than in 2014.) Looking at the longer term, the 319 deletions represent 29.8% of the 1,072 companies that have been listed (753 active, plus 319 deleted). But that's spread over eight years, or 3.7% per year, on average...including the Great Recession. The 91 dividend Cuts equate to 8.5%, or 1.1% annually. The 135 Freezes account for 12.6%, or 1.6% annually.

Deletions by Year:

No.

% of Total

Cut

Freeze

M&A

Other

2008

15

4.7

9

2

3

1

2009

44

13.8

28

13

3

0

2010

62

19.4

1

57

4

0

2011

28

8.8

8

13

6

1

2012

37

11.6

14

13

5

5

2013

36

11.3

6

13

12

5

2014

30

9.4

7

12

8

3

2015

67

21.0

18

12

18

19

Number of Companies

319

100.0

91

135

59

34

So what's ahead in 2016? I'll discuss that in the sections that follow, but I think the general answer will be: More Cuts than usual, about the same number of Freezes and Acquisitions, but far fewer Currency-related deletions.

Stratospheric Yields

For this article, I'm starting off with a group whose distributions could be considered at risk: Very High Yielders, especially those above 10%. Although these companies are hard to judge by their payout ratios (MLPs, or Master Limited Partnerships typically have a lot of depreciation/amortization), their generous yields may never before have been this high. Whether that's because of the pullback in prices ("accidental high yielders") or not is open to debate, but it's clear that the recent plunge in the price of oil has had a significant impact on profitability and the sustainability of these payouts. The list below includes 20 companies will yields above 10%.

Company

Ticker

No.

12/31

Div.

MR%

Ex-Div

Pay

DGR

Name

Symbol

Yrs

Price

Yield

Inc.

Date

Date

3-yr

American Midstream Part. LP

(NYSE:AMID)

5

8.09

23.36

2.16

11/5/14

11/14/14

3.0

NGL Energy Partners LP

(NYSE:NGL)

5

11.04

23.19

1.19

10/30/15

11/13/15

16.9

Alliance Resource Partners LP

(NASDAQ:ARLP)

13

13.49

20.01

1.89

8/5/15

8/14/15

8.6

Targa Resources Partners LP

9

16.53

19.96

0.61

7/30/15

8/14/15

9.0

Alliance Holdings GP LP

(NASDAQ:AHGP)

10

20.18

19.03

2.40

8/10/15

8/19/15

11.5

Archrock Partners LP

(NASDAQ:APLP)

9

12.31

18.60

0.88

11/5/15

11/13/15

4.2

CSI Compressco LP

(NASDAQ:CCLP)

5

11.40

17.63

0.50

10/28/15

11/13/15

7.6

Golar LNG Partners LP

(NASDAQ:GMLP)

5

13.38

17.26

2.67

5/5/15

5/14/15

8.9

Global Partners LP

(NYSE:GLP)

6

17.57

15.88

0.72

11/2/15

11/13/15

10.0

Martin Midstream Partners LP

(NASDAQ:MMLP)

5

21.70

14.98

2.52

11/5/14

11/14/14

2.1

Medallion Financial Corp.

(NASDAQ:TAXI)

5

7.04

14.20

4.17

5/12/15

5/21/15

6.1

Targa Resources Corp.

(NYSE:TRGP)

5

27.06

13.45

4.00

10/29/15

11/16/15

30.8

DCP Midstream Partners LP

(NYSE:DPM)

10

24.67

12.65

1.30

11/4/15

11/13/15

5.5

Triangle Capital Corp.

