One way to identify dividend growth stocks for further analysis is to monitor dividend increases. Companies can only raise their dividends regularly if earnings grow sufficiently. This past week, nine companies on my watch list announced dividend increases, including one of the stocks I hold in my portfolio. The following table provides 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: March 13-17, 2017|
|Previous Post: 9 Dividend Increases: March 6-10, 2017|
• Oracle Corp (NYSE:ORCL)
ORCL develops, manufactures, markets, sells, hosts, and supports database and middleware software, application software, cloud infrastructure, hardware systems, and related services worldwide. The company offers services in three primary layers of the cloud: Software as a Service, Platform as a Service, and Infrastructure as a Service. ORCL licenses its Oracle Database software, which enables storage, retrieval, and manipulation of various forms of data; and Oracle Fusion Middleware software, to build, deploy, secure, access, and integrate business applications. The company was founded in 1977 and is headquartered in Redwood City, California.
The company announced an increase of its quarterly dividend of 26.67% to 19¢ per share. All shareholders of record on April 12 will receive the new dividend on April 26.
• Steel Dynamics Inc (NASDAQ:STLD)
Founded in 1993 and headquartered in Fort Wayne, Indiana, STLD is engaged in the manufacture and sale of steel products, processing and sale of recycled ferrous and nonferrous metals, and fabrication and sale of steel joists and deck products. STLD's segments include Steel Operations, Metals Recycling Operations, Steel Fabrication Operations and Other Operations.
The company announced a quarterly DIV increase of 10.71% to 15.5¢ per share. The ex-dividend date is March 29 and the dividend will be paid on April 10 to shareholders of record on March 31.
• Independent Bancorp MA (NASDAQ:INDB)
With more than $7 billion in assets, INDB is a bank holding company for Rockland Trust Company, a full-service commercial bank headquartered in Rockland, Massachusetts. The company offers a wide range of banking, investment, and insurance services to businesses and individuals through retail branches, commercial lending offices, investment management offices, and residential lending centers located in Eastern Massachusetts and Rhode Island, as well as through telephone banking, mobile banking, and the Internet. INDB was founded in 1907.
The company announced an increase of its quarterly dividend of 10.34% to 32¢ per share. All shareholders of record on April 14 can expect the dividend to be paid on April 28.
• Patterson Companies Inc (NASDAQ:PDCO)
PDCO distributes dental and veterinary supplies. The company's dental supply segment provides consumable dental products, equipment and software and turnkey digital solutions to dentists and dental laboratories throughout North America. The animal health segment distributes products, services, and technologies to both the production and companion animal health markets in North America and the United Kingdom. PDCO was founded in 1877 and is based in St. Paul, Minnesota.
On March 14, the board of directors approved an increase to the regular quarterly dividend from 24¢ per share to 26¢ per share, an increase of 8.33%. The dividend is payable April 28, with an ex-dividend date of April 12.
• International Bancshares Corp (NASDAQ:IBOC)
IBOC is a financial holding company that provides commercial and retail banking services. Founded in 1966 with headquarters in Laredo, Texas, IBOC has four bank subsidiaries with more than 200 main banking and branch facilities and a network of automated teller machines throughout South, Central and Southeast Texas and in the State of Oklahoma.
Recently, IBOC increased its semi-annual dividend by 6.45% to 33¢ per share. The first payment will be on April 17 to shareholders of record on April 3. The ex-dividend date is March 30.
• Williams-Sonoma Inc (NYSE:WSM)
WSM operates as a multi-channel specialty retailer of home products. The products are marketed through e-commerce websites, direct mail catalogs, and in more than 600 stores in the United States and internationally. Products are offered under various brand names, including Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, PBteen, Williams-Sonoma Home, Rejuvenation, and Mark and Graham. WSM was founded in 1956 and is headquartered in San Francisco, California.
On March 15, the board of directors approved an increase to the regular quarterly dividend from 37¢ per share to 39¢ per share, an increase of 5.41%. WSM will trade ex-dividend on April 26. The dividend is payable on May 26, to shareholders of record on April 28.
• Washington Trust Bancorp Inc (NASDAQ:WASH)
WASH is a bank holding company and financial holding company. Through its subsidiaries, WASH offers a range of financial services, including commercial, residential and consumer lending, retail and commercial deposit products, and wealth management. The company was founded in 1800 and is headquartered in Westerly, Rhode Island.
On March 16, the company declared a dividend of 38¢ per share. The new dividend represents a 2.70% increase. The dividend is payable on April 13 to shareholders of record at the close of business on April 3.
• WP 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.
The company increased its quarterly dividend by 0.51%, from 99¢ per share to 99.5¢ per share. The dividend is payable on April 17 to shareholders of record on March 31.
• 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.
Recently, the board of directors of O declared a monthly dividend of 21.1¢ per share. The new dividend represents an increase of 0.24%. The stock will trade ex-dividend on April 30, and shareholders can expect to receive the new dividend on April 14.
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, WSM, a consumer discretionary sector stock that announced a 5.41% dividend increase:
The stock's price line (in black) is below the normal P/E ratio of 17.3 (blue line) and the adjusted earnings growth rate of 15.6 (orange line), so the stock is trading at a discount to fair value. According to F.A.S.T. Graphs, an investment in WSM about 7 years ago would have returned 16.4% on an annualized basis (with dividends included).
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Disclosure: I am/we are long 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.