Dividend Challengers (And Near-Challengers): 55 Increases Expected In The Next 11 Weeks

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Includes: AEP, AMTD, ASB, AYR, BKEP, BKSC, BUD, CCF, CHSP, CORE, CORR, CVGW, EL, EMCI, ENLC, ENLK, EVR, EXSR, FMBH, GEO, GXP, HBNC, HIFS, HII, HON, HUBB, INGR, IP, IRM, KINS, LCUT, LTC, LZB, MAC, NVDA, OGE, PNW, PRU, RCL, ROK, RRMS, SASR, SBUX, SIX, SNA, STX, SXI, THO, TRGP, TSN, UBSH, V, WCN, WEN, WNR
by: David Fish

Summary

OGE Energy to become next Contender.

Double-digit increases possible for many stocks.

Prominent names include Bud, Starbucks, and International Paper.

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 Enters Busy Season

The Dividend Growth "late vacation" that arrived last month is about to give way to give way to the expected acceleration of the fourth quarter. The number of announcements for all Champions, Contenders, Challengers, and Near-Challengers expected in the next 11 weeks has increased to exactly 100 from just 72 a month ago, a good indication of the typical increase in the fourth quarter trend and the first quarter continuation of that trend.

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 Challengers (5-9 years):

Company

Ticker

No.

8/31

Div.

MR%

LY

Ann.

DGR

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

5-yr

Royal Caribbean Cruises Ltd.

(NYSE:RCL)

5

71.11

2.11

25.00

9/16/15

1.50

n/a

Chesapeake Lodging Trust

(NYSE:CHSP)

6

25.48

6.28

14.29

9/28/15

1.60

47.6

Ingredion Inc.

(NYSE:INGR)

5

136.96

1.31

7.14

9/28/15

1.80

25.0

Horizon Bancorp

(NASDAQ:HBNC)

5

28.01

2.14

7.14

9/30/15

0.60

13.5

Bank of South Carolina Corp.

(NASDAQ:BKSC)

5

17.48

2.97

10.00

10/1/15

0.52

6.9

Hingham Institution for Savings

(NASDAQ:HIFS)

8

129.92

0.92

7.14

10/7/15

1.20

4.4

OGE Energy Corp.

(NYSE:OGE)

9

31.13

3.53

10.00

10/8/15

1.10

7.2

Thor Industries Inc.

(NYSE:THO)

6

81.15

1.48

11.11

10/14/15

1.20

29.1

LTC Properties Inc.

(NYSE:LTC)

6

51.92

4.16

5.88

10/20/15

2.16

5.6

Lifetime Brands Inc.

(NASDAQ:LCUT)

5

13.42

1.27

13.33

10/28/15

0.17

n/a

EnLink Midstream LLC

(NYSE:ENLC)

5

16.65

6.13

2.00

10/29/15

1.02

69.7

EnLink Midstream Partners LP

(NYSE:ENLK)

5

17.65

8.84

1.30

10/29/15

1.56

43.7

Targa Resources Corp.

(NYSE:TRGP)

5

43.58

8.35

4.00

10/29/15

3.64

n/a

Seagate Technology plc

(NASDAQ:STX)

5

33.74

7.47

16.67

11/4/15

2.52

n/a

Standex International Inc.

(NYSE:SXI)

5

84.19

0.67

16.67

11/5/15

0.56

18.9

Waste Connections Inc.

(NYSE:WCN)

6

76.43

0.76

11.54

11/5/15

0.58

48.0

American Electric Power Co.

(NYSE:AEP)

6

64.57

3.47

5.66

11/6/15

2.24

4.7

Anheuser-Busch InBev SA/NV

(NYSE:BUD)

6

124.03

3.18

21.74

11/6/15

3.94

51.5

Sandy Spring Bancorp Inc.

(NASDAQ:SASR)

5

31.53

3.04

9.09

11/6/15

0.96

86.4

TD Ameritrade Holding Corp.

