Dividend Increases: November 5-9, 2018 (Part 2: Remaining Sectors)

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Includes: ADP, AFL, AIZ, CORE, IOSP, IPAR, JCOM, LEG, MAIN, MCHP, MSFT, SBGI, SBUX, SPG, SWM, TJX, UCBI, VLO
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.

Recently, 22 companies announced dividend increases. Part 1 of this article covered increases from the Industrials, Health Care, and Utilities sectors. Part 2 covers the remaining sectors.

I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis. Companies that regularly increase dividends show confidence in the potential growth of future earnings.

I use the CCC List as a starting point and apply 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

Recently, 22 companies that announced dividend increases passed these screens. Part 1 of this article covered dividend increases of stocks in the Industrials, Health Care, and Utilities sectors. In Part 2, I'm covering the remaining sectors.

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: November 5-9, 2018

Previous Post: Dividend Increases: October 29-November 2, 2018

Inter Parfums (IPAR)

Formerly known as Jean Philippe Fragrances, IPAR manufactures, markets, and distributes an array of fragrance and fragrance-related products. The company sells its products to department stores, perfumeries, specialty retailers, wholesalers, and distributors. Brand names include Coach, Montblanc, Rochas, Gap, and more. IPAR was founded in 1985 and is headquartered in New York.

The company's board of directors approved an increase in the quarterly dividend of 30.95% to 27.5¢ per share. All shareholders of record on December 31 can expect the dividend to be paid on January 15.

Automatic Data Processing (ADP)

ADP provides technology-enabled human capital management solutions and business process outsourcing solutions. These offerings include payroll services, benefits administration, talent management, HR management, time and attendance management, insurance services, retirement services, and tax and compliance services. ADP was founded in 1949 and is headquartered in Roseland, New Jersey.

The company announced an increase of its quarterly dividend of 14.49% to 79¢ per share. The dividend is payable on January 1 to shareholders of record on December 14. ADP will trade ex-dividend on December 13.

Sinclair Broadcast Group (SBGI)

SBGI is a television broadcasting company that owns, operates, and/or provides services to television stations in various markets in the United States. It also offers digital agency services and technical services to the broadcast industry, and designs and manufactures transmitters and antennas. SBGI was founded in 1986 and is headquartered in Hunt Valley, Maryland.

On November 7, the company declared a dividend of 20¢ per share. The new dividend represents an 11.11% increase. The dividend is payable December 17, with an ex-dividend date of November 29.

Core-Mark (CORE)

CORE sells and distributes various food and non-food products, including cigarettes, fast food, candies, snacks, groceries, fresh products, dairy products, breads, beverages, other tobacco products, general merchandise and equipment, and health and beauty care products. CORE was founded in 1888 and is headquartered in South San Francisco, California.

On November 6, the company declared a dividend of 11¢ per share. The new dividend represents a 10.00% increase. The dividend is payable on November 14 to shareholders of record on November 20.

Assurant (AIZ)

Founded in 1969 and headquartered in New York, New York, AIZ provides specialized insurance-related products and services in North America and in select worldwide markets. The company provides homeowners insurance, individual and group health insurance, and group dental, disability, and life insurance products. AIZ also provides debt protection administration, warrantees and extended service contracts.

On Friday, November 9, AIZ increased its quarterly dividend to 60¢ per share, an increase of 7.14%. AIZ will trade ex-dividend on November 23. The dividend is payable on December 17, to shareholders of record on November 26.

United Community Banks (UCBI)

UCBI operates as the bank holding company for United Community Bank, which provides retail and corporate banking services to individuals and businesses. The company offers various deposit accounts, secured and unsecured loans, and other specialized financial services. UCBI was founded in 1950 and is based in Blairsville, Georgia.

The company announced an increase of its quarterly dividend of 6.67% to 16¢ per share. The new dividend is payable on January 7 to shareholders of record on December 15, with an ex-dividend date of December 13.

Leggett & Platt (LEG)

Founded in 1883 and based in Carthage, Missouri, LEG designs and manufactures a range of engineered components and products found in homes, offices, and automobiles. LEG operates through four segments, Residential Furnishings, Commercial Products, Industrial Materials, and Specialized Products. It serves manufacturers of finished bedding, upholstered furniture, mechanical springs, automobile seating, and more.

On November 6, the board of directors approved an increase to the regular quarterly dividend from 36¢ per share to 38¢ per share, an increase of 5.56%. All shareholders of record on December 14 can expect the dividend to be paid on January 15.

j2 Global (JCOM)

JCOM provides Internet services worldwide. The company’s Business Cloud Services segment provides cloud services to business of all sizes and to government organizations. The company’s Digital Media segment operates a large portfolio of Web properties. JCOM was founded in 1995 and is headquartered in Los Angeles, California.

The company announced an increase of its quarterly dividend of 2.35% to 43.5¢ per share. The dividend is payable on December 5 to shareholders of record at the close of business on November 19.

