16 Upcoming Dividend Increases

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Includes: AES, BSRR, CFG, CMS, EPD, EPR, EQM, FAST, FCCO, FELE, LNT, NWBI, O, PFE, PNM, STAG
by: Dividend Derek
Summary

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

A jump to 16 from 2 last week (and 13 the week prior).

Four have at least a 10% increase.

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 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

Fun Facts

Category Count
King 0
Champion 2
Contender 4
Challenger 10

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
Fastenal Company (FAST) 19 2.92 30-Jan-19 7.50% 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
EPR Properties (EPR) 8 6.1 30-Jan-19 4.17% Challenger
Sierra Bancorp (BSRR) 6 2.68 30-Jan-19 12.50% 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
Pfizer, Inc. (PFE) 9 3.42 31-Jan-19 5.88% Challenger
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

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

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
EPD 0.425 0.435 0.46%
FAST 0.37 0.43 7.50%
LNT 0.335 0.355 5.97%
STAG 0.118333 0.119 0.85%
EPR 0.36 0.375 4.17%
BSRR 0.16 0.18 12.50%
FCCO 0.1 0.11 10.00%
CFG 0.27 0.32 18.5%
FELE 0.12 0.145 20.83%
O 0.221 0.226 2.26%
CMS 0.3575 0.382 7.00%
PFE 0.34 0.36 5.88%
NWBI 0.17 0.18 5.88%
PNM 0.265 0.29 9.43%
AES 0.13 0.137 5.38%
EQM 1.025 1.13 1.35%

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
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
EQM 10 19.8 21.9 59.9 69.9
EPD 6.39 4.9 5.3 5.7 5.7 12.1
EPR 6.1 6.7 6.3 6.7 3.2 12.8
STAG 5.36 0.9 3.1 5.8 11.1
O 4.2 6 5 7.4 4.4 11.6
NWBI 4.01 6.7 7.2 5.9 5.5 9.7
CFG 3.66 39.1 85.7
AES 3.47 9.1 33.9 64.4 67.9
PFE 3.42 6.7 7.2 7.8 1 11.2
LNT 3.25 7.2 7.3 7 7.1 10.3
CMS 2.97 7.3 7.2 6.7 20.9 9.7
FAST 2.92 6.7 8.6 11.6 19.3 14.5
PNM 2.72 10.2 9.4 11.6 0.6 14.4
BSRR 2.68 16.7 18.1 18.5 -1 21.2
FCCO 2.18 12.5 14.5 17.6 2.9 19.8
FELE 1.26 6.3 6.7 8.2 6 9.2

Bonus Charts

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)

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 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.