7 Dividend Increases: May 14-18, 2018

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Includes: ADC, AFL, CB, D, ES, HD, JNJ, LEG, LMT, MMC, NKE, NOC, O, PEP, PKG, QCOM, UFCS
by: FerdiS
Summary

Companies can only increase their dividends sustainably if they grow earnings sufficiently.

Monitoring dividend increases for stocks on my watch list helps me identify candidates for further analysis.

Recently, seven companies on my watch list announced dividend increases, including one of the stocks I hold in my portfolio.

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. Companies can only increase their dividends sustainably if they grow earnings sufficiently.

I look for dividend increase announcements for 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

In the last week, seven companies on my watch list declared dividend increases, including one of my DivGro holdings. The following table provides 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: May 14-18, 2018

Previous Post: 21 Dividend Increases: May 7-11, 2018

Packaging Corp of America (PKG)

PKG manufactures and sells containerboard and corrugated packaging products in North America and Europe. The company provides various corrugated packaging products, honeycomb protective packaging, and packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products. PKG was founded in 1867 and is headquartered in Lake Forest, Illinois.

On Tuesday, May 15, PKG increased its quarterly dividend to 79¢ per share, an increase of 25.40%. The dividend is payable on July 13 to shareholders of record at the close of business on June 15.

United Fire Group Inc (UFCS)

UFCS, together with its subsidiaries, provides insurance protection for individuals and businesses in the United States. The company operates through two segments, Property and Casualty Insurance, and Life Insurance. It sells its products through a network of independent agencies. UFCS was founded in 1946 and is headquartered in Cedar Rapids, Iowa.

On Wednesday, May 16, the company increased its quarterly dividend by 10.71% to 31¢ per share. The dividend is payable June 15, with an ex-dividend date of May 31.

Marsh & McLennan Companies Inc (MMC)

MMC is a professional services firm that offers advice and solutions in areas of risk, strategy, and people. The company is the parent company of various specialty consultants, including Marsh, Guy Carpenter, Mercer, and Oliver Wyman Group. MMC was founded in 1871 and is headquartered in New York, New York.

On May 17, the board of directors declared a quarterly dividend of 41.5¢ per share. The new dividend represents an increase of 10.67%. The dividend is payable on August 15 to shareholders of record at the close of business on July 11.

Northrop Grumman (NOC)

Founded in 1939 and based in Falls Church, Virginia, NOC is a leading global security company with both government and commercial customers. NOC provides systems, products, and solutions in unmanned systems; cybersecurity; command, control, communications and computers intelligence; surveillance and reconnaissance; and logistics and modernization.

The company declared a quarterly dividend of $1.20 per share, an increase of 9.09% over the prior quarterly dividend. The new dividend is payable on June 20 to shareholders of record on June 4. The ex-dividend date will be June 1.

Leggett & Platt Inc (LEG)

LEG designs and manufactures a range of engineered components and products for homes, offices, and automobiles. The company operates through four segments, Residential Furnishings, Commercial Products, Industrial Materials, and Specialized Products. The company sells its products through sales representatives and distributors. LEG was founded in 1883 and is based in Carthage, Missouri.

The company announced a quarterly DIV increase of 5.56% to 38¢ per share. The dividend is payable on July 13 to shareholders of record on June 15.

Agree Realty Corp (ADC)

Founded in 1971 and headquartered in Farmington Hills, Michigan, ADC is an integrated REIT focused on the ownership, acquisition, development, and management of retail properties in the United States. ADC's business objective is to generate consistent shareholder returns by investing in and actively managing a diversified portfolio of retail properties net leased to industry tenants.

On May 15, the board of directors approved an increase to the regular quarterly dividend from 52¢ per share to 54¢ per share, an increase of 3.85%. The dividend is payable on July 13 to shareholders of record on June 29. The ex-dividend date is June 28.

