4 Dividend Increases: September 3-7, 2018

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Includes: AMT, CB, EGP, KO, MAIN, MO, RCL, TROW, VZ, XEL
by: FerdiS
Summary

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

Monitoring dividend increases for stocks on my watch is one way to identify candidates for further analysis.

This past week, four companies on my watch list decided to increase their dividends, including one of the stocks I own.

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

I use the CCC List as a starting point and apply 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, four companies passing these screens declared dividend increases, including one of the stocks I hold in my portfolio. 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: September 3-7, 2018

Previous Post: 3 Dividend Increases: August 27-31, 2018

Royal Caribbean Cruises (RCL)

Founded in 1968 and headquartered in Miami, Florida, RCL operates cruises under various brands, including Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises. RCL’s cruise itineraries range from 2 to 24 nights with options for onboard dining, entertainment, personalized services, spa facilities, and shore excursions.

On Thursday, September 6, the company increased its quarterly dividend by 16.67% to 70¢ per share. The dividend is payable on October 11 to shareholders of record on September 21. The stock will trade ex-dividend on September 20.

EastGroup Properties (EGP)

EGP is an equity real estate investment trust focused on the development, acquisition, and operation of industrial properties in the United States. The company’s properties are located mainly in the states of Florida, Texas, Arizona, California, and North Carolina. EGP was founded in 1969 and is headquartered in Jackson, Mississippi

On Friday, September 7, EGP increased its quarterly dividend to 72¢ per share, an increase of 12.50%. The dividend is payable on October 15 to shareholders of record on September 28. The stock will trade ex-dividend on September 27.

American Tower (AMT)

AMT is a real estate investment trust that owns, develops, and operates multi-tenant communications sites across the globe. Customers include wireless service providers, radio and television broadcast companies, wireless data and data providers, government agencies, and municipalities. AMT was founded in 1995 and is headquartered in Boston, Massachusetts.

On Friday, September 7, the company increased its quarterly dividend by 2.60% to 79¢ per share. The dividend is payable on October 17 to shareholders of record on September 28.

Verizon Communications (VZ)

VZ provides communications, information and entertainment products and services to consumers, businesses, and governmental agencies worldwide. Formerly known as Bell Atlantic Corporation, the company changed its name to Verizon Communications Inc in June 2000. VZ was founded in 1983 and is based in New York, New York.

VZ will pay a quarterly dividend of 60.25¢ per share, an increase of 2.12% over the previous quarterly dividend. The dividend is payable on November 1 to shareholders of record at the close of business on October 10.

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, RCL, AMT, and VZ.

In these charts, the black line represents the share price, and the blue line represents the calculated P/E (or P/AFFO) 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 time frame in question. (The Adjusted Earnings Growth Rate represents the slope of the orange line in the chart).

RCL's price line (black) is at the primary valuation line (orange) and below the stock's normal P/E ratio (blue). The stock is trading at a discount to fair value. An investment in RCL in January 2009 would have returned 26.4% on an annualized basis (with dividends included).

AMT's price line is below the stock's normal P/AFFO ratio and above the primary valuation line. The stock is trading at about fair value. An investment in AMT in January 2012 would have returned 18.9% on an annualized basis (with dividends included).

VZ'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 to fair value. An investment in VZ in January 2009 would have returned 10.3% 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: September 11-24, 2018

