Dividend Challengers (And Near-Challengers): 55 Increases Expected In The Next 11 Weeks

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Includes: AAPL, ACC, AHL, AON, AVY, AWK, B, BKMU, CE, CHCO, FIX, FRC, FSBW, GBCI, GTWN, HFWA, HNI, HPT, HY, IEX, IQNT, IVZ, KEY, LAD, LAZ, LBAI, LYB, MAN, MAR, MET, MOV, MTRN, NFBK, OXM, PETS, POOL, PSX, QNTO, SBGI, SBRA, SCS, SGU, SIG, SOMC, STLD, TSCO, UDR, UFCS, WBS, WFC, WHR, WINA, WTBA, WTS
by: David Fish

Summary

Three new Contenders ready to graduate.

How generous will Apple be?

Plenty of growth and diversity available.

In compiling the Dividend Champions list (found here) I get to see which companies are nearing the anniversaries of their previous dividend increases. Since most of these firms raise their payout about the same time every year, I can say with some confidence that they are likely to do so again. I have separated the Champions (25 or more years of higher dividends), Contenders (10-24 years), and Challengers (5-9 years) into distinct groupings, so please look for the other articles, which I hope will be published about the same time. Note that "CCC" refers to the combination of Champions, Contenders, and Challengers.

Moderation Returns

The past six weeks featured a sharp pick-up in dividend-increase announcements with Ex-Dividend Dates beginning around Groundhog Day, when many companies announce their annual earnings and then schedule the annual shareholder meetings. The torrid pace has now eased considerably, as the number of announcements for all Champions, Contenders, Challengers, and Near-Challengers expected in the next 11 weeks has declined to 85 from 133 a month ago and 186 a month before that, as the busiest season concludes with the end of Winter.

The table below coincides with the usual "forward look" of about 11 weeks for this article. Based on last year's announcements, I'm expecting the following companies to announce dividend increases between now and the anniversary of the Ex-Dividend Date of their previous increase:

Dividend Challengers (5-9 years):

Company

Ticker

No.

2/28/17

Div.

MR%

LY

Ann.

DGR

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

5-yr

Steel Dynamics Inc.

(NASDAQ:STLD)

6

36.60

1.53

1.82

3/29/16

0.56

8.3

Steelcase Inc.

(NYSE:SCS)

6

16.00

3.00

6.67

3/31/16

0.48

16.5

Southern Michigan Bancorp

(OTCPK:SOMC)

5

33.50

2.15

12.50

4/6/16

0.72

28.5

UDR Inc.

(NYSE:UDR)

6

36.50

3.23

6.31

4/7/16

1.18

8.6

Glacier Bancorp Inc.

(NASDAQ:GBCI)

5

36.92

2.17

5.26

4/8/16

0.80

8.7

Movado Group Inc.

(NYSE:MOV)

6

24.25

2.14

18.18

4/8/16

0.52

40.9

City Holding Co.

(NASDAQ:CHCO)

5

65.50

2.63

2.38

4/13/16

1.72

4.7

Oxford Industries Inc.

(NYSE:OXM)

6

56.21

1.92

8.00

4/13/16

1.08

16.2

IDEX Corp.

(NYSE:IEX)

7

92.19

1.48

6.25

4/14/16

1.36

15.2

Hospitality Properties Trust

(NYSE:HPT)

5

31.78

6.42

2.00

4/21/16

2.04

2.4

Quaint Oak Bancorp Inc.

(OTCQX:QNTO)

9

12.60

1.27

6.67

4/21/16

0.16

18.5

First Republic Bank

(NYSE:FRC)

5

93.83

0.68

6.67

4/26/16

0.64

n/a

Signet Jewelers Limited

(NYSE:SIG)

6

63.59

1.64

18.18

4/27/16

1.04

58.5

Aon plc

(NYSE:AON)

5

115.65

1.14

10.00

4/28/16

1.32

16.5

Celanese Corp.

(NYSE:CE)

7

89.17

1.61

20.00

4/28/16

1.44

41.9

Lazard Limited

(NYSE:LAZ)

9

43.06

3.53

8.57

4/29/16

1.52

19.8

Heritage Financial Corp.

(NASDAQ:HFWA)

6

25.00

1.92

9.09

5/3/16

0.48

29.3

Lakeland Bancorp Inc.

(NASDAQ:LBAI)

6

19.70

1.93

11.76

5/4/16

0.38

11.5

Wells Fargo & Co.

(NYSE:WFC)

6

57.88

2.63

1.33

5/4/16

1.52

25.8

American Water Works

(NYSE:AWK)

9

78.00

1.92

10.29

5/5/16

1.50

10.2

Apple Inc.

