Monitoring dividend increases for stocks on my watch list helps me identify candidates for further analysis. Companies that regularly increase dividends show confidence in future earnings growth potential. In the past few weeks, 10 companies on my watch list announced dividend increases, including one of my DivGro holdings. The following table presents a summary.
The table is sorted by percentage increase, %Incr. Dividends are annualized and in US dollar, unless otherwise indicated. Yield is the new dividend yield for the market close Price on the date listed. Yrs are years of consecutive dividend increases, while 5-yr DGR is the compound annual growth rate of the dividend over a 5-year period. 1-yr %Incr is the percentage increase from the year-ago dividend. (Some companies increase their dividends more than once a year, so this puts the most recent dividend increase in context).
|Summary of Dividend Increases: August 22-September 2, 2016|
Previous Post: 9 Dividend Increases: August 15-19, 2016
• Tesoro Corp. (TSO)
TSO is an independent petroleum refining, logistics, and marketing company in the United States. The company refines crude oil and other feedstocks into transportation fuels, selling refined products in the wholesale and bulk markets. It owns and operates 6 refineries with a combined crude oil capacity of approximately 875 thousand barrels per day. The company's publicly traded limited partnership, Tesoro Logistics LP (TLLP), owns and operates a network of pipelines; truck and marine terminals; and approximately 15 million barrels of storage capacity. TSO was founded in 1968 and is headquartered in San Antonio, Texas. The company declared a quarterly dividend of 55¢ per share, an increase of 10.00% over the prior quarterly dividend. The dividend is payable September 15, with an ex-dividend date of August 29.
• Altria Group Inc. (NYSE:MO)
MO was founded in 1919 and is headquartered in Richmond, Virginia. Through its subsidiaries, the company engages in the manufacture and sale of cigarettes, smokeless products, and wine. One wholly owned subsidiary (Phillip Morris Capital Corporation) maintains a portfolio of leveraged and direct finance leases. In March 2008, MO spun off the subsidiary Phillip Morris (NYSE:PM) to protect it from litigation in the United States. Recently, MO increased its quarterly dividend by 7.96% to 61¢ per share. The dividend is payable on October 11 to shareholders of record on September 15. MO will trade ex-dividend on September 13.
• STRATTEC Security Corp. (NASDAQ:STRT)
Headquartered in Milwaukee, Wisconsin, STRT designs, develops, manufactures and markets automotive access control products under the VAST brand name. The company offers mechanical locks and keys, electronically enhanced locks and keys, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power lift gate systems, power deck lid systems, door handles, and related products. On Thursday, August 25, STRT increased its quarterly dividend to 14¢ per share, an increase of 7.69%. The dividend is payable September 30, with an ex-dividend date of September 14.
• Harris Corp. (NYSE:HRS)
Founded in 1916 and headquartered in Melbourne, Florida, HRS is an international communications and information technology company providing advanced, technology-based solutions to mission critical challenges of government and commercial customers. The company has more than 23,000 employees and operates in more than 125 countries. On August 29, the board of directors declared a quarterly dividend of 53¢ per share. The new dividend represents an increase of 6.00%. The dividend is payable on September 21 to shareholders of record on September 9. The stock will trade ex-dividend on September 7.
• Northrim BanCorp Inc. (NASDAQ:NRIM)
Founded in 1990 and headquartered in Anchorage, Alaska, NRIM is a bank holding company that provides commercial banking products and services to businesses and professional individuals. The company offers loan and deposit products to business and consumer customers and operates 14 branches throughout Alaska. NRIM also originates and sells mortgage loans for one- to four-family residential properties and provides construction lending for commercial real estate projects. Recently, NRIM increased its quarterly dividend to 20¢ per share, an increase of 5.26% over the prior dividend of 19¢ per share. The dividend is payable on September 23 to shareholders of record at the close of business on September 15.
• Principal Financial Group Inc. (NYSE:PFG)
Founded in 1879 and based in Des Moines, Iowa, PFG is a leading provider of retirement services, insurance solutions and asset management services to businesses, individuals and institutional clients. In addition, the company offers a broad range of individual life and disability insurance, group life and health insurance, and residential mortgage loan origination and servicing in the United States. Recently, PFG increased its quarterly dividend from 39¢ per share to 41¢ per share, an increase of 5.13%. PFG will trade ex-dividend on August 31. The dividend is payable on September 30, to shareholders of record on September 2.
• Dover Corp. (NYSE:DOV)
Founded in 1947 and headquartered in Downers Grove, Illinois, DOV manufactures and sells a range of equipment and components, specialty systems, and support services in the United States. The company also provides supporting engineering, testing and other services. DOV operates through four business segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment. On August 5, the board of directors declared a quarterly dividend of 44¢ per share. The new dividend represents an increase of 4.76%. All shareholders of record on August 31 can expect the dividend to be paid on September 15.
• Brookfield Infrastructure Partners LP (NYSE:BIP)
BIP owns and operates utility, transport and energy businesses. The company operates a port facility in Australia, transmission lines in North and South America, and electrify and natural gas connections in the United Kingdom and Colombia. The company also operates transmission pipelines and natural gas storage facilities. BIP provides transportation, storage and handling services for freight, bulk commodities, and the company was founded in 2007 and is based in Toronto, Canada. On Wednesday, August 3, BIP increased its quarterly distribution to 59¢ per unit, an increase of 3.51%. BIP will trade ex-dividend on August 29. The distribution is payable on September 30 to unitholders of record on August 31.
• Verizon Communications (NYSE:VZ)
VZ provides communications, information and entertainment products and services to consumers, businesses and governmental agencies worldwide. Formerly known as Bell Atlantic Corporation, the company changed its name to Verizon Communications Inc. in June 2000. VZ was founded in 1983 and is based in New York, New York. On Thursday, September 1, the company increased its quarterly dividend by 2.21% to 57.75¢ per share. The stock will trade ex-dividend on October 5, and shareholders can expect to receive the new dividend on November 1.
• Broadcom Limited (NASDAQ:AVGO)
AVGO is a semiconductor company that designs, develops, and supplies a broad range of analog and digital semiconductor connectivity solutions. The company serves four primary end markets: wired infrastructure, wireless communications, enterprise storage, and industrial and other. Applications include data center networking, home connectivity, broadband access, data center servers and storage and more. AVGO was founded in 2005 and is headquartered in Singapore. Recently, the company declared a quarterly dividend of 51¢ per share, an increase of 2.00% over the prior dividend of 50¢ per share. The dividend is payable on September 30 to shareholders of record on September 18. The stock will trade ex-dividend on September 15.
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 MO.
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.