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Pay-
able

Date

American Assets Trust

AAT

2.81%

$38.45

7

4.60%

$1.08

09/12

09/27

Automatic Data Processing

ADP

1.88%

$146.73

43

10.60%

$2.76

09/13

10/01

Federal Agricultural Mortgage

AGM

2.97%

$78.24

7

29.20%

$2.32

09/13

09/28

Altra Industrial Motion

AIMC

1.74%

$39.05

6

45.00%

$0.68

09/14

10/02

Albemarle

ALB

1.38%

$97.19

24

10.30%

$1.34

09/13

10/01

Preferred Apartment Communities

APTS

5.88%

$17.36

8

12.40%

$1.02

09/13

10/15

Broadcom Limited

AVGO

3.01%

$232.58

8

51.10%

$7.00

09/18

09/28

Best Buy

BBY

2.30%

$78.19

15

14.90%

$1.80

09/17

10/09

Briggs & Stratton

BGG

2.77%

$20.20

6

4.00%

$0.56

09/17

10/03

Big Lots

BIG

2.79%

$43.03

5

N/A

$1.20

09/13

09/28

Broadridge Financial Solutions

BR

1.42%

$136.20

12

15.50%

$1.94

09/17

10/03

BancorpSouth

BXS

1.96%

$34.65

6

66.70%

$0.68

09/13

10/01

Chubb Limited

CB

2.14%

$136.61

25

7.80%

$2.92

09/20

10/12

Community Bank System

CBU

2.31%

$65.94

26

4.20%

$1.52

09/13

10/10

Chico's FAS

CHS

4.00%

$8.51

9

9.50%

$0.34

09/14

10/01

Cincinnati Financial

CINF

2.75%

$77.16

58

4.20%

$2.12

09/18

10/15

Comerica

CMA

2.47%

$97.28

9

16.70%

$2.40

09/13

10/01

Chesapeake Utilities

CPK

1.69%

$87.65

15

5.90%

$1.48

09/13

10/05

CSG Systems International

CSGS

2.22%

$37.83

6

N/A

$0.84

09/11

09/27

Community Trust Bancorp

CTBI

2.93%

$49.20

38

2.70%

$1.44

09/13

10/01

Convergys

CVG

1.79%

$24.59

7

30.60%

$0.44

09/20

10/02

Digital Realty Trust

DLR

3.29%

$122.65

14

5.00%

$4.04

09/13

09/28

DTE Energy

DTE

3.13%

$112.96

9

6.70%

$3.53

09/14

10/15

Ecolab

ECL

1.07%

$153.35

26

13.10%

$1.64

09/17

10/15

El Paso Electric

EE

2.32%

$62.05

8

6.30%

$1.44

09/13

09/28

Eastman Chemical

EMN

2.31%

$97.10

8

14.40%

$2.24

09/13

10/05

Extra Space Storage

EXR

3.82%

$90.13

9

31.60%

$3.44

09/13

09/28

FBL Financial Group

FFG

2.26%

$81.35

8

34.50%

$1.84

09/13

09/28

Financial Institutions

FISI

2.97%

$32.30

8

8.30%

$0.96

09/12

10/02

Flowserve

FLS

1.44%

$52.63

11

10.20%

$0.76

09/20

10/05

Fidelity National Financial

FNF

3.00%

$40.03

7

16.40%

$1.20

09/13

09/28

Franco-Nevada

FNV

1.57%

$61.01

11

11.00%

$0.96

09/12

09/27

Forrester Research

FORR

1.67%

$47.85

7

6.30%

$0.80

09/11

09/26

Federal Realty Investment Trust

FRT

3.15%

$129.70

51

7.10%

$4.08

09/20

10/15

GATX

GATX

2.12%

$83.08

8

7.00%

$1.76

09/13

09/30

GameStop

GME

9.42%

$16.13

6

13.70%

$1.52

09/17

10/02

Getty Realty

GTY

4.46%

$28.68

6

17.50%

$1.28

09/19

10/04

Huntington Bancshares

HBAN

3.45%

$16.25

8

14.90%

$0.56

09/14

10/01

Hillenbrand

HI

1.61%

$51.50

11

1.30%

$0.83

09/13

09/28

Horace Mann Educators

HMN

2.44%

$46.70

9

14.90%

$1.14

09/13

09/28

Harley-Davidson

HOG

3.34%

$44.37

8

18.70%

$1.48

09/17

09/28

HP

HPQ

2.25%

$24.71

8

17.40%

$0.56

09/11

10/03

International Flavors & Fragrances

IFF

2.30%

$127.06

16

15.50%

$2.92

09/21

10/05

Iron Mountain

IRM

6.65%

$35.36

8

16.20%

$2.35

09/14

10/02

J&J Snack Foods

JJSF

1.21%

$148.21

14

26.40%

$1.80

09/13

10/04

KAR Auction Services

KAR

2.20%

$63.65

6

N/A

$1.40

09/19

10/03

Coca-Cola

KO

3.41%

$45.72

56

7.40%

$1.56

09/13

10/01

Kohl's

KSS

3.04%

$80.25

8

11.40%

$2.44

09/11

09/26

Lamar Advertising

LAMR

4.69%

$77.60

5

N/A

$3.64

09/13

09/28

Lam Research

LRCX

2.76%

$159.58

5

N/A

$4.40

09/11

09/26

Las Vegas Sands

LVS

4.95%

$60.62

7

23.90%

$3.00

09/18

09/27

Macy's

M

4.25%

$35.51

7

16.60%

$1.51

09/13

10/01

Main Street Capital

MAIN

5.87%

$39.83

8

5.50%

$2.34

09/19

10/15

MB Financial

MBFI

1.97%

$48.71

7

44.50%

$0.96

09/13

09/28

Mercury General

MCY

4.68%

$53.44

31

0.40%

$2.50

09/12

09/27

MDU Resources

MDU

2.85%

$27.72

27

2.80%

$0.79

09/12

10/01

Methanex

MEOH

1.83%

$72.20

8

10.10%

$1.32

09/13

09/30

Altria Group

MO

5.25%

$60.93

49

8.30%

$3.20

09/13

10/10

Medical Properties Trust

MPW

6.72%

$14.89

5

3.50%

$1.00

09/12

10/11

Merck & Co.

