15 Upcoming Dividend Increases
Summary
- All stocks have at least 5 years of dividend growth history.
- A slight drop from 19 last week to 15 this week.
- 9 of the 15 sport a double-digit increase.
Introduction
The information presented below was created based on combining the "U.S. Dividend Champion" spreadsheet hosted here, with upcoming dividend information from the NASDAQ. This meshes metrics about companies with dividend growth history with upcoming dividend payments (and whether those payments are increasing). These companies all have a minimum 5-year dividend growth history.
This list is a trimmed down version only covering increases. A full upcoming dividend calendar is available here.
Why Should I Care?
Dividend increases are one of the most outward signs by management as to how business is going. Dividend yields also don't live in isolation, share prices tend to follow increases as investors will move into a stock to claim the new payments. All else being equal, a 10% dividend hike should see approximately a 10% share price appreciation over time as the market adjusts to the higher payment. This produces a great flywheel effect whereby an investor can increase their income and see the face value of their investment increase.
Especially for retirees not receiving paychecks, dividend increases help cushion the never ending force of inflation. As an added bonus, companies that grow their dividends by a rate greater than inflation can help investors improve their wealth over time.
What these lists provide is an opportunity for an investor to buy more shares prior to the dividend increase. An investor could start a position or increase their position size prior to the market readjusting to the new and higher dividend rate.
What Is The Ex-Dividend Date?
The "ex-dividend" date is the day you are no longer entitled to the dividend or distribution. You need to have made your purchase by the preceding business day. If the date is a Tuesday, you need to have purchased (or already owned) shares by market close on Monday. Be aware that for any stock going ex-dividend on a Monday (or Tuesday if Monday may be a holiday), you must own it by the prior Friday.
Other Notes
I built this dynamic list to facilitate my own investing, so I hope it helps you too.
Lastly, I have to point out I'm not suggesting a short-term dividend capture strategy. If you are looking to own shares short term, be aware you may be on the hook for a tax for the dividend.
Dividend Streak Categories
Here are the definitions of the streak categories as I'll be using them throughout the piece:
- King: 50+ years
- Champion/Aristocrat: 25+ years
- Contender: 10-24 years
- Challenger: 5+ years
Fun Facts
| Category | Count |
| King | 0 |
| Champion | 1 |
| Contender | 3 |
| Challenger | 11 |
The Main List
The data is sorted by the ex-dividend day (ascending) and then the streak (descending).
| Name | Ticker | Streak | Forward Yield | Ex-Div Date | Increase Percent | Streak Category |
| Magellan Midstream Partners L.P. Limited Partnership | (MMP) | 18 | 5.32 | 6-Aug-18 | 2.03% | Contender |
| Reinsurance Group of America, Incorporated | (RGA) | 9 | 1.69 | 6-Aug-18 | 20.00% | Challenger |
| BankFinancial Corporation | (BFIN) | 5 | 2.4 | 7-Aug-18 | 11.11% | Challenger |
| Territorial Bancorp Inc. | (TBNK) | 8 | 2.89 | 8-Aug-18 | 10.00% | Challenger |
| Starbucks Corporation | (SBUX) | 8 | 2.77 | 8-Aug-18 | 20.00% | Challenger |
| PPG Industries, Inc. | (PPG) | 46 | 1.75 | 9-Aug-18 | 6.67% | Champion |
| BB&T Corporation | (BBT) | 8 | 3.17 | 9-Aug-18 | 8.00% | Challenger |
| Penske Automotive Group, Inc. | (PAG) | 8 | 2.8 | 9-Aug-18 | 2.86% | Challenger |
| Washington Federal, Inc. | (WAFD) | 8 | 2.11 | 9-Aug-18 | 5.88% | Challenger |
| Bassett Furniture Industries, Incorporated | (BSET) | 7 | 2.06 | 9-Aug-18 | 13.64% | Challenger |
| Wells Fargo & Company | (WFC) | 7 | 2.98 | 9-Aug-18 | 10.26% | Challenger |
| Two River Bancorp | (TRCB) | 5 | 1.18 | 9-Aug-18 | 22.22% | Challenger |
| Landstar System, Inc. | (LSTR) | 14 | 0.6 | 10-Aug-18 | 10.00% | Contender |
| BOK Financial Corporation | (BOKF) | 13 | 2.03 | 10-Aug-18 | 11.11% | Contender |
| Comfort Systems USA, Inc. | (FIX) | 6 | 0.61 | 10-Aug-18 | 6.25% | Challenger |
Field Definitions
Streak: This is years of dividend growth history sourced from the U.S. Dividend Champions spreadsheet. Here are some definitions to clarify the fields.
Forward Yield: This is the new payout rate divided by the current share price.
