Monitoring dividend increases for stocks on my watch list helps me identify candidates for further analysis. Companies that regularly raise their dividend payments show confidence in future earnings growth potential. In the past week, 16 companies on my watch list announced dividend increases, including one of the stocks I own. 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: November 6-December 1, 2017
Previous Post: 25 Dividend Increases: October 30-November 3, 2017
• Inter Parfums Inc (IPAR)
Formerly known as Jean Philippe Fragrances, Inc, IPAR manufactures, markets, and distributes an array of fragrance and fragrance-related products. The company sells its products to department stores, perfumeries, specialty retailers, wholesalers, and distributors. Brand names include Tapestry (NYSE:TPR) (formerly Coach), Montblanc, Rochas, Gap (NYSE:GPS), and more. IPAR was founded in 1985 and is headquartered in New York, New York.
On November 8, the board of directors declared a quarterly dividend of 21¢ per share. The new dividend represents an increase of 23.53%. The first payment will be on January 15 to shareholders of record on December 29. The ex-dividend date is December 28.
• Snap-on Inc (SNA)
SNA manufactures and markets tools, equipment, diagnostics, repair information, and systems solutions. It serves aviation and aerospace, agriculture, construction, government and military, mining, natural resources, power generation, and technical education industries, as well as vehicle dealerships and repair centers. SNA was founded in 1920 and is headquartered in Kenosha, Wisconsin.
The company announced an increase of its quarterly dividend of 15.49% to 82¢ per share. The dividend is payable December 8, with an ex-dividend date of November 16.
• Automatic Data Proc (ADP)
ADP provides technology-enabled human capital management solutions and business process outsourcing solutions. These offerings include payroll services, benefits administration, talent management, HR management, time and attendance management, insurance services, retirement services, and tax and compliance services. ADP was founded in 1949 and is headquartered in Roseland, New Jersey.
The company announced a quarterly DIV increase of 10.53% to 63¢ per share. The dividend is payable on January 1 to shareholders of record on December 8.
• Six Flags Entertainment Corp (SIX)
SIX owns and operates regional theme parks in the United States, as well as in Mexico City, Mexico, and Montreal, Canada. The company’s parks offer a selection of thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues and retail outlets. SIX was founded in 1971 and is based in Grand Prairie, Texas.
The company announced a quarterly DIV increase of 9.38% to 70¢ per share. The dividend is payable on December 11 to shareholders of record on November 30. The ex-dividend date is November 29.
• Atmos Energy (ATO)
Founded in 1906 and headquartered in Dallas, Texas, ATO and its subsidiaries are engaged in the distribution, transmission, and storage of natural gas in the United States. The company delivers natural gas to residential, commercial, public authority and industrial customers in nine states in the southern USA. ATO also operates intrastate gas pipelines in Texas.
Recently, ATO increased its quarterly dividend by 7.78% to 48.5¢ per share. The dividend is payable December 11, with an ex-dividend date of November 24.
• NVIDIA Corp (NVDA)
NVDA is a visual computing company with worldwide operations. The company’s GPU and Tegra Processor segments offer a variety of advanced processors and single-chip computing systems used in gaming, visualization, datacenter and automotive markets. NVDA was founded in 1993 and is based in Santa Clara, California.
On Thursday, November 9, the company increased its quarterly dividend by 7.14% to 15¢ per share. The dividend is payable on December 15 to shareholders of record on November 23. NVDA will trade ex-dividend on November 22.
• MainSource Financial Group Inc (MSFG)
MSFG is a bank holding company that offers a range of financial services through branch banking offices in Indiana, Illinois, Ohio, and Kentucky. The company accepts deposits, offers various loans, rents safe deposit facilities, and provides personal and corporate trust services. MSFG was founded in 1906 and is headquartered in Greensburg, Indiana.
On November 7, the board of directors declared a quarterly dividend of 18¢ per share. The new dividend represents an increase of 5.88%. The quarterly dividend will be paid on December 15 to shareholders of record on December 5. The ex-dividend date is December 4.
• Assurant Inc (AIZ)
Founded in 1969 and headquartered in New York, New York, AIZ provides specialized insurance-related products and services in North America and in select worldwide markets. The company provides homeowners insurance, individual and group health insurance, and group dental, disability, and life insurance products. AIZ also provides debt protection administration, warranties, and extended service contracts.
AIZ will pay a quarterly dividend of 56¢ per share, an increase of 5.66% over the previous quarterly dividend. The dividend is payable December 18, with an ex-dividend date of November 24.
