Dividend Increases: December 10-14, 2018

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Includes: ABT, AES, BEN, CNP, CUBE, FBHS, O, PFE, PNR, SEIC, T, VTR, WDFC
by: FerdiS
Summary

Companies can only raise their dividends regularly if earnings grow sufficiently.

Monitoring dividend increases for stocks on my watch list helps me identify candidates for further analysis.

I also provide a summary of available ex-dividend dates for the next two weeks.

Monitoring dividend increases for stocks on my watch is one way to identify candidates for further analysis. Companies that regularly increase their dividends show confidence in future earnings growth potential.

The CCC List provides a good starting point, but I limit the number of stocks to monitor by applying 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

In the last week, 13 companies that announced dividend increases passed these screens, including three of the stocks I own.

The following table presents a summary.

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: December 10-14, 2018

Previous Post: Dividend Increases: December 3-7, 2018

Abbott Laboratories (ABT)

ABT discovers, develops, manufactures, and sells health care products worldwide. The company also provides blood and flash glucose monitoring systems. The company operates in four segments: Established Pharmaceutical Products; Diagnostic Products; Nutritional Products; and Cardiovascular and Neuromodulation Products. ABT was founded in 1888 and is headquartered in Abbott Park, Illinois.

On Friday, December 14, the company increased its quarterly dividend by 14.29% to 32¢ per share. The dividend is payable on February 15 to shareholders of record on January 15. The stock will trade ex-dividend on January 14.

Franklin Resources (BEN)

BEN is a global investment management company operating as Franklin Templeton Investments. The company provides investment management and related services to retail, institutional, and high net-worth clients in jurisdictions around the world. BEN was founded in 1947 and is based in San Mateo, California with an additional office in Hyderabad, India.

Recently, BEN increased its quarterly dividend to 26¢ per share, an increase of 13.04% over the prior dividend of 23¢ per share. The dividend is payable on January 11 to shareholders of record on December 31. The stock will trade ex-dividend on December 28.

WD-40 (WDFC)

Founded in 1953 and headquartered in San Diego, California, WDFC develops and sells multi-purpose maintenance products, and home care and cleaning products. WDFC sells its products through mass retail and home center stores, warehouse club stores, grocery stores, hardware stores, automotive parts outlets, sports retailers, independent bike dealers, online retailers, and industrial distributors and suppliers.

On December 11, the board of directors approved an increase to the regular quarterly dividend from 54¢ per share to 61¢ per share, an increase of 12.96%. The dividend is payable on January 31 to shareholders of record on January 18. The ex-dividend date is January 17.

SEI Investments (SEIC)

Founded in 1968 and based in Oaks, Pennsylvania, SEIC provides wealth management, retirement and investment solutions, asset management, financial services, and investment advisory services to its clients. SEIC enables corporations, financial institutions, financial advisors and ultra-high-net-worth families to create and manage wealth by providing investment and investment-business solutions.

The company declared a semi-annual dividend of 33¢ per share, an increase of 10.00% over the prior semi-annual dividend. The dividend is payable on January 8 to shareholders of record on December 27. The ex-dividend date is December 26.

Fortune Brands Home & Security (FBHS)

FBHS, together with its subsidiaries, provides home and security products for residential home repair, remodeling, new construction, and security applications. The company operates in four segments: Cabinets, Plumbing, Doors, and Security. It has operations in the Americas, Europe, Southeast Asia, Japan, and Australia. FBHS was founded in 1988 and is headquartered in Deerfield, Illinois.

The company announced an increase of its quarterly dividend of 10.00% to 22¢ per share. The dividend is payable on March 13 to shareholders of record at the close of business on February 22.

CubeSmart (CUBE)

CUBE is a self-managed and self-administered real estate investment trust whose operations are conducted solely through CubeSmart, LP, and its subsidiaries. The company focuses on the ownership, operation, management, acquisition, and development of self-storage facilities in the United States. CUBE was founded in July 2004 and is based in Malvern, Pennsylvania.

On December 13, the board of directors approved an increase to the regular quarterly dividend from 30¢ per share to 32¢ per share, an increase of 6.67%. The quarterly dividend will be paid on January 15 to shareholders of record on January 2. The ex-dividend date is December 31.

