Dividend growth investing is a popular model followed by the investing community to build assets. Companies which not only pay dividends, but raise them year after year have been shown to perform better overall for investor returns. A big part of this involves capturing the details.
As part of my due diligence, I closely monitor all companies that raise dividends (or cut them) and this article shares the dividend amount changes announced by companies.
Note that only companies with a market cap of $2B+ are included, as the list of small/micro cap companies is too long to include here.
September dividend raises and cuts can be found here.
Raises and cuts from previous months (starting Jan. 2016) can be found in this document.
New Resource: Get regular updates of dividend raises and cuts by following Dividend Growth Info.
Dividend raises were noted from companies such as: Campbell Soup Co (NYSE:CPB), Verizon Communications Inc (NYSE:VZ), Phillip Morris International Inc (NYSE:PM), Royal Caribbean Cruises (NYSE:RCL), Microsoft Corp (NASDAQ:MSFT), Lockheed Martin Corp (NYSE:LMT), American Express Co (NYSE:AXP), Realty Income Corp (NYSE:O), McDonald's Corp (NYSE:MCD) and many more.
Data Visualization by Simply Wall St.
Images used in this article are from Simply Wall St, a financial visualization tool that has an ingenius way of representing value, future performance, past performance, financial health and dividends -- all in one single image called Snowflake. I recently posted a review of Simply Wall St where I explain the features. If you are unfamiliar with the tool, be sure to check out the review. However, the images used below are fairly intuitive to understand.
The following lists the highest raises and cuts from the month of September 2016.
The Dividend Raises
InterDigital Inc (NASDAQ:IDCC)
InterDigital, Inc. designs and develops technologies that enable and enhance wireless communications in the United States and internationally. It offers technology solutions for use in digital cellular and wireless products and networks, such as 2G, 3G, 4G, and IEEE 802-related products and networks. The company develops cellular technologies comprising technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, and 4G wireless networks and mobile terminal devices; and other wireless technologies related to Wi-Fi, WLAN, WMAN, and WRAN. InterDigital, Inc. was founded in 1972 and is headquartered in Wilmington, Delaware.
The company announced that the quarterly dividends will increase from $0.20 to $0.30.
Dividend Raise: 50%. Forward yield is 1.52%.
Click here for full IDCC profile on Simply Wall St.
Goodyear Tire & Rubber Co (NYSE:GT)
The Goodyear Tire & Rubber Company, together with its subsidiaries, develops, manufactures, markets, and distributes tires, and related products and services. The company offers various lines of rubber tires for automobiles, trucks, buses, aircrafts, motorcycles, earthmoving and mining equipment, farm implements, industrial equipment, and various other applications under the Goodyear, Dunlop, Kelly, Debica, Sava, Fulda, and various other Goodyear owned house brands, as well as private-label brands. The Goodyear Tire & Rubber Company was founded in 1898 and is headquartered in Akron, Ohio.
Goodyear restarted issuing dividends in 2013 after pause of more than a decade and has been raising dividends regularly since. The quarterly dividend will be raised from $0.07 to $0.10.
Dividend Raise: 42.86%. Forward yield is 1.24%.
Click here for full GT profile on Simply Wall St.
Royal Caribbean Cruises Ltd
Royal Caribbean Cruises Ltd. operates as a cruise company. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisières de France, and TUI Cruises brand names. The company operated 44 ships with itineraries ranging from 2 to 24 nights on approximately 490 destinations worldwide. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.
Royal Caribbean stopped issuing dividends during the financial crisis and restarted in 2011. The company has been raising dividends regularly since then. RCL announced a dividend increase from $0.375 to $0.48.
Dividend Raise: 28%. Forward yield is 2.56%.
Click here for full RCL profile on Simply Wall St.
CLARCOR Inc (NYSE:CLC)
CLARCOR Inc. provides filtration products, filtration systems, and services worldwide. Its Engine/Mobile Filtration segment offers first-fit filtration systems; and replacement products, such as oil, air, fuel, coolant, transmission, and hydraulic filters for use in trucks, agricultural machinery, construction and mining equipment, power generation, marine, automobiles, transit buses, locomotives, and other industrial and specialty applications. CLARCOR Inc. was founded in 1904 and is headquartered in Franklin, Tennessee.
CLARCOR is a Dividend Champion having raised dividends for 32 consecutive years. The 1-, 3-, 5-, and 10-yr dividend compound annual growth rates are 15.5%, 18.3%, 15.6%, and 12.2% respectively. The company announced a dividend increase from $0.22 to $0.25.
Dividend Raise: 13.64%. Forward yield is 1.54%.
Click here for full CLC profile on Simply Wall St.
The Dividend Cuts
As much as we like to see higher profits from our investments, it is also important to keep an eye on the dividend cuts. Keeping an eye on the cuts gives us a window to view the corporate world and spot overall trends.
As can be seen, most dividend cuts are in the commodity market - with mining or energy companies leading the way. For these companies, the name of the game has become capital preservation - as companies have already cut jobs, cut back on capex and the final step in preserving cash is suspension of dividends. Things look bleak as is evident from the charts shown below.
Viacom Inc (NYSE:VIA)
Viacom, Inc. operates as an entertainment content company in the United States and internationally. The company creates television programs, motion pictures, short-form content, applications, games, consumer products, social media, and other entertainment content. It operates through two segments, Media Networks and Filmed Entertainment. Viacom, Inc. is headquartered in New York, New York.
The company's quarterly dividend is reduced from $0.40 to $0.20.
Dividend Cut: 50%. Forward yield is 1.87%.
Click here for full VIA profile on Simply Wall St.
Plains All American Pipeline, L.P., through with its subsidiaries, engages in the transportation, storage, terminalling, and marketing of crude oil, natural gas liquids (NYSE:NGL), natural gas, and refined products in the United States and Canada. The company owns 13 million barrels of crude oil and NGL linefill; 5 million barrels of crude oil and NGL linefill; 990 trucks and 1,100 trailers; and 10,100 crude oil and NGL railcars. The company was founded in 1998 and is headquartered in Houston, Texas.
PAA's quarterly dividend is reduced from $0.70 to $0.55.
PAGP's quarterly dividend is reduced from $0.231 to $0.2065.
PAA Dividend Cut: 21.43%. Forward yield is 7%.
PAGP Dividend Cut: 10.61%. Forward yield is 6.38%.
Click here for full PAA profile on Simply Wall St.
Click here for full PAGP profile on Simply Wall St.
September was another great month for dividend growth investors as companies announced dividend raises. All round, some great dividend raises from various sectors of the economy. These dividend raises provide us a window to the corporate world and the economy as the companies share increased profit with shareholders. Investors should do their own due diligence before investing in any of the companies mentioned. Did you get any raises from the stocks mentioned?
Full Disclosure: None. My full list of holdings is available here.
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.