MRK

2.76%

$69.67

7

2.30%

$1.92

09/14

10/05

Motorola Solutions

MSI

1.64%

$126.79

8

15.40%

$2.08

09/13

10/15

Nasdaq

NDAQ

1.89%

$93.15

7

30.20%

$1.76

09/13

09/28

NewMarket

NEU

1.77%

$396.16

13

18.00%

$7.00

09/14

10/01

New Jersey Resources

NJR

2.33%

$46.75

22

6.10%

$1.09

09/20

10/01

Northern Trust

NTRS

2.08%

$105.99

7

6.10%

$2.20

09/13

10/01

NorthWestern

NWE

3.64%

$60.39

14

7.20%

$2.20

09/13

09/28

Omnicom Group

OMC

3.43%

$69.87

9

13.90%

$2.40

09/20

10/10

Owens & Minor

OMI

5.77%

$18.03

21

3.20%

$1.04

09/14

10/01

Prosperity Bancshares

PB

1.91%

$75.20

19

11.20%

$1.44

09/13

10/01

Packaging Corp. America

PKG

2.82%

$111.91

8

21.50%

$3.16

09/13

10/15

Prologis

PLD

2.91%

$66.00

5

9.50%

$1.92

09/14

09/28

Douglas Dynamics

PLOW

2.26%

$47.00

9

3.10%

$1.06

09/17

09/28

PolyOne

POL

1.66%

$42.11

8

23.20%

$0.70

09/13

10/04

Portland General Electric

POR

3.08%

$47.04

13

4.30%

$1.45

09/24

10/15

Public Storage

PSA

3.83%

$209.11

8

12.70%

$8.00

09/11

09/27

QTS Realty Trust

QTS

3.61%

$45.41

5

N/A

$1.64

09/19

10/04

Republic Bancorp KY

RBCAA

1.97%

$49.14

20

6.10%

$0.97

09/20

10/19

Royal Caribbean Cruises

RCL

2.25%

$124.36

7

37.20%

$2.80

09/20

10/11

RenaissanceRe Holdings

RNR

1.05%

$125.84

23

3.50%

$1.32

09/13

09/28

Retail Opportunity Investments

ROIC

4.03%

$19.36

9

7.20%

$0.78

09/12

09/27

Ramco Gershenson Properties

RPT

6.37%

$13.82

5

6.10%

$0.88

09/19

10/01

Service Corp. International

SCI

1.62%

$41.86

8

21.40%

$0.68

09/13

09/28

Simmons First National

SFNC

1.88%

$31.90

7

4.60%

$0.60

09/13

10/05

Synovus Financial

SNV

2.02%

$49.59

5

70.10%

$1.00

09/19

10/01

SpartanNash

SPTN

3.42%

$21.05

8

16.70%

$0.72

09/13

09/28

Sempra Energy

SRE

3.06%

$116.85

15

7.20%

$3.58

09/20

10/15

Stock Yards Bancorp

SYBT

2.58%

$38.80

9

9.30%

$1.00

09/14

10/01

Trico Bancshares

TCBK

1.73%

$39.32

5

12.90%

$0.68

09/13

09/28

Taubman Centers

TCO

4.16%

$63.03

9

6.20%

$2.62

09/14

09/28

Telephone & Data Systems

TDS

2.18%

$29.37

44

4.80%

$0.64

09/13

09/28

Hanover Insurance Group (THE)

THG

1.77%

$121.78

13

10.60%

$2.16

09/13

09/28

Tiffany & Co.

TIF

1.79%

$122.87

16

9.30%

$2.20

09/19

10/10

T. Rowe Price Group

TROW

2.60%

$107.73

32

10.90%

$2.80

09/13

09/28

United Bankshares

UBSI

3.46%

$39.35

44

1.30%

$1.36

09/13

10/01

United Community Banks

UCBI

1.99%

$30.11

5

N/A

$0.60

09/13

10/05

UGI

UGI

1.92%

$54.16

31

6.60%

$1.04

09/13

10/01

Universal Health Realty Income Trust

UHT

3.55%

$75.41

33

1.50%

$2.68

09/14

09/28

Vector Group

VGR

10.20%

$15.69

20

5.00%

$1.60

09/17

09/27

Worthington Industries

WOR

2.03%

$45.32

8

10.40%

$0.92

09/13

09/28

Weyerhaeuser

WY

3.99%

$34.06

8

15.10%

$1.36

09/13

09/28

Xcel Energy

XEL

3.12%

$48.67

15

6.00%

$1.52

09/13

10/20

XL Group Plc

XL

1.54%

$57.18

5

14.90%

$0.88

09/13

10/01

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Disclosure: I am/we are long CB, KO, MAIN, MO, TROW, XEL, VZ. 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.