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 five-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
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|
|Enterprise Products Partners L.P.||(EPD)||21||6.39||30-Jan-19||0.46%||Contender|
|Alliant Energy Corporation||(LNT)||15||3.25||30-Jan-19||5.97%||Contender|
|Stag Industrial, Inc.||(STAG)||8||5.36||30-Jan-19||0.85%||Challenger|
|First Community Corporation||(FCCO)||6||2.18||30-Jan-19||10.00%||Challenger|
|Citizens Financial Group, Inc.||(CFG)||5||3.66||30-Jan-19||18.52%||Challenger|
|Franklin Electric Co., Inc.||(FELE)||26||1.26||31-Jan-19||20.83%||Champion|
|Realty Income Corporation||(O)||26||4.2||31-Jan-19||2.26%||Champion|
|CMS Energy Corporation||(CMS)||12||2.97||31-Jan-19||7.00%||Contender|
|Northwest Bancshares, Inc.||(NWBI)||9||4.01||31-Jan-19||5.88%||Challenger|
|PNM Resources, Inc. (Holding Co.)||(PNM)||8||2.72||31-Jan-19||9.43%||Challenger|
|The AES Corporation||(AES)||8||3.47||31-Jan-19||5.38%||Challenger|
|EQM Midstream Partners||(EQM)||7||10||31-Jan-19||1.35%||Challenger|
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
Here's a table mapping the new rates versus the old rates. 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|
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|
|EPD||27.23||23.1||30.05||16.23||18% Off Low||9% Off High|
|FAST||58.9||47.37||61.14||22.4||24% Off Low||4% Off High|
|LNT||43.65||36.84||46.58||19.53||18% Off Low||6% Off High|
|STAG||26.69||22.42||29.07||61.01||19% Off Low||8% Off High|
|EPR||70.81||51.87||72.18||21.09||37% Off Low||2% Off High|
|BSRR||26.88||22.94||31.19||13.88||17% Off Low||14% Off High|
|FCCO||20.47||18.54||26.25||14.02||9% Off Low||23% Off High|
|CFG||34.96||27.62||48.23||9.92||27% Off Low||28% Off High|
|FELE||46.04||38.45||51.45||24.34||20% Off Low||11% Off High|
|O||64.45||47.25||66.91||54.4||36% Off Low||4% Off High|
|CMS||51.44||40.48||53.82||26.64||27% Off Low||4% Off High|
|PFE||42.16||33.2||46.47||10.67||27% Off Low||9% Off High|
|NWBI||17.97||15.5||18.56||17.58||16% Off Low||3% Off High|
|PNM||42.61||33.75||45.35||39.31||26% Off Low||6% Off High|
|AES||15.86||9.87||16.28||31.07||61% Off Low||3% Off High|
|EQM||45.2||39.32||77.6||8.83||15% Off Low||42% 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 + five-year dividend growth rate). That is the current yield, plus the five-year dividend growth rate.
|Ticker||Yield||1 Yr DG||3 Yr DG||5 Yr DG||10 Yr DG||Chowder Rule|
Using the new and improved Fast Graphs, we'll take a look at Realty Income this week. Realty Income is a well known dividend champion with over 26 years of dividend increases per the CCC list. This triple-net lease REIT has been making investors wealthy for a long time. It sports an A- credit rating from S&P and a current yield of 4.1%.
Shares are trading at a bit of a premium today and don't represent a great value at current prices. The figures look more dramatic including the Great Recession, so that has been excluded. The P/AFFO at that point was in the single digits, and with perfect hindsight was the perfect time to load up on shares. In fact with the most recent trough to peak shares are up over 30%.
Running a stock return calculation versus the S&P and VNQ since January of 2010, O has been the best performer of the three. With an annual return of 15.5%, that beat the S&P at 12.42% and VNQ at 11.43%. O also gave investors the most dividends during that period.
Watching the investment values over time, O (blue line) and VNQ (black line) started out with an early lead over the S&P (green line). There was a very clear period in late 2016 when shares of O dramatically bubbled up, which is also easily visible in the Fast Graph above. At that point, shares were trading at 25x P/AFFO and steadily fell until the trough of 16x seen in February of 2018.
Interestingly enough, if you had bought at the very peak and held and reinvested dividends along the way, you would only be down about 1% (possibly even depending on timing) today.
(Courtesy: Stock Return Calculator)
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 STAG. 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.