22 Dividend Increases: April 16-20, 2018 (Part 1: Energy And Financials Sectors)

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Includes: ANDX, HEP, OKE, PBCT, PSXP, SGU, SRCE, STBA, TLP, VLP, WES, WGP
by: FerdiS

Summary

Companies that regularly increase dividends show confidence in future earnings growth potential.

I like monitoring dividend increases for stocks on my watch list of dividend growth stocks because I consider such stocks to be candidates for further analysis.

In the last week, 22 companies on my watch list announced dividend increases, including one of the stocks I own.

Part 1 presents dividend increases for stocks in the Energy and Financials Sectors. Part 2 will cover the remaining sectors.

Monitoring dividend increases for stocks on my watch is one way to identify candidates for further analysis. Companies that regularly raise their dividend payments show confidence in future earnings growth potential. I look for announcements from stocks in the CCC list, but I use several screens to limit the number of stocks to monitor:

  • Market cap ≥ $500 million
  • No stocks that are being acquired
  • No Over-The-Counter or Pink Sheet Stocks
  • Dividend Yield ≥ 1.5% for Challengers
  • Dividend Yield ≥ 1.0% for Contenders and Champions

This past week, 22 companies on my watch list decided to increase their dividends, including one of the stocks I own.

The table below presents dividend increases for stocks in the Energy and Financials sectors. See the upcoming Part 2 for dividend increases announcements for the remaining sectors.

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: April 16-20, 2018

Previous Post: 7 Dividend Increases: April 9-13, 2018

S&T Bancorp (STBA)

Founded in 1902 and headquartered in Indiana, Pennsylvania, STBA is the bank holding company for S&T Bank. It provides retail and commercial banking products and services in Pennsylvania, Ohio, and western New York. STBA company accepts time and demand deposits and offers commercial and consumer loans, cash management services, and brokerage and trust services.

The company announced an increase of its quarterly dividend of 13.64% to 25¢ per share. The new dividend is payable on May 17 to shareholders of record on May 3. The ex-dividend date will be May 2.

1st Source (SRCE)

SRCE operates as the bank holding company for 1st Source Bank, providing a range of financial products and services to individual and business clients in the United States. The company offers commercial and consumer banking services, trust and investment management services, and insurance. SRCE was founded in 1863 and is headquartered in South Bend, Indiana.

The company announced an increase of its quarterly dividend of 9.09% to 24¢ per share. The new dividend is payable on May 15 to shareholders of record on April 30. The ex-dividend date will be April 27.

Star Group (SGU)

SGU operates as a home heating oil and propane distributor and services provider in the United States. It also installs, maintains, and repairs heating and air conditioning equipment. The company was formerly known as Star Gas Partners, LP. SGU was founded in 1995 and is headquartered in Stamford, Connecticut.

On April 17, the company declared a distribution of 11.75¢ per unit. The new distribution represents a 6.82% increase. The distribution is payable on May 7 to unitholders of record on April 27.

Phillips 66 Partners (PSXP)

Founded in 2013 and headquartered in Houston, Texas, PSXP acquires and distributes crude oil and refined petroleum products in the United States. The company owns and operates natural gas liquids pipelines and terminals, as well as other transportation and midstream assets. Phillips 66 Partners GP LLC operates as the general partner of PSXP.

The company declared a quarterly distribution of 71.4¢ per unit, an increase of 5.31% over the prior quarterly distribution. The distribution is payable on May 14 to unitholders of record on April 30. PSXP will trade ex-dividend on April 27.

Valero Energy Partners (VLP)

VLP owns, operates, develops, and acquires crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets in the United States. The company was founded in 2013 and is headquartered in San Antonio, Texas. VLP is a subsidiary of Valero Energy Corporation.

Recently, the board of directors of VLP declared a quarterly distribution of 52.75¢ per unit. The new distribution represents an increase of 3.94%. All unitholders of record on May 1 can expect the distribution to be paid on May 9.

Western Gas Equity Partners (WGP)

WGP is engaged in gathering, processing, compressing, treating, and transporting of natural gas, condensate, natural gas liquids, and crude oil. The company owns or has investments in assets located in the Rocky Mountains, including Colorado, Utah, and Wyoming; North-central Pennsylvania; and Texas. WGP was founded in 2007 and is headquartered in The Woodlands, Texas.

The board of directors of WGP has declared a quarterly distribution of 56.875¢ per unit. The new distribution is 3.64% above the prior distribution of 54.875¢ per unit. The new distribution is payable on May 24 to unitholders of record on May 2, with an ex-dividend date of May 1.

