One way to identify dividend growth stocks for further analysis is to monitor dividend increases. Companies that regularly raise their dividend payments show confidence in future earnings growth potential. This week, 36 companies on my watch list announced dividend increases, including twelve stocks in the energy and real estate sectors. (Please see Part 1 for stocks in the financials sector that announced dividend increases last week.
The table below presents 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, 2017
• Getty Realty (GTY)
GTY is a real estate investment trust. The firm invests in real estate markets of the United States, focusing on the ownership, leasing, and financing of convenience store and gasoline station properties. Getty Realty Corp. was founded in 1955 and is based in Jericho, New York.
The company announced an increase of its quarterly dividend of 14.29% to 32¢ per share. The dividend is payable on January 4 to shareholders of record on December 21. GTY will trade ex-dividend on December 20.
• Iron Mountain (IRM)
IRM, a real estate investment trust, provides storage and information management services in North America, Europe, Latin America and the Asia Pacific. Its customer base includes commercial, legal, banking, healthcare, accounting, insurance, entertainment and government organizations. IRM was founded in 1951 and is headquartered in Boston, Massachusetts.
The company announced a quarterly DIV increase of 6.82% to 58.75¢ per share. The stock will trade ex-dividend on December 14, and shareholders can expect to receive the new dividend on January 2.
• Preferred Apartment Communities (APTS)
APTS is a real estate investment trust externally managed by Preferred Apartment Advisors, LLC. The company invests in real estate markets of the United States by acquiring and operating multifamily apartment properties. APTS was formed on September 18, 2009, and is based in the United States.
APTS will pay a quarterly dividend of 25¢ per share, an increase of 6.38% over the previous quarterly dividend. The dividend is payable on January 16 to shareholders of record on December 15.
• EQT Midstream Partners LP (EQM)
Founded in 1925 and headquartered in Pittsburgh, Pennsylvania, EQM operates as an integrated energy company in the United States. The company explores for, develops, and produces natural gas, natural gas liquids, and crude oil primarily in the Appalachian Basin. EQM provides natural gas transmission, storage and gathering services in southwestern Pennsylvania and northern West Virginia.
The company announced a quarterly DIV increase of 4.81% to 98¢ per unit. The distribution is payable on November 14 to unitholders of record on November 3. The stock will trade ex-dividend on November 2.
• MPLX LP (MPLX)
Founded in 2012 and based in Findlay, Ohio, MPLX is a master limited partnership that owns, operates, develops and acquires midstream energy infrastructure assets. MPLX is engaged in the gathering, processing, and transportation of natural gas; the gathering, transportation, fractionation, storage and marketing of natural gas liquids, and the gathering, transportation, and storage of crude oil and refined petroleum products.
Recently, MPLX increased its quarterly distribution by 4.44% to 58.75¢ per unit. The first payment will be on November 14 to unitholders of record on November 6. The ex-dividend date is November 3.
• Macerich (MAC)
MAC is an independent real estate investment trust that invests in real estate markets in the United States. The company engages in acquisition, ownership, development, redevelopment, management, and leasing of regional and community shopping. MAC was founded in 1964 and is headquartered in Santa Monica, California.
On October 24, the board of directors approved an increase to the regular quarterly dividend from 71¢ per share to 74¢ per share, an increase of 4.23%. The dividend is payable on December 1 to shareholders of record at the close of business on November 10.
• Kimco Realty (KIM)
KIM is a self-administered REIT (real estate investment trust) that owns and operates neighborhood and community shopping centers across North America. The company also provides property management services relating to the management, leasing, operation, and maintenance of real estate properties. KIM was formed in 1966 and is based in New Hyde Park
The company increased its quarterly dividend by 3.70%, from 27¢ per share to 28¢ per share. The first payment will be on January 16 to shareholders of record on January 2. The ex-dividend date is December 29.
• Energy Transfer Equity LP (ETE)
ETE provides diversified energy-related services in the United States. The company owns and operates natural gas transportation pipelines and natural gas storage facilities in Texas; and more than 11,000 miles of interstate natural gas pipelines. The company was founded in 2002 and is based in Dallas, Texas.
Recently, ETE increased its quarterly distribution by 3.51% to 29.5¢ per unit. The distribution is payable on November 20 to unitholders of record on November 7.
• Simon Property Group (SPG)
SPG is a self-administered and self-managed real estate investment trust. The company owns, develops, and manages retail real estate properties such as regional malls, premium outlets, and community and lifestyle centers. SPG was founded in 1960 and is based in Indianapolis, Indiana, with an additional office in New York City.
On October 27, the board of directors declared a quarterly dividend of $1.85 per share. The new dividend represents an increase of 2.78%. The dividend is payable on November 30 to shareholders of record on November 16. The ex-dividend date is November 15.
• Energy Transfer Partners LP (ETP)
Founded in 1995 and based in Dallas, Texas, ETP is a master limited partnership engaged in the natural gas midstream, and intrastate and interstate transportation and storage assets; crude oil, natural gas liquids and refined product transportation and terminalling assets; NGL fractionation; and various acquisition and marketing assets.
On Thursday, October 26, ETP increased its quarterly distribution to 56.5¢ per unit, an increase of 2.73%. The distribution is payable on November 14 to unitholders of record on November 7.
• Holly Energy Partners LP (HEP)
Founded in 2004 and based in Dallas, Texas, HEP provides petroleum product and crude oil transportation, terminalling, storage, and throughput services to the petroleum industry. The company owns and operates petroleum product and crude pipelines, storage tanks, distribution terminals, and loading rack facilities in Texas, New Mexico, Arizona, Washington, Idaho, Oklahoma, Utah, Nevada, Wyoming, and Kansas as well as refinery processing units in Kansas and Utah.
Recently, HEP increased its quarterly distribution by 1.98% to 64.5¢ per unit. The distribution is payable on November 14 to unitholders of record on November 6. The stock will trade ex-dividend on November 5.
• Delek Logistics Partners LP (DKL)
DKL owns and operates logistics and marketing assets for crude oil, and intermediate and refined products, primarily in Texas, Tennessee, and Arkansas. The company's business consists of certain crude oil, intermediate and refined products pipelines and transportation, storage, wholesale marketing, terminaling and offloading assets. DLK was founded in 2012 and is headquartered in Brentwood, Tennessee.
Recently, the board of directors of DKL declared a quarterly distribution of 71.5¢ per unit. The new distribution represents an increase of 1.42%. The distribution is payable on November 14 to unitholders of record at the close of business on November 7.
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, APTS, MAC, and SPG.
In these charts, the black line represents the share price, and the blue line represents the calculated P/FFO 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).
APTS's price line (black) is below the primary valuation line (orange) but above the stock's normal P/FFO ratio (blue). The stock is trading at about fair value. An investment in APTS in January 2013 would have returned 26.4% on an annualized basis (with dividends included).
MAC's price line is below the stock's normal P/FFO ratio and below the primary valuation line. The stock is trading at a discount to fair value. An investment in MAC in January 2007 would have returned -0.4% on an annualized basis (with dividends included).
SPG's price line is below the primary valuation line and below the stock's normal P/FFO ratio. The stock is trading at a discount to fair value. An investment in SPG in January 2007 would have returned 6.6% on an annualized basis (with dividends included).
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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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.