(NYSE:TCAP)

9

19.11

12.35

9.26

9/8/14

9/24/14

5.3

Williams Partners LP new

(NYSE:WPZ)

6

27.85

12.21

51.65

2/5/15

2/13/15

29.8

Plains All American Pipeline LP

(NYSE:PAA)

14

23.10

12.12

0.72

10/28/15

11/13/15

9.1

BHP Billiton plc

(NYSE:BBL)

13

22.65

10.95

5.08

9/3/14

9/23/14

3.5

AmeriGas Partners LP

(NYSE:APU)

11

34.27

10.74

4.55

5/7/15

5/18/15

4.8

ONEOK Partners LP

(NYSE:OKS)

10

30.13

10.49

1.94

1/28/15

2/13/15

6.9

Enbridge Energy Partners LP

(NYSE:EEP)

9

23.07

10.11

2.28

8/5/15

8/14/15

2.3

Note that most of these are MLPs and that some have already gone more than a year since their last increase. More remarkable is that they share a common schedule (with payments in mid-February, May, August, and November) and many had been in the habit of boosting the payout every quarter...at least until now. With the next distribution announcements expected in late January or early February, these companies are on the verge of a pivotal decision that may prompt then to cut the payout sooner rather than later. Much of this is also true of the following group of 25 companies with yields of 7-10%, although the pressure may be slightly less.

Company

Ticker

No.

5/11

Div.

MR%

Ex-Div

Pay

DGR

Name

Symbol

Yrs

Price

Yield

Inc.

Date

Date

3-yr

ONEOK Inc.

(NYSE:OKE)

13

24.66

9.98

1.65

10/29/15

11/13/15

29.9

Williams Companies

(NYSE:WMB)

12

25.70

9.96

8.47

9/22/15

9/30/15

27.0

Transmontaigne Partners LP

(NYSE:TLP)

11

26.76

9.94

0.76

7/29/14

8/7/14

1.6

StoneMor Partners LP

(NYSE:STON)

11

26.73

9.88

1.54

11/4/15

11/13/15

3.2

BHP Billiton Ltd.

(NYSE:BHP)

13

25.76

9.63

5.08

9/3/14

9/23/14

3.5

Seaspan Corp.

(NYSE:SSW)

5

15.81

9.49

8.70

4/16/15

4/30/15

16.2

EnLink Midstream Partners LP

(NYSE:ENLK)

5

16.58

9.41

1.30

10/29/15

11/12/15

5.3

Starwood Property Trust Inc.

(NYSE:STWD)

7

20.56

9.34

29.41

3/27/14

4/15/14

10.6

JMP Group Inc.

(NYSE:JMP)

6

5.46

8.79

8.11

7/29/15

8/15/15

49.5

CBL & Associates Properties

(NYSE:CBL)

5

12.37

8.57

8.16

12/26/14

1/15/15

6.8

Lexington Realty Trust

(NYSE:LXP)

6

8.00

8.50

3.03

6/26/14

7/15/14

9.0

Energy Transfer Equity LP

(NYSE:ETE)

10

13.74

8.30

7.55

11/3/15

11/19/15

17.7

Colony Capital Inc.

(NYSE:CLNY)

7

19.48

8.21

5.26

12/29/15

1/15/16

2.6

Sabra Health Care REIT Inc.

(NASDAQ:SBRA)

5

20.23

8.11

5.13

8/12/15

8/31/15

6.6

BP plc

(NYSE:BP)

5

31.26

7.68

2.56

11/5/14

12/19/14

6.6

One Liberty Properties Inc.

(NYSE:OLP)

6

21.46

7.64

5.13

12/21/15

1/5/16

5.7

Ashford Hospitality Trust

(NYSE:AHT)

5

6.31

7.61

5.90

12/29/14

1/15/15

20.8

STAG Industrial Inc.

(NYSE:STAG)

6

18.45

7.53

0.72

1/27/16

2/16/16

8.7

Main Street Capital Corp.

(NYSE:MAIN)

5

29.08

7.43

2.86

9/17/15

10/15/15

7.1

Iron Mountain Inc.

(NYSE:IRM)

6

27.01

7.18

2.11

11/27/15

12/15/15

22.5

TC Pipelines LP

(NYSE:TCP)

16

49.71

7.16

5.95

7/31/15

8/14/15

3.7

LaSalle Hotel Properties

(NYSE:LHO)

6

25.16

7.15

20.00

6/26/15

7/15/15

38.6

Holly Energy Partners LP

(NYSE:HEP)

11

31.14

7.13

1.83

10/29/15

11/13/15

6.2

Sunoco Logistics Partners LP

(NYSE:SXL)

