24 Dividend Increases: January 29-February 2, 2018 (Part 2: Remaining Sectors)

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Includes: AEP, AFL, ALE, ALK, AMGN, AMP, ANTM, AVA, AWK, AWR, BA, BAH, BBT, BG, BKH, BOKF, CASS, CHD, CMS, CNP, COLB, COST, CWT, DCI, DUK, ED, FDEF, FIBK, FNF, GRC, GWW, HCSG, HFWA, HTBK, IBM, INTC, ISBC, IVZ, KLAC, KR, LAZ, LNN, MDP, MEOH, MMM, MSA, MSEX, MSFT, NFBK, NI, NXST, OMI, PAG, PFG, PFS, PH, PII, PPG, RBA, RECN, ROL, SASR, SBUX, SJM, SJW, SO, STBA, SWX, SXT, TJX, TMP, UBSH, UTX, VVC, WBA, WEC, WRK, WTR, XLNX
by: FerdiS

Summary

Companies can only raise their dividends regularly if earnings grow sufficiently. One way to identify dividend growth stocks for further analysis is to monitor dividend increases.

This past week, 24 companies on my watch list announced dividend increases. One of these increases is from a stock I own.

Part 1 covered dividend increases from the Energy and Real Estate sectors. This is Part 2, which covers dividend increases from the remaining sectors.

As a bonus, I include a summary of available ex-dividend dates for the next two weeks.

Companies can only increase their dividends regularly if they grow earnings sufficiently. I monitor dividend increases of stocks in the CCC list of dividend growth stocks. I use the following screens to compile a watch list from the CCC stocks:

  1. Market cap ≥ $500M
  2. No stocks that are being acquired
  3. No over-the-counter or pink sheet stocks
  4. Dividend Yield ≥ 2% for Challengers
  5. Dividend Yield ≥ 1% for Contenders and Champions

Last week, 24 companies on my watch list announced dividend increases, including one stock I own.

The table below presents a summary of dividend increases for stocks in sectors other than the Energy and Real Estate sectors. See Part 1 for dividend increases from Energy and Real Estate stocks.

The table is sorted by the percentage increase, %Incr. Dividends are annualized and in US$, unless otherwise indicated. Yield is the new dividend yield. 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: January 29-February 2, 2018

Previous Post: 20 Dividend Increases: January 15-19, 2018

• SJW Corp (SJW)

SJW provides water utility services in the United States. The company produces, purchases, stores, purifies, distributes, and sells water. Additionally, the company provides non-tariffed services, including water system operations, maintenance agreements, and antenna leases. SJW was founded in 1866 and is headquartered in San Jose, California.

The company increased its quarterly dividend by 28.74%, from 21.75¢ per share to 28¢ per share. The dividend is payable on March 1 to shareholders of record on February 12. SJW will trade ex-dividend on February 9.

• First Interstate Bancsystem Inc (FIBK)

With headquarters in Billings, Montana, FIBK is a financial and bank holding company for First Interstate Bank. The company provides a range of commercial and consumer banking products and services, including deposits products, real estate and consumer loans, and account management services. The company also offers internet and mobile banking services. FIBK was incorporated in 1971.

Recently, FIBK increased its quarterly dividend to 28¢ per share, an increase of 16.67% over the prior dividend of 24¢ per share. The stock will trade ex-dividend on February 9, and shareholders can expect to receive the new dividend on February 22.

• AFLAC Inc (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.

Recently, AFL increased its quarterly dividend from 45¢ per share to 52¢ per share, an increase of 15.56%. The new dividend is payable on March 1 to shareholders of record on February 21, with an ex-dividend date of February 20.

• Fidelity National Financial Inc (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 January 30, the board of directors approved an increase to the regular quarterly dividend from 27¢ per share to 30¢ per share, an increase of 11.11%. All shareholders of record on March 16 can expect the dividend to be paid on March 30.

• Methanex Corp (MEOH)

MEOH is a Canada-based producer and supplier of methanol to markets in North America, the Asia Pacific, Europe, and South America. The company operates production sites in Canada, Chile, Egypt, New Zealand, the United States, and Trinidad and Tobago. MEOH was founded in 1968 and is headquartered in Vancouver, Canada.

Recently, the board of directors of MEOH declared a quarterly dividend of 33¢ per share. The new dividend represents an increase of 10.00%. The first payment will be on March 31 to shareholders of record on March 17. The ex-dividend date is March 15.

• Anthem Inc (ANTM)

Formerly known as WellPoint, Inc, ANTM is a health benefits company that operates in the United States. The company offers a spectrum of network-based managed care health benefit plans to large and small employer, individual, Medicaid, and Medicare markets. ANTM was founded in 1944 and is headquartered in Indianapolis, Indiana.

