One way to identify dividend growth stocks for further analysis is to monitor dividend increases. Companies that regularly increase dividends show confidence in future earnings growth potential. In the past few weeks, 8 companies on my watch list announced dividend increases. The table below presents a summary of these increases.
The table is sorted by percentage increase, %Incr. Dividends are annualized and in US$, 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 26, 2016-January 6, 2017|
|Previous Post: 12 Dividend Increases: December 12-23, 2016|
• Stryker Corp. (NYSE:SYK)
SYK is a medical technology company operating through three segments: Orthopaedics; MedSurg; and Neurotechnology and Spine. The company markets its products to doctors, hospitals, and other healthcare facilities in the United States, and sells its products through company-owned sales subsidiaries and branches, as well as third-party dealers and distributors in approximately 100 countries. SYK was founded in 1941 and is headquartered in Kalamazoo, Michigan. On Thursday, December 8, the company increased its quarterly dividend by 11.84% to 42.5¢ per share. The dividend is payable on January 31 to shareholders of record on December 30.
• Enbridge Inc. (NYSE:ENB)
Founded in 1949 and headquartered in Calgary, Canada, ENB is an energy transportation and distribution company with operations in the United States, Canada, and internationally. The company operates the world's longest crude oil and liquids pipeline system and owns and operates Canada's largest natural gas distribution company. ENB also has international operations and a growing involvement in natural gas transmission and midstream businesses. On January 5, the board of directors declared a quarterly dividend of C$0.58 per share. The new dividend represents an increase of 10.00%. The first payment will be on March 1 to shareholders of record on February 15. The ex-dividend date is February 13.
• Spectra Energy Corp. (NYSE:SE)
SE is a leading pipeline and midstream energy company. Based in Houston, Texas, the company's operations include more than 21,000 miles of natural gas, natural gas liquids, and crude oil pipelines; approximately 300 billion cubic feet of natural gas storage; 4.8 million barrels of crude oil storage; as well as natural gas gathering, processing, and local distribution operations. On January 5, the company declared a dividend of 44¢ per share. The new dividend represents an 8.64% increase. The ex-dividend date is February 14 and the dividend will be paid on March 1 to shareholders of record on February 16.
• CenterPoint Energy (NYSE:CNP)
CNP is a domestic energy delivery company that includes electric transmission and distribution, natural gas distribution and sales, and interstate pipeline and gathering operations. The company serves more than five million customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company was founded in 1882 and is headquartered in Houston, Texas. The company's board of directors approved an increase in the quarterly dividend of 4.85% to 27¢ per share. All shareholders of record on February 16 will receive the new dividend on March 10.
• Bank of the Ozarks Inc. (OZRK)
Founded in 1981 and headquartered in Little Rock, Arkansas, OZRK is a bank holding company for Bank of the Ozarks. The company serves businesses, individuals, and non-profit and governmental entities in Arkansas, Georgia, North and South Carolina, Texas, Florida, Alabama, New York and California. OZRK provides a range of retail and commercial banking services, including deposit services, loan products, mortgage lending, treasury management services and trust and wealth management services. On January 3, the board of directors approved an increase to the regular quarterly dividend from 16.5¢ per share to 17¢ per share, an increase of 3.03%. OZRK will trade ex-dividend on January 18. The dividend is payable on January 27, to shareholders of record on January 20.
• Urstadt Biddle Properties (NYSE:UBA)
UBA is a self-administered equity real estate investment trust engaged in the acquisition, ownership, and management of commercial real estate properties. The company has interests in 74 properties, primarily high-quality retail shopping centers located in the suburban, high demographic, high barrier to entry communities surrounding New York City. UBA was founded in 1969 and is based in Greenwich, Connecticut. On Thursday, December 15, the company increased its quarterly dividend by 1.92% to 26.5¢ per share. The dividend is payable on January 20 to shareholders of record on January 6. UBA will trade ex-dividend on January 4.
• Enterprise Products Partners LP (NYSE:EPD)
EPD is one of the largest publicly traded partnerships and a leading integrated provider of processing and transportation services to producers of Natural Gas Liquids (NGLs) and consumers of NGL products. The partnership's assets include approximately 49,000 miles of pipelines; 225 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 billion cubic feet of natural gas storage capacity. EPD was founded in 1968 and is based in Houston, Texas. On January 5, the board of directors approved an increase to the regular quarterly distribution from 40.5¢ per unit to 41¢ per unit, an increase of 1.23%. All unitholders of record on January 31 will receive the new distribution on February 7.
• W.P. Carey Inc. (NYSE:WPC)
Founded in 1973 and based in New York, WPC is an independent equity REIT (real estate investment trust) engaged in providing long-term sale-leaseback and build-to-suit financing for companies. WPC primarily invests in commercial properties that are generally triple-net leased to single corporate tenants, including office, warehouse, industrial, logistics, retail, hotel, R&D, and self-storage properties. Recently, WPC increased its quarterly dividend to 99¢ per share, an increase of 0.51% over the prior dividend of 98.5¢ per share. The dividend is payable January 13, with an ex-dividend date of December 28.
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/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.