Monitoring dividend increases for stocks on my watch is one way to identify candidates for further analysis. Companies that regularly increase dividends show confidence in future earnings growth potential. In the last week, 28 companies on my watch list announced dividend increases, including one of the stocks I own.
Part 1 of this article presented companies in the Financials, REITs, and Utilities sectors that raised their dividends. The table below presents the remaining stocks that announced dividend 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: February 20-24, 2017|
|Previous Post: 22 Dividend Increases: February 13-17, 2017|
• Home Depot Inc (NYSE:HD)
Founded in 1978 and based in Atlanta, Georgia, HD is a home improvement retailer that sells an assortment of building materials, home improvement products, and lawn and garden products. The company provides installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me, and professional customers. HD serves home owners; and renovators/remodelers, general contractors, repairmen, installers, small business owners, and tradesmen.
The company declared a quarterly dividend of 89¢ per share, an increase of 28.99% over the prior quarterly dividend. The dividend is payable March 23, with an ex-dividend date of March 7.
• Texas Roadhouse Inc (NASDAQ:TXRH)
TXRH is a growing, moderately priced, full-service restaurant chain operating in the United States and internationally. The company operates and franchises restaurants under the Texas Roadhouse and Bubba's 33 brand names. It offers an assortment of specially seasoned and aged steaks hand-cut daily in every restaurant and cooked to order over open gas-fired grills. TXRH was founded in 1993 and is based in Louisville, Kentucky.
On February 21, the company declared a dividend of 21¢ per share. The new dividend represents a 10.53% increase. The new dividend is payable on March 31 to shareholders of record on March 15, with an ex-dividend date of March 13.
• Kohl's Corp (NYSE:KSS)
Founded in 1962, KSS operates department stores in the United States. It offers private label, exclusive, and national brand apparel, footwear, accessories, beauty, and home products to children, men, and women customers. The company's private brands include Apt. 9, Croft & Barrow, Jumping Beans, SO and Sonoma Life + Style. The company is headquartered in Menomonee Falls, Wisconsin.
On Tuesday, February 21, KSS increased its quarterly dividend to 55¢ per share, an increase of 10.00%. The stock will trade ex-dividend on March 6, and shareholders can expect to receive the new dividend on March 22.
• Magna International Inc (NYSE:MGA)
MGA is an automotive supplier with 305 manufacturing operations and 93 product development, engineering and sales centers in 29 countries. The company's product capabilities include producing body, chassis, interior, exterior, seating, powertrain, electronic, vision, closure and roof systems, and modules, as well as vehicle engineering and contract manufacturing. The company was founded in 1957 and is headquartered in Aurora, Canada.
On Thursday, February 23, MGA increased its quarterly dividend to 27.5¢ per share, an increase of 10.00%. All shareholders of record on March 10 can expect the dividend to be paid on March 24.
• NewMarket Corp (NYSE:NEU)
Founded in 1887 and headquartered in Richmond, Virginia, NEU is a holding company that operates businesses involving petroleum additives. The company offers lubricant additives for use in various vehicle and industrial applications, including engine oils, transmission fluids, gear oils, hydraulic oils, turbine oils, and metalworking fluids. NEU has operations in the United States, Canada, Europe, the Asia-Pacific, India, Latin America, and the Middle East.
Recently, NEU increased its quarterly dividend to $1.75 per share, an increase of 9.38% over the prior dividend of $1.60 per share. The dividend is payable on April 3 to shareholders of record on March 15.
• Eaton Corp plc (NYSE:ETN)
Founded in 1916 and now headquartered in Dublin, Ireland, ETN is a diversified power management company serving industrial, vehicle, construction, commercial and semiconductor markets in more than 175 countries. ETN acquired Ireland-based Cooper Industries in November 2012. The 2014 revenue of the combined companies totaled $22.6 billion.
On Wednesday, February 22, ETN increased its quarterly dividend to 60¢ per share, an increase of 5.26%. The new dividend is payable on March 17 to shareholders of record on March 6, with an ex-dividend date of March 2.