The company announced an increase of its quarterly dividend of 7.14% to 75¢ per share. The dividend is payable on March 23 to shareholders of record on March 9. The stock will trade ex-dividend on March 8.

• Meredith Corp (MDP)

Headquartered in Des Moines, Iowa, MDP is the leading media and marketing company serving American women. The company's publishing segment includes magazine and book publishing, integrated marketing, interactive media, brand licensing, and other related operations. Its broadcasting segment includes the operations of network-affiliated television stations and syndicated television marketing and development. MDP was founded in 1902.

The company's board of directors approved an increase in the quarterly dividend of 4.81% to 54.5¢ per share. MDP will trade ex-dividend on February 27. The dividend is payable on March 15, to shareholders of record on February 28.

• Cass Information Systems Inc (CASS)

CASS is a leading provider of integrated information and payment management solutions. The company enables enterprises to achieve visibility, control, and efficiency in their supply chains, communications networks, facilities and other operations. CASS was founded in 1906 and is headquartered in St. Louis, Missouri.

The company announced a quarterly DIV increase of 4.35% to 24¢ per share. The dividend is payable on March 15 to shareholders of record on March 5. The ex-dividend date is March 2.

• Avista Corp (AVA)

Founded in 1889 and headquartered in Spokane, Washington, AVA is a diversified energy company engaged in the generation, transmission, and distribution of energy. The Avista Utilities division handles the company’s regulated utility operations and contributes over 90% of AVA’s earnings. Ecova, the company's non-utility subsidiary, provides energy efficiency and cost management services for multi-site customers.

On February 2, the board of directors declared a quarterly dividend of 37.25¢ per share. The new dividend represents an increase of 4.20%. All shareholders of record on February 23 will receive the new dividend on March 15.

• California Water Service (CWT)

CWT is a holding company that provides water utility and other related services in California, Washington, New Mexico, and Hawaii. The company produces, purchases, stores, treats, tests, distributes, and sells water for domestic, industrial, public, and irrigation uses, as well as for fire protection. CWT was founded in 1926 and is headquartered in San Jose, California.

The company announced a quarterly DIV increase of 4.17% to 18.75¢ per share. The new dividend is payable on February 23 to shareholders of record on February 12, with an ex-dividend date of February 9.

• Principal Financial Group Inc (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.

The company announced a quarterly DIV increase of 4.08% to 51¢ per share. The dividend is payable on March 29 to shareholders of record on March 5. The stock will trade ex-dividend on March 2.

• Polaris Industries (PII)

PII designs, engineers, manufactures and markets off-road vehicles, snowmobiles, motorcycles, and small vehicles. Products are sold through dealers and distributors located in the United States, Canada, Europe, Australia, and Mexico. The company also produces and supplies replacement parts for its product lines. PII was founded in 1954 and is headquartered in Medina, Minnesota.

The company declared a quarterly dividend of 60¢ per share, an increase of 3.45% over the prior quarterly dividend. The dividend is payable on March 15 to shareholders of record on March 1. PII will trade ex-dividend on February 28.

• Penske Automotive Group Inc (PAG)

Headquartered in Bloomfield Hills, Michigan, PAG is an international transportation services company that operates automotive and commercial vehicle dealerships in the United States and Western Europe. PAG also distributes commercial vehicles, diesel engines, gas engines, power systems, and related parts and services in Australia and New Zealand.

The company's board of directors approved an increase in the quarterly dividend of 3.03% to 34¢ per share. The stock will trade ex-dividend on February 9, and shareholders can expect to receive the new dividend on March 1.

• Owens & Minor Inc (OMI)

Founded in 1882 and headquartered in Mechanicsville, Virginia, OMI is a healthcare logistics company and a distributor of name-brand medical and surgical supplies. The company provides vital supply chain assistance to the providers of healthcare services and the manufacturers of healthcare products, supplies, and devices.

On Wednesday, January 31, the company increased its quarterly dividend by 0.97% to 26¢ per share. The dividend is payable on March 30 to shareholders of record on March 15. OMI will trade ex-dividend on March 14.

• Healthcare Services Group Inc (HCSG)

HCSG provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of the healthcare industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals located throughout the United States. HCSG was founded in 1976 and is based in Bensalem, Pennsylvania.

On January 30, the board of directors approved an increase to the regular quarterly dividend from 19¢ per share to 19.125¢ per share, an increase of 0.66%. All shareholders of record on February 15 can expect the dividend to be paid on March 23.

Please note that I'm not recommending any of these stocks. Readers should do their own research on these companies before buying shares.

