24 Upcoming Dividend Increases Including 2 Kings

|
Includes: AWR, CAKE, CCOI, CSL, DUK, EBMT, HOMB, HP, KR, LNN, ODC, PBFX, PFS, R, RMD, SEP, SJM, SMBC, SPG, SSB, TGT, THE, WBA, WTR, ZION
by: Dividend Derek

Summary

All stocks have at least 5 years of dividend growth history.

A good uptick to 24 companies from 15 last week.

5 of the 25 sport a double-digit increase.

2 Dividend Kings, Target and American States Water Company, announced increases.

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 2
Champion 4
Contender 8
Challenger 10

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
American States Water Company (AWR) 63 1.84 14-Aug-18 7.84% King
Target Corporation (TGT) 50 3.11 14-Aug-18 3.23% King
Spectra Energy Partners, LP Common Units representing Limited Partner Interests (SEP) 12 8.09 14-Aug-18 1.73% Contender
Kroger Company (The) (KR) 12 1.83 14-Aug-18 12.00% Contender
Home BancShares, Inc. - common stock (HOMB) 7 2.04 14-Aug-18 9.09% Challenger
Provident Financial Services, Inc (PFS) 7 3.32 14-Aug-18 5.00% Challenger
Southern Missouri Bancorp, Inc. (SMBC) 6 1.32 14-Aug-18 18.18% Challenger
The Cheesecake Factory Incorporated (CAKE) 6 2.66 14-Aug-18 13.79% Challenger
PBF Logistics LP Common Units representing limited partner interests (PBFX) 5 8.92 14-Aug-18 1.02% Challenger
ResMed Inc. (RMD) 6 1.37 15-Aug-18 5.71% Challenger
Zions Bancorporation (ZION) 6 2.24 15-Aug-18 25.00% Challenger
Helmerich & Payne, Inc. (HP) 45 4.6 16-Aug-18 1.43% Champion
Aqua America, Inc. (WTR) 25 2.36 16-Aug-18 6.83% Champion
J.M. Smucker Company (The) New (SJM) 20 3.04 16-Aug-18 8.97% Contender
Eagle Bancorp Montana, Inc. (EBMT) 18 1.94 16-Aug-18 2.78% Contender
Oil Dri Corporation Of America (ODC) 15 2.33 16-Aug-18 4.35% Contender
Lindsay Corporation (LNN) 15 1.35 16-Aug-18 3.33% Contender
Duke Energy Corporation (Holding Company) (DUK) 13 4.61 16-Aug-18 4.27% Contender
Simon Property Group, Inc. (SPG) 9 4.54 16-Aug-18 2.56% Challenger
Cogent Communications Holdings, Inc. (CCOI) 7 4.34 16-Aug-18 3.85% Challenger
South State Corporation (SSB) 7 1.66 16-Aug-18 2.94% Challenger
Walgreens Boots Alliance, Inc. (WBA) 42 2.65 17-Aug-18 10.00% Champion
Carlisle Companies Incorporated (CSL) 41 1.27 17-Aug-18 8.11% Champion
Ryder System, Inc. (R) 14 2.75 17-Aug-18 3.85% Contender

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
AWR 59.68 47.53 61.66 36.16 26% Off Low 2% Off High
TGT 82.39 53.9 82.8 15.12 52% Off Low 0% Off High
SEP 37.81 29.89 45.7 38.36 15% Off Low 15% Off High
KR 30.61 19.69 31.45 7.36 52% Off Low 3% Off High
HOMB 23.58 20.82 25.89 21.63 12% Off Low 9% Off High
PFS 25.29 23.23 29.12 17.56 8% Off Low 13% Off High
SMBC 39.27 30.76 41.49 16.43 27% Off Low 5% Off High
CAKE 49.58 38.34 60.19 16.69 29% Off Low 16% Off High
PBFX 22.2 17.75 22.7 11.44 23% Off Low 1% Off High
RMD 107.92 72.44 109.97 49.28 47% Off Low 2% Off High
ZION 53.68 41.23 59.19 16.59 29% Off Low 9% Off High
HP 61.75 42.16 75.02 14.92 45% Off Low 17% Off High
WTR 37.21 32.37 39.55 26.77 14% Off Low 6% Off High
SJM 111.91 96.13 133.38 9.5 16% Off Low 15% Off High
EBMT 19.1 17.35 21.95 20.99 10% Off Low 13% Off High
ODC 41.15 35.42 50.82 44.73 16% Off Low 15% Off High
LNN 92.09 83.57 103.03 45.82 9% Off Low 11% Off High
DUK 80.43 71.96 91.8 20.36 11% Off Low 12% Off High
SPG 176.28 145.78 179.45 25.95 20% Off Low 1% Off High
CCOI 49.8 35.75 57.65 216.52 39% Off Low 12% Off High
SSB 84.15 78.6 94.5 23.92 5% Off Low 11% Off High
WBA 66.49 59.07 83.89 15.54 11% Off Low 19% Off High
CSL 126.39 92.09 126.92 23.97 35% Off Low New High
R 78.53 65.65 90.26 5.38 18% Off Low 13% 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
PBFX 8.92 9.4 59.3
SEP 8.09 7.6 8 8 25.2 17.6
DUK 4.61 3.9 3.5 2.9 3.1 7.8
HP 4.6 0.9 2.2 58.5 31.6 62.8
SPG 4.54 10 12.7 13.2 8.5 17.9
CCOI 4.34 19.2 15.4 53.7 57.6
PFS 3.32 9.9 9.1 8.9 6.4 11.7
TGT 3.11 5.2 8.7 13.1 16.7 16.3
SJM 3.04 7.7 7.8 8.9 10 11.9
R 2.75 5.9 8.2 8.4 7.9 11.4
CAKE 2.66 20.5 20.2 34.6 36.8
WBA 2.65 5.4 5.9 9.2 16.2 11.7
WTR 2.36 7.2 7.7 8.1 7.5 10.5
ODC 2.33 4.7 4.9 5.2 6.1 7.3
ZION 2.24 57.1 40.1 61.5 -12.5 62.9
HOMB 2.04 16.8 31.7 28.9 21.9 30.8
EBMT 1.94 7.9 4.8 3.6 3.4 5.5
AWR 1.84 8.8 6.2 9.4 7.6 11.3
KR 1.83 8.9 13 14.6 12.9 16.6
SSB 1.66 9.1 17.2 13.9 7 15.3
RMD 1.37 7.9 8.7 32 33.3
LNN 1.35 3.5 3.6 23.5 15.9 24.7
SMBC 1.32 10.5 8.4 9.2 8.3 10.4
CSL 1.27 10.8 15.3 13.6 9.9 14.9

Bonus Charts

I feel compelled to include some charts whenever a Dividend King announces a hike. Enjoy these charts for Target and American States Water Company. I'll leave you to draw your own conclusions.

Finally, here is a bonus total return chart for the past 10 years covering TGT, AWR and SPY for comparison. AWR is the light green, TGT is black and SPY is the blue line.

And the detailed breakdown of how those numbers were generated:

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.

Disclosure: I am/we are long DUK.

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.

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.