Schweitzer-Mauduit International (SWM)

SWM is a diversified producer of engineered solutions and materials for a variety of industries. The company has two operating product line segments. The Engineered Papers segment produces and sells cigarette papers. The Advanced Materials and Structures segment produces resin-based plastic netting. SWM was founded in 1995 and is headquartered in Alpharetta, Georgia.

On November 7, the board of directors declared a quarterly dividend of 44¢ per share. The new dividend represents an increase of 2.33%. The dividend is payable on December 21 to shareholders of record on November 30. The ex-dividend date is November 29.

Innospec (IOSP)

Formerly known as Octel Corp., IOSP develops, manufactures, blends, markets, and supplies specialty chemicals for use as fuel additives, ingredients for personal care, home care, agrochemical, mining, and other applications, and oilfield chemicals worldwide. IOSP was founded in 1938 and is headquartered in Englewood, Colorado.

Recently, the board of directors of IOSP declared a semi-annual dividend of 45¢ per share. The new dividend represents an increase of 2.27%. All shareholders of record on November 19 will receive the new dividend on November 29.

Microchip Technology (MCHP)

MCHP develops, manufactures and sells specialized semiconductor products for a wide range of embedded control applications. The company sells its products through a network of direct sales personnel and distributors in the Americas, Europe, and Asia. MCHP was founded in 1989 and is headquartered in Chandler, Arizona.

The company announced a quarterly DIV increase of 0.14% to 36.45¢ per share. The new dividend is payable on December 5 to shareholders of record on November 21, with an ex-dividend date of November 20.

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, ADP, LEG, and JCOM.

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

ADP'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 ADP in July 2009 would have returned 17.8% on an annualized basis (with dividends included).

LEG's price line is below the stock's normal P/E ratio and at the primary valuation line. The stock is trading at about fair value. An investment in LEG in July 2009 would have returned 13.2% on an annualized basis (with dividends included).

JCOM'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 JCOM in July 2009 would have returned 14.9% 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 below provides ex-dividend dates of stocks in sectors other than the Industrials, Health Care, and Utilities sectors. See Part 1 for the ex-dividend dates of stocks in those sectors.