Below, I'm including charts from F.A.S.T. Graphs for three of this week's dividend raisers, AFL, ANTM, and PAG.

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).

AFL's price line (black) is below the primary valuation line (orange) and above the stock's normal P/E ratio (blue). The stock is trading at about fair value. An investment in AFL in January 2008 would have returned 5% on an annualized basis (with dividends included).

ANTM's price line is above the stock's normal P/E ratio and above the primary valuation line. The stock is trading at a premium to fair value. An investment in ANTM in January 2008 would have returned 11% on an annualized basis (with dividends included).

PAG'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 PAG in January 2008 would have returned 12.3% on an annualized basis (with dividends included).

Upcoming Ex-Dividend Dates

As a bonus, here is a summary of available ex-dividend dates for the next two weeks. You must own a stock before its ex-dividend date to be eligible to receive the next dividend.

The table is sorted by Ticker, and, as before, Next Div is annualized.

Please note that Next Div links to the latest dividend declaration announcement. Note also that the table shows ex-dividend dates for stocks other than Energy and Real Estate sector stocks. Refer to Part 1 for available ex-dividend dates for stocks in the Energy and Real Estate sectors.

Summary of Upcoming Ex-Dividend Dates: February 5–February 18

Company

Ticker

Yield

Recent
Price

Yrs

5-Yr
DGR

Next
Div.

Ex-Div
Date

Pay-
Date

American Electric Power Co.

AEP

3.73%

$66.48

8

4.90%

$2.48

02/08

03/09

Allete Inc.

ALE

3.26%

$68.70

8

3.10%

$2.24

02/14

03/01

Alaska Air Group Inc.

ALK

2.04%

$62.74

6

N/A

$1.28

02/16

03/08

Amgen Inc.

AMGN

3.02%

$174.75

8

26.10%

$5.28

02/14

03/08

Ameriprise Financial Inc.

AMP

2.07%

$160.39

13

17.80%

$3.32

02/15

02/28

American Water Works

AWK

2.11%

$78.82

10

11.00%

$1.66

02/06

03/01

American States Water

AWR

1.90%

$53.81

63

9.40%

$1.02

02/14

03/01

Boeing Company

BA

2.08%

$328.88

7

26.40%

$6.84

02/08

03/02

Booz Allen Hamilton Holding Corp.

BAH

2.07%

$36.74

6

13.60%

$0.76

02/13

02/28

BB&T Corp.

BBT

2.50%

$52.89

7

10.60%

$1.32

02/08

03/01

Bunge Limited

BG

2.27%

$80.89

17

11.10%

$1.84

02/15

03/02

Black Hills Corp.

BKH

3.63%

$52.41

47

4.10%

$1.90

02/14

03/01

BOK Financial Corp.

BOKF

1.94%

$92.66

13

3.80%

$1.80

02/08

02/23

Church & Dwight

CHD

1.83%

$47.42

21

9.60%

$0.87

02/14

03/01

CMS Energy Corp.

CMS

3.35%

$42.73

11

6.70%

$1.43

02/15

02/28

CenterPoint Energy

CNP

4.12%

$26.91

13

5.70%

$1.11

02/14

03/08

Columbia Banking System Inc.

COLB

2.13%

$41.40

7

20.90%

$0.88

02/06

02/21

Costco Wholesale

COST

1.09%

$182.77

14

12.90%

$2.00

02/15

03/02

California Water Service

CWT

1.87%

$40.15

51

2.70%

$0.75

02/09

02/23

Donaldson Company

DCI

1.53%

$47.12

31

15.20%

$0.72

02/13

03/06

Duke Energy Corp.

DUK

4.70%

$75.81

13

2.90%

$3.56

02/15

03/16

Consolidated Edison

ED

3.71%

$77.13

44

2.70%

$2.86

02/13

03/15

First Defiance Financial Corp.

FDEF

2.28%

$52.74

8

38.00%

$1.20

02/15

02/23

First Interstate Bancsystem Inc.

FIBK

2.81%

$39.90

9

14.90%

$1.12

02/09

02/22

Gorman-Rupp Company

GRC

1.80%

$27.72

45

8.50%

$0.50

02/14

03/09

W.W. Grainger Inc.

GWW

2.01%

$254.11

46

10.60%

$5.12

02/09

03/01

Healthcare Services Group Inc.

HCSG

1.52%

$50.30

16

2.90%

$0.77

02/15

03/23

Heritage Financial Corp.

HFWA

2.03%

$29.50

8

11.20%

$0.60

02/06

02/21

Heritage Commerce Corp.

