Dividend Increases: January 21-25, 2019 (Part 1: Industrials And Financials Sectors)

|
Includes: AIT, ALK, CBSH, CMA, COLB, FELE, GATX, HFWA, JBHT, LTXB, NTRS, NWBI, ROL, SFNC, SRCE, SSB, WFC, WTFC
by: FerdiS
Summary

This article provides a summary of recent dividend increases.

Monitoring dividend increases helps me identify candidates for further analysis.

Part 1 covers dividend increases announced for stocks in the Industrials and Financials sectors.

Part 2 will cover dividend increases from stocks in the remaining sectors.

Monitoring dividend increases for stocks on my watch is one way to identify candidates for further analysis. Companies that regularly raise dividends show confidence in the potential growth of future earnings.

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

Recently, 30 companies that announced dividend increases passed these screens.

The following table presents a summary of dividend increases for stocks in the Industrials and Financials sectors. Part 2 of this article will cover the remaining sectors.

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 21-25, 2019

Previous Post: Dividend Increases: January 14-18, 2019

Wintrust Financial (WTFC)

WTFC operates as a financial holding company in the Chicago metropolitan area, southern Wisconsin, and northwest Indiana. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The company provides various deposit, loan, and insurance products, as well as specialty finance services. WTFC was founded in 1992 and is headquartered in Rosemont, Illinois.

The company increased its quarterly dividend by 31.58%, from 19¢ per share to 25¢ per share. The dividend is payable on February 21 to shareholders of record on February 7.

1st Source (SRCE)

SRCE operates as the bank holding company for 1st Source Bank, providing a range of financial products and services to individual and business clients in the United States. The company offers commercial and consumer banking services, trust and investment management services, and insurance. SRCE was founded in 1863 and is headquartered in South Bend, Indiana.

The company increased its quarterly dividend by 22.73%, from 22¢ per share to 27¢ per share. The new dividend is payable on February 14 to shareholders of record on February 4. The ex-dividend date will be February 1.

Franklin Electric (FELE)

FELE designs, manufactures, and distributes water and fuel pumping systems worldwide. It operates in three segments: Water Systems, Fueling Systems, and Distribution. The company sells its products to specialty distributors, original equipment manufacturers, industrial and petroleum equipment distributors, and oil and utility companies. FELE was founded in 1944 and is headquartered in Fort Wayne, Indiana.

The company increased its quarterly dividend by 20.83%, from 12¢ per share to 14.50¢ per share. The stock will trade ex-dividend on January 31, and shareholders can expect to receive the new dividend on February 15.

Commerce Bancshares (CBSH)

Founded in 1865 and headquartered in Kansas City, Missouri, CBSH is a bank holding company of Commerce Bank. The bank provides a range of retail, mortgage banking, corporate, investment, trust, and asset management products and services to individuals and businesses. CBSH operates through three segments: Consumer, Commercial and Wealth.

The company declared a quarterly dividend of 26¢ per share, an increase of 16.07% over the prior quarterly dividend. All shareholders of record on March 8 can expect the dividend to be paid on March 25.

LegacyTexas Financial (LTXB)

Headquartered in Plano, Texas, LTXB operates as the bank holding company for LegacyTexas Bank. The company provides banking and financial services in North Texas. The company’s deposit products include savings, money market, certificates of deposit, and individual retirement accounts. LTXB’s lending products include commercial and consumer real estate loans, commercial and industrial loans, and consumer loans.

On Tuesday, January 22, the company increased its quarterly dividend by 13.64% to 25¢ per share. LTXB will trade ex-dividend on February 4. The dividend is payable on February 19, to shareholders of record on February 5.

Rollins (ROL)

ROL is a service company that provides pest and termite control services to residential and commercial customers in the United States and internationally. The company’s pest control services include protection against termite damage, rodents, and insects. The company also provides pest management and sanitation services. ROL was founded in 1948 and is headquartered in Atlanta, Georgia.

Recently, ROL increased its quarterly dividend by 12.54% to 10.50¢ per share. The dividend is payable on March 11 to shareholders of record at the close of business on February 11.

Comerica (CMA)

Founded in 1849 and headquartered in Dallas, Texas, CMA is a financial services company that provides various financial products and services to business and individual customers. In addition to Texas, CMA locations can be found in Arizona, California, Florida, and Michigan, with select businesses in other states, as well as in Canada and Mexico.

On January 22, the board of directors declared a quarterly dividend of 67¢ per share. The new dividend represents an increase of 11.67%. All shareholders of record on March 15 will receive the new dividend on April 1.

Alaska Air (ALK)

ALK, through its subsidiaries, provides passengers and cargo air transportation services in North America and Costa Rica. The company also provides ground and ramp handling services to other airlines. It operates through three segments: Mainline, Regional, and Horizon. ALK was founded in 1932 and is based in Seattle, Washington.

On January 24, the company declared a dividend of 35¢ per share. The new dividend represents a 9.38% increase. The dividend is payable on March 7 to shareholders of record on February 19. The stock will trade ex-dividend on February 18.

