7 Dividend Increases: September 17-21, 2018

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Includes: JPM, MCD, MSFT, O, TXN, USB, WPC
by: FerdiS

Summary

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

I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis.

In the last week, 7 companies announced dividend increases, including 4 of the stocks I own.

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

I look for dividend increase announcements for stocks in the CCC List, but I use several screens to limit the number of stocks to monitor:

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

This week, seven companies that announced dividend increases passed these screens, including four of the stocks I own.

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 17-21, 2018

Previous Post: 4 Dividend Increases: September 10-14, 2018

JPMorgan Chase (JPM)

JPM is a financial holding company providing investment banking, financial services, commercial banking, financial transaction processing, and asset management. With assets of about $2.6 trillion, the company serves many prominent corporate, institutional, and government clients around the world. JPM was founded in 1799 and is headquartered in New York, New York.

Recently, JPM increased its quarterly dividend by 42.86% to 80¢ per share. All shareholders of record on October 5 can expect the dividend to be paid on October 31.

Texas Instruments (TXN)

TXN designs, manufactures and sells semiconductors to electronics designers and manufacturers globally. The company operates through two segments, Analog and Embedded Processing. It markets and sells semiconductor products through a direct sales force and through distributors, as well as online. TXN was founded in 1930 and is headquartered in Dallas, Texas.

On September 20, the company declared a dividend of 77¢ per share. The new dividend represents a 24.19% increase. TXN will trade ex-dividend on October 30. The dividend is payable on November 19, to shareholders of record on October 31.

U.S. Bancorp (USB)

Minneapolis-based USB is a financial services holding company that provides a wide range of financial services to consumers, businesses, and institutions in the United States. Its services are available through a network of more than 3,000 banking offices and a network of about 5,000 ATMs. USB was founded in 1863.

The board of directors of USB has declared a quarterly dividend of 37¢ per share. The new dividend is 23.33% above the prior dividend of 30¢ per share. USB will trade ex-dividend on September 27. The dividend is payable on October 15, to shareholders of record on September 28.

McDonald's (MCD)

MCD operates and franchises restaurants that serve locally relevant menus of food and drink in more than 100 countries worldwide. The company operates primarily as a franchisor, owning the land and building for both franchised and company-operated restaurant sites. MCD was founded in 1940 and is based in Oak Brook, Illinois.

Recently, MCD increased its quarterly dividend by 14.85% to $1.16 per share. All shareholders of record on December 3 will receive the new dividend on December 17.

Microsoft (MSFT)

Founded in 1975 and based in Redmond, Washington, MSFT is a technology company with worldwide operations. The company’s products include operating systems, cross-device productivity applications, server applications, productivity and business solutions applications, software development tools, video games, and online advertising. MSFT also designs, manufactures, and sells several hardware devices.

Recently, MSFT increased its quarterly dividend by 9.52% to 46¢ per share. The ex-dividend date is November 14 and the dividend will be paid on December 13 to shareholders of record on November 15.

W.P. Carey (WPC)

Founded in 1973 and based in New York, WPC is an independent equity REIT (real estate investment trust) engaged in providing long-term sale-leaseback and build-to-suit financing for companies. WPC primarily invests in commercial properties generally triple-net leased to single corporate tenants, including retail, office, warehouse, industrial, logistics, and hotel properties.

On September 19, the board of directors declared a quarterly dividend of $1.025 per share. The new dividend represents an increase of 0.49%. All shareholders of record on October 1 will receive the new dividend on October 15.

Realty Income (O)

Known as The Monthly Dividend Company, O is an equity REIT that invests in commercial real estate markets in the United States. The company earns income from more than 5,000 properties under long-term lease agreements with commercial tenants. O was founded in 1969 and is headquartered in San Diego, California.

The company declared a monthly dividend of 22.05¢ per share, an increase of 0.23% over the prior monthly dividend. The dividend is payable on October 15 to shareholders of record at the close of business on October 1.

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, JPM, TXN, and USB.

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).

JPM's price line (black) is below the primary valuation line (orange) and above the stock's normal P/E ratio (blue). The stock is trading at about fair value. An investment in JPM in January 2009 would have returned 15.7% on an annualized basis (with dividends included).

TXN's price line is above the stock's normal P/E ratio and above the primary valuation line. The stock is trading at a premium to fair value. An investment in TXN in January 2009 would have returned 23.3% on an annualized basis (with dividends included).

USB's price line is below the primary valuation line and at the stock's normal P/E ratio. The stock is trading at about fair value. An investment in USB in January 2009 would have returned 9.9% 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 25-October 8, 2018

Company

Ticker

Yield

Recent
Price

Yrs

5-Yr
DGR

Next
Div.