Chubb Limited (CB)

CB is the world’s largest publicly traded property and casualty insurance company with operations in more than 50 countries. The company offers commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance to a diverse group of clients. CB was founded in 1985 and is headquartered in Zurich, Switzerland.

The company announced an increase of its quarterly dividend of 2.82% to 73¢ per share. The dividend is payable on July 13 to shareholders of record on June 22.

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, PKG, MMC, and JCOM.

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).

PKG's price line (black) is at the primary valuation line (orange) and at the stock's normal P/E ratio (blue). The stock is trading at about fair value. An investment in PKG in January 2009 would have returned 27.9% on an annualized basis (with dividends included).

MMC'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 MMC in January 2009 would have returned 15.1% on an annualized basis (with dividends included).

JCOM's price line is above the primary valuation line and above the stock's normal P/E ratio. The stock is trading at a premium to fair value. An investment in JCOM in January 2009 would have returned 24.5% 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.

Summary of Upcoming Ex-Dividend Dates: May 15-28, 2018

Company

Ticker

Yield

Recent
Price

Yrs

5-Yr
DGR

Next
Div.

Ex-Div
Date

Pay-
able
Date

AFLAC

AFL

2.28%

$45.55

36

5.40%

$1.04

05/22

06/01

Assurant

AIZ

2.30%

$97.21

14

21.60%

$2.24

05/25

06/19

Arthur J. Gallagher &

AJG

2.41%

$68.09

8

2.80%

$1.64

05/31

06/15

Allstate

ALL

1.92%

$95.71

8

10.40%

$1.84

05/30

07/02

Autoliv

ALV

1.64%

$150.93

9

4.70%

$2.48

05/22

06/07

Arrow Financial

AROW

2.65%

$37.67

24

2.30%

$1.00

05/31

06/15

Associated Banc-Corp

ASB

2.16%

$27.75

7

16.80%

$0.60

05/31

06/15

Avista

AVA

2.83%

$52.56

16

4.30%

$1.49

05/24

06/15

Aircastle Limited

AYR

5.12%

$21.86

7

11.50%

$1.12

05/30

06/15

Badger Meter

BMI

1.20%

$43.50

25

8.20%

$0.52

05/30

06/15

Cass Information Systems

CASS

1.68%

$61.77

17

8.20%

$1.04

06/04

06/15

Cathay General Bancorp

CATY

2.25%

$42.73

5

85.10%

$0.96

05/31

06/11

Cabot

CBT

2.19%

$60.22

6

9.80%

$1.32

05/24

06/08

Cullen/Frost Bankers

CFR

2.22%

$120.64

25

3.40%

$2.68

05/30

06/15

Chemical Financial

CHFC

1.97%

$56.92

6

6.10%

$1.12

05/31

06/15

C.H. Robinson Worldwide

CHRW

2.05%

$89.81

20

6.20%

$1.84

05/31

06/29

Chatham Lodging Trust

CLDT

6.53%

$20.20

8

12.00%

$1.32

05/30

06/29

Compass Minerals International

CMP

4.18%

$68.95

14

7.80%

$2.88

05/31

06/15

Cohen & Steers

CNS

3.24%

$40.70

9

9.20%

$1.32

05/30

06/21

Core-Mark Holding

CORE

2.16%

$18.56

7

16.20%

$0.40

05/23

06/15