Northern Trust (NTRS)

NTRS is a financial holding company that provides asset servicing, fund administration, asset management, and fiduciary and banking solutions for corporations, institutions, families and individuals around the world. The company operates in the United States and internationally. NTRS was founded in 1889 and is based in Chicago, Illinois.

The company announced a quarterly DIV increase of 9.09% to 60¢ per share. The dividend is payable on April 1 to shareholders of record on March 8. The stock will trade ex-dividend on March 7.

J.B. Hunt Transport Services (JBHT)

JBHT, together with its subsidiaries, provides surface transportation and delivery services in the continental United States, Canada, and Mexico. It operates through four segments: Intermodal, Dedicated Contract Services, Integrated Capacity Solutions, and Truckload. The company also transports or arranges for the transportation of freight. JBHT was founded in 1961 and is headquartered in Lowell, Arkansas.

Recently, the board of directors of JBHT declared a quarterly dividend of 26¢ per share. The new dividend represents an increase of 8.33%. The stock will trade ex-dividend on February 7, and shareholders can expect to receive the new dividend on February 22.

Columbia Banking System (COLB)

COLB operates as the bank holding company for Columbia State Bank, which provides various banking products and services to small and medium-sized businesses, professionals, and individuals. The company’s products and services include personal banking, business banking and wealth management. COLB was founded in 1993 and is headquartered in Tacoma, Washington.

The company announced an increase of its quarterly dividend of 7.69% to 28¢ per share. The dividend is payable on February 20 to shareholders of record on February 6. The stock will trade ex-dividend on February 5.

Simmons First National (SFNC)

Founded in 1903 and headquartered in Pine Bluff, Arkansas, SFNC operates as a bank holding company for Simmons First National Bank. The company offers consumer, real estate and commercial loans; checking, savings, and time deposits; and personal and corporate trust services, credit cards, investment management, and various insurance products. SFNC operates through approximately 150 branch offices.

The board of directors of SFNC has declared a quarterly dividend of 16¢ per share. The new dividend is 6.67% above the prior dividend of 15¢ per share. The ex-dividend date is March 14 and the dividend will be paid on April 5 to shareholders of record on March 15.

Heritage Financial (HFWA)

HFWA is a bank holding company incorporated in the State of Washington in August 1997. Its wholly owned subsidiary, Heritage Bank, is a full-service commercial bank providing financial solutions to small and medium-sized business in Washington and Oregon. Effective 1 May 2014, HFWA completed a merger with Washington Banking Company.

On Thursday, January 24, the company increased its quarterly dividend by 5.88% to 18¢ per share. HFWA will trade ex-dividend on February 6. The dividend is payable on February 21, to shareholders of record on February 7.

Northwest Bancshares (NWBI)

NWBI is a bank holding company of Northwest Bank, which operates community banking locations in Pennsylvania, New York, Ohio and Maryland. The company offers a complete line of personal and business banking products, including employee benefit and investment management services. NWBI was founded in 1896 and is headquartered in Warren, Pennsylvania.

Recently, NWBI increased its quarterly dividend to 18¢ per share, an increase of 5.88% over the prior dividend of 17¢ per share. The dividend is payable on February 14 to shareholders of record on February 1. The ex-dividend date is January 31.

South State (SSB)

South State Corporation operates as the bank holding company for South State Bank, which provides retail and commercial banking services, mortgage lending services, trust and wealth management, and consumer finance loans to customers in South Carolina, North Carolina, Georgia, and Virginia. SSB was founded in 1933 and is headquartered in Columbia, South Carolina.

The company increased its quarterly dividend by 5.56%, from 36¢ per share to 38¢ per share. The stock will trade ex-dividend on February 14, and shareholders can expect to receive the new dividend on February 22.

Wells Fargo (WFC)

WFC is a diversified, community-based financial services company founded in 1852 and headquartered in San Francisco. The company provides banking, insurance, investments, mortgage, and consumer and commercial finance products and services. WFC has offices in 36 countries to support customers who conduct business in the global economy.

The company announced an increase of its quarterly dividend of 4.65% to 45¢ per share. The ex-dividend date is January 31 and the dividend will be paid on March 1 to shareholders of record on February 1.

GATX (GATX)

GATX leases, operates, manages, and markets assets in the rail and marine markets in North America and internationally. The company operates through four segments: Rail North America, Rail International, American Steamship Company, and Portfolio Management. GATX was founded in 1898 and headquartered in Chicago, Illinois.

On Friday, January 25, the company increased its quarterly dividend by 4.55% to 46¢ per share. The dividend is payable on March 31 to shareholders of record on March 4. The stock will trade ex-dividend on March 1.

Applied Industrial Technologies (AIT)

Founded in 1923, AIT is an industrial distributor in North America, Australia and New Zealand, supplying customers in a range of industries with products, including bearings, power transmission components, fluid power components and systems, industrial rubber products, linear motion components, tools, safety products, and general maintenance and mill supply products. AIT is headquartered in Cleveland, Ohio.

