One way to identify dividend growth stocks for further analysis is to monitor dividend increases. Companies can only increase their dividends regularly if earnings grow sufficiently. In the past 2 weeks, 12 companies on my watch list decided to increase their dividends, including 2 of the stocks I own. 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: December 12-23, 2016|
|Previous Post: 10 Dividend Increases: December 5-9, 2016|
• Boeing Company (NYSE:BA)
BA is an aerospace firm founded in 1916 and headquartered in Chicago, Illinois. The company designs, manufactures, markets, and maintains commercial jetliners, military aircraft, satellites, and missile defense, human space flight, and launch systems and services. BA operates in five segments, namely Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital. On Monday, December 12, BA increased its quarterly dividend to $1.42 per share, an increase of 30.28%. The dividend is payable on March 3 to shareholders of record on February 10. The stock will trade ex-dividend on February 8.
• CubeSmart (NYSE:CUBE)
Formerly known as U-Store-It Trust, CUBE is a self-managed and self-administered REIT (real estate investment trust) whose operations are conducted solely through CubeSmart, LP, and its subsidiaries. The company focuses on the ownership, operation, management, acquisition, and development of self-storage facilities in the United States. CUBE was founded in July 2004 and is based in Malvern, Pennsylvania. The board of directors of CUBE has declared a quarterly dividend of 27¢ per share. The new dividend is 28.57% above the prior dividend of 21¢ per share. The dividend is payable on January 17 to shareholders of record at the close of business on January 3.
• Amgen Inc. (NASDAQ:AMGN)
AMGN is a biotechnology company founded in 1980 and headquartered in Thousand Oaks, California. The company discovers, develops, manufactures and delivers various human therapeutics for the treatment of serious illnesses in the areas of oncology/hematology, cardiovascular disease, inflammation, bone health, nephrology, and neuroscience. On Tuesday, December 20, the company increased its quarterly dividend by 15% to $1.15 per share. The dividend is payable on March 8 to shareholders of record on February 15.
• Franklin Resources (NYSE:BEN)
Founded in 1947 and based in San Mateo, California, BEN is a global investment management company operating as Franklin Templeton Investments. The company provides global and domestic investment management to retail, institutional and sovereign wealth clients in over 150 countries. BEN invests in the public equity, fixed income, and alternative markets and has approximately $790 billion in assets under management above November 2015. The company's board of directors approved an increase in the quarterly dividend of 11.11% to 20¢ per share. All shareholders of record on December 30 will receive the new dividend on January 13.
• KAR Auction Services Inc. (NYSE:KAR)
Formerly known as KAR Holdings, Inc., KAR provides vehicle auction services in the United States, Canada, Mexico, and the United Kingdom. The company provides support, technology, and logistics for the used vehicle industry. KAR is comprised of ADESA, Inc., Insurance Auto Auctions, Inc., Automotive Finance Corporation, and additional business units. KAR was founded in 2006 and is headquartered in Carmel, Indiana. The company increased its quarterly dividend by 10.34%, from 29¢ per share to 32¢ per share. The new dividend is payable on January 6 to shareholders of record on December 21, with an ex-dividend date of December 19.
• PNM Resources Inc. (NYSE:PNM)
PNM is an investor-owned holding company of energy and energy-related businesses in the United States. The company is primarily involved in the generation, transmission, and distribution of electricity. It generates electricity using coal, nuclear fuel, natural gas, solar, geothermal, and wind energy sources. It also provides regulated transmission and distribution services. As of December 31, 2014, the company's owned or leased facilities had a total net generation capacity of 2,397 megawatts. The company was founded in 1917 and is based in Albuquerque, New Mexico. Recently, PNM increased its quarterly dividend to 24.25¢ per share, an increase of 10.23% over the prior dividend of 22¢ per share. The dividend is payable on February 13 to shareholders of record on January 23. PNM will trade ex-dividend on January 19.
• SEI Investments Company (NASDAQ:SEIC)
Founded in 1968 and based in Oaks, Pennsylvania, SEIC provides wealth management, retirement and investment solutions, asset management, asset administration, investment processing outsourcing solutions, financial services, and investment advisory services to its clients. SEIC enables corporations, financial institutions, financial advisors and ultra-high-net-worth families to create and manage wealth by providing investment and investment business solutions. Recently, SEIC increased its semi-annual dividend to 28¢ per share, an increase of 7.69% over the prior dividend of 26¢ per share. The ex-dividend date is December 22 and the dividend will be paid on January 6 to shareholders of record on December 27.
• Pfizer Inc. (NYSE:PFE)
Headquartered in New York and founded in 1849, PFE is one of the world's largest pharmaceutical firms, with annual sales of about $50 billion. The company is engaged in discovering, developing and manufacturing of healthcare products. Prescription drugs and vaccines account for almost 90% of PFE's sales. Top sellers include the meningitis vaccine Prevnar 13, the impotence drug Viagra, and Lyrica for epilepsy and some forms of neuropathic pain. The company sells products globally with international sales accounting for about 60% of total sales. The company's board of directors approved an increase in the quarterly dividend of 6.67% to 32¢ per share. PFE will trade ex-dividend on February 1. The dividend is payable on March 1 to shareholders of record on February 3.
• American Tower Corp. (NYSE:AMT)
AMT operates as a real estate investment trust. The company owns, operates and develops multi-tenant communications sites for lease to wireless service providers, radio and television broadcast companies, wireless data and data providers, government agencies, and municipalities. AMT was founded in 1995 and is headquartered in Boston, Massachusetts. The company announced a quarterly DIV increase of 5.45% to 58¢ per share. All shareholders of record on December 28 can expect the dividend to be paid on January 13.
• Andersons Inc. (The) (NASDAQ:ANDE)
ANDE is a diversified agriculture-focused company. The company conducts business in the grain, ethanol, plant nutrient and rail sectors. It also produces turf and cob products and operates The Andersons retail stores; The Andersons Market, a specialty food store; a distribution center; and a lawn and garden equipment sales and service facility. ANDE was founded in 1947 and is headquartered in Maumee, Ohio. The company announced an increase of its quarterly dividend of 3.23% to 16¢ per share. The dividend is payable on January 24 to shareholders of record on January 3. ANDE will trade ex-dividend on December 29.
• ABM Industries Inc. (NYSE:ABM)
Formerly known as American Building Maintenance Industries, Inc., ABM provides end-to-end integrated facility solutions in the United States and internationally. The company's capabilities include electrical & lighting, energy solutions, facilities engineering, HVAC & mechanical, janitorial, landscape & turf, mission critical solutions and parking, provided through stand-alone or integrated solutions. The company was founded in 1909 and is headquartered in New York, New York. On Tuesday, December 13, the company increased its quarterly dividend by 3.03% to 17¢ per share. The dividend is payable on February 6 to shareholders of record on January 5. ABM will trade ex-dividend on January 3.
• Realty Income Corp. (NYSE:O)
Known as The Monthly Dividend Company, O is an equity real estate investment trust dedicated to providing shareholders with dependable monthly income. The company earns income from nearly 4,500 properties owned under long-term lease agreements with regional and national retail chains and other commercial tenants. Realty Income Corporation was founded in 1969 and is based in Escondido, California. O will pay a monthly dividend of 20.25¢ per share, an increase of 0.25% over the previous monthly dividend. The monthly dividend will be paid on January 13 to shareholders of record on January 3. The ex-dividend date is December 29.
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 PFE,O.
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.