Central Pacific Financial

CPF

2.78%

$30.17

6

N/A

$0.84

05/30

06/15

Capella Education

CPLA

1.90%

$90.30

5

N/A

$1.72

05/23

06/29

Carter's

CRI

1.59%

$112.93

6

N/A

$1.80

05/25

06/15

CSX

CSX

1.37%

$64.09

14

7.60%

$0.88

05/30

06/15

Connecticut Water Service

CTWS

1.95%

$64.23

48

4.10%

$1.25

05/31

06/15

Dominion Energy

D

5.26%

$63.51

15

9.60%

$3.34

05/31

06/20

Discover Financial Services

DFS

1.80%

$77.88

7

26.60%

$1.40

05/23

06/07

Dun & Bradstreet

DNB

1.66%

$125.60

12

5.70%

$2.09

05/22

06/08

Dunkin' Brands Group

DNKN

2.10%

$66.12

7

16.50%

$1.39

05/25

06/06

Dover

DOV

2.34%

$80.23

62

10.40%

$1.88

05/30

06/15

EMC Insurance Group

EMCI

3.40%

$25.87

8

9.50%

$0.88

05/25

06/05

EPR Properties

EPR

7.20%

$60.02

8

6.70%

$4.32

05/30

06/15

Eversource Energy

ES

3.53%

$57.26

20

7.50%

$2.02

05/23

06/29

Evercore Partners

EVR

1.82%

$109.80

12

11.60%

$2.00

05/24

06/08

Expeditors International

EXPD

1.23%

$73.28

23

8.40%

$0.90

05/31

06/15

Factset Research System

FDS

1.27%

$200.94

19

12.70%

$2.56

05/30

06/19

First Merchants

FRME

1.91%

$46.06

6

47.20%

$0.88

05/31

06/15

Corning

GLW

2.59%

$27.79

8

14.50%

$0.72

05/30

06/29

Great Plains Energy

GXP

3.44%

$31.96

7

5.20%

$1.10

05/29

06/20

Healthcare Services Group

HCSG

2.07%

$37.12

16

2.90%

$0.77

05/24

06/29

Home Depot

HD

2.17%

$189.85

9

25.10%

$4.12

05/30

06/14

Hartford Financial Services Group

HIG

1.87%

$53.46

8

18.10%

$1.00

05/31

07/02

Harley-Davidson

HOG

3.45%

$42.90

8

18.70%

$1.48

05/30

06/15

Harris

HRS

1.48%

$153.89

16

9.50%

$2.28

05/31

06/15

Hershey

HSY

2.86%

$91.86

8

10.30%

$2.62

05/24

06/15

Hubbell

HUBB

2.87%

$107.32

10

11.30%

$3.08

05/30

06/15

Hyster-Yale Materials Handling

HY

1.73%

$71.54

6

36.90%

$1.24

05/31

06/15

International Paper

IP

3.45%

$55.04

8

11.60%

$1.90

05/24

06/15

International Speedway

ISCA

1.10%

$42.88

13

16.50%

$0.47

05/30

06/29

Jack Henry & Associates

JKHY

1.21%

$122.33

28

21.90%

$1.48

05/22

06/07

Johnson & Johnson

JNJ

2.90%

$124.09

56

6.70%

$3.60

05/25

06/12

Kellogg

K

3.54%

$60.96

14

4.00%

$2.16

05/31

06/15

KeyCorp

KEY

2.35%

$20.44

7

16.10%

$0.48

05/25

06/15

Lockheed Martin

LMT

2.48%

$322.89

15

12.40%

$8.00

05/31

06/22

La-Z-Boy

LZB

1.50%

$32.03

6

62.30%

$0.48

05/31

06/15

ManpowerGroup

MAN

2.11%

$95.85

7

16.70%

$2.02

05/31

06/15

Marcus

MCS

1.85%

$32.50

5

8.00%

$0.60

05/24

06/15

Meredith

MDP

4.35%

$50.10

25

6.30%

$2.18

05/30

06/15

Magna International

MGA

1.98%

$66.80

8

14.90%

$1.32

05/24

06/08

MGE Energy

MGEE

2.24%

$57.50

42

4.00%

$1.29

05/31

06/15

Herman Miller

MLHR

2.16%

$33.28

6

34.60%

$0.72

05/31

07/15

