Dividend Challengers (And Near-Challengers): 50 Increases Expected By The End Of August

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Includes: ANDV, BBT, BK, BMTC, BSET, BT, CAKE, CBOE, CHE, CHFC, CIVB, COBZ, DAL, DFS, EDR, FCBC, FIRT, FMBM, HAFC, HOMB, HSY, HVT, IHG, KHC, LFUS, LTXB, MATX, MLHR, MPC, NTRS, PAYX, PF, PNC, PPBN, PROV, PZZA, RECN, RGA, RMD, SCVL, SIR, SMBC, SMG, STI, SUN, TILE, TRCB, WAB, WMPN, ZION
by: David Fish

Summary

Will Delta soar or will Papa John's make some dough?

Which double-digit trends will continue?

Diversification on display.

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 Challengers (5-9 years):

Company

Ticker

No.

5/31/17

Div.

MR%

LY

DGR

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

5-yr

Shoe Carnival Inc.

(NASDAQ:SCVL)

5

20.45

1.37

7.69

6/30/16

n/a

PNC Financial Services

(NYSE:PNC)

6

118.70

1.85

7.84

7/14/16

14.9

Civista Bancshares Inc.

(NASDAQ:CIVB)

6

19.70

1.22

20.00

7/15/16

49.0

Select Income REIT

(NYSE:SIR)

5

23.86

8.55

2.00

7/20/16

n/a

Education Realty Trust

(NYSE:EDR)

6

38.31

3.97

2.70

7/27/16

15.8

CoBiz Financial Inc.

(NASDAQ:COBZ)

5

15.74

1.27

11.11

7/28/16

36.6

LegacyTexas Financial

(NASDAQ:LTXB)

6

35.22

1.70

7.14

7/28/16

23.7

Paychex Inc.

(NASDAQ:PAYX)

6

59.23

3.11

9.52

7/28/16

7.1

William Penn Bancorp

(OTCPK:WMPN)

6

24.00

1.17

3.70

7/28/16

13.3

Bank of New York Mellon

(NYSE:BK)

6

47.12

1.61

11.76

7/29/16

8.4

Bryn Mawr Bank Corp.

(NASDAQ:BMTC)

6

40.85

2.06

5.00

7/29/16

6.4

Discover Financial Serv.

(NYSE:DFS)

6

58.70

2.04

7.14

8/2/16

42.1

F&M Bank Corp.

(OTCQX:FMBM)

5

28.95

2.76

5.26

8/2/16

5.4

First Community Bancsh.

(NASDAQ:FCBC)

5

25.50

2.51

14.29

8/3/16

8.4

Sunoco LP

(NYSE:SUN)

5

29.82

11.07

1.00

8/3/16

n/a

Reinsurance Group

(NYSE:RGA)

8

124.51

1.32

10.81

8/5/16

21.1

Cheesecake Factory Inc.

(NASDAQ:CAKE)

5

58.98

1.63

20.00

8/8/16

n/a

Home Bancshares Inc.

(NASDAQ:HOMB)

6

23.41

1.54

2.86

8/8/16

38.6

Bassett Furniture Indus.

(NASDAQ:BSET)

6

29.70

1.35

11.11

8/10/16

32.0

BB&T Corp.

(NYSE:BBT)

6

41.65

2.88

7.14

8/10/16

12.4

Interface Inc.

(NASDAQ:TILE)

7

20.55

1.17

20.00

8/10/16

22.4

Chemed Corp.

(NYSE:CHE)

8

204.66

0.51

8.33

8/11/16

10.8

Provident Financial Hdgs

(NASDAQ:PROV)

6

19.00

2.74

8.33

8/11/16

44.3

Southern Missouri Banc.

(NASDAQ:SMBC)

5

31.40

1.27

11.11

8/11/16

9.6

Westinghouse Air Brake

(NYSE:WAB)

6

81.75

0.49

25.00

8/11/16

55.2

Marathon Petroleum

(NYSE:MPC)

6

52.04

2.77

12.50

8/15/16

43.3

ResMed Inc.

(NYSE:RMD)

5

71.10

1.86

10.00

8/16/16

n/a

Pinnacle Bankshares

(OTCQX:PPBN)

5

28.20

1.42

11.11

8/17/16

n/a

Resources Connection

(NASDAQ:RECN)

7

12.55

3.51

10.00

8/22/16

18.5

Hershey Company

(NYSE:HSY)

7

115.27

2.14

6.00

8/23/16

11.7

Littelfuse Inc.

(NASDAQ:LFUS)

7

161.95

0.82

13.79

8/23/16

13.4

Scotts Miracle-Gro Co.

(NYSE:SMG)

7

86.61

2.31

6.38

8/24/16

12.0

Chemical Financial Corp.

(NASDAQ:CHFC)

5

44.97

2.40

3.85

8/26/16

5.8

BT Group plc

(NYSE:BT)

7

19.97

5.09

5.80

8/29/16

11.4

SunTrust Banks Inc.

(NYSE:STI)

6

53.37

1.95

8.33

8/29/16

53.4

Tesoro Corp.

(NYSE:TSO)

5

83.24

2.64

10.00

8/29/16

n/a

CBOE Holdings Inc.

(NASDAQ:CBOE)

7

86.37

1.16

8.70

8/31/16

16.9

Herman Miller Inc.

(NASDAQ:MLHR)

5

31.55

2.16

15.25

8/31/16

47.4

InterContinental Hotels

(NYSE:IHG)

7

56.54

1.75

3.76

8/31/16

6.8

Northern Trust Corp.

(NASDAQ:NTRS)

5

87.44

1.74

5.56

8/31/16

5.4

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

Matson Inc.

(NYSE:MATX)

4

8/2/16

Hanmi Financial Corp.

(NASDAQ:HAFC)

4

8/4/16

Papa John's International

(NASDAQ:PZZA)

4

8/4/16

Delta Air Lines Inc.

(NYSE:DAL)

4

8/10/16

Two River Bancorp

(NASDAQ:TRCB)

4

8/10/16

Zions Bancorp Inc.

(NASDAQ:ZION)

4

8/16/16

Haverty Furniture Cos

(NYSE:HVT)

4

8/22/16

Kraft Heinz Company

(NASDAQ:KHC)

4

8/24/16

Pinnacle Foods Inc.

(NYSE:PF)

4

8/26/16

First BancTrust Corp.

(OTCQX:FIRT)

4

8/31/16

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 KHC.

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 stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.