Dividend Challengers (And Near-Challengers): 53 Increases Expected By The End Of November

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Includes: AEP, AMTD, ASB, AVX, AYR, AZZ, BC, BKSC, BUD, CATY, CCF, CDW, CHDN, CORE, CVGW, EL, EMCI, FMBH, FNHC, GT, GXP, HIFS, HIG, HII, HON, HUBB, IDA, INGR, IP, ISBC, JOUT, LTC, MAC, NVDA, OSK, PNW, RE, ROK, SAFM, SASR, SBUX, SHEN, SIX, SNA, STBA, SWM, SXI, THO, UBSH, UFPI, V, WCN, WRK
by: David Fish

Summary

Visa, Hingham, and Hubbell set to become Contenders.

Double-digit increases may continue.

Diversity readily available.

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 Ending

The pace of dividend-increase announcements has hit its bottom for the year, following a typical summer slowdown. The number of announcements for all Champions, Contenders, Challengers, and Near-Challengers expected in the next 11 weeks has risen to 94 from a total of just 52 last month (Both are still well below the 186 during the busiest season around Groundhog Day). Looking forward, it appears that 2018 will be a banner year for new Champions, as there are no less than 15 companies with current streaks of 24 years, while the Contenders will be replenished by an equal number of companies adding to their current nine-year streaks.

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)

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

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

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.

Disclaimer: Just because a chart looks “interesting” does not make it a Recommendation!

Disclosure: I am/we are long SBUX, V.

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.