(NASDAQ:AMTD)

6

32.87

2.07

13.33

11/6/15

0.68

65.5

Macerich Company

(NYSE:MAC)

6

81.89

3.32

4.62

11/9/15

2.72

11.0

Starbucks Corp.

(NASDAQ:SBUX)

6

56.23

1.42

25.00

11/9/15

0.80

30.5

First Mid-Illinois Bancshares

(NASDAQ:FMBH)

5

24.97

2.40

3.45

11/10/15

0.60

9.2

Union Bankshares Corp.

(NASDAQ:UBSH)

5

27.83

2.73

11.76

11/10/15

0.76

22.2

Visa Inc.

(NYSE:V)

8

80.90

0.69

16.67

11/11/15

0.56

30.7

International Paper Co.

(NYSE:IP)

6

48.49

3.63

10.00

11/12/15

1.76

33.0

EMC Insurance Group Inc.

(NASDAQ:EMCI)

6

27.85

2.73

11.76

11/13/15

0.76

7.3

Honeywell International Inc.

(NYSE:HON)

5

116.71

2.04

14.98

11/17/15

2.38

12.2

Core-Mark Holding Company

(NASDAQ:CORE)

5

38.15

0.84

23.08

11/18/15

0.32

n/a

Rockwell Automation Inc.

(NYSE:ROK)

6

115.93

2.50

11.54

11/19/15

2.90

15.9

Prudential Financial Inc.

(NYSE:PRU)

7

79.38

3.53

20.69

11/20/15

2.80

16.2

Snap-on Inc.

(NYSE:SNA)

6

153.29

1.59

15.09

11/20/15

2.44

12.5

Evercore Partners Inc.

(NYSE:EVR)

9

51.24

2.42

10.71

11/24/15

1.24

12.8

Aircastle Limited

(NYSE:AYR)

5

21.65

4.43

9.09

11/25/15

0.96

17.6

Estee Lauder Companies Inc.

(NYSE:EL)

6

89.23

1.34

25.00

11/25/15

1.20

22.2

Great Plains Energy Inc.

(NYSE:GXP)

5

27.16

3.87

7.14

11/25/15

1.05

3.7

Hubbell Inc.

(NYSE:HUBB)

8

108.31

2.33

12.50

11/25/15

2.52

9.2

Kingstone Companies Inc.

(NASDAQ:KINS)

5

9.02

2.77

25.00

11/25/15

0.25

n/a

Iron Mountain Inc.

(NYSE:IRM)

6

38.41

5.05

2.11

11/27/15

1.94

59.1

Wendy's Company

(NYSE:WEN)

6

10.19

2.36

9.09

11/27/15

0.24

28.2

Six Flags Entertainment Corp.

(NYSE:SIX)

6

48.77

4.76

11.54

11/30/15

2.32

169.7

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

In addition, there's a number of Near-Challengers that are on schedule to record their fifth year of increases during this period:

Company

Ticker

No.

LY

Name

Symbol

Yrs

Ex-Div

Western Refining Inc.

(NYSE:WNR)

4

10/23/15

Pinnacle West Capital Corp.

(NYSE:PNW)

4

10/29/15

Blueknight Energy Partners LP

(NASDAQ:BKEP)

4

10/30/15

Rose Rock Midstream LP

(NYSE:RRMS)

4

10/30/15

Chase Corp.

(NYSEMKT:CCF)

4

11/5/15

CorEnergy Infrastructure Trust

(NYSE:CORR)

4

11/10/15

GEO Group Inc.

(NYSE:GEO)

4

11/12/15

Calavo Growers Inc.

(NASDAQ:CVGW)

4

11/13/15

NVIDIA Corp.

(NASDAQ:NVDA)

4

11/18/15

Exchange Bank (Santa Rosa)

(OTCPK:EXSR)

4

11/24/15

Huntington Ingalls Industries

(NYSE:HII)

4

11/24/15

La-Z-Boy Inc.

(NYSE:LZB)

4

11/25/15

Associated Banc-Corp

(NYSE:ASB)

4

11/27/15

Tyson Foods Inc.

(NYSE:TSN)

4

11/27/15

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 am/we are long V.

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.