Dividend Increases: January 14-18, 2019

|
Includes: BLK, BUSE, CFG, CMS, ED, EPD, EPR, EQM, FAST, KALU, LNT, O, OGS, OKE, SNV, WAFD, WEC
by: FerdiS
Summary

This article provides a summary of recent dividend increases.

I monitor dividend increases to identify candidates for further analysis.

Four of this week's increases are for stocks I own.

Monitoring dividend increases for stocks on my watch list helps me identify candidates for further analysis. Companies that regularly increase their dividends show confidence in future earnings growth potential.

I look for dividend increase announcements for stocks in the CCC List, but I use several screens to limit the number of stocks to monitor:

  • 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, 17 companies that announced dividend increases passed these screens, including 4 of the stocks I own.

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: January 14-18, 2019

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

Synovus Financial (SNV)

SNV operates as the bank holding company for Synovus Bank, which provides various financial products and services in Georgia, Alabama, South Carolina, Florida, and Tennessee. The company offers commercial and retail banking, financial management, insurance, and mortgage services. SNV was founded in 1888 and is headquartered in Columbus, Georgia.

The company announced an increase of its quarterly dividend of 20.00% to 30¢ per share. The new dividend is payable on April 1 to shareholders of record on March 14. The ex-dividend date will be March 13.

Citizens Financial (CFG)

CFG operates as the bank holding company for Citizens Bank, National Association and Citizens Bank of Pennsylvania. The company provides retail and commercial banking products and services in the United States. The company operates in two segments, Consumer Banking and Commercial Banking. CFG was founded in 1828 and is headquartered in Providence, Rhode Island.

On Friday, January 18, the company increased its quarterly dividend by 18.52% to 32¢ per share. The ex-dividend date is January 30 and the dividend will be paid on February 14 to shareholders of record on January 31.

Washington Federal (WAFD)

WAFD is a non-diversified unitary savings and loan holding company. Its principal subsidiary is Washington Federal, National Association. The company attracts savings deposits from the general public and invests these funds in loans secured by first mortgage liens on single-family dwellings. WAFD was founded in 1917 and is headquartered in Seattle, Washington.

On Wednesday, January 16, the company increased its quarterly dividend by 11.11% to 20¢ per share. The first payment will be on February 22 to shareholders of record on February 8. The ex-dividend date is February 7.

Kaiser Aluminum (KALU)

KALU manufactures and sells semi-fabricated specialty aluminum mill products. The company offers rolled, extruded, and drawn aluminum products used principally for aerospace and defense, automotive, consumer durables, electronics, electrical, and machinery and equipment applications. KALU was founded in 1946 and is headquartered in Foothill Ranch, California.

Recently, KALU increased its quarterly dividend to 60¢ per share, an increase of 9.09% over the prior dividend of 55¢ per share. All shareholders of record on January 25 can expect the dividend to be paid on February 15.

ONE Gas (OGS)

Founded in 1906 and headquartered in Tulsa, Oklahoma, OGS operates as a regulated natural gas distribution utility company. It operates through three divisions: Oklahoma Natural Gas, Kansas Gas Service, and Texas Gas Service. OGS serves residential, commercial, and industrial and transportation customers, and provides natural gas distribution services to wholesale and public authority customers.

The company announced a quarterly DIV increase of 8.70% to 50¢ per share. The dividend is payable on March 8 to shareholders of record on February 22. OGS will trade ex-dividend on February 21.

Fastenal (FAST)

FAST sells industrial and construction supplies, including threaded fasteners such as bolts, nuts, screws, studs, and related washers, in the United States, Canada, and internationally. The company distributes the supplies through a network of company-owned stores. Customers are in the manufacturing and non-residential construction markets. FAST was founded in 1967 and is headquartered in Winona, Minnesota.

The company announced an increase of its quarterly dividend of 7.50% to 43¢ per share. The dividend is payable on February 27 to shareholders of record on January 31. FAST will trade ex-dividend on January 30.

CMS Energy (CMS)

Founded in 1987 and based in Jackson, Michigan, CMS is an energy company engaged in independent power production and ownership of power generations facilities fueled by natural gas and biomass. The company generates, purchases, stores, transmits, distributes, and sells electricity and natural gas. Through EnerBank USA, CMS provides unsecured consumer installment loans for financing home improvements.

The company's board of directors approved an increase in the quarterly dividend of 6.99% to 38.25¢ per share. The first payment will be on February 28 to shareholders of record on February 1. The ex-dividend date is January 31.

WEC Energy (WEC)

Founded in 1981 and based in Milwaukee, Wisconsin, WEC is an energy company that serves customers in Wisconsin, Illinois, Michigan, and Minnesota. The company's principal utilities are We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, and Minnesota Energy Resources. WEC’s subsidiary, We Power, designs, builds and owns electric generating plants.

