Dividend Increases: December 31, 2018-January 11, 2019

|
Includes: OZK, SNX, STAG, WSO
by: FerdiS
Summary

I provide a summary of recent dividend increases.

Monitoring dividend increases help me identify candidates for further analysis.

The article also provides a summary of upcoming ex-dividend dates.

Quick Recap of 2018

In 2018, I reported on 580 dividend increases.

In this summary article, I calculated the average dividend increase (12.07%) and the average yield (3.24%) of the stocks in question. I highlighted the top 10 increases — all of them are year-over-year increases exceeding 50%!

The summary article also provides an analysis of increases by sector. The Information Technology sector fared best with an average increase of 18.29%. Dividend raisers in the Energy sector have the highest average yield (6.83%), while those in the Consumer Staples sector have the longest average streak (29.1 years).

Finally, the article presents the top 7 dividend increases by sector.

On to 2019!

I monitor dividend increases of dividend growth stocks in the CCC List, but I apply the following screens to reduce the number of stocks to track:

  • Dividend Yield ≥ 1.0%
  • Market Cap ≥ $1 billion
  • No stocks that are being acquired
  • No Over-The-Counter or Pink Sheet stocks

In the past 2 weeks, four companies that declared dividend increases passed these screens.

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: December 31, 2018-January 11, 2019

Previous Post: Dividend Increases: December 17-21, 2018

Watsco (WSO)

WSO distributes air conditioning, heating, and refrigeration equipment in the United States, Canada, Mexico, and Puerto Rico. The company offers residential ducted and ductless air conditioners; gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. WSO was founded in 1945 and is headquartered in Miami, Florida.

On January 2, the board of directors approved an increase to the regular quarterly dividend from 145¢ per share to $1.60 per share, an increase of 10.34%. The stock will trade ex-dividend on January 15, and shareholders can expect to receive the new dividend on January 31.

SYNNEX (SNX)

Founded in 1980 and headquartered in Fremont, California, SNX provides business process services in the United States and internationally. The company operates in two segments. Its Technology Solutions segment distributes peripherals; information technology systems; software; consumer electronics; and complementary products. The Concentrix segment offers a portfolio of strategic solutions and end-to-end business services.

Recently, SNX increased its quarterly dividend to 37.5¢ per share, an increase of 7.14% over the prior dividend of 35¢ per share. The new dividend is payable on January 31 to shareholders of record on January 22, with an ex-dividend date of January 18.

Bank OZK (OZK)

Founded in 1981 and headquartered in Little Rock, Arkansas, OZK provides deposit services, loan products, mortgage lending, treasury management services, and trust and wealth management services. OZK serves businesses, individuals, and non-profit and governmental entities in Arkansas, Georgia, North and South Carolina, Texas, Florida, Alabama, New York, and California.

Recently, OZK increased its quarterly dividend to 22¢ per share, an increase of 4.76% over the prior dividend of 21¢ per share. The dividend is payable on January 22 to shareholders of record on January 15. The stock will trade ex-dividend on January 14.

STAG Industrial (STAG)

Founded on July 21, 2010, and based in Boston, Massachusetts, STAG is a real estate investment trust focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. STAG’s portfolio consists of 257 properties in 36 states with approximately 49 million rentable square feet.

The board of directors of STAG has declared a monthly dividend of 11.9167 ¢ per share. The new dividend is 0.71% above the prior dividend of 11.83¢ per share. The monthly dividend will be paid on February 15 to shareholders of record on January 31. The ex-dividend date is January 30.

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, WSO, SNX, and OZK.

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

WSO's price line (black) is below 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 WSO in January 2010 would have returned 14.6% on an annualized basis (with dividends included).

SNX's price line is below the stock's normal P/E ratio and below the primary valuation line. The stock is trading at a discount to fair value. An investment in SNX in August 2009 would have returned 14.% on an annualized basis (with dividends included).

OZK'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 OZK in August 2009 would have returned 18.4% 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. Please note that Next Div links to the latest dividend declaration announcement.