Pfizer (PFE)

Headquartered in New York and founded in 1849, PFE is one of the world's largest pharmaceutical firms. The company discovers, develops and manufactures healthcare products. Prescription drugs and vaccines account for almost 90% of PFE's sales. Its brands include Prevnar 13, Xeljanz, Eliquis, Lipitor, Celebrex, Pristiq and Viagra.

The company's board of directors approved an increase in the quarterly dividend of 5.88% to 36¢ per share. The ex-dividend date is January 31 and the dividend will be paid on March 1 to shareholders of record on February 1.

AES (AES)

AES is a diversified power generation and utility company with operations in the United States, Mexico, Central America, the Caribbean, Chile, Columbia, Argentina, Brazil, Europe, and Asia. The company uses a range of fuels to generate electricity, including non-renewable and renewable sources. AES was founded in 1981 and is headquartered in Arlington, Virginia.

The company announced an increase of its quarterly dividend of 5.00% to 14¢ per share. The dividend is payable on February 15 to shareholders of record on February 1. The stock will trade ex-dividend on January 31.

CenterPoint Energy (CNP)

CNP is a domestic energy delivery company that includes electric transmission and distribution, natural gas distribution and sales, and interstate pipeline and gathering operations. The company serves more than five million customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. CNP was founded in 1882 and is headquartered in Houston, Texas.

The company's board of directors approved an increase in the quarterly dividend of 3.60% to 29¢ per share. The dividend is payable on March 14 to shareholders of record on February 21.

Pentair (PNR)

Based in Manchester, United Kingdom, PNR delivers industry-leading products, services, and solutions for its customers' diverse needs in water and other fluids, thermal management and equipment protection. It serves a wide range of industries, including Energy, Food & Beverage, Industrial, Infrastructure and Residential & Commercial. The company employs approximately 30,000 people worldwide. PNR was founded in 1966.

The company declared a quarterly dividend of 18¢ per share, an increase of 2.86% over the prior quarterly dividend. The quarterly dividend will be paid on February 8 to shareholders of record on January 25. The ex-dividend date is January 24.

AT&T (T)

Incorporated in 1983 and based in Dallas, Texas, T is a holding company providing telecommunications services across the world. These services include wireless communications, data/broadband and Internet, video, local exchange, long-distance, managed networking, and wholesale services. Through DIRECTV, a subsidiary, T provides pay television in the United States and internationally.

The company increased its quarterly dividend by 2.00%, from 50¢ per share to 51¢ per share. All shareholders of record on January 10 will receive the new dividend on February 1.

Ventas (VTR)

VTR is a publicly owned real estate investment trust engaged in the investment, management, financing, and leasing of properties in the healthcare industry. VTR was founded in 1983 and is based in Chicago, Illinois with additional offices in Irvine, California; Louisville, Kentucky; Charlotte, North Carolina; and Dallas, Texas.

Recently, the board of directors of VTR declared a quarterly dividend of 79.25¢ per share. The new dividend represents an increase of 0.32%. The new dividend is payable on January 14 to shareholders of record on January 2. The ex-dividend date will be December 31.

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.

Recently, O increased its monthly dividend to 22.10¢ per share, an increase of 0.23% over the prior dividend of 22.05¢ per share. The dividend is payable on January 15 to shareholders of record on January 2. The stock will trade ex-dividend on December 31.

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, SEIC, PFE, and CNP.

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).

SEIC's price line (black) is at the primary valuation line (orange) and below the stock's normal P/E ratio (blue). The stock is trading at a discount to fair value. An investment in SEIC in September 2009 would have returned 11.8% on an annualized basis (with dividends included).

PFE's price line is above the stock's normal P/E ratio and at the primary valuation line. The stock is trading at about fair value. An investment in PFE in September 2009 would have returned 13.3% on an annualized basis (with dividends included).

CNP's price line is above the primary valuation line and above the stock's normal P/E ratio. The stock is trading at a premium to fair value. An investment in CNP in September 2009 would have returned 12.7% 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.

