I monitor dividend increases for stocks in my watch list of dividend growth stocks to identify candidates for further analysis. Companies that regularly increase dividends show confidence in future earnings growth potential.
I also monitor dividend increases so I can make yield on cost (YoC) adjustments for stocks in own. Furthermore, I like to track the projected annual dividend income of my DivGro portfolio, a measure of the dividend income potential over the next 12 months.
In the past week, 14 of the companies on my watch list announced dividend increases.
The table 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: February 15-19, 2016
Previous Post: 17 Dividend Increases, February 8 To February 12, 2016
In the table, 4 DivGro holdings that announced dividend increases in this period are highlighted:
• Coca-Cola Company (NYSE:KO)
KO is the world's largest beverage company and the leading producer and marketer of soft drinks. Along with Coca-Cola, recognized as the world's best-known brand, The Coca-Cola Company markets four of the world's top five soft drink brands, including diet Coke, Fanta and Sprite. KO was founded in 1886 and is headquartered in Atlanta, Georgia.
The company announced an increase in its quarterly dividend of 6.06% to 35¢ per share. The dividend is payable 1 April to shareholders of record on 15 March.
I bought shares of KO on two separate occasions, first in March 2014 and then in June 2015. Initial YoC were 3.18% and 3.24%, respectively. Following this increase, my average YoC is 3.60%.
• T Rowe Price Group (NASDAQ:TROW)
Founded in 1937 and based in Baltimore, Maryland, TROW is a financial services holding company that provides global investment management services to individual and institutional investors in the sponsored T. Rowe Price mutual funds and other investment portfolios, as well as through variable annuity life insurance plans.
The company increased its quarterly dividend by 3.85%, from 52¢ per share to 54¢ per share. The dividend is payable on 30 March, to shareholders of record on 16 March.
I bought shares of TROW in March 2015 at an initial YoC of 2.49%. YoC increases to 2.59%.
• Digital Realty Trust (NYSE:DLR)
DLR is a publicly-traded REIT (real-estate investment trust) that owns, acquires, develops and manages technology-related real estate. The company's clients include domestic and international companies of all sizes, ranging from financial services, cloud and information technology services, to manufacturing, energy, gaming, life sciences and consumer products. The company was founded in 2004 and is headquartered in San Francisco.
Recently, the board of directors of DLR declared a quarterly dividend of 88¢ per share. The dividend is payable on 31 March, to shareholders of record on 15 March.
I bought shares of DLR in April 2014. My initial YoC of 6.3% increases to 6.68%.
• Wal-Mart Stores Inc (NYSE:WMT)
WMT is the world's largest retailer. Based in Bentonville, Arkansas and founded in 1945, WMT is a multinational retailer consisting of more than 11,000 stores under 71 banners in 27 countries. The company operates e-commerce websites in 10 countries. WMT is the biggest private employer in the world with over two million employees.
On Thursday, 18 February, the company increased its quarterly dividend to 50¢ per share. The dividend is payable on 4 April to shareholders of record on 11 March.
I bought shares of WMT in June 2014 at an initial YoC of 2.55%. Following the dividend increase, YoC is 2.65%.
With these increases, DivGro's projected annual dividend income increases to $8,203.
OTHER DIVIDEND INCREASES
• Sherwin-Williams Co (NYSE:SHW)
Founded in 1866, SHW is engaged in the manufacture, development, distribution and sale of paint, coatings and related products to professional, industrial, commercial, and retail customers. On Wednesday, 17 February, the company increased its quarterly dividend to 84¢ per share. The dividend is payable on 11 March to shareholders of record on 29 February.
• Coca-Cola Enterprises Inc (NYSE:CCE)
Headquartered in Atlanta, Georgia, CCE is engaged in the marketing, production and distribution of non-alcoholic beverages in Western Europe. More than 90% of sales volume comprises products of The Coca-Cola Company (NYSE:KO), of which CCE is the bottling partner. CCE and KO have a 10-year bottling agreement in place through October 2020. The company announced an increase in its quarterly dividend of 7.14% to 30¢ per share. The dividend is payable 17 March to shareholders of record on 4 March.