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: November 13-26, 2018

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Payable

Date

Archer Daniels Midland

ADM

2.78%

$48.26

43

12.80%

$1.34

11/21

12/14

AFLAC

AFL

2.31%

$45.04

36

5.40%

$1.04

11/20

12/03

Assured Guaranty

AGO

1.54%

$41.56

7

9.60%

$0.64

11/20

12/05

Apartment Investment & Management

AIV

3.33%

$45.64

8

13.60%

$1.52

11/15

11/30

Assurant

AIZ

2.29%

$104.78

14

21.60%

$2.40

11/23

12/17

Autoliv

ALV

3.03%

$81.75

9

4.70%

$2.48

11/20

12/06

Brunswick

BC

1.61%

$52.30

6

68.80%

$0.84

11/19

12/14

Bunge Limited

BG

3.16%

$63.27

18

11.10%

$2.00

11/16

12/03

Bemis

BMS

2.58%

$48.13

35

3.70%

$1.24

11/14

12/03

Cheesecake Factory

CAKE

2.52%

$52.31

7

34.60%

$1.32

11/13

11/27

Cogent Communications Holdings

CCOI

4.48%

$50.05

7

53.70%

$2.24

11/15

11/30

CDW

CDW

1.30%

$91.08

5

N/A

$1.18

11/23

12/10

Church & Dwight

CHD

1.33%

$65.55

22

9.60%

$0.87

11/14

12/03

Cohen & Steers

CNS

3.42%

$38.56

9

9.20%

$1.32

11/16

12/03

Columbia Sportswear

COLM

1.03%

$93.05

13

10.70%

$0.96

11/14

11/29

Core-Mark Holding

CORE

1.52%

$29.00

7

16.20%

$0.44

11/19

12/14

Calavo Growers

CVGW

1.01%

$99.24

7

7.90%

$1.00

11/15

12/07

Chevron

CVX

3.75%

$119.51

31

4.20%

$4.48

11/15

12/10

Discover Financial Services

DFS

2.27%

$70.56

8

26.60%

$1.60

11/20

12/06

Dunkin' Brands Group

DNKN

1.87%

$74.51

7

16.50%

$1.39

11/23

12/05

Equifax

EFX

1.53%

$102.12

8

16.70%

$1.56

11/21

12/14

Enbridge

ENB

8.18%

$32.83

22

10.50%

$2.68

11/14

12/01

Expedia

EXPE

1.03%

$124.04

7

21.40%

$1.28

11/14

12/06

Gildan Activewear

GIL

1.42%

$31.64

8

19.00%

$0.45

11/14

12/10

Corning

GLW

2.15%

$33.56

8

14.50%

$0.72

11/15

12/14

HNI

HNI

3.09%

$38.13

8

3.50%

$1.18

11/16

12/03

Home Bancshares

HOMB

2.43%

$19.72

8

28.90%

$0.48

11/13

12/05

Hershey

HSY

2.66%

$108.58

9

10.30%

$2.89

11/20

12/14

Summit Hotel Properties

INN

6.17%

$11.67

5

8.40%

$0.72

11/15

11/30

Innospec

IOSP

1.22%

$73.94

5

-17.40%

$0.90

11/16

11/29

International Paper

IP

4.33%

$46.22

9

11.60%

$2.00

11/14

12/14

j2 Global

JCOM

2.34%

$74.27

8

11.80%

$1.74

11/16

12/05

Kraft Heinz

KHC

4.63%

$53.99

5

16.10%

$2.50

11/15

12/14

KLA-Tencor

KLAC

3.15%

$95.28

9

8.50%

$3.00

11/15

12/04

Kroger

KR

1.78%

$31.39

13

14.60%

$0.56

11/14

12/01

Main Street Capital

MAIN

5.99%

$39.06

8

5.50%

$2.34

11/19

12/14

Marriott International

MAR

1.40%

$117.04

9

21.40%

$1.64

11/20

12/31

Microchip Technology

MCHP

2.02%

$72.13

17

0.60%

$1.46

11/20

12/05

Moody's

MCO

1.15%

$153.50

9

18.90%

$1.76

11/20

12/12

Marcus

MCS

1.45%

$41.28

5

8.00%

$0.60

11/23

12/17

Manulife Financial Corporation

MFC

5.92%

$16.90

5

9.50%

$1.00

11/19

12/19

Magna International

MGA

2.67%

$49.48

8

14.90%

$1.32

11/21

12/07

Mobile Mini

MINI

2.41%

$41.52

5

N/A

$1.00

11/13

11/28

MKS Instruments

MKSI

1.10%

$72.69

8

2.60%

$0.80

11/23

12/07

Marathon Petroleum

MPC

2.74%

$67.18

8

20.40%

$1.84

11/20

12/10

MSCI

MSCI

1.55%

$149.79

5

N/A

$2.32

11/15

11/30

Microsoft

MSFT

1.68%

$109.57

17

13.90%

$1.84

11/14

12/13

Nielsen Holdings plc

NLSN

5.29%

$26.46

6

N/A

$1.40

11/20

12/05

Neenah Paper

NP

2.24%

$73.23

8

25.30%

$1.64

11/15

12/03

Nexstar Media Group

NXST

1.85%

$81.01

6

N/A

$1.50

11/15

11/30

Oshkosh

OSK

1.65%

$65.52

5

N/A

$1.08

11/16

12/03

Provident Financial Services

PFS

3.33%

$25.19

8

8.90%

$0.84

11/14

11/30

Pool

POOL

1.22%

$147.95

8

18.00%

$1.80

11/14

11/29

Phillips 66

PSX

3.21%

$99.74

7

43.40%

$3.20

11/16

12/03

Regency Centers

REG

3.40%

$65.25

5

2.60%

$2.22

11/13

11/28

Reliance Steel & Aluminum

RS

2.47%

$81.06

8

17.60%

$2.00

11/15

12/07

Sandy Spring Bancorp

SASR

3.09%

$36.21

8

16.70%

$1.12

11/13

11/21

Sabra Health Care REIT

SBRA

8.46%

$21.28

7

5.60%

$1.80

11/14

11/30

Starbucks

SBUX

2.10%

$68.60

9

23.90%

$1.44

11/14

11/30

Selective Insurance Group

SIGI

1.24%

$64.70

5

4.90%

$0.80

11/14

12/03

J.M. Smucker

SJM

3.01%

$112.88

21

8.90%

$3.40

11/15

12/03

Scotts Miracle-Gro

SMG

2.96%

$74.20

9

10.50%

$2.20

11/23

12/10

Standard Motor Products

SMP

1.54%

$54.53

9

16.10%

$0.84

11/14

12/03

Simon Property Group

SPG

4.24%

$188.69

9

13.20%

$8.00

11/15

11/30

Extended Stay America

STAY

4.76%

$18.48

5

N/A

$0.88

11/14

11/29

Skyworks Solutions

SWKS

1.98%

$76.66

5

N/A

$1.52

11/26

12/18

TE Connectivity

TEL

2.22%

$79.13

6

14.20%

$1.76

11/21

12/07

Target

TGT

2.94%

$86.94

51

13.10%

$2.56

11/20

12/10

TJX

TJX

1.40%

$55.64

22

22.20%

$0.78

11/14

12/06

Thomson Reuters

TRI

2.91%

$48.08

25

1.50%

$1.40

11/14

12/17

Tractor Supply

TSCO

1.28%

$97.13

9

23.90%

$1.24

11/23

12/11

Valero Energy

VLO

3.65%

$87.58

8

36.30%

$3.20

11/19

12/12

Whirlpool

WHR

3.95%

$116.36

8

16.50%

$4.60

11/15

12/15

Zions Bancorp

ZION

2.39%

$50.16

6

61.50%

$1.20

11/13

11/21

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Disclosure: I am/we are long AFL, MAIN, MSFT, SBUX, SPG, TJX, VLO. 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.