I monitor dividend increases for stocks in my portfolio of dividend growth stocks so I can make yield on cost (YoC) adjustments. Companies that regularly increase dividends show confidence in future earnings growth potential, so they are good candidates for further analysis.
I also like to track projected annual dividend income, a measure of the dividend income potential of my DivGro portfolio over the next 12 months. In the past two weeks, 17 of the companies on my watch list announced dividend increases.
The table below is sorted by last column, %Incr. Dividends are annualized and in US$, unless otherwise indicated. Yield indicates the new dividend yield for the market close Price in US$ on the date listed. Yrs are years of consecutive dividend increases, while 5-year DGR is the compound annual growth rate of the dividend over a five-year period.
Dividend Increases: January 25-29, 2016
Previous Post: 12 Dividend Increases: January 18 To January 22, 2016
In the table, the single DivGro holding that announced a dividend increase in this period is highlighted:
• HCP Inc. (NYSE:HCP)
Formed in 1985 and based in Irvine, California, HCP is an independent hybrid real estate investment trust (REIT). The company invests primarily in properties serving the healthcare industry in the United States, including sectors such as senior housing, life science, medical office, hospital and skilled nursing. HCP acquires, develops, leases, manages and disposes of healthcare real estate and provides financing to healthcare providers.
Recently, the board of directors of HCP declared a quarterly dividend of 57.5¢ per share. The dividend is payable on 23 February, to shareholders of record on 8 February.
I bought shares of HCP in November 2015 at an initial YoC of 6.65%. After the raise, YoC is 6.76% and DivGro's projected annual dividend income increased to $7,277.
OTHER DIVIDEND INCREASES
• Canadian National Railway (NYSE:CNI)
CNI was founded in 1922 and headquartered in Montreal, Canada. Together with its subsidiaries, the company operates the largest railroad in Canada and the only coast-to-coast railroad in North America. CNI offers transportation services that include rail, intermodal container, and trucking services; and supply chain solutions, including warehousing and distribution, logistics parks, freight forwarding, customs brokerage service, industrial development, and marine services. The company announced an increase in its quarterly dividend of 20.00% to 37.5¢ per share. The dividend is payable 31 March to shareholders of record on 10 March.
• Ethan Allen Interiors Inc. (NYSE:ETH)
ETH is a leading interior design company and manufacturer and retailer of quality home furnishings. The company offers interior design service to its clients and sells a full range of furniture products and decorative accessories through ethanallen.com and a network of approximately 300 design centers in the United States and abroad. ETH was founded in 1932 and is headquartered in Danbury, Connecticut. On 27 January, the company declared a quarterly dividend of 17¢ per share, payable on 25 April to shareholders of record on 11 April. The new dividend represents an increase of 21.43%.
• Neenah Paper Inc. (NYSE:NP)
NP was incorporated in April 2004 and is organized into two primary businesses. The technical products business produces transportation and other filter media and coated substrates for industrial products backings. The fine paper business supplies premium writing, cover and other specialty papers. Recently, NP increased its quarterly dividend to 33¢ per share, to be paid on 2 March, to shareholders of record on 12 February. The dividend increase is 10.00%.
• Northwest Bancshares Inc. (NASDAQ:NWBI)
NWBI is a bank holding company of Northwest Bank. The company offers a complete line of personal and business banking products, including employee benefits, investment management services, insurance and trust. The company operates more than 160 community banking locations in Pennsylvania, New York, Ohio and Maryland. NWBI was founded in 1896 and is headquartered in Warren, Pennsylvania. Recently, NWBI increased its quarterly dividend from 14¢ per share to 15¢ per share, an increase of 7.14%. The dividend is payable on 18 February, to shareholders of record on 4 February.
• Camden Property Trust (NYSE:CPT)
CPT is a real estate investment trust engaged in the ownership, management, development, redevelopment, acquisition and construction of multifamily apartment communities. The Companies properties consist of mid-rise buildings or two and three story buildings in a landscaped setting and provide residents with various amenities common to multifamily rental properties. CPT founded in 1993 and is headquartered in Houston, Texas. CPT will pay a quarterly dividend of 75¢ per share on 18 April to shareholders of record on 31 March.
• GATX Corp. (NYSE:GMT)
GMT leases, operates, manages, and remarkets assets in the rail and marine markets in North America, Europe and Asia. As of December 31, 2015, the company operated a fleet of 13 vessels and a fleet of approximately 124,500 cars, including more than 18,400 boxcars. GMT was founded in 1898 and is headquartered in Chicago, Illinois. Recently, the board of directors of GMT declared a quarterly dividend of 40¢ per share. The dividend is payable on 31 March, to shareholders of record on 26 February.