The company announced a quarterly DIV increase of 6.79% to 59¢ per share. The dividend is payable on March 1 to shareholders of record at the close of business on February 14.

Alliant Energy (LNT)

LNT operates as a regulated investor-owned public utility holding company. LNT provides electricity and natural gas services to customers in the U.S. Midwest through two subsidiaries, Interstate Power and Light Company and Wisconsin Power and Light Company. LNT was founded in 1917 and is headquartered in Madison, Wisconsin.

On Monday, January 14, the company increased its quarterly dividend by 5.97% to 35.5¢ per share. All shareholders of record on January 31 will receive the new dividend on February 15.

BlackRock (BLK)

BLK is an investment management company that provides a range of investment and risk management services to institutional and retail clients across the world. The company’s offerings include single and multi-asset class portfolios investing in equities, fixed income, alternatives and money market instruments. BLK was founded in 1988 and is based in New York City.

On Wednesday, January 16, BLK increased its quarterly dividend to $3.30 per share, an increase of 5.43%. All shareholders of record on March 6 will receive the new dividend on March 21.

First Busey (BUSE)

BUSE operates as the bank holding company for Busey Bank, providing retail and commercial banking products and services to individual, corporate, institutional, and governmental customers in the United States. The company operates in three segments: Banking, Remittance Processing, and Wealth Management. BUSE was founded in 1868 and is headquartered in Champaign, Illinois.

Recently, BUSE increased its quarterly dividend from 20¢ per share to 21¢ per share, an increase of 5.00%. The dividend is payable on February 1 to shareholders of record on January 25.

EPR Properties (EPR)

Founded in 1997 and based in Kansas City, Missouri, EPR is a specialty real estate investment trust that invests in properties in the United States and Canada. EPR owns or invests in megaplex theaters, entertainment retail centers, family entertainment centers; public charter schools and K-12 private schools; and ski parks, resorts, waterparks, and golf entertainment complexes.

On Wednesday, January 16, EPR increased its monthly dividend to 37.5¢ per share, an increase of 4.17%. The new dividend is payable on February 15 to shareholders of record on January 31, with an ex-dividend date of January 20.

Consolidated Edison (ED)

ED delivers electricity, gas, and steam. The company provides electric services to customers in New York City and Westchester County; gas to customers in Manhattan, the Bronx, and parts of Queens and Westchester County; and steam to customers in parts of Manhattan. ED was founded in 1884 and is based in New York, New York.

The company announced an increase of its quarterly dividend of 3.50% to 74¢ per share. All shareholders of record on February 13 can expect the dividend to be paid on March 15.

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.

On Wednesday, January 16, O increased its monthly dividend to 22.55¢ per share, an increase of 2.04%. The dividend is payable on February 15 to shareholders of record on February 1. The ex-dividend date is January 31.

EQT Midstream Partners (EQM)

Founded in 1925 and headquartered in Pittsburgh, Pennsylvania, EQM operates as an integrated energy company in the United States. The company explores for, develops, and produces natural gas, natural gas liquids, and crude oil primarily in the Appalachian Basin. EQM provides natural gas transmission, storage and gathering services in southwestern Pennsylvania and northern West Virginia.

Recently, EQM increased its quarterly dividend from 111.50¢ per share to $1.13 per share, an increase of 1.35%. All shareholders of record on February 1 will receive the new dividend on February 13.

ONEOK (OKE)

OKE is an energy midstream service provider in the United States. The company purchases, gathers, compresses, transports, stores, and distributes natural gas. It also leases pipeline capacity to others. OKE drills for and produces oil and gas, extracts and sells natural gas liquids, and is engaged in the gas marketing business.

OKE will pay a quarterly dividend of 86¢ per share, an increase of 0.58% over the previous quarterly dividend. The new dividend is payable on February 14 to shareholders of record on January 28, with an ex-dividend date of January 25.

Enterprise Products Partners (EPD)

Founded in 1968 and based in Houston, Texas, EPD provides midstream energy services to producers and consumers of natural gas, natural gas liquids, crude oil, petrochemicals, and refined products. EPD operates through four segments: NGL Pipelines & Services; Crude Oil Pipelines & Services; Natural Gas Pipelines & Services; and Petrochemical & Refined Products Services.

On Tuesday, January 15, the company increased its quarterly dividend by 0.58% to 43.5¢ per share. The dividend is payable February 8, with an ex-dividend date of 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, WAFD, LNT, and BLK.

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.)

WAFD'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 WAFD in January 2010 would have returned 6.2% on an annualized basis (with dividends included).

LNT's price line is above the stock's normal P/E ratio and above the primary valuation line. The stock is trading at a premium to fair value. An investment in LNT in January 2010 would have returned 14.6% on an annualized basis (with dividends included).

