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|
|LegacyTexas Financial Group, Inc.||(LTXB)||8||2.5||4-Feb-19||13.64%||Challenger|
|Apogee Enterprises, Inc.||(APOG)||7||2.08||4-Feb-19||11.11%||Challenger|
|MPLX LP Common Units||(MPLX)||6||7.36||4-Feb-19||1.57%||Challenger|
|Westlake Chemical Partners LP||(WLKP)||5||7.38||4-Feb-19||2.85%||Challenger|
|Independent Bank Corporation||(IBCP)||5||3.25||4-Feb-19||20.00%||Challenger|
|Columbia Banking System, Inc.||(COLB)||8||3.07||5-Feb-19||7.70%||Challenger|
|FS Bancorp, Inc.||(FSBW)||6||1.21||5-Feb-19||7.14%||Challenger|
|NextEra Energy Partners, LP||(NEP)||5||4.6||5-Feb-19||3.33%||Challenger|
|Magellan Midstream Partners L.P. Limited Partnership||(MMP)||18||6.27||6-Feb-19||2.04%||Contender|
|Heritage Commerce Corp||(HTBK)||6||3.63||6-Feb-19||9.09%||Challenger|
|Wintrust Financial Corporation||(WTFC)||5||1.39||6-Feb-19||31.58%||Challenger|
|J.B. Hunt Transport Services, Inc.||(JBHT)||15||0.97||7-Feb-19||8.33%||Contender|
|Marathon Petroleum Corporation||(MPC)||8||3.25||7-Feb-19||15.22%||Challenger|
|Washington Federal, Inc.||(WAFD)||8||2.74||7-Feb-19||11.11%||Challenger|
|Boeing Company (The)||(BA)||8||2.12||7-Feb-19||20.18%||Challenger|
|German American Bancorp, Inc.||(GABC)||6||2.34||7-Feb-19||13.33%||Challenger|
|Consolidated-Tomoka Land Co. Common Stock||(CTO)||6||0.67||7-Feb-19||25.00%||Challenger|
|Nexstar Media Group, Inc. - Class A Common Stock||(NXST)||6||2.15||7-Feb-19||20.00%||Challenger|
|Enterprise Bancorp Inc||(EBTC)||24||1.95||8-Feb-19||10.34%||Contender|
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|
|LTXB||40.01||30.19||47.18||12.43||33% Off Low||15% Off High|
|APOG||33.69||26.38||50.87||11.96||28% Off Low||34% Off High|
|MPLX||35.19||28.32||39.01||15.21||24% Off Low||10% Off High|
|WLKP||23.44||20.25||27.75||13.93||16% Off Low||16% Off High|
|IBCP||22.16||20.18||27.1||13.22||10% Off Low||18% Off High|
|COLB||36.49||31.23||45.05||15.44||17% Off Low||19% Off High|
|FSBW||49.65||41.25||66.4||7.95||20% Off Low||25% Off High|
|NEP||40.4||36.84||50.66||14.31||10% Off Low||20% Off High|
|CATC||74.66||71.35||95.06||12.94||6% Off Low||20% Off High|
|MMP||63.62||54.25||72.9||11.57||17% Off Low||13% Off High|
|HTBK||13.21||10.84||18.1||15.81||22% Off Low||27% Off High|
|WTFC||72.01||61.53||99.96||12.31||17% Off Low||28% Off High|
|JBHT||106.99||88.38||131.74||24.1||21% Off Low||19% Off High|
|MPC||65.3||54.29||88.45||8.11||20% Off Low||26% Off High|
|WAFD||29.22||24.67||36.55||11.93||18% Off Low||20% Off High|
|BA||387.8||292.47||394.28||22.65||33% Off Low||2% Off High|
|GABC||29.09||26.2||38.2||14.71||11% Off Low||24% Off High|
|CTO||59.73||49.23||67.97||6.69||21% Off Low||12% Off High|
|NXST||83.86||60.3||89.75||6.48||39% Off Low||7% Off High|
|EBTC||32.75||26.96||44.14||13.11||21% Off Low|| |
26% 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 which is the current yield + five-year dividend growth rate.
|Ticker||Yield||1 Yr DG||3 Yr DG||5 Yr DG||10 Yr DG||Chowder|
Using the new and improved Fast Graphs, we'll take a look at Boeing today. Boeing is a dividend challenger with 8 years of dividend growth under their belt. This A rated stock is trading at 25x 2018 earnings though may only be trading at 21x FY 2019 earnings per estimates.
At quick glance, this stock appears to be dramatically overvalued with shares having tripled since their trough in August of 2016. Earnings over this time period have grown from $1.87 in 2009 to an estimated $15.09 in 2018. Earnings have more than doubled in the past two years which has also granted the stock a higher multiple. This can lead to this "coiled spring effect" where a stock can make a massive run up in short time.
Running a stock return calculation versus the S&P since February of 2010, Boeing crushed the market with a 25.72% annual return versus 12.74% for the S&P. Most of the time, however, this stock had matched the S&P fairly closely, until August of 2016. Dividends received were also much greater than the market. Visually plotting the investment value over time, we see that Boeing (blue line) was fairly closely linked to the S&P (black line) until late 2016 when shares skyrocketed upwards. Investors can now enjoy another 20% dividend hike!
(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/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.