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
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|
|Thomson Reuters Corp Ordinary Shares||(NYSE:TRI)||25||2.92||27-Nov-18||1.40%||Champion|
|American Equity Investment Life Holding Company||(NYSE:AEL)||14||0.85||27-Nov-18||7.69%||Contender|
|Everest Re Group, Ltd.||(NYSE:RE)||5||3.08||27-Nov-18||7.69%||Challenger|
|Six Flags Entertainment Corporation New||(NYSE:SIX)||9||5.48||28-Nov-18||5.13%||Challenger|
|Estee Lauder Companies, Inc. (The)||(NYSE:EL)||9||1.22||29-Nov-18||13.16%||Challenger|
|Sinclair Broadcast Group, Inc. - Class A Common Stock||(NASDAQ:SBGI)||7||2.63||29-Nov-18||11.11%||Challenger|
|Huntington Ingalls Industries, Inc.||(NYSE:HII)||6||1.63||29-Nov-18||19.44%||Challenger|
|NBT Bancorp Inc.||(NASDAQ:NBTB)||6||2.76||29-Nov-18||4.00%||Challenger|
|Schweitzer-Mauduit International, Inc.||(NYSE:SWM)||6||5.89||29-Nov-18||2.33%||Challenger|
|Tyson Foods, Inc.||(NYSE:TSN)||6||2.55||29-Nov-18||25.00%||Challenger|
|Lockheed Martin Corporation||(NYSE:LMT)||16||2.99||30-Nov-18||10.00%||Contender|
|Principal Financial Group Inc||(NYSE:PFG)||10||4.46||30-Nov-18||1.89%||Contender|
|Clearway Energy, Inc. Class C||(NYSE:CWEN)||6||7.34||30-Nov-18||3.44%||Challenger|
|Cathay General Bancorp||(NASDAQ:CATY)||5||3.22||30-Nov-18||29.17%||Challenger|
|Royal Gold, Inc.||(NASDAQ:RGLD)||17||1.32||3-Jan-19||6.00%||Contender|
|Brixmor Property Group Inc.||(NYSE:BRX)||5||7.24||3-Jan-19||1.82%||Challenger|
|Hingham Institution for Savings||(NASDAQ:HIFS)||11||0.71||4-Jan-19||2.80%||Contender|
I received a comment about including the pay amount, I plan on including it, but it didn't make it for this week.
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.
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|
|TRI||48||36.52||49.14||30.24||31% Off Low||2% Off High|
|AEL||33.78||27.06||38.57||6.98||25% Off Low||12% Off High|
|RE||214.55||203.9||264.88||8.35||5% Off Low||19% Off High|
|EVRG||58.65||50.89||61.1||23.18||15% Off Low||4% Off High|
|SIX||59.82||51.91||73.38||17.39||15% Off Low||18% Off High|
|GFF||12.4||10.15||23.55||48.33||22% Off Low||48% Off High|
|SCL||81.33||68.09||90.96||19.86||19% Off Low||11% Off High|
|TNC||60.21||58.09||86.03||49.6||4% Off Low||30% Off High|
|HUBB||106.61||97.02||149.03||20.12||10% Off Low||28% Off High|
|EL||140.67||121.93||158.8||44.65||15% Off Low||11% Off High|
|AYR||19.04||17.86||25.3||7.49||7% Off Low||25% Off High|
|SBGI||30.44||25.13||40.15||5.4||21% Off Low||24% Off High|
|NVDA||144.71||133.31||292.76||19.32||9% Off Low||51% Off High|
|HII||210.4||201.91||276.69||13.5||4% Off Low||24% Off High|
|NBTB||37.69||34.05||41.88||16.34||11% Off Low||10% Off High|
|SWM||29.87||29.86||48.06||15.47||0% Off Low||38% Off High|
|TSN||58.91||56.79||84.65||7.28||4% Off Low||30% Off High|
|MCD||182.72||146.84||188.9||27.73||24% Off Low||3% Off High|
|LMT||294.29||283.21||363||26.85||4% Off Low||19% Off High|
|NKE||72.37||58.54||86.04||57.91||24% Off Low||16% Off High|
|PFG||48.47||45.2||75.59||6.55||7% Off Low||36% Off High|
|ASB||22.79||22.01||29.03||13.47||4% Off Low||22% Off High|
|CWEN||17.98||15.55||20.75||54.29||16% Off Low||13% Off High|
|CATY||38.53||35.73||45.59||13.52||8% Off Low||15% Off High|
|SYY||64.48||54.55||75.98||22.8||18% Off Low||15% Off High|
|RGLD||75.74||70.16||98.53||0||8% Off Low||23% Off High|
|BRX||15.48||13.74||18.83||13.18||13% Off Low||18% Off High|
|HIFS||209||195.05||241.59||14.31||7% Off Low||13% 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|
With a 51 year dividend growth history, Stepan Company is the highlight this week. The company operates in the specialty chemical space and is giving investors another 11% dividend increase. The payout ratio remains quite low and shares only sport a forward yield of about 1.23%
Running a stock return calculation versus the S&P since November of 2010, shares have slightly beaten the market. Looking for purely income, the S&P would have provided more dividend income.
SCL (the blue line) has meandered above and below the S&P (black line), ending up virtually matching each other at the end of eight years of comparison. Comparing both this type of chart and the Fast Graph above, there were more optimal times to pick up shares.
(Courtesy: Custom Stock Alerts)
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.
Happy Thanksgiving to all!
Disclosure: I am/we are long NKE. 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.