(NASDAQ:AAPL)

5

136.99

1.66

9.62

5/5/16

2.28

n/a

Aspen Insurance Holdings

(NYSE:AHL)

5

56.05

1.57

4.76

5/5/16

0.88

7.7

Webster Financial Corp.

(NYSE:WBS)

6

54.93

1.82

8.70

5/5/16

1.00

43.7

West Bancorp Inc.

(NASDAQ:WTBA)

6

22.15

3.07

6.25

5/9/16

0.68

24.9

Winmark Corp.

(NASDAQ:WINA)

7

113.45

0.35

42.86

5/9/16

0.40

27.5

Invesco Limited

(NYSE:IVZ)

7

32.19

3.48

3.70

5/11/16

1.12

18.4

Lithia Motors Inc.

(NYSE:LAD)

7

95.67

1.05

25.00

5/11/16

1.00

29.6

Sabra HealthCare REIT

(NASDAQ:SBRA)

6

27.20

6.18

2.44

5/12/16

1.68

11.7

Tractor Supply Company

(NASDAQ:TSCO)

7

70.91

1.35

20.00

5/12/16

0.96

33.7

Materion Corp.

(NYSE:MTRN)

5

34.85

1.09

5.56

5/16/16

0.38

n/a

Phillips 66

(NYSE:PSX)

5

78.19

3.22

12.50

5/16/16

2.52

n/a

Pool Corp.

(NASDAQ:POOL)

6

114.71

1.08

19.23

5/17/16

1.24

16.7

HNI Corp.

(NYSE:HNI)

6

45.82

2.40

3.77

5/18/16

1.10

3.4

Marriott International Inc.

(NYSE:MAR)

7

86.99

1.38

20.00

5/18/16

1.20

25.1

PetMed Express Inc.

(NASDAQ:PETS)

8

21.06

3.61

5.56

5/18/16

0.76

8.4

Whirlpool Corp.

(NYSE:WHR)

6

178.59

2.24

11.11

5/18/16

4.00

15.1

LyondellBasell Industries

(NYSE:LYB)

6

91.24

3.73

8.97

5/20/16

3.40

43.4

Barnes Group Inc.

(NYSE:B)

6

50.11

1.04

8.33

5/24/16

0.52

8.4

Avery Dennison Corp.

(NYSE:AVY)

6

80.71

2.03

10.81

5/27/16

1.64

9.9

Hyster-Yale Materials

(NYSE:HY)

5

60.89

1.94

3.51

5/27/16

1.18

n/a

KeyCorp

(NYSE:KEY)

6

18.77

1.81

13.33

5/27/16

0.34

27.0

ManpowerGroup Inc.

(NYSE:MAN)

6

97.04

1.77

7.50

5/27/16

1.72

15.7

Sinclair Broadcast Group

(NASDAQ:SBGI)

6

39.90

1.80

9.09

5/27/16

0.72

8.0

MR=Most Recent; LY=Last Year; DGR=Dividend Growth Rate through 2015

In addition, there's a number of Near-Challengers that are on schedule to record their fifth year of increases during this period:

Company

Ticker

No.

LY

Name

Symbol

Yrs

Ex-Div

Sovran Self Storage Inc.

(SSS)

4

4/12/16

Star Gas Partners LP

(NYSE:SGU)

4

4/26/16

Georgetown Bancorp Inc.

(NASDAQ:GTWN)

4

5/5/16

MetLife Inc.

(NYSE:MET)

4

5/5/16

FS Bancorp Inc.

(NASDAQ:FSBW)

4

5/9/16

Northfield Bancorp Inc.

(NASDAQ:NFBK)

4

5/9/16

Bank Mutual Corp.

(NASDAQ:BKMU)

4

5/11/16

Comfort Systems USA

(NYSE:FIX)

4

5/11/16

Amer. Campus Comm.

(NYSE:ACC)

4

5/12/16

Inteliquent Inc.

(NASDAQ:IQNT)

4

5/24/16

United Fire Group Inc.

(NASDAQ:UFCS)

4

5/27/16

Watts Water Technologies

(NYSE:WTS)

4

5/31/16

Not all of the above companies will meet the strict standards of every investor, but some may be appropriate for portfolio diversification. Potential investors should do more research before committing funds.

Every Picture Tells a Story

As a bonus, I'm inserting one of Chuck Carnevale's F.A.S.T. Graphs below, highlighting one of the companies listed above. When the stock's price line has moved into the green area, it indicates that the stock is undervalued in relation to its earnings. I'm attaching the chart below.

Disclosure: I am/we are long AAPL.

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 discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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