Summary of Upcoming Ex-Dividend Dates: Dividend Increases: January 8-21, 2019

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Pay- able

Date

Brady

BRC

1.86%

$45.78

33

2.00%

$0.85

01/09

01/31

General Mills

GIS

4.69%

$41.80

15

8.80%

$1.96

01/09

02/01

Lincoln National

LNC

2.68%

$55.24

9

29.40%

$1.48

01/09

02/01

OGE Energy

OGE

3.68%

$39.72

12

9.60%

$1.46

01/09

01/30

AT&T

T

6.61%

$30.87

35

2.20%

$2.04

01/09

02/01

Hanover Insurance

THG

2.18%

$110.30

14

10.60%

$2.40

01/09

01/25

UDR

UDR

3.21%

$40.15

8

7.00%

$1.29

01/09

01/31

Verizon Communications

VZ

4.15%

$58.02

14

2.90%

$2.41

01/09

02/01

Masco

MAS

1.47%

$32.56

5

6.20%

$0.48

01/10

02/11

Patterson

PDCO

4.77%

$21.82

9

13.60%

$1.04

01/10

01/25

Hormel Foods

HRL

1.97%

$42.54

53

17.80%

$0.84

01/11

02/15

AbbVie

ABBV

4.85%

$88.31

7

N/A

$4.28

01/14

02/15

Abbott Laboratories

ABT

1.85%

$69.33

6

1.90%

$1.28

01/14

02/15

American Financial

AFG

1.71%

$93.40

13

12.30%

$1.60

01/14

01/25

City

CHCO

3.09%

$68.65

7

4.70%

$2.12

01/14

01/31

Quest Diagnostics

DGX

2.49%

$85.03

8

21.50%

$2.12

01/14

01/30

IDEX

IEX

1.26%

$136.56

9

13.50%

$1.72

01/14

01/30

Life Storage

LSI

4.33%

$92.28

6

17.00%

$4.00

01/14

01/28

Mid-America Apartment Communities

MAA

3.95%

$97.19

9

5.70%

$3.84

01/14

01/31

Bank OZK

OZK

3.34%

$26.37

22

23.20%

$0.88

01/14

01/22

Trinity Industries

TRN

2.38%

$21.87

8

19.10%

$0.52

01/14

01/31

Oracle

ORCL

1.57%

$48.29

10

24.60%

$0.76

01/15

01/30

RPM International

RPM

2.56%

$54.65

45

7.00%

$1.40

01/15

01/31

Watsco

WSO

4.47%

$143.02

5

13.20%

$6.40

01/15

01/31

Saul Centers

BFS

4.15%

$51.11

6

7.20%

$2.12

01/16

01/31

McGrath RentCorp

MGRC

2.64%

$51.43

26

2.10%

$1.36

01/16

01/31

PNC Financial Services

PNC

3.17%

$120.05

8

10.90%

$3.80

01/16

02/05

Cracker Barrel Old Country Store

CBRL

2.95%

$169.23

16

27.40%

$5.00

01/17

02/05

Foot Locker

FL

2.44%

$56.50

8

11.30%

$1.38

01/17

02/01

General Dynamics

GD

2.27%

$163.81

27

10.40%

$3.72

01/17

02/08

Main Street Capital

MAIN

6.44%

$36.34

8

5.50%

$2.34

01/17

02/15

Oxford Industries

OXM

1.79%

$75.77

8

13.20%

$1.36

01/17

02/01

Procter & Gamble

PG

3.13%

$91.77

62

4.40%

$2.87

01/17

02/15

WD-40

WDFC

1.44%

$169.99

10

11.10%

$2.44

01/17

01/31

Caterpillar

CAT

2.60%

$132.10

25

9.60%

$3.44

01/18

02/20

Graco

GGG

1.50%

$42.59

22

9.90%

$0.64

01/18

02/06

SYNNEX

SNX

1.54%

$97.48

5

N/A

$1.50

01/18

01/31

Thanks for reading!

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.