4 Dividend Increases: September 10-14, 2018

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Includes: BRC, CB, ES, INGR, ITW, MAIN, MDT, NJR, UMPQ
by: FerdiS

Summary

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

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.

This week, 4 companies declared dividend increases.

Monitoring dividend increases for stocks on my watch list is one way to identify candidates for further analysis. Companies can only increase their dividends regularly and sustainably if earnings grow sufficiently.

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

  • Dividend Yield ≥ 1.0%
  • Market cap ≥ $1 billion
  • No stocks that are being acquired
  • No Over-The-Counter or Pink Sheet stocks

In the past week, 4 companies that declared dividend increases passed these screens.

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: September 10-14, 2018

Previous Post: 4 Dividend Increases: September 3-7, 2018

New Jersey Resources (NYSE:NJR)

Founded in 1922 and headquartered in Wall, New Jersey, NJR is an energy services holding company that provides regulated gas distribution, and retail and wholesale energy services. It operates in several business segments, including Natural Gas Distribution, Clean Energy Ventures, Energy Services, Retail Services, Midstream, and Home Services.

The company announced a quarterly DIV increase of 7.34% to 29.25¢ per share. The stock will trade ex-dividend on September 20, and shareholders can expect to receive the new dividend on October 1.

Umpqua Holdings Corp. (NASDAQ:UMPQ)

UMPQ is a bank holding company that provides commercial and retail banking services, as well as retail brokerage services. It operates in Oregon, California, Washington, Idaho, and Nevada. The company's principal operating subsidiaries are Umpqua Bank and Umpqua Investments. UMPQ was founded in 1953 and is headquartered in Portland, Oregon.

On September 14, the company declared a dividend of 21¢ per share. The new dividend represents a 5.00% increase. All shareholders of record on September 28 can expect the dividend to be paid on October 15.

Ingredion, Inc. (NYSE:INGR)

INGR manufactures and sells sweeteners, starches, nutrition ingredients, and biomaterials from the wet milling and processing of corn and other starch-based materials. The company provides its products to a range of industries, both domestically and internationally. INGR was founded in 1906 and is headquartered in Westchester, Illinois.

On Friday, September 14, INGR increased its quarterly dividend to 62.5¢ per share, an increase of 4.17%. The stock will trade ex-dividend on September 28, and shareholders can expect to receive the new dividend on October 25.

Brady Corp. (NYSE:BRC)

Founded in 1914 and based in Milwaukee, Wisconsin, BRC manufactures and supplies identification solutions and workplace safety products to identify and protect premises, products, and people. The company offers identification and healthcare products under the Brady brand; and it offers workspace safety and compliance products under various brands, including Electromark, Identicard, and PromoVision.

Recently, BRC increased its quarterly dividend by 1.20% to 21¢ per share. The dividend is payable on October 31 to shareholders of record on October 10. The stock will trade ex-dividend on October 9.

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: NJR, UMPQ, and INGR.

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 time frame in question. (The Adjusted Earnings Growth Rate represents the slope of the orange line in the chart.)

NJR'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 to fair value. An investment in NJR in October 2008 would have returned 26.4% on an annualized basis (with dividends included).

UMPQ's price line is below the stock's normal P/E ratio and above the primary valuation line. The stock is trading at about fair value. An investment in UMPQ in October 2008 would have returned 18.9% on an annualized basis (with dividends included).

INGR'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 INGR 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 18-October 1, 2018

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Pay-
able

Date

Agree Realty Corp.

ADC

3.92%

$55.13

6

4.80%

$2.16

09/27

10/12

Armada Hoffler Properties

AHH

5.25%

$15.25

6

N/A

$0.80

09/25

10/04

Acadia Realty Trust

AKR

3.83%

$28.19

5

7.60%

$1.08

09/27

10/15

American Tower

AMT

2.15%

$147.19

8

24.00%

$3.16

09/27

10/17

Andersons (The)

ANDE

1.69%

$39.15

16

9.90%

$0.66

09/28

10/22

Air Products and Chemicals

APD

2.61%

$168.61

36

8.20%

$4.40

09/28

11/12

Alexandria Real Estate Equities

ARE

2.93%

$126.99

8

11.20%

$3.72

09/27

10/15

Broadcom Limited

AVGO

2.96%

$236.34

8

51.10%

$7.00

09/18

09/28

BancFirst Corp.

