8 Dividend Increases: June 11-15, 2018

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Includes: BEN, CASY, CAT, CB, CMCSA, IR, MAIN, NFG, TGT, UHT, WPC
by: FerdiS
Summary

Companies that regularly raise their dividend payments show confidence in future earnings growth potential.

I monitor dividend increases to identify candidates for further analysis.

This past week, eight companies on my watch list announced dividend increases.

Monitoring dividend increases for stocks on my watch list helps me identify candidates for further analysis. Companies that regularly increase dividends show confidence in the potential growth of future earnings.

The CCC List provides a good starting point, but I limit the number of stocks to monitor by applying the following screens:

  • 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

Last week, 8 companies on my watch list announced dividend increases. 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: June 11-15, 2018

Previous Post: 5 Dividend Increases: June 4-8, 2018

Ingersoll-Rand (IR)

IR provides products and services to improve the quality and comfort of air in homes and buildings and to transport and protect food and perishables. The company markets and sells its products in the United States and worldwide. IR was founded in 1872 and is headquartered in Swords, Ireland.

Recently, IR increased its quarterly dividend from 45¢ per share to 53¢ per share, an increase of 17.78%. All shareholders of record on September 7 can expect the dividend to be paid on September 28.

Franklin Resources (BEN)

BEN is a global investment management company operating as Franklin Templeton Investments. The company provides investment management and related services to retail, institutional, and high net-worth clients in jurisdictions around the world. BEN was founded in 1947 and is based in San Mateo, California with an additional office in Hyderabad, India.

Recently, BEN increased its quarterly dividend by 15.00% to 23¢ per share. The dividend is payable on July 13 to shareholders of record on June 29.

Casey's General Stores (CASY)

CASY operates convenience stores under the Casey's and Casey's General Store names. The company's stores offer a selection of food; beverage and tobacco products; health and beauty aids; automotive products; and other nonfood items. Its stores also offer fuel for sale. CASY was founded in 1959 and is headquartered in Ankeny, Iowa.

The company increased its quarterly dividend by 11.54%, from 26¢ per share to 29¢ per share. All shareholders of record on August 1 will receive the new dividend on August 15.

Caterpillar (CAT)

CAT was founded in 1925 and is headquartered in Peoria, IL. The company manufactures construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. CAT provides technology for construction, transportation, mining, forestry, energy, logistics, electronics, financing and electric power generation.

CAT will pay a quarterly dividend of 86¢ per share, an increase of 7.50% over the previous quarterly dividend. The dividend is payable on August 20 to shareholders of record on July 20. CAT will trade ex-dividend on July 19.

Target (TGT)

Founded in 1902 and headquartered in Minneapolis, Minnesota, TGT sells a range of general merchandise and discount food products in about 1,800 stores in the United States. The company offers everyday essentials and fashionable, differentiated merchandise at discount prices. TGT operates as a single business segment and has a fully integrated online business, Target.com.

On Wednesday, June 13, TGT increased its quarterly dividend to 64¢ per share, an increase of 3.23%. The ex-dividend date is August 14 and the dividend will be paid on September 10 to shareholders of record on August 15.

National Fuel Gas (NFG)

Founded in 1902 and based in Williamsville, New York, NFG is engaged in the production, gathering, transportation, distribution, and marketing of natural gas. It also develops and produces oil reserves, primarily in California. As of September 30, 2014, NFG owned approximately 93,000 acres of timber property and manages an additional 3,000 acres of timber cutting rights.

The company declared a quarterly dividend of 42.5¢ per share, an increase of 2.41% over the prior quarterly dividend. The ex-dividend date is June 28 and the dividend will be paid on July 13 to shareholders of record on June 29.

Universal Health Realty (UHT)

UHT is a real estate investment trust. The company invests in healthcare and human service related facilities in the United States, including acute care hospitals, behavioral healthcare facilities, rehabilitation hospitals, sub-acute care facilities, surgery centers, childcare centers, and medical office buildings. UHT was founded in 1986 and is based in King of Prussia, Pennsylvania.

On June 13, the board of directors declared a quarterly dividend of 67¢ per share. The new dividend represents an increase of 0.75%. The dividend is payable on July 3 to shareholders of record on June 25. UHT will trade ex-dividend on June 22.

WP Carey (WPC)

Founded in 1973 and based in New York, WPC is an independent equity REIT (real estate investment trust) engaged in providing long-term sale-leaseback and build-to-suit financing for companies. WPC primarily invests in commercial properties generally triple-net leased to single corporate tenants, including retail, office, warehouse, industrial, logistics, and hotel properties.