14

25.70

7.13

4.57

11/5/15

11/13/15

23.2

Buckeye Partners LP

(NYSE:BPL)

20

65.96

7.13

1.08

11/5/15

11/17/15

3.7

Early indications have been mixed. Since the Dec. 8 announcement by Kinder Morgan (NYSE:KMI) that it was cutting its distribution by 75%, followed about a week later by the 80% cut by Teekay LNG Partners LP (NYSE:TGP) and Teekay Offshore Partners LP (NYSE:TOO), there have been more positive developments. In the last week of December, ONEOK Inc. and ONEOK Partners LP said they planned to maintain their payouts. Then, on January 4, Enterprise Products Partners LP (NYSE:EPD) announced a 5.4% increase in its quarterly distribution, and on January 5, Spectra Energy (NYSE:SE), the General Partner of Spectra Energy LP (NYSE:SEP), said that it was raising its dividend 9.5%. Both those entities yield about 6.5%, so they may not be as vulnerable as the higher yielders. On January 13, Plains All American Pipeline LP and Rose Rock Midstream (NYSE:RRMS), a Near-Challenger, both announced unchanged distributions, ending strings of quarterly increases. The question now is whether those "mini-freezes" are just a prelude to sharp reductions in the payouts.

Acquisitions to End Other Streaks

Another group of dividend growth streaks that will almost certainly end is composed of companies that have agreed to be acquired, simply because the stocks will disappear. Note that I typically don't delete these companies from the CCC listings immediately because deals are sometimes canceled or modified. Many of the deals below may not be consummated until well into 2016, so there's plenty of time for them to be altered or canceled.

Company

Ticker

No.

12/31

Div.

MR%

Ex-Div

Pay

Latest

DGR

Name

Symbol

Yrs

Price

Yield

Inc.

Date

Date

Note

5-yr

AGL Resources

(NYSE:GAS)

13

63.81

3.20

4.08

2/11/15

3/1/15

Bg Acqd-2H'16?

3.0

Airgas Inc.

(NYSE:ARG)

13

138.32

1.74

9.09

6/11/15

6/30/15

Being Acquired

20.1

BioMed Realty Trust Inc.

(NYSE:BMR)

5

23.69

4.39

4.00

12/29/14

1/15/15

Being Acquired

11.6

Broadcom Corp.

(NASDAQ:BRCM)

6

57.82

0.97

16.67

2/11/15

3/2/15

Bg Acqd-1Q'16?

11.8

Chubb Corp.

(NYSE:CB)

33

132.64

1.72

14.00

3/11/15

4/1/15

Being Acquired

8.6

Cleco Corp.

(NYSE:CNL)

6

52.21

3.06

10.34

5/2/14

5/15/14

Being Acquired

10.4

Heartland Payment Systems

(NYSE:HPY)

5

94.82

0.42

17.65

2/26/15

3/13/15

Being Acquired

58.5

Humana Inc.

(NYSE:HUM)

5

178.51

0.65

3.57

6/26/15

7/31/15

Being Acquired

n/a

KLA-Tencor Corp.

(NASDAQ:KLAC)

6

69.35

3.00

4.00

8/13/15

9/1/15

Being Acquired

20.6

PartnerRe Limited

(NYSE:PRE)

22

139.74

2.00

4.48

2/11/15

2/27/15

Bg Acqd-1Q'16?

6.4

Perrigo Company plc

(NYSE:PRGO)

13

144.70

0.35

19.05

2/25/15

3/17/15

Ire,US$,Bg Acqd?

14.2

Piedmont Natural Gas

(NYSE:PNY)

37

57.02

2.31

3.13

3/23/15

4/15/15

Being Acquired

3.4

Solera Holdings Inc.

(NYSE:SLH)

7

54.83

1.64

15.38

9/3/15

9/22/15

Bg Acqd-1Q16

25.0

StanCorp Financial Group

(NYSE:SFG)

17

113.88

1.23

7.69

11/6/15

11/30/15

Bg Acqd-1Q'16?

10.2

Starwood Hotels & Resorts

(NYSE:HOT)

7

69.28

2.17

7.14

3/4/15

3/26/15

Being Acquired

38.0

Symetra Financial Corp.

