13 Upcoming Dividend Increases Including The 'Abbotts'

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Includes: ABBV, ABT, BFS, CMD, DGX, GGG, MAA, NWFL, OZK, RGCO, WDFC, WSO, ZTS
by: Dividend Derek
Summary

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

A jump to 13 from 8 last week.

5 have at least a 10% increase.

Both Abbott Labs and AbbVie raise their dividend next week.

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 gives investors an opportunity to start or add to a position to capture an upcoming payment. This can be especially important for retirees who live on dividend checks.

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.

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 0*
Contender 6
Challenger 7

No champions or kings this week though both the Bank OZK and Graco come close with 22 years of consecutive raises. I'll cover it more below but Abbott is a Dividend Aristocrat.

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
Bank OZK (OZK) 22 3.39 14-Jan-19 4.76% Contender
Norwood Financial Corp. (NWFL) 21 3 14-Jan-19 9.09% Contender
RGC Resources Inc. (RGCO) 16 2.21 14-Jan-19 6.45% Contender
Mid-America Apartment Communities, Inc. (MAA) 9 4.04 14-Jan-19 4.01% Challenger
Quest Diagnostics Incorporated (DGX) 8 2.51 14-Jan-19 6.00% Challenger
AbbVie Inc. (ABBV) 7 4.88 14-Jan-19 11.46% Challenger
Abbott Laboratories (ABT) 6 1.84 14-Jan-19 14.29% Challenger
Watsco, Inc. (WSO) 5 4.54 15-Jan-19 10.34% Challenger
Cantel Medical Corp. (CMD) 10 0.26 16-Jan-19 17.65% Contender
Saul Centers, Inc. (BFS) 6 4.17 16-Jan-19 1.92% Challenger
WD-40 Company (WDFC) 10 1.33 17-Jan-19 12.96% Contender
Zoetis Inc. Class A (ZTS) 7 0.77 17-Jan-19 30.16% Challenger
Graco Inc. (GGG) 22 1.5 18-Jan-19 21.21% Contender

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
OZK 0.21 0.22 4.76%
NWFL 0.22 0.24 9.09%
RGCO 0.155 0.165 6.45%
MAA 0.9225 0.96 4.01%
DGX 0.5 0.53 6.00%
ABBV 0.96 1.07 11.46%
ABT 0.28 0.32 14.29%
WSO 1.45 1.6 10.34%
CMD 0.085 0.1 17.65%
BFS 0.52 0.53 1.92%
WDFC 0.54 0.61 12.96%
ZTS 0.125 0.164 30.16%
GGG 0.1325 0.16 21.21%

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. They may provide a larger margin of safety and inflated yield.

Ticker Current Price 52 Week Low 52 Week High PE Ratio % Off Low % Off High
OZK 25.93 21.02 53.7 7.28 23% Off Low 52% Off High
NWFL 32.35 28.76 40.58 18.7 13% Off Low 20% Off High
RGCO 29.8 22.16 31.33 30.53 34% Off Low 5% Off High
MAA 94.99 85.16 104.98 38.45 12% Off Low 10% Off High
DGX 84.44 78.95 116.49 13.6 7% Off Low 28% Off High
ABBV 87.77 77.5 125.86 18.76 13% Off Low 30% Off High
ABT 69.44 55.58 74.92 140.73 25% Off Low 7% Off High
WSO 141.1 131.88 192.94 22.2 7% Off Low 27% Off High
CMD 78.03 69.36 130.92 36.39 13% Off Low 40% Off High
BFS 50.86 45.49 60.65 32.36 12% Off Low 16% Off High
WDFC 183.75 116.1 187.5 38.62 58% Off Low 2% Off High
ZTS 86.2 70.2 96.57 36.36 23% Off Low 11% Off High
GGG 42.73 37.36 49.69 24.2 14% 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
ABBV 4.88 12.3 15.5
WSO 4.54 21.1 32 13.2 13.4 17.7
BFS 4.17 10.9 9.4 7.2 1.4 11.4
MAA 4.04 6.1 6 5.7 3.7 9.7
OZK 3.39 12.7 14.7 23.2 20.8 26.7
NWFL 3 4.8 2.7 3.6 4.5 6.6
DGX 2.51 12.5 11.7 21.5 16.2 24
RGCO 2.21 7.4 5.5 4.4 3.6 6.6
ABT 1.84 1.9 6.4 1.9 5.7 3.8
GGG 1.5 9.1 9.4 9.9 8.1 11.4
WDFC 1.33 16.7 13 11.1 7 12.5
ZTS 0.77 10.5 13.4
CMD 0.26 16.7 15.9 17.5 17.8

Bonus Charts

This week you get a bonus package as I'll highlight both Abbott Labs and AbbVie. The historical dividend numbers per the rules outlined in the "CCC list" have reset the years of consecutive growth. However, Abbott's own publishing highlight the fact that they have been raising dividends for over 47 years!

Since the split shares of Abbott have done quite well, averaging over 14% per year which has been beaten the S&P by over 2% per year. Earnings understandably took a nose dive after the split but since then, are up over 40%. What has really moved the stock though has also been the P/E expansion. From a starting value around 14 to a closing value at 24, a good chunk of the current returns has been through this phenomenon. Shares don't look cheap here but if the expected 10%+ earnings growth per year continues it deserves the premium.

AbbVie on the other hand has been an absolute market crusher since becoming a company in 2013. What has been different however is most of the growth has been directly because of earnings growth and not from the P/E growing. ABBV seems to have difficulty in fact garnering much of a market premium. There was a brief blip in the beginning of 2018 where shares traded around 19x earnings but since then it has been a steady grind down at the low double digit mark.

Running a stock return calculation versus the S&P since January of 2013 when the split happened, shares of both companies have beaten the market, with ABBV being the better of the two. Not only did the capital appreciate more but it also provided a much higher dividend stream. Not to say that Abbott has been any slouch! It was still a market beater over the timeframe also.

Watching the returns over time a few things stand out to me. For one, shares of ABBV basically had a leg up over the market during its entire existence. The aforementioned peak in early 2018 dramatically pushed the investment value higher than either of the other two.

Abbott (the blue line below) actually struggled for most of 2016 and 2017 before finally returning to a market beating position. In perfect hindsight this was a good time to start accumulating shares. I actually started my position in Abbott at the end of 2016 which has worked out quite nicely for me. I gladly continue to own this true Dividend Aristocrat.

(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 ABT. 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.