BANF

1.97%

$61.00

25

7.20%

$1.20

09/27

10/15

Franklin Resources

BEN

2.88%

$31.92

38

16.90%

$0.92

09/27

10/12

Cardinal Health

CAH

3.66%

$52.10

23

15.00%

$1.91

09/28

10/15

Chubb Limited

CB

2.11%

$138.11

25

7.80%

$2.92

09/20

10/12

Cincinnati Financial

CINF

2.73%

$77.77

58

4.20%

$2.12

09/18

10/15

CyrusOne

CONE

2.68%

$68.63

6

N/A

$1.84

09/27

10/12

CoreSite Realty

COR

3.52%

$116.92

9

38.00%

$4.12

09/27

10/15

Camden Property Trust

CPT

3.26%

$94.54

8

6.70%

$3.08

09/27

10/17

CubeSmart

CUBE

4.03%

$29.81

8

27.50%

$1.20

09/28

10/15

Convergys

CVG

1.76%

$24.98

7

30.60%

$0.44

09/20

10/02

Amdocs Limited

DOX

1.51%

$66.20

7

45.70%

$1.00

09/27

10/19

EastGroup Properties

EGP

2.94%

$98.07

6

3.70%

$2.88

09/27

10/15

Edison International

EIX

3.54%

$68.33

15

10.80%

$2.42

09/27

10/31

Equity LifeStyle Properties

ELS

2.28%

$96.33

14

17.50%

$2.20

09/27

10/12

EPR Properties

EPR

6.14%

$70.32

8

6.70%

$4.32

09/27

10/15

Eversource Energy

ES

3.18%

$63.53

20

7.50%

$2.02

09/20

09/28

Flowserve

FLS

1.37%

$55.57

11

10.20%

$0.76

09/20

10/05

First Midwest Bancorp

FMBI

1.65%

$26.71

6

56.90%

$0.44

09/27

10/09

First Industrial Realty Trust

FR

2.73%

$31.91

6

N/A

$0.87

09/27

10/15

Federal Realty Inv. Trust

FRT

3.15%

$129.61

51

7.10%

$4.08

09/20

10/15

Getty Realty

GTY

4.39%

$29.13

6

17.50%

$1.28

09/19

10/04

Healthcare Trust America

HTA

4.53%

$27.35

7

25.70%

$1.24

10/01

10/05

International Flavors & Fragrances

IFF

2.14%

$136.50

16

15.50%

$2.92

09/21

10/05

Ingredion

INGR

2.40%

$104.00

7

19.50%

$2.50

09/28

10/25

Illinois Tool Works

ITW

2.76%

$144.89

44

13.30%

$4.00

09/27

10/09

Johnson Controls International plc

JCI

2.74%

$38.00

7

12.70%

$1.04

09/21

10/12

KAR Auction Services

KAR

2.24%

$62.62

6

N/A

$1.40

09/19

10/03

Kimco Realty

KIM

6.71%

$16.69

8

7.30%

$1.12

10/01

10/15

Kennedy-Wilson Holdings

KW

3.59%

$21.15

8

29.00%

$0.76

09/27

10/04

Lincoln Electric Holdings

LECO

1.64%

$95.32

23

15.50%

$1.56

09/27

10/15

Leggett & Platt Inc.

LEG

3.28%

$46.40

47

4.40%

$1.52

09/21

10/15

LTC Properties

LTC

5.03%

$45.32

8

5.00%

$2.28

09/19

09/28

Las Vegas Sands

LVS

4.89%

$61.41

7

23.90%

$3.00

09/18

09/27

Lexington Realty Trust

LXP

8.67%

$8.19

9

5.90%

$0.71

09/27

10/15

Main Street Capital

MAIN

5.91%

$39.62

8

5.50%

$2.34

09/19

10/15

Mondelez International

MDLZ

2.37%

$43.80

7

44.50%

$1.04

09/27

10/12

Medtronic plc

MDT

2.06%

$97.01

41

12.00%

$2.00

09/27

10/19

National Fuel Gas

NFG

2.99%

$56.77

48

2.60%

$1.70

09/27

10/15

National Healthcare

NHC

2.70%

$74.02

15

9.20%

$2.00

09/27

12/03

National Health Investors

NHI

5.16%

$77.59

16

7.40%

$4.00

09/27

11/09

New Jersey Resources

NJR

2.30%

$47.40

22

6.10%

$1.09

09/20

10/01

Nucor

NUE

2.43%

$62.58

45

0.70%

$1.52

09/27

11/09

Omnicom Group

OMC

3.48%

$68.98

9

13.90%

$2.40

09/20

10/10

Pattern Energy Group

PEGI

8.44%

$19.99

5

N/A

$1.69

09/27

10/31

Philip Morris International

PM

5.75%

$79.33

11

5.80%

$4.56

09/25

10/12

Portland General Electric

POR

3.09%

$46.87

13

4.30%

$1.45

09/24

10/15

QTS Realty Trust

QTS

3.56%

$46.05

5

N/A

$1.64

09/19

10/04

Royal Caribbean Cruises

RCL

2.17%

$129.29

7

37.20%

$2.80

09/20

10/11

Rexford Industrial Realty

REXR

2.03%

$31.60

6

N/A

$0.64

09/27

10/15

Ramco Gershenson Properties

RPT

6.40%

$13.75

5

6.10%

$0.88

09/19

10/01

Republic Services

RSG

2.00%

$74.93

16

7.80%

$1.50

09/28

10/15

SL Green Realty

SLG

3.24%

$100.22

7

25.40%

$3.25

09/27

10/15

Synovus Financial

SNV

2.08%

$48.07

5

70.10%

$1.00

09/19

10/01

Spirit Realty Capital

SRC

6.08%

$8.22

5

1.90%

$0.50

09/27

10/15

Sempra Energy

SRE

3.02%

$118.73

15

7.20%

$3.58

09/20

10/15

STAG Industrial

STAG

5.00%

$28.39

8

5.80%

$1.42

09/27

10/15

Steel Dynamics

STLD

1.60%

$46.82

8

8.60%

$0.75

09/27

10/12

State Street

STT

2.15%

$87.29

8

11.60%

$1.88

09/28

10/15

Tiffany & Co.

TIF

1.71%

$128.69

16

9.30%

$2.20

09/19

10/10

Towne Bank

TOWN

2.01%

$31.85

7

11.40%

$0.64

09/27

10/10

Domtar

UFS

3.25%

$53.55

9

14.30%

$1.74

10/01

10/15

Umpqua Holdings

UMPQ

3.83%

$21.94

8

15.60%

$0.84

09/27

10/15

Ventas

VTR

5.46%

$57.86

8

7.60%

$3.16

09/28

10/12

Willis Towers Watson plc

WLTW

1.63%

$146.95

7

14.10%

$2.40

09/27

10/15

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Disclosure: I am/we are long CB, ES, ITW, MAIN, MDT.

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.