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.
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.
May was another great month for dividend raises. Dividend raises were noted from companies such as: Apple Inc (NASDAQ:AAPL), Baxter International (NYSE:BAX), Phillips 66 (NYSE:PSX), Cabot Oil & Gas (NYSE:COG), Cardinal Health (NYSE:CAH), Enbridge Inc (NYSE:ENB), Marriott International (NYSE:MAR), FactSet Research (NYSE:FDS), Clorox Co (NYSE:CLX), Franco Nevada (NYSE:FNV), Sun Life Financial (NYSE:SLF), Penske Automotive Group (NYSE:PAG), Canadian Pacific Railway Ltd (NYSE:CP), Telus Corp (NYSE:TU), PACCAR Inc (NASDAQ:PCAR), Whole Foods Market (NASDAQ:WFM), Southwest Airlines (NYSE:LUV), Chubb Ltd (NYSE:CB), Bank of Montreal (NYSE:BMO), Tiffany Co (NYSE:TIF), PG&E Corp (NYSE:PCG), and many more.
Images used in this article are from Simply Wall St, a financial visualization tool that has a unique way of representing value, future performance, past performance, financial health and dividends -- all in one single image called Snowflake. I 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 May 2017.
The Dividend Raises
Norbord Inc (NYSE:OSB)
Norbord Inc. is a Canada-based producer of wood-based panels. The Company is engaged in manufacturing, sales, marketing and distribution of panelboards and related products used in the construction of new homes or the renovation and repair of existing structures. Its geographic segments include North America and Europe.
The company announced that the quarterly dividends will increase from CAD$0.10 to CAD$0.30.
Dividend Raise: 200%. Forward yield is 3.05%.
Cabot Oil & Gas Corp
Cabot Oil & Gas Corporation is an independent oil and gas company engaged in the development, exploitation and exploration of oil and gas properties. The company operates in the segment of natural gas and oil development, exploitation, exploration and production, in the continental United States.
The company announced raising its dividend from $0.02 to $0.05.
Dividend Raise: 150%. Forward yield is 0.93%.
Cabot Oil & Gas has a DIVCON score of 2.
Fibria Celulose SA (NYSE:FBR)
Fibria Celulose S.A. (Fibria) is a forestry company, which is engaged in the production of eucalyptus pulp. The company is engaged in the production and sale of short fiber pulp from its pulp production facilities located in the cities of Aracruz (State of Espirito Santo), Tres Lagoas (State of Mato Grosso do Sul), Jacarei (State of Sao Paulo) and Eunapolis (State of Bahia).
FBR announced increasing its annual dividend from $0.133 to $0.204.
Dividend Raise: 53.3%. Forward yield is 1.75%.
Southern Copper Corp (NYSE:SCCO)
Southern Copper Corporation is an integrated copper producer. It produces copper and, in the production process, obtains several by-products, including molybdenum, silver, zinc, sulfuric acid and other metals. Its segments include the Peruvian operations, the Mexican open-pit operations and the Mexican underground mining operations segment identified as the IMMSA unit.
Southern Copper announced that the quarterly dividend will be raised from $0.08 to $0.12.
Dividend Raise: 50%. Forward yield is 1.39%.
Southern Copper has a DIVCON score of 2.
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 to view the corporate world and spot overall trends.
Sociedad Quimica y Minera de Chile (NYSE:SQM)
Sociedad Quimica y Minera de Chile S.A. , is a producer of potassium nitrate and iodine. The Company produces specialty plant nutrients, iodine derivatives, lithium and its derivatives, potassium chloride, potassium sulfate and certain industrial chemicals. Its segments include specialty plant nutrients, industrial chemicals, iodine and derivatives, lithium and derivatives, potassium, and other products and services.
The company announced that the quarterly dividend will be reduced from $0.669 to $0.132.
Dividend Cut: 29.41%. Forward yield: 5.93%.
Frontier Communications Corp (NYSE:FTR)
Frontier Communications Corp is a provider of communications services in the United States. The company offers a portfolio of communications services for residential and business customers. Its products and services include data and Internet services, video services, voice services, access services and customer premise equipment.
The company announced that the quarterly dividend will be reduced from $0.105 to $0.04.
Dividend Cut: 61.9%. Forward yield: 12.3%.
Frontier Communications has a DIVCON score of 2.
May marked another great month for dividend growth investors. Many large cap companies sending plenty of good news to investors and shareholders and a few dividend cuts were noted for the month. 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 BMO, FNV. My full list of holdings is available here.
Disclosure: I am/we are long BMO, FNV.
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.