(NYSE:SYA)

6

31.77

1.38

10.00

3/17/15

3/31/15

Bg Acqd-1Q16?

24.0

Targa Resources Partners LP

9

16.53

19.96

0.61

7/30/15

8/14/15

Being Acquired

9.3

Williams Companies

12

25.70

9.96

8.47

9/22/15

9/30/15

Being Acquired

38.3

Note that the last two companies also appeared in the High Yield listings and that Perrigo's Note includes a question mark, since it appears that the company may have fought off a hostile offer. (The other question marks simply indicate that the companies are "guesstimating" when the deals may close.)

Overdue Increases

This quarter, I've sorted the Champions, Contenders and Challengers together, in order of their most recent increases, which shows how long it's been since each company last raised its dividend. Note that companies with dates in 2014 managed to pay their shareholders more in total during 2015 because the former was split between two rates, whereas the latter was composed of payments that all came at the higher rate instituted at the time of the last increase. I usually lead these articles with the Overdue Increases, but since we are starting a new year and these companies (except the first two) have until the end of 2016 to boost their payouts, these stocks don't yet have the sense of urgency that the first listing does.

Streak will end without increase by end of fiscal 2016 (June)

Company

Ticker

No.

12/31

Div.

MR%

Ex-Div

Pay

EPS%

DGR

Name

Symbol

Yrs

Price

Yield

Inc.

Date

Date

Payout

5-yr

Bowl America Class A

(NYSEMKT:BWL.A)

43

14.39

4.73

3.03

7/9/14

8/15/14

194.29

1.9

Parker-Hannifin Corp.

(NYSE:PH)

59

96.98

2.60

31.25

11/6/14

12/5/14

38.71

18.7

Streak will end without increase by end of calendar 2016

Company

Ticker

No.

12/31

Div.

MR%

Ex-Div

Pay

EPS%

DGR

Name

Symbol

Yrs

Price

Yield

Inc.

Date

Date

Payout

5-yr

Tupperware Brands Corp.

(NYSE:TUP)

6

55.65

4.89

9.68

3/17/14

4/4/14

65.38

22.2

Orange County Bancorp Inc.

(OTCPK:OCBI)

8

48.25

3.40

2.50

3/21/14

4/11/14

n/a

3.8

Starwood Property Trust Inc.

7

20.56

9.34

29.41

3/27/14

4/15/14

102.67

21.5

Frederick County Bancorp Inc.

(OTCPK:FCBI)

5

23.95

1.17

16.67

4/8/14

5/9/14

27.45

n/a

Bank of New York Mellon Corp.

(NYSE:BK)

5

41.22

1.65

13.33

4/23/14

5/7/14

29.18

13.6

Noble Energy Inc.

(NYSE:NBL)

5

32.93

2.19

28.57

5/1/14

5/19/14

900.00

14.9

Cleco Corp.

6

52.21

3.06

10.34

5/2/14

5/15/14

73.06

10.4

Cimarex Energy Co.

(NYSE:XEC)

6

89.38

0.72

14.29

5/13/14

6/2/14

n/a

16.4

Chevron Corp.

(NYSE:CVX)

28

89.96

4.76

7.00

5/15/14

6/10/14

93.04

8.5

Tennant Company

(NYSE:TNC)

44

56.26

1.42

11.11

5/28/14

6/16/14

41.24

6.3

Lexmark International Inc.

(NYSE:LXK)

5

32.45

4.44

20.00

5/28/14

6/13/14

n/a

n/a

Oceaneering International Inc.

(NYSE:OII)

5

37.52

2.88

22.73

5/28/14

6/20/14

35.53

n/a

Daktronics Inc.

(NASDAQ:DAKT)

11

8.72

4.59

11.11

5/29/14

6/13/14

153.85

32.0

Devon Energy Corp.

(NYSE:DVN)

5

32.00

3.00

9.09

6/11/14

6/30/14

n/a

8.4

National Oilwell Varco Inc.

(NYSE:NOV)

7

33.49

5.49

96.82

6/11/14

6/27/14

55.93

37.9

Omnicom Group Inc.