Monro

MNRO

1.44%

$55.45

13

12.70%

$0.80

06/01

06/14

Maxim Integrated Products

MXIM

2.90%

$58.03

17

8.40%

$1.68

05/30

06/14

NBT Bancorp

NBTB

2.60%

$38.40

6

2.80%

$1.00

05/31

06/15

Nike

NKE

1.12%

$71.20

16

13.90%

$0.80

06/01

07/05

Northrop Grumman

NOC

1.45%

$330.30

15

12.60%

$4.80

06/01

06/20

Nu Skin Enterprises

NUS

1.81%

$80.55

18

12.50%

$1.46

05/24

06/13

NRG Yield

NYLD

7.05%

$17.52

6

N/A

$1.24

05/31

06/15

Realty Income

O

5.04%

$52.30

25

7.40%

$2.63

05/31

06/15

Old Republic International

ORI

3.68%

$21.22

37

1.40%

$0.78

06/04

06/15

PepsiCo

PEP

3.73%

$99.56

46

8.50%

$3.71

05/31

06/29

Principal Financial Group

PFG

3.51%

$59.18

10

19.70%

$2.08

06/01

06/29

Polaris Industries

PII

2.09%

$114.58

23

9.40%

$2.40

05/31

06/15

Perrigo plc

PRGO

1.00%

$76.25

16

14.20%

$0.76

05/31

06/19

Qualcomm

QCOM

4.35%

$57.01

16

18.30%

$2.48

05/29

06/20

Ritchie Brothers Auctioneers

RBA

2.06%

$33.02

15

7.70%

$0.68

05/29

06/20

Royal Caribbean Cruises

RCL

2.23%

$107.55

7

37.20%

$2.40

06/01

07/03

Everest Reinsurance Group

RE

2.27%

$228.78

5

21.30%

$5.20

05/29

06/13

Robert Half International

RHI

1.73%

$64.78

15

9.90%

$1.12

05/24

06/15

RLI

RLI

1.30%

$67.67

42

5.70%

$0.88

05/30

06/20

Reliance Steel & Aluminum

RS

2.11%

$94.57

8

17.60%

$2.00

05/24

06/15

Ruth's Hospitality Group

RUTH

1.64%

$26.75

6

N/A

$0.44

05/23

06/07

Sinclair Broadcast Group

SBGI

2.33%

$30.92

7

5.90%

$0.72

05/31

06/15

Southside Bancshares

SBSI

3.50%

$34.27

24

11.70%

$1.20

05/23

06/07

Stepan

SCL

1.26%

$71.35

50

7.70%

$0.90

05/30

06/15

Six Flags Entertainment

SIX

4.84%

$64.45

9

15.70%

$3.12

05/30

06/11

Silgan Holdings

SLGN

1.46%

$27.40

15

8.40%

$0.40

05/31

06/15

Scotts Miracle-Gro

SMG

2.44%

$86.90

8

10.50%

$2.12

05/24

06/08

S&P Global

SPGI

1.00%

$200.64

45

10.00%

$2.00

05/25

06/12

SunTrust Banks

STI

2.32%

$68.87

7

45.90%

$1.60

05/30

06/15

Schweitzer-Mauduit International

SWM

3.87%

$44.49

6

30.30%

$1.72

05/24

06/22

TE Connectivity

TEL

1.83%

$96.23

6

14.20%

$1.76

05/24

06/08

Tennant

TNC

1.07%

$78.75

46

4.00%

$0.84

05/30

06/15

Tractor Supply

TSCO

1.68%

$73.95

8

23.90%

$1.24

05/25

06/12

Tyson Foods

TSN

1.77%

$67.77

6

41.80%

$1.20

05/31

06/15

United Fire Group

UFCS

2.30%

$53.94

5

12.70%

$1.24

05/31

06/15

Union Pacific

UNP

2.01%

$145.26

12

14.80%

$2.92

05/30

06/29

Wendy's

WEN

2.07%

$16.39

9

22.90%

$0.34

05/31

06/15

Westar Energy

WR

3.01%

$53.13

13

3.80%

$1.60

05/29

06/20

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Disclosure: I am/we are long afl, CB, d, es, jnj, lmt, nke, o, QCOM. 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.