• EMC Insurance Group Inc (EMCI)
EMCI is an insurance holding company that provides property insurance, casualty insurance, and reinsurance products in the United States, primarily in the Midwest. The company focuses on the sale of commercial lines of property and casualty insurance to small and medium-sized businesses. EMCI was founded in 1974 and is headquartered in Des Moines, Iowa.
The board of directors of EMCI has declared a quarterly dividend of 22¢ per share. The new dividend is 4.76% above the prior dividend of 21¢ per share. The dividend is payable on November 27 to shareholders of record at the close of business on November 20.
• AmerisourceBergen Corp (ABC)
ABC sources and distributes pharmaceutical products to healthcare providers, pharmaceutical, and biotech manufacturers, and specialty drug patients in the United States and internationally. The company distributes brand-name and generic pharmaceuticals, over-the-counter healthcare products, and home healthcare supplies and equipment. ABC was founded in 1985 and is headquartered in Chesterbrook, Pennsylvania.
The board of directors of ABC has declared a quarterly dividend of 38¢ per share. The new dividend is 4.11% above the prior dividend of 36.5¢ per share. All shareholders of record on November 20 will receive the new dividend on December 4.
• Weyerhaeuser Company (WY)
WY is a real estate investment trust that invests in timber, land, and forest products, primarily in the United States. The company owns timberlands in the USA and has long-term licenses in Canada. It manufactures wood and specialty cellulose fibers products. WY was founded in 1900 and is based in Seattle, Washington.
Recently, WY increased its quarterly dividend to 32¢ per share, an increase of 3.23% over the prior dividend of 31¢ per share. All shareholders of record on December 1 will receive the new dividend on December 15.
• United Bankshares Inc (UBSI)
UBSI is a bank holding company that provides commercial and retail banking services through two subsidiaries. Banking services include checking, savings, money market, and individual retirement accounts and the provision of personal, commercial, and student loans as well as construction and real estate loans. UBSI was incorporated in 1982 and is headquartered in Charleston, West Virginia.
On Friday, November 10, the company increased its quarterly dividend by 3.03% to 34¢ per share. The dividend is payable on January 2 to shareholders of record on December 8. UBSI will trade ex-dividend on December 7.
• Universal Corp (UVV)
Headquartered in Richmond, Virginia, and founded in 1918, UVV is a global leaf tobacco supplier. The company procures, finances, processes, packs, stores, and ships flue-cured and burley leaf tobacco for consumer tobacco product manufacturers. UVV does not manufacture cigarettes or other consumer products but derives revenue from sales of processed tobacco and from servicing fees.
The board of directors of UVV has declared a quarterly dividend of 55¢ per share. The new dividend is 1.85% above the prior dividend of 54¢ per share. All shareholders of record on January 8 will receive the new dividend on February 5.
• Lexington Realty Trust (LXP)
Founded in 1991 and based in New York City, LXP is a self-managed and self-administered REIT. The company acquires, owns, and manages a portfolio of office, industrial, and retail properties net-leased to corporate tenants in the United States. LXP also provides investment advisory and asset management services to investors in the single-tenant area.
On Tuesday, November 7, the company increased its quarterly dividend by 1.43% to 17.75¢ per share. The dividend is payable January 16, with an ex-dividend date of December 28.
• Emerson Electric (EMR)
EMR provides technology and engineering solutions to industrial, commercial, and consumer markets worldwide. The company is engaged in the design, manufacture, and sale of a broad range of electrical, electromechanical and electronic products and systems. Formerly known as EMR was founded in 1890 and is headquartered in St. Louis, Missouri.
On November 7, the company declared a dividend of 48.5¢ per share. The new dividend represents a 1.04% increase. All shareholders of record on November 17 can expect the dividend to be paid on December 11.
• Microchip Technology Inc (MCHP)
MCHP develops, manufactures and sells specialized semiconductor products for a wide range of embedded control applications. The company sells its products through a network of direct sales personnel and distributors in the Americas, Europe, and Asia. MCHP was founded in 1989 and is headquartered in Chandler, Arizona.
Recently, MCHP increased its quarterly dividend by 0.14% to 36.25¢ per share. The dividend is payable on December 5 to shareholders of record at the close of business on November 21.
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, ADP, SNA, and ABC.
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).
ADP'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 ADP in January 2007 would have returned 9.2% on an annualized basis (with dividends included).
SNA's price line is below the stock's normal P/E ratio and above the primary valuation line. The stock is trading at about fair value. An investment in SNA in January 2007 would have returned 12.6% on an annualized basis (with dividends included).
ABC's price line is below the primary valuation line and below the stock's normal P/E ratio. The stock is trading at a discount to fair value. An investment in ABC in January 2007 would have returned 12.7% on an annualized basis (with dividends included).
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Disclosure: I am/we are long NVDA.
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.