Recently, AIT increased its quarterly dividend by 3.33% to 31¢ per share. The new dividend is payable on February 28 to shareholders of record on February 15. The ex-dividend date will be February 14.

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, CBSH, NTRS, and JBHT.

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).

CBSH's price line (black) is above the primary valuation line (orange) and below the stock's normal P/E ratio (blue). The stock is trading at about fair value. An investment in CBSH in January 2010 would have returned 14.7% on an annualized basis (with dividends included).

NTRS's price line is above 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 NTRS in January 2010 would have returned 7.6% on an annualized basis (with dividends included).

JBHT's price line is above 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 JBHT in January 2010 would have returned 11.6% 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 the table covers ex-dividend dates of stocks in the Industrials and Financials sectors. See Part 2 of this article for ex-dividend dates of stocks in the remaining sectors.

Summary of Upcoming Ex-Dividend Dates: Dividend Increases: January 29-February 11, 2019

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Pay- able

Date

TD Ameritrade

AMTD

2.16%

$55.66

9

22.70%

$1.20

02/04

02/19

Aon

AON

1.04%

$153.39

7

17.80%

$1.60

01/31

02/15

AO Smith

AOS

1.86%

$47.21

25

25.50%

$0.88

01/30

02/15

Boeing

BA

2.10%

$391.82

8

26.40%

$8.22

02/07

03/01

Brown & Brown

BRO

1.20%

$26.67

25

10.00%

$0.32

02/05

02/20

Citizens Financial

CFG

3.67%

$34.89

5

N/A

$1.28

01/30

02/14

Columbia Banking System

COLB

3.05%

$36.69

8

20.90%

$1.12

02/05

02/20

Donaldson

DCI

1.62%

$46.88

32

15.20%

$0.76

02/08

02/28

Eaton Vance

EV

3.67%

$38.11

38

8.10%

$1.40

01/30

02/15

Fastenal

FAST

2.87%

$60.03

19

11.60%

$1.72

01/30

02/27

Franklin Electric

FELE

1.24%

$46.89

26

8.20%

$0.58

01/31

02/15

Greenbrier

GBX

2.35%

$42.48

5

N/A

$1.00

01/29

02/20

Heritage Financial

HFWA

2.30%

$31.36

8

11.20%

$0.72

02/06

02/21

Hope Bancorp

HOPE

3.81%

$14.69

7

58.70%

$0.56

01/31

02/15

JB Hunt Transport Services

JBHT

0.98%

$105.99

15

10.40%

$1.04

02/07

02/22

LegacyTexas Financial

LTXB

2.47%

$40.45

8

15.30%

$1.00

02/04

02/19

Matthews International

MATW

1.78%

$44.93

24

13.60%

$0.80

02/01

02/18

Matson

MATX

2.52%

$33.36

7

21.10%

$0.84

02/06

03/07

Metlife

MET

3.73%

$44.99

6

19.40%

$1.68

02/04

03/13

Marsh & McLennan

MMC

2.00%

$83.09

9

9.70%

$1.66

01/29

02/15

Morgan Stanley

MS

2.84%

$42.30

5

35.10%

$1.20

01/30

02/15

Northwest Bancshares

NWBI

4.10%

$17.58

9

5.90%

$0.72

01/31

02/14

OceanFirst Financial

OCFC

2.83%

$24.04

5

4.60%

$0.68

02/01

02/15

People's United Financial

PBCT

4.17%

$16.79

26

1.50%

$0.70

01/31

02/15

Paccar

PCAR

1.98%

$64.53

9

4.90%

$1.28

02/11

03/05

Parker-Hannifin

PH

1.86%

$163.63

62

10.30%

$3.04

02/07

03/01

Reinsurance Group of America

RGA

1.67%

$143.80

10

16.70%

$2.40

02/06

02/28

Rollins

ROL

1.14%

$36.71

16

16.60%

$0.42

02/08

03/11

1st Source

SRCE

2.37%

$45.48

31

4.80%

$1.08

02/01

02/14

Tompkins Financial

TMP

2.71%

$73.93

32

4.50%

$2.00

02/04

02/15

Union Bankshares Corp

UBSH

2.86%

$32.17

8

17.00%

$0.92

02/07

02/22

Westamerica Bancorporation

WABC

2.55%

$62.86

27

1.20%

$1.60

02/01

02/15

Washington Federal

WAFD

2.74%

$29.17

8

13.40%

$0.80

02/07

02/22

Webster Financial

WBS

2.35%

$56.07

8

24.10%

$1.32

02/11

02/26

Wells Fargo

WFC

3.60%

$49.99

8

11.80%

$1.80

01/31

03/01

WSFS Financial

WSFS

1.05%

$41.93

5

13.40%

$0.44

02/07

02/22

Wintrust Financial

WTFC

1.38%

$72.55

5

25.50%

$1.00

02/06

02/21

Thanks for reading!

Disclosure: I am/we are long BA. 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.