Ex-Div
Date

Pay-
able
Date

ABM Industries

ABM

2.07%

$33.76

51

3.20%

$0.70

10/03

11/05

Agree Realty

ADC

4.04%

$53.47

6

4.80%

$2.16

09/27

10/12

Armada Hoffler Properties

AHH

5.37%

$14.89

6

N/A

$0.80

09/25

10/04

Acadia Realty Trust

AKR

3.79%

$28.46

5

7.60%

$1.08

09/27

10/15

American Tower

AMT

2.13%

$148.49

8

24.00%

$3.16

09/27

10/17

Andersons (The)

ANDE

1.71%

$38.60

16

9.90%

$0.66

09/28

10/22

Air Products & Chemicals

APD

2.58%

$170.61

36

8.20%

$4.40

09/28

11/12

Alexandria Real Estate Equities

ARE

2.93%

$126.80

8

11.20%

$3.72

09/27

10/15

AvalonBay Communities

AVB

3.18%

$185.19

7

8.10%

$5.88

09/27

10/15

BancFirst Corp.

BANF

1.92%

$62.60

25

7.20%

$1.20

09/27

10/15

Franklin Resources

BEN

2.80%

$32.82

38

16.90%

$0.92

09/27

10/12

B&G Foods

BGS

6.27%

$30.30

8

12.30%

$1.90

09/27

10/30

Bristol-Myers Squibb

BMY

2.57%

$62.25

9

2.80%

$1.60

10/04

11/01

Brixmor Property Group

BRX

6.27%

$17.54

5

N/A

$1.10

10/04

10/15

Cardinal Health

CAH

3.47%

$54.94

23

15.00%

$1.91

09/28

10/15

Comcast

CMCSA

2.01%

$37.90

11

14.90%

$0.76

10/02

10/24

CyrusOne

CONE

2.70%

$68.24

6

N/A

$1.84

09/27

10/12

CoreSite Realty

COR

3.56%

$115.87

9

38.00%

$4.12

09/27

10/15

Camden Property Trust

CPT

3.25%

$94.91

8

6.70%

$3.08

09/27

10/17

Cisco Systems

CSCO

2.72%

$48.56

8

25.70%

$1.32

10/04

10/24

CareTrust REIT

CTRE

4.57%

$17.93

5

N/A

$0.82

09/27

10/15

CubeSmart

CUBE

4.09%

$29.32

8

27.50%

$1.20

09/28

10/15

Douglas Emmett

DEI

2.59%

$38.66

8

9.70%

$1.00

09/27

10/16

Quest Diagnostics

DGX

1.86%

$107.61

7

21.50%

$2.00

10/04

10/22

Amdocs Limited

DOX

1.51%

$66.31

7

45.70%

$1.00

09/27

10/19

EastGroup Properties

EGP

2.96%

$97.21

6

3.70%

$2.88

09/27

10/15

Encompass Health

EHC

1.40%

$77.00

6

N/A

$1.08

09/28

10/15

Edison International

EIX

3.54%

$68.36

15

10.80%

$2.42

09/27

10/31

Equity Lifestyle Properties

ELS

2.27%

$96.99

14

17.50%

$2.20

09/27

10/12

EPR Properties

EPR

6.27%

$68.93

8

6.70%

$4.32

09/27

10/15

Erie Indemnity

ERIE

2.61%

$128.74

28

7.20%

$3.36

10/05

10/23

Essex Property Trust

ESS

3.01%

$247.24

24

9.60%

$7.44

09/27

10/12

Fifth Third Bancorp

FITB

2.44%

$29.50

8

10.80%

$0.72

09/27

10/15

First Midwest Bancorp

FMBI

1.60%

$27.46

6

56.90%

$0.44

09/27

10/09

First Industrial Realty Trust

FR

2.73%

$31.81

6

N/A

$0.87

09/27

10/15

General Dynamics

GD

1.82%

$204.66

27

10.40%

$3.72

10/04

11/09

Gentex

GNTX

1.96%

$22.50

8

8.30%

$0.44

10/04

10/17

Hannon Armstrong Sustainable Infrastructure Capital

HASI

6.08%

$21.70

5

N/A

$1.32

10/02

10/11

Healthcare Trust of America

HTA

4.63%

$26.76

7

25.70%

$1.24

10/01

10/05

Independent Bank Corp.