ONEOK (OKE)

OKE is an energy midstream service provider in the United States. The company purchases, gathers, compresses, transports, stores, and distributes natural gas. It also leases pipeline capacity to others. OKE drills for and produces oil and gas, extracts and sells natural gas liquids, and is engaged in the gas marketing business.

The company's board of directors approved an increase in the quarterly dividend of 3.25% to 79.5¢ per share. All shareholders of record on April 30 will receive the new dividend on May 15.

Western Gas Partners (WES)

WES is a master limited partnership that owns, operates, acquires and develops midstream energy assets. The company is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids and crude oil. WES was founded in 2007 and is headquartered in The Woodlands, Texas.

The company declared a quarterly distribution of 94.5¢ per unit, an increase of 2.72% over the prior quarterly distribution. The new distribution is payable on May 14 to unitholders of record on May 2, with an ex-dividend date of May 1.

TransMontaigne Partners (TLP)

Founded in 2005 and headquartered in Denver, Colorado, TLP is a terminaling and transportation company with operations in the United States. TLP offers its services to customers engaged in the trading, distribution, and marketing of light and heavy refined petroleum products, crude oil, chemicals, fertilizers, and other liquid products.

Recently, TLP increased its quarterly distribution from 77¢ per unit to 78.5¢ per unit, an increase of 1.95%. The distribution is payable on May 8 to unitholders of record on April 30. TLP will trade ex-dividend on April 27.

Andeavor Logistics (ANDX)

Formerly known as Tesoro Logistics LP, ANDX is a full-service logistics company operating in the western and mid-continent regions of the United States. The company operates through three segments: Gathering, Processing, and Terminalling and Transportation. ANDX was founded in 2010 and is headquartered in San Antonio, Texas.

Recently, ANDX increased its quarterly distribution to $1.02 per unit, an increase of 1.50% over the prior distribution of 100¢ per unit. The first payment will be on May 15 to unitholders of record on May 1. The ex-dividend date is April 30.

People's United Financial (PBCT)

PBCT is a savings and loan holding company founded in 1842 and headquartered in Bridgeport, Connecticut. The company provides commercial banking, retail banking, and wealth management services to individual, corporate, and municipal customers in Connecticut, southeastern New York, Massachusetts, Vermont, New Hampshire, and Maine. PBCT also offers online banking, investment trading, and telephone banking services.

The company announced a quarterly DIV increase of 1.45% to 17.5¢ per share. The first payment will be on May 15 to shareholders of record on May 1. The ex-dividend date is April 30.

Holly Energy Partners (HEP)

HEP provides petroleum product and crude oil 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. HEP was founded in 2004 and is based in Dallas, Texas.

On Thursday, April 19, HEP increased its quarterly distribution to 65.5¢ per unit, an increase of 0.77%. The distribution is payable on May 10 to unitholders of record at the close of business on April 30.

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, SRCE, PBCT, and PSXP.

In these charts, the black line represents the share price, and the blue line represents the calculated P/E (or P/OCF) 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).

SRCE'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 SRCE in January 2010 would have returned 18% on an annualized basis (with dividends included).

PBCT'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 PBCT in January 2010 would have returned 4.1% on an annualized basis (with dividends included).

PSXP's price line is below the primary valuation line and below the stock's normal P/OCF ratio. The stock is trading at a discount to fair value. An investment in PSXP in August 2013 would have returned 13.5% 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 is limited to Energy and Financials sector stocks. Refer to the upcoming Part 2 for available ex-dividend dates of stocks in the other sectors.

Summary of Upcoming Ex-Dividend Dates: April 16-30, 2018

Company

Ticker

Yield

Recent
Price

Yrs

5-Yr
DGR

Next
Div.

Ex-Div
Date

Pay-
able
Date

First Busey

BUSE

2.62%

$30.56

5

8.40%

$0.80

04/20

04/27

Eaton Vance

EV

2.25%

$55.22

37

8.10%

$1.24

04/30

05/15

Lakeland Financial

LKFN

2.16%

$48.24

6

13.90%

$1.04

04/25

05/07

LegacyTexas Financial Group

LTXB

1.54%

$41.61

7

15.30%

$0.64

04/30

05/14

Main Street Capital

MAIN

6.11%

$37.30

7

5.50%

$2.28

04/19

05/15

PNC Financial Services Group

PNC

2.08%

$144.12

7

10.90%

$3.00

04/13

05/05

United Community Financial

UCFC

2.27%

$10.58

5

N/A

$0.24

04/27

05/11

Unum Group

UNM

1.88%

$48.88

9

12.80%

$0.92

04/30

05/18

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Disclosure: I am/we are long MAIN.

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.