Summary of Upcoming Ex-Dividend Dates: Dividend Increases: December 18-31, 2018

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Payable

Date

Agree Realty

ADC

3.71%

$59.87

6

4.80%

$2.22

12/20

01/04

Armada Hoffler Properties

AHH

5.25%

$15.23

6

N/A

$0.80

12/24

01/03

Acadia Realty Trust

AKR

4.06%

$27.58

6

7.60%

$1.12

12/28

01/15

American Tower

AMT

2.02%

$166.60

8

24.00%

$3.36

12/26

01/14

Air Products and Chemicals

APD

2.83%

$155.41

36

8.20%

$4.40

12/31

02/11

Alexandria Real Estate Equities

ARE

3.17%

$122.50

8

11.20%

$3.88

12/28

01/15

AvalonBay Communities

AVB

3.15%

$186.90

7

8.10%

$5.88

12/28

01/15

Broadcom

AVGO

4.16%

$254.83

8

51.10%

$10.60

12/18

12/28

Axis Capital

AXS

3.03%

$52.75

16

9.60%

$1.60

12/28

01/15

BancFirst

BANF

2.32%

$51.75

25

7.20%

$1.20

12/28

01/15

Franklin Resources

BEN

3.32%

$31.37

38

16.90%

$1.04

12/28

01/11

B&G Foods

BGS

6.13%

$30.97

8

12.30%

$1.90

12/28

01/30

BT

BT

3.46%

$15.91

8

8.10%

$0.55

12/27

02/11

Cardinal Health

CAH

3.81%

$50.06

23

15.00%

$1.91

12/31

01/15

Chubb

CB

2.28%

$128.12

25

7.80%

$2.92

12/20

01/11

Cincinnati Financial

CINF

2.67%

$79.41

58

4.20%

$2.12

12/18

01/15

Comcast

CMCSA

2.09%

$36.34

11

14.90%

$0.76

12/31

01/23

CME

CME

3.73%

$187.64

8

8.10%

$7.00

12/27

01/16

CyrusOne

CONE

3.10%

$59.33

6

N/A

$1.84

12/31

01/11

CoreSite Realty

COR

4.54%

$96.90

9

38.00%

$4.40

12/28

01/15

CubeSmart

CUBE

4.08%

$31.39

8

27.50%

$1.28

12/31

01/15

Douglas Emmett

DEI

2.93%

$35.46

8

9.70%

$1.04

12/28

01/15

Amdocs

DOX

1.68%

$59.56

7

45.70%

$1.00

12/28

01/18

EastGroup Properties

EGP

2.89%

$99.79

7

3.70%

$2.88

12/28

01/15

Encompass Health

EHC

1.58%

$68.54

6

N/A

$1.08

12/31

01/15

Edison International

EIX

4.11%

$59.64

15

10.80%

$2.45

12/28

01/31

Equity Lifestyle Properties

ELS

2.18%

$100.99

14

17.50%

$2.20

12/27

01/11

Essex Property Trust

ESS

2.84%

$262.28

24

9.60%

$7.44

12/31

01/15

First Midwest Bancorp

FMBI

2.33%

$20.64

7

56.90%

$0.48

12/20

01/08

First Industrial Realty Trust

FR

2.76%

$31.47

6

N/A

$0.87

12/28

01/22

Federal Realty Investment Trust

FRT

3.12%

$130.91

51

7.10%

$4.08

12/31

01/15

Getty Realty

GTY

4.38%

$31.96

7

17.50%

$1.40

12/19

01/04

Healthcare Trust of America

HTA

4.54%

$27.30

7

25.70%

$1.24

12/31

01/09

International Flavors & Fragrances

IFF

2.15%

$135.50

16

15.50%

$2.92

12/27

01/07

Independent Bank

INDB

2.12%

$71.62

8

8.80%

$1.52

12/30

01/11

Ingredion

INGR

2.61%

$95.68

8

19.50%

$2.50

12/31

01/25

Inter Parfums

IPAR

1.81%

$60.66

10

16.30%

$1.10

12/28

01/15

Illinois Tool Works

ITW

3.05%

$131.04

44

13.30%

$4.00

12/28

01/10

KAR Auction Services

KAR

2.83%

$49.45

6

N/A

$1.40

12/19

01/04

Kimco Realty

KIM

6.81%

$16.45

8

7.30%

$1.12

12/31

01/15

Kansas City Southern

KSU

1.49%

$96.67

6

18.20%

$1.44

12/28

01/16

Kennedy-Wilson

KW

4.29%

$19.59

9

