Monitoring dividend increases for stocks on my watch is one way to identify candidates for further analysis. Companies that regularly raise their dividend payments show confidence in future earnings growth potential. Last week, 36 companies on my watch list declared dividend increases. Part 1 covers dividend increases announced by financial sector stocks.
The following table provides a summary of these increases.
The table is sorted by the 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: October 23-27, 2017
Previous Post: 10 Dividend Increases: October 16-20, 201
• Evercore Inc (EVR)
EVR is an independent investment banking advisory firm that provides advisory services to prominent multinational corporations on significant mergers, acquisitions, divestitures, restructurings and other strategic corporate transactions. The company also has a successful investment management. EVR was founded in 1996 and is based in New York, New York.
Recently, EVR increased its quarterly dividend from 34¢ per share to 40¢ per share, an increase of 17.65%. The first payment will be on December 8 to shareholders of record on November 24. The ex-dividend date is November 22.
• Associated Banc-Corp (ASB)
Founded in 1861 and headquartered in Green Bay, Wisconsin, ASB is a bank holding company that provides banking and non-banking products and services to individuals and businesses primarily in Wisconsin, Illinois, and Minnesota. ASB operates through three segments: Corporate and Commercial Specialty; Community, Consumer, and Business; and Risk Management and Shared Services.
The company declared a quarterly dividend of 14¢ per share, an increase of 16.67% over the prior quarterly dividend. The quarterly dividend will be paid on December 15 to shareholders of record on December 1. The ex-dividend date is November 30.
• Investors Bancorp (ISBC)
Founded in 1926 and headquartered in Short Hills, New Jersey, ISBC is the holding company for Investors Bank. It provides community banking products and services to individuals and businesses primarily in New Jersey and New York. ISBC offers traditional deposit products and a portfolio of loan products.
The company increased its quarterly dividend by 12.50%, from 8¢ per share to 9¢ per share. The new dividend is payable on November 24 to shareholders of record on November 10, with an ex-dividend date of November 9.
• Westwood Holdings Group (WHG)
Founded in 1983 and based in Dallas, Texas, WHG is a holding company that operates through two segments. The Advisory segment provides investment advisory services to retirement plans, endowments, foundations, and individuals; and investment sub-advisory services to mutual funds and pooled investment vehicles. The Trust segment offers trust and custodial services
Recently, WHG increased its quarterly dividend by 9.68% to 68¢ per share. All shareholders of record on December 15 can expect the dividend to be paid on December 29.
• Hartford Financial Services Group (HIG)
HIG is a holding company that provides insurance and financial services to individuals and business customers in the United States. The company operates through six segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits, Mutual Funds, and Talcott Resolution. HIG was founded in 1810 and is headquartered in Hartford, Connecticut.
On Monday, October 23, HIG increased its quarterly dividend to 25¢ per share, an increase of 8.70%. The stock will trade ex-dividend on November 30, and shareholders can expect to receive the new dividend on January 2.
• Fidelity National Financial (FNF)
FNF provides title insurance, and technology and transaction services to the real estate and mortgage industries in the United States. The company also offers information used by title insurance underwriters, title agents, and closing attorneys to underwrite title insurance policies for real estate sales and transfers. FNF was founded in 1847 and is headquartered in Jacksonville, Florida.
On Wednesday, October 25, FNF increased its quarterly dividend to 27¢ per share, an increase of 8.00%. The stock will trade ex-dividend on December 14, and shareholders can expect to receive the new dividend on December 29.
• UMB Financial (UMBF)
UMBF is a diversified financial holding company that supplies banking services, institutional investment management, asset servicing, and payment solutions primarily in the United States. The company operates through three segments: Bank, Institutional Investment Management, and Asset Servicing. UMBF was founded in 1913 and is headquartered in Kansas City, Missouri.
The company declared a quarterly dividend of 27.5¢ per share, an increase of 7.84% over the prior quarterly dividend. The dividend is payable on January 2 to shareholders of record on December 8.
• LegacyTexas Financial Group (LTXB)
Headquartered in Plano, Texas, LTXB operates as the bank holding company for LegacyTexas Bank. The company provides banking and financial services in North Texas. The company’s deposit products include savings, money market, certificates of deposit, and individual retirement accounts. Its lending products include commercial and consumer real estate loans, commercial and industrial loans, and consumer loans.
