Dividend growth investing is a popular model followed by the investing community to build assets. Companies which not only pay dividends, but raise them year after year have been shown to perform better overall for investor returns.
As part of my due diligence, I closely monitor all companies that raise dividends (or cut them) and this article shares the dividend amount changes announced by companies.
Note that only companies with a market cap of $2B+ are included, as the list of small/micro cap companies is too long to include here.
October was another great month for dividend raises. Dividend raises were noted from companies such as Visa Inc. (V), Aflac Inc. (AFL), AbbVie Inc (ABBV), Baker Hughes (BHGE), Dominion Energy (D), Intuit Inc. (INTU), Eaton Vance Corp. (EV), Omega Healthcare Investors Inc. (OHI), Pembina Pipeline Corp. (PBA), Penske Automotive Group (PAG), and many more.
Data Visualization by Simply Wall St.
Images used in this article are from Simply Wall St, a financial visualization tool that has a unique way of representing value, future performance, past performance, financial health and dividends - all in one single image called Snowflake. I posted a review of Simply Wall St where I explain the features. If you are unfamiliar with the tool, be sure to check out the review. However, the images used below are fairly intuitive to understand.
The following lists the highest raises and cuts from the month of October 2017.
The Dividend Raises
Goodyear Tire & Rubber Co. (GT)
The Goodyear Tire & Rubber Company is a manufacturer of tires. The company operates through three segments. The Americas, Europe & Middle East and Africa (EMEA) and Asia-Pacific segments.
The company announced that the quarterly dividends will increase from $0.10 to $0.14.
Dividend Raise: 40%. Forward yield is 1.9%.
GT has a DIVCON score of 3.
Huntington Bancshares Inc. (HBAN)
Huntington Bancshares Incorporated (Huntington) is a bank holding company. Its segments include Consumer and Business Banking, Commercial Banking, Commercial Real Estate and Vehicle Finance, Regional Banking and The Huntington Private Client Group, Home Lending and Treasury/Other.
The company announced increasing its quarterly dividend from $0.08 to $0.11.
Dividend Raise: 37.5%. Forward yield is 3.19%.
HBAN has a DIVCON score of 4.
Zion Bancorp. (ZION)
Zions Bancorporation is a financial holding company. The company conducts its banking operations through separately managed and branded segments, including Zions Bank, Amegy Bank, California Bank & Trust, National Bank of Arizona, Nevada State Bank (NSB), Vectra Bank Colorado, The Commerce Bank of Washington (TCBW) and Other.
The company announced that the quarterly dividend will be raised from $0.12 to $0.16. This is the second dividend increase in 2017 by ZION after a 50% raise in June.
Dividend Raise: 33.33%. Forward yield is 1.37%.
ZION has a DIVCON score of 4.
The Dividend Cuts
As much as we like to see higher profits from our investments, it is also important to keep an eye on the dividend cuts. Keeping an eye on the cuts gives us a window to view the corporate world and spot overall trends.
Plains All American Pipeline, L.P. and Plains GP Holdings, LP owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids [NGL], natural gas and refined products. The company operates through three segments: Transportation, Facilities, and Supply and Logistics.
Both securities will see a quarterly dividend reduced from $0.55 to $0.30.
Dividend Cut: 45%. Forward yield is 5.93%.
PAA & PAGP have a DIVCON score of 1.
Genesis Energy, L.P. (GEL)
Genesis Energy, L.P. is a limited partnership focused on the midstream segment of the oil and gas industry. The company operates through four segments: Offshore Pipeline Transportation, Refinery Services, Marine Transportation, and Supply and Logistics.
The company announced a quarterly dividend reduction from $0.7225 to $0.50.
Dividend Cut: 30.8%. Forward yield is 8.5%.
GEL has a DIVCON score of 2.
October marked another great month for dividend growth investors. Many large cap companies sending plenty of good news to investors and shareholders while a few dividend cuts were noted for the month. Investors should do their own due diligence before investing in any of the companies mentioned. Did you get any raises from the stocks mentioned?
Full Disclosure: Long OHI. My full list of holdings is available here.
Disclosure: I am/we are long OHI. 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.