23 Upcoming Dividend Increases

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Includes: AAT, ADP, AEE, AL, APTS, CCI, CFFI, DTE, GLPI, HPQ, IRM, LAMR, MCY, MDU, MFSF, MRK, MSI, NEW, PB, POL, SR, TCBK, UCBI, UTMD
by: Dividend Derek
Summary

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

A jump to 23 from 13 companies.

8 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 0
Champion 3
Contender 4
Challenger 16

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
Spire Inc. (SR) 16 3.06 10-Dec-18 5.15% Contender
Ameren Corporation (AEE) 5 2.71 11-Dec-18 3.71% Challenger
Mercury General Corporation (MCY) 32 4.35 12-Dec-18 0.32% Champion
MDU Resources Group, Inc. (MDU) 28 3.06 12-Dec-18 2.53% Champion
HP Inc. (HPQ) 9 2.75 12-Dec-18 15.11% Challenger
American Assets Trust, Inc. (AAT) 8 2.7 12-Dec-18 3.70% Challenger
Air Lease Corporation Class A (AL) 7 1.37 12-Dec-18 30.00% Challenger
Automatic Data Processing, Inc. (ADP) 44 2.2 13-Dec-18 14.49% Champion
Prosperity Bancshares, Inc. (PB) 20 2.46 13-Dec-18 13.89% Contender
Utah Medical Products, Inc. (UTMD) 16 1.22 13-Dec-18 1.85% Contender
Motorola Solutions, Inc. (MSI) 9 1.75 13-Dec-18 9.62% Challenger
Preferred Apartment Communities, Inc. (APTS) 9 7.15 13-Dec-18 1.96% Challenger
PolyOne Corporation (POL) 9 2.42 13-Dec-18 11.43% Challenger
C&F Financial Corporation (CFFI) 8 2.88 13-Dec-18 2.78% Challenger
United Community Banks, Inc. (UCBI) 6 2.69 13-Dec-18 6.67% Challenger
Gaming and Leisure Properties, Inc. (GLPI) 5 7.99 13-Dec-18 7.94% Challenger
Crown Castle International Corp. (REIT) (CCI) 5 3.91 13-Dec-18 7.14% Challenger
TriCo Bancshares (TCBK) 5 2.09 13-Dec-18 11.76% Challenger
MutualFirst Financial Inc. (MFSF) 5 2.38 13-Dec-18 11.11% Challenger
DTE Energy Company (DTE) 10 3.17 14-Dec-18 7.14% Contender
Iron Mountain Incorporated (Delaware)Common Stock REIT (IRM) 9 7.19 14-Dec-18 4.09% Challenger
Merck & Company, Inc. Common Stock (NEW) (MRK) 8 2.81 14-Dec-18 14.58% Challenger
Lamar Advertising Company - Class A Common Stock (LAMR) 5 5.03 14-Dec-18 1.10% 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.

Show Me The Money

I received several requests to show the old and new rates so here are those figures. It also reiterates the increase percentage. This table is sorted the same way as the first table (ex-dividend day ascending, dividend streak descending).

Ticker Old Rate New Rate Increase Percent
SR 0.5625 0.592 5.15%
AEE 0.4575 0.475 3.71%
MCY 0.625 0.627 0.32%
MDU 0.1975 0.203 2.53%
HPQ 0.14 0.16 15.11%
AAT 0.27 0.28 3.70%
AL 0.1 0.13 30.00%
ADP 0.63 0.79 14.49%
PB 0.36 0.41 13.89%
UTMD 0.27 0.275 1.85%
MSI 0.52 0.57 9.62%
APTS 0.25 0.26 1.96%
POL 0.175 0.195 11.43%
CFFI 0.34 0.37 2.78%
UCBI 0.16 0.16 6.67%
GLPI 0.63 0.68 7.94%
CCI 1.05 1.125 7.14%
TCBK 0.17 0.19 11.76%
MFSF 0.18 0.2 11.11%
DTE 0.8825 0.945 7.14%
IRM 0.5875 0.611 4.09%
MRK 0.48 0.55 14.58%
LAMR 0.91 0.92 1.10%