INDB

1.73%

$87.90

8

8.80%

$1.52

09/28

10/05

Ingredion

INGR

2.40%

$104.15

7

19.50%

$2.50

09/28

10/25

Inter Parfums

IPAR

1.30%

$64.65

9

16.30%

$0.84

09/27

10/15

Illinois Tool Works

ITW

2.69%

$148.44

44

13.30%

$4.00

09/27

10/09

JPMorgan Chase &

JPM

2.72%

$117.85

7

12.10%

$3.20

10/04

10/31

Kimco Realty

KIM

6.65%

$16.83

8

7.30%

$1.12

10/01

10/15

Kite Realty Group Trust

KRG

7.60%

$16.71

5

4.70%

$1.27

10/04

10/12

Kennedy-Wilson Holdings

KW

3.52%

$21.60

8

29.00%

$0.76

09/27

10/04

Lincoln Electric Holdings

LECO

1.60%

$97.63

23

15.50%

$1.56

09/27

10/15

Lennox International

LII

1.18%

$216.72

9

20.50%

$2.56

09/27

10/15

Legg Mason

LM

4.22%

$32.25

8

19.50%

$1.36

10/04

10/23

Lexington Realty Trust

LXP

8.54%

$8.31

9

5.90%

$0.71

09/27

10/15

Mondelez International

MDLZ

2.37%

$43.94

7

44.50%

$1.04

09/27

10/12

Medtronic plc

MDT

2.04%

$97.85

41

12.00%

$2.00

09/27

10/19

National Fuel Gas

NFG

3.02%

$56.24

48

2.60%

$1.70

09/27

10/15

National Healthcare

NHC

2.71%

$73.69

15

9.20%

$2.00

09/27

12/03

National Health Investors

NHI

5.30%

$75.46

16

7.40%

$4.00

09/27

11/09

New Residential Investment

NRZ

11.01%

$18.16

5

N/A

$2.00

09/28

10/26

NetApp

NTAP

1.84%

$86.85

6

N/A

$1.60

10/04

10/24

Nucor

NUE

2.36%

$64.38

45

0.70%

$1.52

09/27

11/09

Realty Income

O

4.64%

$56.99

25

7.40%

$2.65

09/28

10/15

Pebblebrook Hotel Trust

PEB

4.12%

$36.85

5

25.90%

$1.52

09/27

10/15

Pattern Energy Group

PEGI

8.20%

$20.58

5

N/A

$1.69

09/27

10/31

Philip Morris International

PM

5.44%

$83.75

11

5.80%

$4.56

09/25

10/12

Rexford Industrial Realty

REXR

2.00%

$32.00

6

N/A

$0.64

09/27

10/15

Royal Gold

RGLD

1.30%

$76.89

17

9.90%

$1.00

10/04

10/19

Ryman Hospitality Properties

RHP

3.87%

$87.81

6

N/A

$3.40

09/27

10/15

Raymond James Financial

RJF

1.26%

$95.13

6

11.10%

$1.20

09/28

10/15

Republic Services

RSG

2.01%

$74.65

16

7.80%

$1.50

09/28

10/15

Sanderson Farms

SAFM

1.28%

$99.90

5

8.90%

$1.28

10/01

10/16

Steelcase

SCS

2.83%

$19.05

8

8.80%

$0.54

09/28

10/15

ServisFirst Bancshares

SFBS

1.08%

$40.70

5

N/A

$0.44

09/28

10/12

SL Green Realty

SLG

3.24%

$100.26

7

25.40%

$3.25

09/27

10/15

Spirit Realty Capital

SRC

6.19%

$8.08

5

1.90%

$0.50

09/27

10/15

Simpson Manufacturing

SSD

1.20%

$73.57

5

9.30%

$0.88

10/03

10/25

STAG Industrial

STAG

5.08%

$27.94

8

5.80%

$1.42

09/27

10/15

Steel Dynamics

STLD

1.64%

$45.60

8

8.60%

$0.75

09/27

10/12

State Street

STT

2.12%

$88.77

8

11.60%

$1.88

09/28

10/15

Stryker

SYK

1.08%

$174.50

25

14.90%

$1.88

09/27

10/31

Sysco

SYY

1.97%

$72.97

48

4.10%

$1.44

10/04

10/26

Towne Bank

TOWN

2.00%

$32.05

7

11.40%

$0.64

09/27

10/10

Terreno Realty

TRNO

2.55%

$37.59

8

13.30%

$0.96

10/04

10/19

Toro

TTC

1.29%

$62.17

9

26.00%

$0.80

10/02

10/17

Domtar

UFS

3.24%

$53.75

9

14.30%

$1.74

10/01

10/15

Umpqua Holdings

UMPQ

3.83%

$21.93

8

15.60%

$0.84

09/27

10/15

U.S. Bancorp

USB

2.68%

$55.14

7

9.90%

$1.48

09/27

10/15

Universal

UVV

4.46%

$67.25

47

2.00%

$3.00

10/05

11/05

Ventas

VTR

5.62%

$56.19

8

7.60%

$3.16

09/28

10/12

Washington Trust Bancorp

WASH

2.99%

$57.55

8

10.90%

$1.72

09/28

10/12

Willis Towers Watson plc

WLTW

1.62%

$148.48

7

14.10%

$2.40

09/27

10/15

W.P. Carey

WPC

6.23%

$65.77

21

11.40%

$4.10

09/28

10/15

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Disclosure: I am/we are long CMCSA, CSCO, DGX, GD, HASI, ITW, KRG, MCD, MDT, MSFT, O, TXN.

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.