The company's board of directors approved an increase in the quarterly dividend of 0.49% to $1.02 per share. The dividend is payable on July 16 to shareholders of record at the close of business on June 29.

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, IR, CAT, and TGT.

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).

IR'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 fair value. An investment in IR in January 2009 would have returned 20.4% on an annualized basis (with dividends included).

CAT's price line is at the stock's normal P/E ratio and above the primary valuation line. The stock is trading at about fair value. An investment in CAT in January 2009 would have returned 15.3% on an annualized basis (with dividends included).

TGT's price line is at the primary valuation line and at the stock's normal P/E ratio. The stock is trading at about fair value. An investment in TGT in January 2009 would have returned 10.9% 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: June 19-July 2, 2018

Company

Ticker

Yield

RecentPrice

Yrs

5-YrDGR

NextDiv.

Ex-DivDate

Pay- ableDate

Agree Realty

ADC

4.01%

$53.89

6

4.80%

$2.16

06/28

07/13

Armada Hoffler Properties

AHH

5.43%

$14.74

6

N/A

$0.80

06/26

07/05

Acadia Realty Trust

AKR

3.94%

$27.42

5

7.60%

$1.08

06/28

07/13

Andersons (The)

ANDE

1.88%

$35.20

16

9.90%

$0.66

06/29

07/23

Air Products & Chem.

