20 Upcoming Dividend Increases

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Includes: ABC, ABR, ARTNA, BKH, BRX, CCOI, COLM, CVGW, EMCI, GRC, IP, MSEX, MSFT, OSK, PBFX, SIGI, TRI, UTX, V, VVC
by: Dividend Derek

Summary

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

20 last week, 20 this week.

3 have at least a 10% increase!

Introduction

I love stocks that grow their dividends year in and out. You probably do too! If so, you are in the right place. I've created a list of stocks that are increasing their dividend next week.

This list is a trimmed-down version only covering dividend increases. A full upcoming dividend calendar is available here. If you know how this was built and the caveats, feel free to jump down to the lists themselves.

How It's Assembled

The information presented below was created by combining the "U.S. Dividend Champion" spreadsheet hosted here, with upcoming dividend information from 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.

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 an approximately 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.

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 1
Champion 5
Contender 5
Challenger 9

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
Artesian Resources Corporation (ARTNA) 26 2.54 13-Nov-18 1.51% Champion
Vectren Corporation (VVC) 58 2.68 14-Nov-18 6.67% King
Gorman-Rupp Company (The) (GRC) 46 1.53 14-Nov-18 8.00% Champion
Middlesex Water Company (MSEX) 46 1.83 14-Nov-18 7.26% Champion
Thomson Reuters Corp Ordinary Shares (TRI) 25 2.93 14-Nov-18 1.45% Champion
Microsoft Corporation (MSFT) 17 1.64 14-Nov-18 9.52% Contender
Columbia Sportswear Company (COLM) 13 1.03 14-Nov-18 9.09% Contender
International Paper Company (IP) 9 4.22 14-Nov-18 5.26% Challenger
EMC Insurance Group Inc. (EMCI) 8 3.7 14-Nov-18 4.55% Challenger
Arbor Realty Trust (ABR) 7 8.91 14-Nov-18 8.00% Challenger
PBF Logistics LP (PBFX) 5 9.02 14-Nov-18 1.01% Challenger
Selective Insurance Group, Inc. (SIGI) 5 1.22 14-Nov-18 11.11% Challenger
United Technologies Corporation (UTX) 25 2.25 15-Nov-18 5.00% Champion
Visa Inc. (V) 11 0.69 15-Nov-18 19.05% Contender
Calavo Growers, Inc. (CVGW) 7 1 15-Nov-18 5.26% Challenger
Cogent Communications Holdings, Inc. (CCOI) 7 4.35 15-Nov-18 3.70% Challenger
Black Hills Corporation (BKH) 48 3.22 16-Nov-18 6.32% Champion
AmerisourceBergen Corporation (ABC) 13 1.85 16-Nov-18 5.26% Contender
Oshkosh Corporation (OSK) 5 1.57 16-Nov-18 12.50% Challenger
Brixmor Property Group Inc. (BRX) 5 6.95 3-Jan-19 1.82% 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 by which you need to own the stock.

Increase Percent: This is the amount by which 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
ARTNA 38.18 32 43.16 23.55 19% Off Low 12% Off High
VVC 71.75 58 71.79 30.19 24% Off Low 0% Off High
GRC 35.36 26.53 38.26 24.22 33% Off Low 8% Off High
MSEX 52.39 33.96 52.56 28.36 54% Off Low 0% Off High
TRI 47.76 36.52 48.14 30.09 31% Off Low 1% Off High
MSFT 111.93 80.7 116.18 46.46 39% Off Low 4% Off High
COLM 92.78 60.84 95.58 44.24 52% Off Low 3% Off High
IP 47.36 39.6 66.94 6.25 20% Off Low 29% Off High
EMCI 24.87 22.98 32.19 24.99 8% Off Low 23% Off High
ABR 12.12 7.89 12.41 8.77 54% Off Low 2% Off High
PBFX 22.18 17.75 22.7 12.71 25% Off Low 2% Off High
SIGI 65.44 53.55 67.17 23.8 22% Off Low 3% Off High
UTX 130.62 115.4 144.15 21.01 13% Off Low 9% Off High
AFG 105.77 98.22 120.06 13.22 8% Off Low 12% Off High
V 144.79 106.6 151.56 33.57 36% Off Low 4% Off High
CVGW 99.93 68.9 108 39.98 45% Off Low 7% Off High
CCOI 51.55 35.75 57.65 156.56 44% Off Low 11% Off High
TSBK 29.22 25.42 39.45 13.1 15% Off Low 26% Off High
BKH 62.73 50.49 64.14 15.09 24% Off Low 2% Off High
ABC 86.54 73.35 106.27 11.52 18% Off Low 19% Off High
OSK 68.91 51.42 100.26 10.91 34% Off Low 31% Off High
BRX 16.13 13.74 18.83 13.66 17% Off Low 14% 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 (the current yield + 5-year dividend growth rate). 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 9.02 9.4 59.3
ABR 8.91 16.1 11.5 20.4 -11.6 29.3
BRX 6.95 6.1 12.7
CCOI 4.35 19.2 15.4 53.7 58.1
IP 4.22 4.5 8.9 11.6 6.6 15.8
EMCI 3.7 9 10.7 9.5 6.3 13.2
BKH 3.22 7.7 5.1 4.1 2.8 7.3
TRI 2.93 1.5 1.5 1.5 3.5 4.4
VVC 2.68 5.6 5.4 4 3 6.7
ARTNA 2.54 3 3 3.1 3.4 5.6
UTX 2.25 3.8 4.8 6 9 8.3
ABC 1.85 6.5 14 19.7 29.3 21.6
MSEX 1.83 6.2 4 2.9 2.2 4.7
TSBK 1.78 29.4 34.7 1.5
MSFT 1.64 8.2 11.4 13.9 14.5 15.5
OSK 1.57 11.5 12 8.1
GRC 1.53 9.3 8.3 8.5 9 10
AFG 1.51 11.7 12.3 12.3 12.4 13.8
SIGI 1.22 8.2 7.6 4.9 4.1 6.1
COLM 1.03 5.8 8.6 10.7 9.7 11.7
CVGW 1 5.6 8.2 7.9 10.5 8.9
V 0.69 17.9 18 22.8 23.5

Bonus Charts

I'm going to highlight Visa this week. Since it's IPO, shares have been a phenomenal market beater and wealth generator for investors. Additionally, it has become a monster dividend growth stock with a 33% CAGR. Yes, the absolute yield is low but with another 19% increase coming, you can see how that turns into a lot of money over a short period of time.

Running a stock return calculation versus the S&P since 2010, shares have more than doubled each year over the S&P. The growth numbers are so high but suffice to say, an initial $10,000 investment at IPO would have turned into over $78,000 over 8 years versus $26,828 using the S&P. Additionally, your yield on cost would be over 4%.

It took several years but you can see how rapidly shares of Cintas grew over the S&P. Even with the large recent pullback, shares still trade well above the S&P.

(Courtesy: Custom Stock Alerts)

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 UTX, V.

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.