BLK's price line is below the primary valuation line and above the stock's normal P/E ratio. The stock is trading at a discount to fair value. An investment in BLK in January 2010 would have returned 8.5% 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: January 22-February 4, 2019

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Payable

Date

Colgate-Palmolive

CL

2.68%

$62.63

55

5.40%

$1.68

01/22

02/15

Clorox

CLX

2.49%

$154.37

41

5.80%

$3.84

01/22

02/08

Lowe's

LOW

2.02%

$94.98

56

20.40%

$1.92

01/22

02/06

First Busey

BUSE

3.17%

$26.51

5

8.40%

$0.84

01/24

02/01

Kaiser Aluminum

KALU

2.38%

$100.69

7

14.90%

$2.40

01/24

02/15

Lakeland Financial

LKFN

2.34%

$44.44

7

13.90%

$1.04

01/24

02/05

Pentair

PNR

1.75%

$41.17

43

9.40%

$0.72

01/24

02/08

Williams-Sonoma

WSM

3.19%

$53.89

13

11.80%

$1.72

01/24

02/22

Alexanders

ALX

5.67%

$317.33

5

2.50%

$18.00

01/25

02/14

Bank of New York Mellon

BK

2.13%

$52.66

8

10.60%

$1.12

01/25

02/08

Hospitality Properties Trust

HPT

8.08%

$26.25

7

2.60%

$2.12

01/25

02/21

Unum

UNM

3.02%

$34.45

10

12.80%

$1.04

01/25

02/15

Sanderson Farms

SAFM

1.06%

$120.81

6

8.90%

$1.28

01/28

02/12

AptarGroup

ATR

1.39%

$97.69

25

7.80%

$1.36

01/29

02/20

Marsh & McLennan

MMC

1.97%

$84.06

9

9.70%

$1.66

01/29

02/15

A.O. Smith

AOS

1.83%

$48.01

25

25.50%

$0.88

01/30

02/15

Citizens Financial

CFG

3.61%

$35.43

5

N/A

$1.28

01/30

02/14

EPR Properties

EPR

6.36%

$70.70

8

6.70%

$4.50

01/30

02/15

Eaton Vance

EV

3.53%

$39.70

38

8.10%

$1.40

01/30

02/15

Fastenal

FAST

2.90%

$59.35

19

11.60%

$1.72

01/30

02/27

Alliant Energy

LNT

3.31%

$42.95

15

7.00%

$1.42

01/30

02/15

Morgan Stanley

MS

2.75%

$43.69

5

35.10%

$1.20

01/30

02/15

National Retail Properties

NNN

4.00%

$49.98

29

3.60%

$2.00

01/30

02/15

Northwest Natural

NWN

3.13%

$60.63

63

1.00%

$1.90

01/30

02/15

Omega Healthcare Investors

OHI

6.92%

$38.16

16

8.50%

$2.64

01/30

02/15

Tanger Factory Outlet Centers

SKT

6.27%

$22.33

25

10.30%

$1.40

01/30

02/15

STAG Industrial

STAG

5.30%

$26.99

8

5.80%

$1.43

01/30

02/15

Texas Instruments

TXN

3.10%

$99.42

15

24.50%

$3.08

01/30

02/11

AES

AES

3.51%

$15.55

8

64.40%

$0.55

01/31

02/15

Aon

AON

1.04%

$154.41

7

17.80%

$1.60

01/31

02/15

CMS Energy

CMS

3.01%

$50.88

12

6.70%

$1.53

01/31

02/28

Goodyear Tire & Rubber

GT

3.11%

$20.58

6

N/A

$0.64

01/31

03/01

Hasbro

HAS

2.84%

$88.85

15

10.00%

$2.52

01/31

02/15

Realty Income

O

4.19%

$64.65

26

7.40%

$2.71

01/31

02/15

Paychex

PAYX

3.20%

$69.90

8

8.30%

$2.24

01/31

02/15

People's United Financial

PBCT

4.28%

$16.37

26

1.50%

$0.70

01/31

02/15

Pfizer

PFE

3.39%

$42.53

9

7.80%

$1.44

01/31

03/01

PNM Resources

PNM

2.76%

$42.00

8

11.60%

$1.16

01/31

02/15

Pinnacle West Capital

PNW

3.44%

$85.67

7

4.60%

$2.95

01/31

03/01

Signet Jewelers

SIG

5.82%

$25.41

8

20.90%

$1.48

01/31

03/01

Idacorp

IDA

2.68%

$94.17

7

10.30%

$2.52

02/04

02/28

MetLife

MET

3.71%

$45.31

6

19.40%

$1.68

02/04

03/13

Thanks for reading!

Disclosure: I am/we are long BLK, EPR, WEC. 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.