5 Dividend Increases: June 25-29, 2018

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Includes: ABBV, CSCO, DGX, DIS, GBCI, GD, HASI, HRL, KR, KRG, LNN, RTN, T, VZ, WBA, WOR
by: FerdiS

Summary

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

I monitor dividend increases for dividend growth stocks to identify candidates for further analysis.

In the past week, five companies decided to increase their dividends, including one of my DivGro holdings.

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 that regularly raise 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, five companies passing these screens announced dividend increases, including one of the stocks I own. The table below presents 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 25-29, 2018

Previous Post: 5 Dividend Increases: June 18-22, 2018

Glacier Bancorp (GBCI)

Incorporated in 2004, GBCI is a bank holding company that provides commercial banking services in Montana, Idaho, Wyoming, Colorado, Utah, and Washington. The company offers a range of banking products and services, including transaction and savings deposits; real estate, commercial, agriculture, and consumer loans; and mortgage origination services. GBCI is headquartered in Kalispell, Montana.

Recently, GBCI increased its quarterly dividend to 26¢ per share, an increase of 13.04% over the prior dividend of 23¢ per share. The dividend is payable July 19, with an ex-dividend date of July 9.

Kroger (KR)

KR, along with its subsidiaries, operates retail food and drug stores, multi-department stores, jewelry stores, and convenience stores across the United States. The company's banner brands include Kroger, Ralphs, Fred Meyer, and King Soopers, as well as Simple Truth and Simple Truth Organic. KR was founded in 1883 and is headquartered in Cincinnati, Ohio.

On June 28, the board of directors declared a quarterly dividend of 14¢ per share. The new dividend represents an increase of 12.00%. All shareholders of record on August 15 will receive the new dividend on September 1.

Walgreens Boots Alliance (WBA)

WBA operates a network of drugstores in the United States. The company sells prescription and non-prescription drugs as well as general merchandise products, including household items, convenience and fresh foods, personal and beauty care products, and photofinishing services. WBA was founded in 1901 and is based in Deerfield, Illinois.

On June 28, the company declared a dividend of 44¢ per share. The new dividend represents a 10.00% increase. The first payment will be on September 12 to shareholders of record on August 20. The ex-dividend date is August 17.

Worthington Industries (WOR)

WOR is a metals manufacturing company focused on value-added steel processing and manufactured metal products. The company processes flat-rolled steel for other processors and various end markets. It manufactures various end-market products, including pressure cylinders, tanks, and cabs for heavy mobile equipment. WOR was founded in 1955 and is headquartered in Columbus, Ohio.

WOR will pay a quarterly dividend of 23¢ per share, an increase of 9.52% over the previous quarterly dividend. The first payment will be on September 28 to shareholders of record on September 14. The ex-dividend date is September 13.

Lindsay (LNN)

Founded in 1954 and headquartered in Omaha, Nebraska, LNN provides a range of water management and road infrastructure products and services. The company manufactures center pivot, lateral move, and hose reel irrigation systems, as well as moveable and specialty barriers, crash cushions, and end terminals, and road marking and safety equipment.

On June 27, the company declared a dividend of 31¢ per share. The new dividend represents a 3.33% increase. LNN will trade ex-dividend on August 16. The dividend is payable on August 21 to shareholders of record on August 17.

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, GBCI, KR, and WBA.

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).

GBCI's price line (black) is above 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 GBCI in January 2009 would have returned 12% on an annualized basis (with dividends included).

KR's price line is at the stock's normal P/E ratio and below the primary valuation line. The stock is trading at about fair value. An investment in KR in January 2009 would have returned 11.5% on an annualized basis (with dividends included).

WBA'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 fair value. An investment in WBA in January 2009 would have returned 10.5% 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: Dividend Increases: July 3-16, 2018

Company

Ticker

Yield

Recent Price

Yrs

5-Yr DGR

NextDiv.