APD

2.68%

$164.18

36

8.20%

$4.40

06/29

08/13

Alexandria Real Estate Equities

ARE

2.91%

$127.84

8

11.20%

$3.72

06/28

07/16

Avalonbay Communities

AVB

3.49%

$168.72

7

8.10%

$5.88

06/28

07/16

Broadcom Limited

AVGO

2.59%

$270.23

8

51.10%

$7.00

06/19

06/29

Axis Capital Holdings

AXS

2.76%

$56.55

16

9.60%

$1.56

06/28

07/16

BancFirst OK

BANF

1.36%

$61.70

24

7.20%

$0.84

06/28

07/13

Franklin Resources

BEN

2.71%

$33.96

38

16.90%

$0.92

06/28

07/13

B&G Foods

BGS

6.34%

$29.95

7

12.30%

$1.90

06/28

07/30

Cardinal Health

CAH

3.48%

$54.75

21

15.00%

$1.91

06/29

07/15

Chubb Limited

CB

2.23%

$130.88

24

7.80%

$2.92

06/21

07/13

Cincinnati Financial

CINF

3.07%

$68.99

58

4.20%

$2.12

06/19

07/16

Chatham Lodging Trust

CLDT

6.48%

$20.36

8

12.00%

$1.32

06/28

07/27

Comcast

CMCSA

2.24%

$33.88

11

14.90%

$0.76

07/02

07/25

CyrusOne

CONE

3.18%

$57.88

6

N/A

$1.84

06/28

07/13

CoreSite Realty

COR

3.80%

$108.42

8

38.00%

$4.12

06/28

07/16

CubeSmart

CUBE

3.84%

$31.29

8

27.50%

$1.20

06/29

07/16

Convergys

CVG

1.76%

$25.02

6

30.60%

$0.44

06/21

07/06

Douglas Emmett

DEI

2.57%

$38.86

8

9.70%

$1.00

06/28

07/13

EastGroup Properties

EGP

2.70%

$94.70

6

3.70%

$2.56

06/19

06/29

Equity LifeStyle Properties

ELS

2.40%

$91.83

14

17.50%

$2.20

06/28

07/13

Essex Property Trust

ESS

3.17%

$234.49

24

9.60%

$7.44

06/28

07/13

Flowserve

FLS

1.86%

$40.81

11

10.20%

$0.76

06/21

07/06

First Midwest Bancorp

FMBI

1.66%

$26.55

6

56.90%

$0.44

06/28

07/10

First Industrial Realty Trust

FR

2.64%

$33.01

6

N/A

$0.87

06/28

07/16

Federal Realty Inv. Trust

FRT

3.34%

$119.66

50

7.10%

$4.00

06/21

07/16

P.H. Glatfelter

GLT

2.76%

$18.86

5

7.40%

$0.52

07/02

08/01

Getty Realty

GTY

4.82%

$26.56

6

17.50%

$1.28

06/20

07/05

International Flavors & Fragrances

IFF

2.19%

$126.21

15

15.50%

$2.76

06/22

07/06

Ingredion

INGR

2.09%

$114.84

7

19.50%

$2.40

06/29

07/25

Inter Parfums

IPAR

1.56%

$54.00

9

16.30%

$0.84

06/28

07/13

Illinois Tool Works

ITW

2.10%

$148.65

43

13.30%

$3.12

06/28

07/11

Johnson Controls International

JCI

2.97%

$35.04

7

12.70%

$1.04

06/22

07/13

KAR Auction Services

KAR

2.55%

$54.90

6

N/A

$1.40

06/20

07/05

Kimco Realty

KIM

6.79%

$16.49

8

7.30%

$1.12

07/02

07/16

Kennedy-Wilson Holdings

KW

3.65%

$20.80

8

29.00%

$0.76

06/28

07/05

Lincoln Electric Holdings

LECO

1.67%

$93.37

23

15.50%

$1.56

06/28

07/13

Las Vegas Sands

LVS

3.73%

$80.37

7

23.90%

$3.00

06/19

06/28

Lexington Realty Trust

LXP

8.15%

$8.71

9

5.90%

$0.71

06/28

07/16

Main Street Capital

MAIN

5.88%

$38.80

7

5.50%

$2.28

06/28

07/16

Maiden Holdings

MHLD

6.94%

$8.65

9

13.40%

$0.60

06/29

07/12

Vail Resorts

MTN

2.08%

$282.17

8

41.00%

$5.88

06/26

07/12

National Fuel Gas

NFG

3.23%

$52.67

47

2.60%

$1.70

06/28

07/13

National Healthcare

NHC

2.82%

$70.89

14

9.20%

$2.00

06/28

08/31

National Health Investors

NHI

5.37%

$74.42

16

7.40%

$4.00

06/28

08/10

Nucor

NUE

2.27%

$66.85

45

0.70%

$1.52

06/28

08/10

Pebblebrook Hotel Trust

PEB

3.85%

$39.53

5

25.90%

$1.52

06/28

07/16

Pattern Energy Group

PEGI

8.72%

$19.35

5

N/A

$1.69

06/28

07/31

Philip Morris International

PM

5.57%

$81.88

10

5.80%

$4.56

06/21

07/11

Portland General Electric

POR

3.50%

$41.40

13

4.30%

$1.45

06/22

07/16

QTS Realty Trust

QTS

4.11%

$39.93

5

N/A

$1.64

06/19

07/06

Regal Beloit

RBC

1.36%

$82.40

14

6.20%

$1.12

06/28

07/13

Ramco Gershenson Properties

RPT

6.92%

$12.71

5

6.10%

$0.88

06/19

07/02

Republic Services

RSG

1.98%

$69.87

15

7.80%

$1.38

06/29

07/16

SL Green Realty

SLG

3.27%

$99.32

7

25.40%

$3.25

06/28

07/16

Synovus Financial

SNV

1.81%

$55.27

5

70.10%

$1.00

06/20

07/02

Spirit Realty Capital

SRC

8.78%

$8.20

5

1.90%

$0.72

06/28

07/13

Steel Dynamics

STLD

1.60%

$46.76

8

8.60%

$0.75

06/28

07/13

State Street

STT

1.71%

$98.34

7

11.60%

$1.68

06/29

07/17

Stryker

SYK

1.12%

$168.38

25

14.90%

$1.88

06/28

07/31

Tiffany

TIF

1.61%

$136.27

15

9.30%

$2.20

06/19

07/10

Towne Bank

TOWN

1.96%

$32.60

6

11.40%

$0.64

06/28

07/10

Monotype Imaging Holdings

TYPE

2.13%

$21.80

7

62.20%

$0.46

06/29

07/20

Domtar

UFS

3.68%

$47.31

9

14.30%

$1.74

07/02

07/16

Universal Health Realty Trust

UHT

4.16%

$64.40

32

1.50%

$2.68

06/22

07/03

Umpqua Holdings

UMPQ

3.38%

$23.69

8

15.60%

$0.80

06/28

07/16

Ventas

VTR

5.83%

$54.23

8

7.60%

$3.16

06/29

07/12

Willis Towers Watson

WLTW

1.55%

$154.88

7

14.10%

$2.40

06/28

07/16

W.P. Carey

WPC

6.09%

$67.03

21

11.40%

$4.08

06/28

07/16

Xerox

XRX

3.65%

$27.41

5

14.80%

$1.00

06/28

07/31

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Disclosure: I am/we are long CB, CMCSA, 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.