29.00%

$0.84

12/27

01/03

Lincoln Electric

LECO

2.34%

$80.21

24

15.50%

$1.88

12/28

01/15

Lennox International

LII

1.20%

$213.88

9

20.50%

$2.56

12/28

01/15

Legg Mason

LM

5.31%

$25.59

8

19.50%

$1.36

12/18

01/14

Main Street Capital

MAIN

6.24%

$37.47

8

5.50%

$2.34

12/28

01/15

Mondelez International

MDLZ

2.39%

$43.55

7

44.50%

$1.04

12/28

01/14

Medtronic

MDT

2.13%

$93.72

41

12.00%

$2.00

12/27

01/18

McCormick

MKC

1.50%

$151.57

33

8.70%

$2.28

12/28

01/14

Altria

MO

6.07%

$52.73

49

8.30%

$3.20

12/24

01/10

Vail Resorts

MTN

2.62%

$224.55

8

41.00%

$5.88

12/26

01/10

Nordson

NDSN

1.18%

$118.55

55

16.80%

$1.40

12/20

01/08

National Fuel Gas

NFG

3.04%

$55.87

48

2.60%

$1.70

12/28

01/15

National Healthcare

NHC

2.51%

$79.70

15

9.20%

$2.00

12/28

03/01

Nucor

NUE

2.84%

$56.39

46

0.70%

$1.60

12/28

02/11

Realty Income

O

4.00%

$66.34

25

7.40%

$2.65

12/31

01/15

Omnicom

OMC

3.17%

$75.78

9

13.90%

$2.40

12/20

01/09

Pattern Energy

PEGI

8.10%

$20.85

5

N/A

$1.69

12/28

01/31

Philip Morris International

PM

5.53%

$82.50

11

5.80%

$4.56

12/19

01/11

Portland General Electric

POR

2.96%

$48.96

13

4.30%

$1.45

12/24

01/15

Primoris Services

PRIM

1.09%

$22.10

7

13.40%

$0.24

12/28

01/15

QTS Realty Trust

QTS

4.08%

$40.20

5

N/A

$1.64

12/20

01/08

Regal Beloit

RBC

1.53%

$73.03

14

6.20%

$1.12

12/27

01/11

Royal Caribbean Cruises

RCL

2.61%

$107.09

8

37.20%

$2.80

12/19

01/04

Rexford Industrial Realty

REXR

2.04%

$31.42

6

N/A

$0.64

12/28

01/15

Ryman Hospitality Properties

RHP

4.76%

$71.36

6

N/A

$3.40

12/27

01/15

Republic Services

RSG

2.02%

$74.42

16

7.80%

$1.50

12/31

01/15

Raytheon

RTN

2.04%

$169.85

14

10.10%

$3.47

12/31

01/31

SEI Investments

SEIC

1.36%

$48.41

27

14.10%

$0.66

12/26

01/08

SL Green Realty

SLG

3.81%

$89.28

8

25.40%

$3.40

12/31

01/15

Synovus Financial

SNV

3.11%

$32.20

5

70.10%

$1.00

12/19

01/02

Steel Dynamics

STLD

2.33%

$32.20

8

8.60%

$0.75

12/28

01/11

State Street

STT

2.96%

$63.53

8

11.60%

$1.88

12/31

01/16

Stryker

SYK

1.25%

$166.56

25

14.90%

$2.08

12/28

01/31

Thor Industries

THO

2.89%

$53.92

9

16.60%

$1.56

12/26

01/10

Tiffany

TIF

2.66%

$82.66

16

9.30%

$2.20

12/19

01/10

Townebank

TOWN

2.54%

$25.23

7

11.40%

$0.64

12/27

01/11

Toro

TTC

1.56%

$57.73

9

26.00%

$0.90

12/19

01/09

Texas Roadhouse

TXRH

1.61%

$62.08

8

18.50%

$1.00

12/18

12/28

Domtar

UFS

4.50%

$38.65

9

14.30%

$1.74

12/31

01/15

Marriott Vacations Worldwide

VAC

2.49%

$72.31

5

N/A

$1.80

12/19

01/03

Ventas

VTR

5.07%

$62.56

8

7.60%

$3.17

12/31

01/14

Willis Towers Watson

WLTW

1.56%

$153.76

7

14.10%

$2.40

12/28

01/15

WP Carey

WPC

5.84%

$70.58

21

11.40%

$4.12

12/28

01/15

Xcel Energy

XEL

2.86%

$53.14

15

6.00%

$1.52

12/27

01/20

Thanks for reading!

Disclosure: I am/we are long O, PFE, T. 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.