(NYSE:OMC)

6

75.66

2.64

25.00

6/11/14

7/10/14

44.94

21.7

First Financial Corp.

(NASDAQ:THFF)

26

33.97

2.88

2.08

6/12/14

7/1/14

39.20

1.5

Ametek Inc.

(NYSE:AME)

6

53.59

0.67

50.00

6/12/14

6/30/14

14.46

24.6

Valmont Industries

(NYSE:VMI)

14

106.02

1.41

50.00

6/25/14

7/15/14

32.33

18.9

Deere & Company

(NYSE:DE)

12

76.27

3.15

17.65

6/26/14

8/1/14

41.67

15.7

Fifth Third Bancorp

(NASDAQ:FITB)

5

20.10

2.59

8.33

6/26/14

7/17/14

31.14

67.0

Lexington Realty Trust

6

8.00

8.50

3.03

6/26/14

7/15/14

234.48

11.2

Wayne Savings Bancshares

(NASDAQ:WAYN)

5

13.21

2.73

12.50

7/14/14

7/30/14

58.06

9.4

Transmontaigne Partners LP

11

26.76

9.94

0.76

7/29/14

8/7/14

150.28

2.2

Calamos Asset Management

(NASDAQ:CLMS)

6

9.68

6.20

20.00

8/8/14

8/25/14

153.85

14.9

Helmerich & Payne Inc.

(NYSE:HP)

43

53.55

5.14

10.00

8/13/14

9/2/14

71.24

65.7

Innophos Holdings Inc.

(NASDAQ:IPHS)

5

28.98

6.63

20.00

8/13/14

8/29/14

96.00

23.1

Murphy Oil Corp.

(NYSE:MUR)

19

22.45

6.24

12.00

8/14/14

9/2/14

n/a

9.1

Crawford & Company

(CRD-A)

5

5.07

5.52

40.00

8/14/14

8/29/14

164.71

n/a

PacWest Bancorp

(NASDAQ:PACW)

5

43.10

4.64

100.00

8/14/14

8/26/14

68.97

118.7

Crane Company

(NYSE:CR)

11

47.84

2.76

10.00

8/27/14

9/9/14

35.39

8.9

Sinclair Broadcast Group Inc.

(NASDAQ:SBGI)

5

32.54

2.03

10.00

8/27/14

9/15/14

30.28

8.9

Safety Insurance Group Inc.

(NASDAQ:SAFT)

6

56.38

4.97

16.67

8/28/14

9/15/14

n/a

9.2

BHP Billiton Ltd.

13

25.76

9.63

5.08

9/3/14

9/23/14

193.75

7.3

BHP Billiton plc

13

22.65

10.95

5.08

9/3/14

9/23/14

193.75

7.3

CBS Corp. (Class B)

5

47.13

1.27

25.00

9/8/14

10/1/14

19.35

24.6

Triangle Capital Corp.

9

19.11

12.35

9.26

9/8/14

9/24/14

201.71

7.4

Flexsteel Industries Inc.

(NASDAQ:FLXS)

5

44.18

1.63

20.00

9/17/14

10/3/14

24.08

26.2

Covanta Holding Corp.

(NYSE:CVA)

5

15.49

6.46

38.89

9/25/14

10/6/14

n/a

n/a

Host Hotels & Resorts Inc.

(NYSE:HST)

5

15.34

5.22

33.33

9/26/14

10/15/14

95.24

92.8

Raven Industries

(NASDAQ:RAVN)

29

15.60

3.33

8.33

10/8/14

10/24/14

144.44

10.9

EOG Resources Inc.

(NYSE:EOG)

15

70.79

0.95

34.00

10/15/14

10/31/14

n/a

17.0

A. Schulman Inc.

(NASDAQ:SHLM)

8

30.64

2.68

2.50

10/23/14

11/5/14

98.80

6.3

Eagle Financial Services

(OTCQX:EFSI)

29

23.00

3.48

5.26

10/29/14

11/14/14

34.93

3.0

American Midstream Part. LP

5

8.09

23.36

2.16

11/5/14

11/14/14

n/a

n/a

AVX Corp.