Ex-Dividend Date: This is the date you need to own the stock by.
Increase Percent: The amount the dividend is being increased.
Streak Category: This is the overall dividend history classification of the company.
Additional Metrics
Here are some additional metrics related to these companies, including yearly pricing action and the P/E ratio. This table is sorted in exactly the same way as the table above. The value investor may find stock ideas with those companies near their 52-week low.
| Ticker | Current Price | 52 Week Low | 52 Week High | PE Ratio | % Off Low | % Off High |
| MMP | 71.97 | 54.82 | 75.82 | 19.17 | 30% Off Low | 5% Off High |
| RGA | 142.35 | 126.62 | 165.12 | 5.35 | 10% Off Low | 14% Off High |
| BFIN | 16.66 | 14.79 | 18.62 | 23.14 | 10% Off Low | 9% Off High |
| TBNK | 30.42 | 27.77 | 32.59 | 17.79 | 10% Off Low | 6% Off High |
| SBUX | 51.93 | 47.37 | 61.94 | 16.28 | 8% Off Low | 16% Off High |
| PPG | 109.73 | 100.36 | 122.07 | 18.95 | 9% Off Low | 9% Off High |
| BBT | 51.11 | 42.99 | 56.31 | 14.86 | 19% Off Low | 9% Off High |
| PAG | 51.35 | 38.33 | 54.83 | 6.59 | 35% Off Low | 4% Off High |
| WAFD | 34.05 | 29.8 | 37.7 | 14.87 | 11% Off Low | 11% Off High |
| BSET | 24.3 | 24 | 40.93 | 20.25 | 4% Off Low | 38% Off High |
| WFC | 57.65 | 49.27 | 66.31 | 14.63 | 16% Off Low | 12% Off High |
| TRCB | 18.67 | 16.51 | 20.75 | 20.52 | 13% Off Low | 10% Off High |
| LSTR | 110.75 | 78.87 | 118.6 | 20.4 | 38% Off Low | 6% Off High |
| BOKF | 98.47 | 77.1 | 107 | 17 | 25% Off Low | 8% Off High |
| FIX | 55.35 | 31.9 | 59.05 | 26.36 | 69% Off Low | 6% Off High |
Tickers By Yield (With Growth Rates)
Some investors are more interested in current yield, so this table is sorted descending by yield. This also includes some of the historical dividend growth rates as a bonus. Additionally, the "Chowder Rule" has been included. That is the current yield plus the 5-year dividend growth rate.
| Ticker | Yield | 1 Yr DG | 3 Yr DG | 5 Yr DG | 10 Yr DG | Chowder Rule |
| MMP | 5.32 | 8.6 | 12 | 14.6 | 10.9 | 19.8 |
| BBT | 3.17 | 9.6 | 9.9 | 10.6 | -3.3 | 13 |
| WFC | 2.98 | 1.7 | 4.5 | 11.8 | 2.7 | 14.6 |
| TBNK | 2.89 | 11.1 | 10.1 | 12.7 | 15.3 | |
| PAG | 2.8 | 14.5 | 17.3 | 22.3 | 15.4 | 25 |
| SBUX | 2.77 | 23.5 | 24.1 | 23.9 | 26 | |
| BFIN | 2.4 | 33.3 | 51.8 | 47.6 | 0 | 49.4 |
| WAFD | 2.11 | 7.1 | 12.6 | 13.4 | -3.2 | 15.4 |
| BSET | 2.06 | 10.5 | 14.5 | 16 | -6.2 | 17.5 |
| BOKF | 2.03 | 2.3 | 3 | 3.8 | 9 | 5.5 |
| PPG | 1.75 | 9 | 9.1 | 7.8 | 5.2 | 9.5 |
| RGA | 1.69 | 16.7 | 13 | 16.7 | 18 | |
| TRCB | 1.18 | 19 | 17.5 | |||
| FIX | 0.61 | 7.3 | 9.4 | 8.1 | 7 | 8.7 |
| LSTR | 0.6 | 11.8 | 13.5 | 10.6 | 10.9 | 11.1 |
Bonus Chart
Starbucks is one of my long term favorite dividend growth ideas. The company has recently been going through the painful transition from a growth to a value stock. Multiple compression has been the main reason for the share price stutter the past few years.
That said, management has a $25B capital return program setup through FY20. Expect large yearly dividend increases for several years compounded through share repurchases and overall earnings growth.
Main risks include a saturated US market which has been showing through virtually no growth in same store sales. China growth has also been hit or miss.
Conclusion
I hope you are able to find this information valuable. Let me know if you want to see additional data points or what may help make this more useful.
As always, do your due diligence on any stock before buying or selling.
This article was written by
Analyst’s Disclosure: I am/we are long SBUX. 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.
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