• Cogent Communications Holdings Inc (NASDAQ:CCOI)
CCOI provides high-speed Internet access and Internet protocol communications services to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations in North America, Europe, and Japan. The company offers bandwidths ranging from 100 Megabits per second to 100 Gigabits per second. CCOI was founded in 1999 and is headquartered in Washington, the District of Columbia.
The company announced an increase of its quarterly dividend of 5.00% to 42¢ per share. The new dividend is payable on March 24 to shareholders of record on March 10. The ex-dividend date will be March 8.
• Albemarle Corp (NYSE:ALB)
ALB is a major producer of specialty chemicals targeting customer needs across various end markets, including petroleum refinement, consumer electronics, plastics/packaging, construction, automotive, lubricants, pharmaceuticals, crop protection, food-safety, and custom chemistry services. ALB was founded in 1993 and is headquartered in Baton Rouge, Louisiana.
On February 24, the company declared a dividend of 32¢ per share. The new dividend represents a 4.92% increase. The dividend is payable on April 3 to shareholders of record on March 15. The ex-dividend date is March 13.
• Telephone & Data Sys (NYSE:TDS)
Founded in 1968 and headquartered in Chicago, Illinois, TDS is a diversified telecommunications company that provides wireless, wireline, cable, and hosted and managed services in the United States. TDS also provides a range of information technology services, including colocation, cloud computing, hosted application management, and sales of information technology hardware and related professional services.
The company declared a quarterly dividend of 15.5¢ per share, an increase of 4.73% over the prior quarterly dividend. The first payment will be on March 31 to shareholders of record on March 17. The ex-dividend date is March 15.
• Autoliv Inc (NYSE:ALV)
ALV develops, manufactures and supplies automotive safety systems to the automotive industry. The company offers a range of products, including seat belts, components for airbag protection systems, and whiplash protection systems, as well as active safety systems such as automotive radars and brake controls. The company was founded in 1953 and is headquartered in Stockholm, Sweden.
Recently, the board of directors of ALV declared a quarterly dividend of 60¢ per share. The new dividend represents an increase of 3.45%. The quarterly dividend will be paid on June 1 to shareholders of record on May 17. The ex-dividend date is May 13.
• Chico's FAS Inc (NYSE:CHS)
CHS is a specialty retailer of women's private branded, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing items. The company's portfolio of brands includes Chico's, White House Black Market, Soma Intimates and Boston Proper. As of October 31, 2015, CHS operated 1,546 stores in the United States and in Canada. The company was founded in 1983 and is headquartered in Fort Myers, Florida.
Recently, CHS increased its quarterly dividend to 8.25¢ per share, an increase of 3.13% over the prior dividend of 8¢ per share. The dividend is payable on March 27 to shareholders of record on March 13. The stock will trade ex-dividend on March 9.
• Genuine Parts Co (NYSE:GPC)
Founded in 1928 and headquartered in Atlanta, Georgia, GPC distributes automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials in the United States, Puerto Rico, the Dominican Republic, Canada and Mexico and, effective April 1, 2013, Australia and New Zealand.
Recently, the board of directors of GPC declared a quarterly dividend of 67.5¢ per share. The new dividend represents an increase of 2.58%. The dividend is payable on April 3 to shareholders of record on March 10. The ex-dividend date is March 8.
• Wal-Mart Stores Inc (NYSE:WMT)
WMT is the world's largest retailer. Based in Bentonville, Arkansas and founded in 1962, WMT is a multinational retailer consisting of more than 11,000 stores under 71 banners in 27 countries. The company operates e-commerce websites in 10 countries. WMT is the biggest private employer in the world with over two million employees.
On February 21, the company declared a dividend of 51¢ per share. The new dividend represents a 2.00% increase. All shareholders of record on March 10 can expect the dividend to be paid on April 3.
Please note that I'm not recommending any of these stocks. Readers should do their own research on these companies before buying shares.
As a bonus, I'm including a chart from F.A.S.T. Graphs for one of the dividend raisers, HD, which announced the largest increase of 29%:
The stock's price line (in black) is just above its normal P/E ratio of 20.4, so the stock is trading at about fair value. According to F.A.S.T. Graphs, an investment in HD 10 years ago would have returned 27.7% on an annualized basis.
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Disclosure: I am/we are long WMT.
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.