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
SR 77.36 60.09 81.13 17.49 29% Off Low 5% Off High
AEE 70.04 51.89 70.95 25.08 35% Off Low 1% Off High
MCY 57.76 41.4 61.83 33.2 40% Off Low 7% Off High
MDU 26.5 24.29 29.62 16.82 9% Off Low 11% Off High
HPQ 23.24 19.31 27.08 7.15 20% Off Low 14% Off High
AAT 41.47 30.62 42.13 96.15 35% Off Low 1% Off High
AL 37.91 35.97 50.7 5 5% Off Low 25% Off High
ADP 143.61 107.61 153.51 36.82 33% Off Low 6% Off High
PB 66.61 60.15 79.2 15.17 11% Off Low 16% Off High
UTMD 90 78.95 117.65 26.75 13% Off Low 24% Off High
MSI 130.08 89.18 133.97 0 46% Off Low 3% Off High
APTS 14.54 13.6 21.53 0 7% Off Low 32% Off High
POL 32.17 30.03 47.48 14.03 7% Off Low 32% Off High
CFFI 51.32 45.28 67.4 16.74 13% Off Low 24% Off High
UCBI 23.77 22.83 34.18 17.66 4% Off Low 30% Off High
GLPI 34.05 32.51 37.29 18.94 5% Off Low 9% Off High
CCI 115 98.85 115.41 107.25 16% Off Low 0% Off High
TCBK 36.39 33.35 43.08 19.01 9% Off Low 16% Off High
MFSF 33.65 33.61 40 18.81 7% Off Low 10% Off High
DTE 119.17 94.25 121 17.73 26% Off Low 2% Off High
IRM 33.92 30.22 40.75 42.37 12% Off Low 17% Off High
MRK 78.21 52.83 80.19 63.07 48% Off Low 2% Off High
LAMR 73.23 61.36 80.68 24.44 19% Off Low 9% 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
GLPI 7.99 7.8 6.3
IRM 7.19 9.7 13.9 16.2 23.4
APTS 7.15 16 13.7 12.4 19.6
LAMR 5.03 9.9 9.9 0.2
MCY 4.35 0.4 0.4 0.4 1.8 4.8
CCI 3.91 8.2 27.8
DTE 3.17 7.1 7.5 6.7 4.5 9.9
SR 3.06 7.1 6.1 4.8 3.7 7.9
MDU 3.06 2.7 2.7 2.8 3.4 5.9
CFFI 2.88 3.1 3.8 4.7 0.6 7.6
MRK 2.81 2.2 2.2 2.3 2.1 5.1
HPQ 2.75 7.9 22.6 17.4 13.4 20.2
AEE 2.71 3.6 3.4 2.1 -3.5 4.8
AAT 2.7 4 5.6 4.6 7.3
UCBI 2.69 28.6 81.7 0.3
PB 2.46 13.3 12.3 11.2 11.7 13.7
POL 2.42 12.5 19.1 23.2 25.6
MFSF 2.38 13.8 27.3 22.4 1 24.8
ADP 2.2 7.5 10.6 10.6 11 12.8
TCBK 2.09 10 14.5 12.9 2.4 15
MSI 1.75 14.6 14 15.4 8.8 17.2
AL 1.37 50 35.7
UTMD 1.22 1.4 1.8 1.9 1.8 3.1

Bonus Charts

ADP, a global business services company and one of the largest payroll provider in the world, gets the highlight this week. With 45 years of dividend growth history and an upcoming 14.5% increase, ADP continues to get it done. It has shown with the stock price too, being a market favorite for many years. Arguably this stock hasn't been cheap in 5 years looking at the Fast Graph.

Running a stock return calculation versus the S&P since December of 2010, shares have crushed the market, returning nearly 20% versus 12.5% on the S&P. Additionally dividend income would have greatly outpaced the market. This has been a great stock to own over the past eight years.

ADP (the blue line) has been higher than the S&P the entire time during the comparison. In fact, shares have accelerated upward $30 since April. This is where a great dividend growth company can reward shareholders in both capital appreciation and strong income growth.

(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/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.