Dividend Contenders: 34 Increases Expected In The Next 11 Weeks

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Includes: AFSI, ATNI, ATRI, BANF, BG, BMI, CBU, CPKF, DGAS, EAT, EBMT, FLIC, FRFC, FTS, GK, HRS, HWKN, IFF, IMASF, ISBA, LNN, LSTR, LYBC, MXIM, NJR, RBA, RSG, SHPG, SPAN, STE, SXT, TCP, WLK, WTR
by: David Fish
Summary

Aqua America about to become newest Champion.

Which Contenders can repeat double-digit increases?

Wide diversity offered by solid companies.

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.

Dividend Growth Picks Up

The Dividend Growth "vacation" that has dominated the early part of Summer should run its course over the next couple of weeks. As you can see in the table below, the pace picks up in August and September (by Ex-Dividend Date), before accelerating in the fourth quarter. The number of announcements for all Champions, Contenders, Challengers, and Near-Challengers expected in the next 11 weeks has increased from just 78 a month ago to 102 now, still in the "below average" category, but well up from the slow pace of recent months. I would expect the overall activity to remain relatively light until the end of third quarter, before the heavier activity in this year's fourth quarter and the first quarter of 2017.

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 Contenders (10-24 years):

Company

Ticker

No.

6/30

Div.

MR%

LY

Ann.

DGR

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

5-yr

TC Pipelines LP

(NYSE:TCP)

16

57.26

6.22

5.95

7/31/15

3.56

3.3

Sensient Technologies Corp.

(NYSE:SXT)

10

71.04

1.52

8.00

8/5/15

1.08

5.7

Landstar System Inc.

(NASDAQ:LSTR)

11

68.66

0.47

14.29

8/6/15

0.32

9.6

Aqua America Inc.

(NYSE:WTR)

24

35.66

2.00

7.88

8/12/15

0.71

7.8

Eagle Bancorp Montana Inc.

(NASDAQ:EBMT)

16

12.71

2.44

3.33

8/12/15

0.31

2.0

Lindsay Corp.

(NYSE:LNN)

13

67.86

1.65

3.70

8/13/15

1.12

27.2

Span-America Medical Sys.

(NASDAQ:SPAN)

17

17.89

3.58

6.67

8/14/15

0.64

9.2

Bunge Limited

(NYSE:BG)

15

59.15

2.84

10.53

8/17/15

1.68

10.4

Maxim Integrated Products

(NASDAQ:MXIM)

14

35.69

3.36

7.14

8/18/15

1.20

7.2

Steris Corp.

(NYSE:STE)

11

68.75

1.45

8.70

8/21/15

1.00

13.0

Badger Meter Inc.

(NYSE:BMI)

23

73.03

1.10

5.26

8/27/15

0.80

8.4

Chesapeake Financial

(OTCQB:CPKF)

23

19.25

2.49

6.67

8/28/15

0.48

9.3

Delta Natural Gas

(NASDAQ:DGAS)

11

26.94

3.04

2.50

8/28/15

0.82

4.0

ITC Holdings Corp.

(ITC)

11

46.82

1.60

15.38

8/28/15

0.75

9.9

First Robinson Financial

(OTCPK:FRFC)

15

38.00

3.05

11.54

8/31/15

1.16

5.3

Brinker International

(NYSE:EAT)

11

45.53

2.81

14.29

9/2/15

1.28

17.8

Ritchie Brothers Auctioneers

(NYSE:RBA)

13

33.78

1.89

14.29

9/2/15

0.64

7.9

Shire plc

(NASDAQ:SHPG)

12

184.08

0.38

12.28

9/2/15

0.70

15.2

Westlake Chemical Corp.

(NYSE:WLK)

12

42.92

1.69

10.00

9/2/15

0.73

41.8

G&K Services Inc.

(NASDAQ:GK)

10

76.57

1.93

19.35

9/8/15

1.48

32.0

Harris Corp.

(NYSE:HRS)

14

83.44

2.40

6.38

9/9/15

2.00

15.6

Atrion Corp.

(NASDAQ:ATRI)

13

427.86

0.84

20.00

9/11/15

3.60

16.2

Community Bank System

(NYSE:CBU)

23

41.09

3.02

3.33

9/11/15

1.24

5.8

New Jersey Resources

(NYSE:NJR)

20

38.55

2.49

6.67

9/11/15

0.96

6.1

Hawkins Inc.

(NASDAQ:HWKN)

11

43.41

1.84

5.26

9/16/15

0.80

6.1

Int'l Flavors & Fragrances

(NYSE:IFF)

13

126.07

1.78

19.15

9/23/15

2.24

14.1

Isabella Bank Corp.

(OTCQX:ISBA)

10

27.90

3.44

4.35

9/23/15

0.96

5.5

Atlantic Tele Network Inc.

(NASDAQ:ATNI)

18

77.81

1.65

10.34

9/28/15

1.28

7.7

BancFirst Corp. OK

(NASDAQ:BANF)

22

60.32

2.39

5.88

9/28/15

1.44

8.0

First of Long Island Corp.

(NASDAQ:FLIC)

20

28.67

2.79

5.26

9/28/15

0.80

7.1

Lyons Bancorp Inc.

(OTCQX:LYBC)

15

30.25

2.64

5.26

9/28/15

0.80

12.9

AmTrust Financial Services

(NASDAQ:AFSI)

10

24.50

2.45

20.00

9/29/15

0.60

36.3

Republic Services Inc.

(NYSE:RSG)

13

51.31

2.34

7.14

9/29/15

1.20

8.2

Inmarsat plc

(OTCPK:IMASF)

11

10.70

4.66

4.99

9/30/15

0.50

7.6

MR=Most Recent; LY=Last Year; DGR=Dividend Growth Rate through 2015

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: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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 microcap stocks. Please be aware of the risks associated with these stocks.