• Praxair Inc. (NYSE:PX)
Founded in 1907, PX was the first company in the United States to produce oxygen from air using a cryogenic process and continues to be a major technological innovator in the industrial gases industry. The company produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. On Friday, 29 January, the company increased its quarterly dividend to 75¢ per share. The dividend is payable on 15 March to shareholders of record on 7 March.
• Tompkins Financial Corp. (AMEX:TMP)
TMP is a financial holding company that offers an array of products and services, including commercial and consumer banking, leasing, trust and investment management, financial planning and wealth management, and insurance. The company serves individuals, small business customers, corporations, and other business clients in New York and Pennsylvania. TMP was founded in 1836 and is headquartered in Ithaca, New York. Recently, the board of directors of TMP declared a quarterly dividend of 44¢ per share. The dividend is payable on 15 February, to shareholders of record on 9 February.
• Sunoco Logistics Partners LP (NYSE:SXL)
Headquartered in Newtown Square, Pennsylvania, SXL is a master limited partnership that owns and operates a logistics business. The company transports, terminals, and stores crude oil, refined products, and natural gas liquids. SXL's general partner is a consolidated subsidiary of Energy Transfer Partners, L.P. (NYSE:ETP). The company was founded in 2001. The company increased its quarterly dividend by 4.59%, from 45.8¢ per share to 47.9¢ per share. The dividend is payable on 12 February, to shareholders of record on 8 February.
• Cincinnati Financial (NASDAQ:CINF)
Founded in 1950 and headquartered in Fairfield, Ohio, CINF is an insurance holding company engaged in the business of property casualty insurance marketed through independent insurance agencies. CINF also offers life and disability income insurance, fixed annuities and surplus lines property and casualty insurance. On Friday, 29 January, CINF increased its quarterly dividend to 48¢ per share. The dividend is payable on 15 April to shareholders of record on 23 March.
• Welltower Inc. (NYSE:HCN)
Founded in 1970, HCN is an independent equity real estate investment trust headquartered in Toledo, Ohio. The company invests in senior living communities, medical office buildings, inpatient and outpatient medical centers and life science facilities. HCN owns more than 1,400 properties in major, high-growth markets in the United States, Canada and the United Kingdom. HCN was formerly known as Health Care REIT, Inc. On Thursday, 28 January, HCN increased its quarterly dividend to 86¢ per share. The dividend is payable on 22 February to shareholders of record on 9 February.
• Penske Automotive Group Inc. (NYSE:PAG)
Headquartered in Bloomfield Hills, Michigan, PAG is an international transportation services company that operates automotive and commercial vehicle dealerships in the United States and Western Europe. PAG distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services in Australia and New Zealand. The company declared a quarterly dividend of 26¢ per share, an increase of 4.00% over the prior quarterly dividend. The dividend is payable 1 March.
• Polaris Industries (NYSE:PII)
PII designs, engineers, manufactures and markets off-road vehicles, snowmobiles, motorcycles and small vehicles. These products are sold through dealers and distributors located in the United States, Canada and Europe. The company also produces and supplies replacement parts for its product lines. PII was founded in 1987 and is headquartered in Medina, Minnesota. The company announced a quarterly dividend increase of 3.77% to 55¢ per share, payable on 15 March to shareholders of record on 1 March.
• Black Hills Corp. (NYSE:BKH)
Founded in 1941 and headquartered in Rapid City, South Dakota, BKH is a diversified energy company with operations in the United States. The company's regulated utilities segments provide electricity to customers in South Dakota, Wyoming, Colorado, and Montana; and natural gas to customers in Colorado, Nebraska, Iowa, and Kansas. BKH's non-regulated energy group is involved in power generation, coal mining, and oil and gas production. The company announced a quarterly dividend increase of 3.70% to 42¢ per share, payable on 1 March to shareholders of record on 16 February.
• Applied Industrial Technologies Inc. (NYSE:AIT)
Founded in 1923, AIT is an industrial distributor in North America, Australia and New Zealand, supplying customers in a range of industries with products, including bearings, power transmission components, fluid power components and systems, industrial rubber products, linear motion components, tools, safety products, and general maintenance and mill supply products.:// AIT is headquartered in Cleveland, Ohio. On 28 January, the company declared a quarterly dividend of 28¢ per share, payable on 29 February to shareholders of record on 16 February.
• Arthur J.Gallagher & Co (NYSE:AJG)
AJG is an international insurance brokerage and risk management services company headquartered in Itasca, Illinois. Founded in 1927, the company has operations in 31 countries and offers client-service capabilities in more than 150 countries around the world through a network of correspondent brokers and consultants. AJG will pay a quarterly dividend of 38¢ per share on 18 March to shareholders of record on 4 March.
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 HCP.
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.