HTBK

2.88%

$15.27

6

N/A

$0.44

02/07

02/22

International Business Machines

IBM

3.93%

$152.53

22

12.30%

$6.00

02/08

03/10

Intel

INTC

2.70%

$44.52

4

N/A

$1.20

02/06

03/01

Investors Bancorp

ISBC

2.70%

$13.31

6

75.90%

$0.36

02/08

02/23

Invesco Limited

IVZ

3.50%

$33.17

8

12.40%

$1.16

02/14

03/02

KLA-Tencor Corp.

KLAC

2.33%

$101.20

8

8.50%

$2.36

02/14

03/01

Kroger Company

KR

1.76%

$28.47

12

14.60%

$0.50

02/14

03/01

Lazard Limited

LAZ

2.89%

$56.66

10

16.20%

$1.64

02/09

02/23

Lindsay Corp.

LNN

1.39%

$86.51

15

23.50%

$1.20

02/13

02/28

3M Company

MMM

2.35%

$231.44

60

14.80%

$5.44

02/15

03/12

MSA Safety Inc.

MSA

1.84%

$76.00

46

4.60%

$1.40

02/13

03/10

Middlesex Water Co.

MSEX

2.54%

$35.29

45

2.90%

$0.90

02/14

03/01

Microsoft Corp.

MSFT

1.91%

$88.00

16

13.90%

$1.68

02/14

03/08

Northfield Bancorp Inc.

NFBK

2.51%

$15.95

5

31.80%

$0.40

02/06

02/21

NiSource Inc.

NI

3.32%

$23.52

7

13.60%

$0.78

02/08

02/20

Nexstar Media Group Inc.

NXST

2.05%

$73.05

5

N/A

$1.50

02/15

03/02

Penske Automotive Group Inc.

PAG

2.85%

$47.78

8

22.30%

$1.36

02/09

03/01

Provident Financial Services Inc.

PFS

3.16%

$25.31

7

8.90%

$0.80

02/14

02/28

Parker-Hannifin Corp.

PH

1.45%

$182.00

61

10.30%

$2.64

02/08

03/02

PPG Industries Inc.

PPG

1.61%

$111.98

46

7.80%

$1.80

02/15

03/12

Ritchie Brothers Auctioneers Inc.

RBA

2.20%

$30.93

15

7.70%

$0.68

02/15

03/09

Resources Connection Inc.

RECN

3.11%

$15.45

8

15.90%

$0.48

02/14

03/15

Rollins Inc.

ROL

1.20%

$46.80

16

16.60%

$0.56

02/08

03/09

Sandy Spring Bancorp Inc.

SASR

2.81%

$37.00

7

16.70%

$1.04

02/13

02/21

Starbucks Corp.

SBUX

2.19%

$54.69

8

23.90%

$1.20

02/07

02/23

J.M. Smucker Co.

SJM

2.68%

$116.63

20

8.90%

$3.12

02/08

03/01

SJW Corp.

SJW

2.00%

$56.05

51

4.10%

$1.12

02/09

03/01

Southern Company

SO

15.92%

$43.72

17

3.40%

$6.96

02/16

03/06

S&T Bancorp Inc.

STBA

2.25%

$39.17

5

6.40%

$0.88

02/07

02/22

Southwest Gas Corp.

SWX

2.85%

$69.51

11

11.00%

$1.98

02/14

03/01

Sensient Technologies Corp.

SXT

1.91%

$69.11

12

7.20%

$1.32

02/05

03/01

TJX Companies Inc.

TJX

1.64%

$76.06

21

22.20%

$1.25

02/14

03/08

Tompkins Financial Corp.

TMP

2.41%

$79.70

32

4.50%

$1.92

02/05

02/15

Union Bankshares Corp.

UBSH

2.33%

$35.98

7

17.00%

$0.84

02/05

02/20

United Technologies

UTX

2.20%

$127.24

24

6.00%

$2.80

02/15

03/10

Vectren Corp.

VVC

3.07%

$58.65

58

4.00%

$1.80

02/14

03/01

Walgreens Boots Alliance Inc.

WBA

2.27%

$70.43

42

9.20%

$1.60

02/14

03/12

WEC Energy Group Inc.

WEC

3.61%

$61.17

15

11.60%

$2.21

02/13

03/01

WestRock Company

WRK

2.69%

$63.96

9

34.50%

$1.72

02/15

02/26

Aqua America Inc.

WTR

2.39%

$34.29

25

8.10%

$0.82

02/15

03/01

Xilinx Inc.

XLNX

2.09%

$66.97

15

10.20%

$1.40

02/06

02/22


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Disclosure: I am/we are long AFL, IBM, MSFT, MMM, INTC, SBUX, WBA.

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.