(NYSE:AVX)

6

12.14

3.46

10.53

11/5/14

11/21/14

34.71

19.1

BP plc

5

31.26

7.68

2.56

11/5/14

12/19/14

n/a

23.4

Martin Midstream Partners LP

5

21.70

14.98

2.52

11/5/14

11/14/14

485.07

1.6

Bio-Techne Corp.

(NASDAQ:TECH)

8

90.00

1.42

3.23

11/6/14

11/24/14

44.76

4.0

Barrett Business Services Inc.

(NASDAQ:BBSI)

6

43.54

2.02

22.22

11/19/14

12/5/14

29.93

21.7

Barnes Group Inc.

(NYSE:B)

5

35.39

1.36

9.09

11/24/14

12/10/14

20.51

8.4

Mesa Laboratories Inc.

(NASDAQ:MLAB)

13

99.50

0.64

6.67

11/25/14

12/15/14

27.00

7.3

HSN Inc.

(NASDAQ:HSNI)

5

50.67

2.76

40.00

12/1/14

12/17/14

42.17

n/a

DeVry Education Group Inc.

(NYSE:DV)

10

25.31

1.42

5.88

12/3/14

12/26/14

19.67

12.5

First Keystone Corp.

(OTCPK:FKYS)

15

25.49

4.24

3.85

12/5/14

12/31/14

59.34

3.0

Financial Institutions Inc.

(NASDAQ:FISI)

5

28.00

2.86

5.26

12/10/14

1/2/15

40.20

14.9

Gildan Activewear Inc.

(NYSE:GIL)

5

28.42

0.91

20.93

12/16/14

1/12/15

26.80

n/a

General Electric Co.

(NYSE:GE)

5

31.15

2.95

4.55

12/18/14

1/26/15

296.77

17.0

CBL & Associates Properties

5

12.37

8.57

8.16

12/26/14

1/15/15

115.22

10.3

ProAssurance Corp.

(NYSE:PRA)

5

48.53

2.56

3.33

12/26/14

1/9/15

48.25

n/a

Ashford Hospitality Trust

5

6.31

7.61

5.90

12/29/14

1/15/15

24.24

n/a

BioMed Realty Trust Inc.

5

23.69

4.39

4.00

12/29/14

1/15/15

100.00

11.6

Rent-A-Center Inc.

(NASDAQ:RCII)

6

14.97

6.41

4.35

12/30/14

1/22/15

72.18

51.6

Aetna Inc.

(NYSE:AET)

5

108.12

0.92

11.11

1/13/15

1/30/15

15.31

90.4

Core Laboratories NV

(NYSE:CLB)

8

108.74

2.02

10.00

1/21/15

2/20/15

57.59

55.8

EPR Properties

(NYSE:EPR)

5

58.45

6.21

6.14

1/28/15

2/17/15

123.05

6.8

Note that some of the companies above also appear on the earlier listings. Those with Pay Dates that are less than a year old have already declared an unchanged next dividend, so they will become 'overdue' with that (next) dividend payment. Other companies will join this list as they pass the anniversaries of their previous increases without hiking their dividends. Since the determinant for inclusion usually revolves around the Dividend Payment, that Date is listed above, along with the Payout Ratio, a key indicator of a company's ability to increase the payout.

Some companies, such as REITs (Real Estate Investment Trusts) and MLPs (Master Limited Partnerships), are structured to pay out more than earnings per share, so we can't easily tell from seemingly high payout ratios just how risky they may be. Some seemingly alarming ratios might suggest great risk, but a look ahead at the estimated earnings per share for this year or next might prove a bit more comforting. Companies with shorter streaks may be more likely to allow them to lapse, since they haven't yet established long histories (or "cultures") of rewarding shareholders with growing dividends. As always, comments and suggestions are welcome below.

Conclusion

Although it may seem from the preceding that there are a large number of dividend growth streaks headed for extinction, I'd like to point out that many "overdue" streaks have been (and will be) rescued by belated dividend increases, and the other reasons for deletion (mainly currency exchange rates and acquisitions) are not necessarily indications of deteriorating businesses.

Disclosure: I am/we are long GE.

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.

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