The company announced a quarterly DIV increase of 6.67% to 16¢ per share. The quarterly dividend will be paid on November 20 to shareholders of record on November 6. The ex-dividend date is November 3.
• Prosperity Bancshares (PB)
PB operates as a financial holding company for the Prosperity Bank. Formed in 1983 and headquartered in Houston, Texas, PB provides a range of financial products and services to its customers, including traditional loan and deposit products, trust services, brokerage services, mortgage lending, and credit card operations.
Recently, PB increased its quarterly dividend by 5.88% to 36¢ per share. The dividend is payable on January 2 to shareholders of record at the close of business on December 15.
• Union Bankshares (UBSH)
UBSH operates as the bank holding company for Union Bank & Trust, which provides banking and related financial services to consumers and businesses throughout Virginia. The company’s products and services include brokerage services, mortgage products, and insurance products. UBSH was founded in 1902 and is based in Richmond, Virginia.
Recently, UBSH increased its quarterly dividend to 21¢ per share, an increase of 5.00% over the prior dividend of 20¢ per share. The new dividend is payable on November 27 to shareholders of record on November 13, with an ex-dividend date of November 10.
• AFLAC (AFL)
Founded in 1955 and based in Columbus, Georgia, AFL is a supplemental health and life insurance company that operates in the USA and in Japan. In the USA, the company sells health and disability insurance, mainly as part of employer-sponsored group insurance plans. In Japan, AFL provides health insurance, life insurance, and annuity products.
The company declared a quarterly dividend of 45¢ per share, an increase of 4.65% over the prior quarterly dividend. The first payment will be on December 1 to shareholders of record on November 15. The ex-dividend date is November 14.
• Tompkins Financial (TMP)
Founded in 1836, TMP is a financial holding company based in Ithaca, New York. The company provides commercial and consumer banking services to individuals, small businesses, and corporations in New York and Pennsylvania. TMP also provides leasing, trust and investment management, financial planning and wealth management, and insurance services.
The company increased its quarterly dividend by 4.44%, from 45¢ per share to 47¢ per share. The dividend is payable on November 15 to shareholders of record at the close of business on November 7.
• Principal Financial Group (PFG)
Based in Des Moines, Iowa, PFG is a leading provider of retirement services, insurance solutions, and asset management services. In addition, the company offers individual life and disability insurance, group life and health insurance, and residential mortgage loan origination and servicing products in the United States. PFG was founded in 1879.
Recently, PFG increased its quarterly dividend from 47¢ per share to 49¢ per share, an increase of 4.26%. The quarterly dividend will be paid on December 28 to shareholders of record on December 4. The ex-dividend date is December 1.
• Westamerica Bancorp (WABC)
WABC is a bank holding company for Westamerica Bank, which serves individual and commercial customers in Northern and Central California. The company offers various deposit products and a comprehensive loan portfolio, including commercial and residential real estate and construction loans. WABC was founded in 1972 and is headquartered in San Rafael, California.
On Thursday, October 26, WABC increased its quarterly dividend to 40¢ per share, an increase of 2.56%. The dividend is payable on November 17 to shareholders of record at the close of business on November 6.
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 include charts from F.A.S.T. Graphs for three of this week's dividend raisers, UMBF, LTXB, and AFL.
In these charts, the black line represents the share price, and the blue line represents the calculated P/E multiple at which the market has tended to value the stock over time. The orange line is the primary valuation reference line. It is based on one of three valuation formulas depending on the earnings growth rate achieved over the timeframe in question. (The Adjusted Earnings Growth Rate represents the slope of the orange line in the chart).
UMBF's price line (black) is above the primary valuation line (orange) and above the stock's normal P/E ratio (blue). The stock is trading at a premium to fair value. An investment in UMBF in January 2007 would have returned 7.9% on an annualized basis (with dividends included).
LTXB's price line is below the stock's normal P/E ratio and below the primary valuation line. The stock is trading at a discount to fair value. An investment in LTXB in January 2007 would have returned 12.8% on an annualized basis (with dividends included).
AFL's price line is below the primary valuation line and above the stock's normal P/E ratio. The stock is trading at about fair value. An investment in AFL in January 2007 would have returned 7.2% on an annualized basis (with dividends included).
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Disclosure: I am/we are long AFL.
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.