Dividend growth investing is a popular model followed by the investing community to build assets. Companies that 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.
December 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: If you are interested in getting regular updates on dividend raises and cuts, be sure to follow Dividend Growth Info.
December was another great month for dividend raises. Dividend raises were noted from companies such as: Boeing Inc (NYSE:BA), Restaurant Brands Inc (NYSE:QSR), Mastercard Inc (NYSE:MA), Stryker Corp (NYSE:SYK), Bank of Montreal (NYSE:BMO), Canadian Imperial Bank of Commerce (NYSE:CM), National Bank of Canada (NA.TO), Bristol Meyers Squibb Co (NYSE:BMY), Ecolab Inc (NYSE:ECL), Broadcom Ltd (NASDAQ:AVGO), Ventas Inc (NYSE:VTR), CoreSite Realty Corp (NYSE:COR), WEC Energy Group (NYSE:WEC), 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 ingenious 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 December 2016.
The Dividend Raises
Broadcom Limited designs, develops, and supplies a range of complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other.
Broadcom is a Dividend Challenger, having raised dividends for 7 consecutive years. The 1-, 3-, and 5-yr dividend compound annual growth rates (OTCPK:CAGR) are 24.4%, 32.3%, and 38.5%. Broadcom has increased dividends each quarter in 2016, and this is the 4th increase of the year. The company announced that the quarterly dividends will increase from $0.51 to $1.02.
Dividend Raise: 100%. Forward yield is 2.29%.
Click here for full AVGO profile on Simply Wall St.
Reality Shares gives AVGO a DIVCON rating of 4
Coty Inc (NYSE:COTY)
Coty Inc., together with its subsidiaries, manufactures, markets, and distributes beauty products worldwide. The company operates through four segments: Fragrances, Color Cosmetics, Skin & Body Care, and Brazil Acquisition.
The quarterly dividend will be raised from $0.06875 to $0.125.
Dividend Raise: 81.82%. Forward yield is 2.67%.
Click here for full COTY profile on Simply Wall St.
Air Lease Corp (NYSE:AL)
Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of commercial jet transport aircraft to airlines in Asia, the Pacific Rim, Latin America, the Middle East, Europe, Africa, and North America. The company also sells aircraft from its operating lease portfolio to third parties, including other leasing companies, financial services companies, and airlines.
AL announced a quarterly dividend increase from $0.05 to $0.075.
Dividend Raise: 50%. Forward yield is 0.86%.
Click here for full AL profile on Simply Wall St.
Reality Shares gives AL a DIVCON rating of 3
The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital.
Boeing is a Dividend Challenger having raised dividends for 6 consecutive years. The 1-, 3-, and 5-yr dividend CAGR are 19.8%, 31.0%, and 21.0% respectively. The company announced a quarterly dividend increase from $1.09 to $1.42.
Dividend Raise: 30.28%. Forward yield is 3.64%.
Click here for full BA profile on Simply Wall St.
Reality Shares gives BA a DIVCON rating of 3
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 through which to view the corporate world and spot overall trends.
Alleghany Technologies Inc (NYSE:ATI)
Allegheny Technologies Incorporated produces and sells specialty materials and components worldwide. The company operates through two segments, High Performance Materials & Components and Flat-Rolled Products.
The company announced that the quarterly dividend will be suspended.
Dividend Cut: 100%. Forward yield: N/A.
Click here for full ATI profile on Simply Wall St.
CoreCivic Inc (NYSE:CXW)
Corrections Corporation of America, together with its subsidiaries, owns and operates privatized correctional and detention facilities in the United States. It owns, operates, and manages prisons and other correctional facilities; and provides inmate residential and prisoner transportation services for governmental agencies.
The company's quarterly dividend is reduced from $0.54 to $0.42.
Dividend Cut: 22.22%. Forward yield is 6.76%.
Click here for full CXW profile on Simply Wall St.
December was another great month for dividend growth investors as companies announced dividend raises. All around, there were 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: Long VTR. My full list of holdings is available here.
Disclosure: I am/we are long VTR. 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.