Ex-DivDate

Payable Date

AbbVie

ABBV

4.14%

$92.78

6

N/A

$3.84

07/12

08/15

ABM Industries

ABM

2.40%

$29.12

51

3.20%

$0.70

07/03

08/06

Abbott Laboratories

ABT

1.85%

$60.64

5

1.90%

$1.12

07/12

08/15

AZZ

AZZ

1.59%

$42.90

6

5.70%

$0.68

07/16

07/31

Banner

BANR

2.31%

$60.49

6

89.60%

$1.40

07/09

07/19

Saul Centers

BFS

3.89%

$53.44

5

7.20%

$2.08

07/16

07/31

Bristol-Myers Squibb

BMY

2.93%

$54.58

9

2.80%

$1.60

07/05

08/01

Brady

BRC

2.16%

$38.50

32

2.00%

$0.83

07/09

07/31

Brixmor Property Group

BRX

6.38%

$17.24

5

N/A

$1.10

07/05

07/16

Cracker Barrel Old Country

CBRL

3.25%

$154.00

15

27.40%

$5.00

07/12

08/06

City Holding

CHCO

2.43%

$75.63

7

4.70%

$1.84

07/12

07/31

Cisco Systems

CSCO

3.12%

$42.37

8

25.70%

$1.32

07/05

07/25

Quest Diagnostics

DGX

1.82%

$109.86

7

21.50%

$2.00

07/06

07/23

Walt Disney

DIS

1.61%

$104.32

8

21.10%

$1.68

07/06

07/26

Erie Indemnity

ERIE

2.87%

$117.08

28

7.20%

$3.36

07/05

07/20

Ethan Allen Interiors

ETH

3.13%

$24.25

7

16.30%

$0.76

07/09

07/25

First Long Island

FLIC

2.40%

$25.05

22

6.40%

$0.60

07/09

07/19

Glacier Bancorp

GBCI

2.67%

$38.91

7

9.40%

$1.04

07/09

07/19

General Dynamics

GD

1.99%

$187.05

27

10.40%

$3.72

07/05

08/10

Graco

GGG

1.18%

$44.81

21

9.90%

$0.53

07/12

08/01

General Growth Properties

GGP

4.31%

$20.40

8

16.70%

$0.88

07/12

07/31

General Mills

GIS

4.46%

$43.93

14

8.80%

$1.96

07/09

08/01

Gentex

GNTX

1.93%

$22.82

8

8.30%

$0.44

07/05

07/18

Hannon Armstrong Sustainable Infrastructure Capital

HASI

6.78%

$19.48

5

N/A

$1.32

07/03

07/12

Horizon Bancorp

HBNC

1.94%

$20.66

8

15.30%

$0.40

07/05

07/20

Hormel Foods

HRL

2.02%

$37.13

52

17.80%

$0.75

07/13

08/15

Healthcare Trust America

HTA

4.60%

$26.55

6

25.70%

$1.22

07/03

07/10

JPMorgan Chase & Co.

JPM

2.15%

$104.30

7

12.10%

$2.24

07/05

07/31

Kite Realty Group Trust

KRG

7.54%

$16.84

5

4.70%

$1.27

07/05

07/13

Lincoln National

LNC

2.11%

$62.66

8

29.40%

$1.32

07/09

08/01

Mid-America Apartment Communities

MAA

3.70%

$99.72

8

5.70%

$3.69

07/12

07/31

Medtronic plc

MDT

2.35%

$85.16

40

12.00%

$2.00

07/05

07/25

McGrath RentCorp

MGRC

2.13%

$63.71

26

2.10%

$1.36

07/16

07/31

McCormick & Company

MKC

1.79%

$115.95

32

8.70%

$2.08

07/06

07/23

Marsh & McLennan

MMC

2.02%

$81.99

8

9.70%

$1.66

07/10

08/15

MSC Industrial Direct

MSM

2.78%

$83.48

16

11.80%

$2.32

07/09

07/24

NetApp

NTAP

2.02%

$79.19

6

N/A

$1.60

07/05

07/25

OGE Energy

OGE

3.80%

$35.04

11

9.60%

$1.33

07/09

07/30

Oracle

ORCL

1.71%

$44.34

9

24.60%

$0.76

07/16

07/31

Patterson

PDCO

4.61%

$22.56

8

13.60%

$1.04

07/12

07/27

Preferred Bank

PFBC

1.54%

$65.14

5

N/A

$1.00

07/05

07/20

Royal Gold

RGLD

1.07%

$93.03

17

9.90%

$1.00

07/05

07/20

Raytheon

RTN

1.79%

$193.90

14

10.10%

$3.47

07/10

08/02

Sysco

SYY

2.12%

$67.95

48

4.10%

$1.44

07/05

07/27

AT&T

T

6.20%

$32.24

34

2.20%

$2.00

07/09

08/01

Trinity Industries

TRN

1.52%

$34.31

7

19.10%

$0.52

07/12

07/31

Terreno Realty

TRNO

2.35%

$37.43

7

13.30%

$0.88

07/05

07/20

Urstadt Biddle Properties

UBA

4.81%

$22.47

24

1.40%

$1.08

07/05

07/20

UDR

UDR

3.47%

$37.16

8

7.00%

$1.29

07/09

07/31

Universal Corporation

UVV

4.57%

$65.70

47

2.00%

$3.00

07/06

08/06

Verizon Communications

VZ

4.72%

$50.05

13

2.90%

$2.36

07/09

08/01

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Disclosure: I am/we are long ABBV, CSCO, DGX, DIS, GD, HASI, HRL, KRG, RTN, T, VZ, 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.