Dividend Contenders: 20 Increases Expected In The Next 11 Weeks

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Includes: BMI, CMI, DGAS, DUK, EBMT, GIS, JW.A, JW.B, K, KR, LNN, LSTR, MXIM, MYBF, PSBQ, R, RBA, SJM, STE, TCP, WLK
by: David Fish
Summary

Badger Meter set to become newest Champion.

Is Kroger a value (or a trap)?

Yields and Increase rates offer variety.

In compiling the Dividend Champions list, 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.

Summer Lull Continues

The pace of dividend-increase announcements eased considerably last month, heading into Summer, and except for a couple of surges, we should see that slowdown continue through Labor Day. The number of announcements for all Champions, Contenders, Challengers, and Near-Challengers expected in the next 11 weeks has increased to 82 from just 53 a month ago, but is still well below the 186 during the busiest season around Groundhog Day.

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 Contenders (10-24 years):

Company

Ticker

No.

5/31/17

Div.

MR%

LY

DGR

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

5-yr

John Wiley & Sons Inc.

(NYSE:JW.A)

23

50.70

2.45

3.33

7/1/16

11.1

General Mills

(NYSE:GIS)

13

56.74

3.38

4.35

7/7/16

9.7

PSB Holdings Inc.

(OTCPK:PSBQ)

23

65.00

1.38

7.14

7/7/16

4.9

TC Pipelines LP

(NYSE:TCP)

17

56.27

6.68

5.62

7/28/16

3.8

Landstar System Inc.

(NASDAQ:LSTR)

12

83.55

0.43

12.50

8/4/16

10.1

Duke Energy Corp.

(NYSE:DUK)

12

85.68

3.99

3.64

8/10/16

2.5

Eagle Bancorp Montana

(NASDAQ:EBMT)

17

18.30

1.75

3.23

8/10/16

2.2

J.M. Smucker Co.

(NYSE:SJM)

19

127.85

2.35

11.94

8/10/16

9.1

Kroger Company

(NYSE:KR)

11

29.78

1.61

14.29

8/11/16

15.9

Lindsay Corp.

(NYSE:LNN)

14

85.38

1.36

3.57

8/15/16

26.6

Maxim Integrated Prod.

(NASDAQ:MXIM)

15

47.80

2.76

10.00

8/16/16

7.9

Cummins Inc.

(NYSE:CMI)

11

157.70

2.60

5.13

8/18/16

24.7

Ryder System

(NYSE:R)

12

66.42

2.65

7.32

8/18/16

8.7

Steris plc

(NYSE:STE)

12

77.56

1.44

12.00

8/26/16

10.6

Badger Meter Inc.

(NYSE:BMI)

24

39.20

1.17

15.00

8/29/16

7.5

Muncy Bank Financial

(OTCPK:MYBF)

16

35.26

3.40

11.11

8/29/16

10.0

Delta Natural Gas

(NASDAQ:DGAS)

12

30.01

2.77

1.22

8/30/16

3.6

Kellogg Company

(NYSE:K)

12

71.60

2.91

4.00

8/30/16

4.1

Ritchie Brothers Auction.

(NYSE:RBA)

14

31.04

2.32

12.50

8/31/16

9.3

Westlake Chemical Corp.

(NYSE:WLK)

13

61.46

1.24

5.01

8/31/16

40.2

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

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 GIS. 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 covers one or more microcap stocks. Please be aware of the risks associated with these stocks.