Dividend Champions: 12 Increases Expected By The End Of May

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Includes: CTWS, JNJ, PG, SJW, XOM
by: David Fish
Summary

Increases lead into annual shareholder meetings.

P&G, Exxon, and J&J highlight latest crop of increases.

Connecticut Water receives buyout offer from SJW.

In compiling the Dividend Champions list, I get to see which companies are nearing the anniversaries of their previous dividend increases. Since most of these firms raise their payout about the same time every year, I can say with some confidence that they are likely to do so again. I have separated the Champions (25 or more years of higher dividends), Contenders (10-24 years), and Challengers (5-9 years) into distinct groupings, so please look for the other articles, which I hope will be published about the same time. Note that "CCC" refers to the combination of Champions, Contenders, and Challengers.

Keeping Shareholders Happy

Although we have passed the busiest time of year for dividend increases - which are most numerous from just before Groundhog Day to early March - there are still quite a few to come in the next couple of months. That's no surprise, since corporations are anxious to deliver good news to shareholders prior to the annual shareholder meetings, which typically come in April and May. The number of announcements for all Champions, Contenders, Challengers, and Near-Challengers expected in the next 11 weeks is 85, down from 136 last month and a staggering 221 a month earlier. What's different this year is that companies are announcing larger increases and often sooner than expected…boosting the payout just six or nine months after the last raise. After the annual shareholder meetings, we'll experience the usual summer lull, unless, of course, some companies decide to keep the good news flowing with extra good news!

The table below coincides with the usual "forward look" of about 11 weeks for this article. Based on last year's announcements, I'm expecting the following companies to announce dividend increases between now and the anniversary of the Ex-Dividend Date of their previous increase:

Dividend Champions (25 or more years):

MR=Most Recent; LY=Last Year; DGR=Dividend Growth Rate

Not all of the above companies will meet the strict standards of every investor, but some may be appropriate for portfolio diversification. Potential investors should do more research before committing funds.

Every Picture Tells a Story

As a bonus, I'm inserting one of Chuck Carnevale's F.A.S.T. Graphs below, highlighting one of the companies listed above. When the stock's price line has moved into the green area, it indicates that the stock is undervalued in relation to its earnings. I'm attaching the chart below.

Disclaimer: Just because a chart looks "interesting" does not make it a Recommendation!

Disclosure: I am/we are long XOM,JNJ. 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.