• Genuine Parts Co (NYSE:GPC)
Founded in 1928 and headquartered in Atlanta, Georgia, GPC distributes automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials in the United States, Puerto Rico, the Dominican Republic, Canada and Mexico and, effective April 1, 2013, Australia and New Zealand. On Tuesday, 16 February, GPC increased its quarterly dividend to 65.75¢ per share. The dividend is payable on 1 April to shareholders of record on 4 March.
• Xcel Energy (NYSE:XEL)
Founded in 1909 and based in Minneapolis, Minnesota, XEL is an operating public utility engaged in the generation, transmission and distribution of electricity and the transportation, storage and distribution of natural gas. The company generates electricity from coal, nuclear, natural gas, hydro, solar, biomass, oil and refuse, and wind energy sources. The company announced a quarterly dividend increase of 6.25% to 34¢ per share, payable on 20 April to shareholders of record on 15 March.
• National Health Investors (NYSE:NHI)
NHI is a real estate investment trust that invests in income producing health care properties in the long-term care and senior housing industries. The company specializes in financial healthcare real estate by sale-leaseback, joint-venture, mezzanine loans, and mortgage loans. NHI was formed in 1991 and is based in Murfreesboro, Tennessee. The company announced an increase in its quarterly dividend of 5.88% to 90¢ per share. The dividend is payable 10 May to shareholders of record on 31 March.
• Weingarten Realty Investors (NYSE:WRI)
WRI is a publicly owned equity REIT (real estate investment trust) that invests in real estate markets in the United States, primarily in neighborhoods and in community shopping centers. The company owns more than 230 properties in 18 states and operates them under long-term leases, either directly or through its interest in real estate joint ventures or partnerships. WRI was founded in 1948 and is based in Houston, Texas. On 16 February, the company declared a quarterly dividend of 36.5¢ per share, payable on 15 March to shareholders of record on 8 March.
• SCANA Corp (NYSE:SCG)
Founded in 1924 and based in Cayce, South Carolina, SCG, through its subsidiaries, is engaged in the generation, transmission, distribution and sale of electricity to retail and wholesale customers in South Carolina, North Carolina and Georgia. The company owns nuclear, coal, hydro, natural gas and oil, and biomass generating facilities. SCG's board of directors declared an increase in its quarterly dividend to 57.5¢ per share, an increase of 5.50%. The ex-dividend date is 8 March and the dividend will be paid on 1 April.
• Analog Devices Inc (NASDAQ:ADI)
ADI is engaged in the design, manufacture and marketing of high-performance analog, mixed-signal and digital signal processing integrated circuits. The company focuses on solving the engineering challenges associated with signal processing in electronic equipment. ADI was founded in 1965 and is headquartered in Norwood, Massachusetts. The company announced a quarterly dividend increase of 5.00% to 42¢ per share, payable on 8 March to shareholders of record on 26 February.
• Questar Corp (NYSE:STR)
STR operates as an integrated natural gas company through three principal subsidiaries. Questar Gas distributes natural gas to customers in Utah, Wyoming and Idaho. Wexpro develops, produces and delivers cost-of-service reserves to Questar Gas. And Questar Pipeline operates interstate natural gas pipelines and storage in the western United States. STR's board of directors declared an increase in its quarterly dividend to 22¢ per share, an increase of 4.76%. The ex-dividend date is 24 February and the dividend will be paid on 14 March.
• WesBanco Inc (NASDAQ:WSBC)
WSBC is a multi-state bank holding company with total assets of approximately $8.5 billion. With more than 140 branch locations in West Virginia, Ohio and Pennsylvania, the company offers a range of financial services that includes retail banking, corporate banking, personal and corporate trust services, brokerage services, mortgage banking and insurance. WSBC was founded in 1968 and is headquartered in Wheeling, West Virginia. Recently, the board of directors of WSBC declared a quarterly dividend of 24¢ per share. The dividend is payable on 1 April, to shareholders of record on 11 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 KO,TROW,DLR, WMT.
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.