Dividend Increases: January 28-February 1, 2019 (Part 1: Industrials And Financials Sectors)

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Includes: AFL, AJG, CINF, EXPO, FHN, FIBK, IBTX, MINI, PFS, SPGI, SSB, XYL
by: FerdiS
Summary

This article provides a summary of recent dividend increases.

I like monitoring dividend increases for stocks in the CCC list of dividend growth stocks.

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

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

I monitor dividend increases because it helps me to identify candidates for further analysis. Companies that regularly raise their dividend payments 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

This past week, 27 companies that announced dividend increases passed these screens.

The table below presents a summary of increases announced for stocks in the Industrials and Financials sectors. See Part 2 for coverage of 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 28-February 1, 2019

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

Independent Bank Group (IBTX)

IBTX operates as the bank holding company for Independent Bank, which provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. The company offers various deposit and loan products, as well as other financial services. IBTX was founded in 2002 and is headquartered in McKinney, Texas.

Recently, IBTX increased its quarterly dividend by 78.57% to 25¢ per share. All shareholders of record on February 11 can expect the dividend to be paid on February 21.

Exponent (EXPO)

EXPO and its subsidiaries operate as a science and engineering consulting company worldwide. Its services include analysis of product development, product recall, regulatory compliance, and the discovery of potential problems related to products, people, property, and impending litigation. EXPO was founded in 1967 and is headquartered in Menlo Park, California.

The company announced a quarterly DIV increase of 23.08% to 16¢ per share. All shareholders of record on March 8 can expect the dividend to be paid on March 22.

First Horizon National (FHN)

FHN operates as the bank holding company for First Tennessee Bank National Association, which provides various financial services across the southeast United States. Headquartered in Memphis, Tennessee, the company operates through four segments: Regional Banking, Fixed Income, Corporate, and Non-Strategic. FHN was founded in 1864.

The company's board of directors approved an increase in the quarterly dividend of 16.67% to 14¢ per share. The first payment will be on April 1 to shareholders of record on March 15. The ex-dividend date is March 14.

Xylem (XYL)

XYL engages in the design, manufacture, and service of engineered solutions for water and wastewater applications. The company markets and sells its products through a network of direct sales force, resellers, distributors, and value-added solution providers in the United States, Europe, the Asia Pacific, and internationally. XYL is headquartered in Rye Brook, New York.

On Thursday, January 31, XYL increased its quarterly dividend to 24¢ per share, an increase of 14.29%. The new dividend is payable on March 14 to shareholders of record on February 14. The ex-dividend date will be February 13.

S&P Global (SPGI)

Formerly known as McGraw Hill Financial, Inc., SPGI provides independent ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide. The company's products serve the needs of asset managers, investment and commercial banks, exchanges, traders, and marketing and research firms. SPGI was founded in 1888 and is headquartered in New York, New York.

The company announced an increase of its quarterly dividend of 14.00% to 57¢ per share. The dividend is payable on March 12 to shareholders of record on February 26.

First Interstate BancSystem (FIBK)

With headquarters in Billings, Montana, FIBK is a financial and bank holding company for First Interstate Bank. The company provides a range of commercial and consumer banking products and services, including deposits products, real estate, and consumer loans, and account management services. The company also offers internet and mobile banking services. FIBK was incorporated in 1971.

On January 30, the company declared a dividend of 31¢ per share. The new dividend represents a 10.71% increase. The dividend is payable on February 21 to shareholders of record on February 11. FIBK will trade ex-dividend on February 8.

Mobile Mini (MINI)

MINI provides portable storage and specialty containment solutions. The company operates through three segments: Storage Solutions North America, Storage Solutions United Kingdom, and Tank and Pump Solutions. Its network consists of more than 150 locations in the United States, the United Kingdom, and Canada. MINI was founded in 1983 and is headquartered in Phoenix, Arizona.

The company's board of directors approved an increase in the quarterly dividend of 10.00% to 27.50¢ per share. The dividend is payable on March 13 to shareholders of record on February 27.

Provident Financial Services (PFS)

PFS operates as the holding company for The Provident Bank, a community- and customer-oriented banking company that provides banking services to individuals, families, and businesses in New Jersey. The company also originates a variety of real estate, business, and consumer loans. PFS was founded in 1839 and is headquartered in Jersey City, New Jersey.

On February 1, the board of directors approved an increase to the regular quarterly dividend from 21¢ per share to 23¢ per share, an increase of 9.52%. The dividend is payable on February 28 to shareholders of record on February 15.

Cincinnati Financial (CINF)

Founded in 1950 and headquartered in Fairfield, Ohio, CINF is an insurance holding company engaged in property casualty insurance. The company markets its products through independent insurance agencies in more than 40 states in the USA. CINF also offers life and disability income insurance, fixed annuities, and surplus lines property and casualty insurance.

On February 1, the board of directors declared a quarterly dividend of 56¢ per share. The new dividend represents an increase of 5.66%. The quarterly dividend will be paid on April 15 to shareholders of record on March 20. The ex-dividend date is March 19.

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 board of directors of SSB has declared a quarterly dividend of 38¢ per share. The new dividend is 5.56% above the prior dividend of 36¢ per share. The dividend is payable on February 22 to shareholders of record at the close of business on February 15.

Arthur J. Gallagher (AJG)

AJG is an international insurance brokerage and risk management services company headquartered in Itasca, Illinois. Founded in 1927, AGJ has operations in more than 30 countries and offers client-service capabilities in more than 150 countries around the world through a network of correspondent brokers and consultants.

The company announced a quarterly DIV increase of 4.88% to 43¢ per share. The new dividend is payable on March 15 to shareholders of record on March 1, with an ex-dividend date of February 28.

Aflac (AFL)

Founded in 1955 and based in Columbus, Georgia, AFL is a supplemental health and life insurance company that operates in the USA and in Japan. In the USA, the company sells health and disability insurance, mainly as part of employer-sponsored group insurance plans. In Japan, AFL provides health insurance, life insurance, and annuity products.

Recently, the board of directors of AFL declared a quarterly dividend of 27¢ per share. The new dividend represents an increase of 3.85%. The first payment will be on March 1 to shareholders of record on February 20. The ex-dividend date is February 19.

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, EXPO, PFS, and AJG.

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).

EXPO's price line (black) is above the primary valuation line (orange) and above the stock's normal P/E ratio (blue). The stock is trading at a premium to fair value. An investment in EXPO in January 2010 would have returned 24.8% on an annualized basis (with dividends included).

PFS's price line is below 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 PFS in January 2010 would have returned 12.7% on an annualized basis (with dividends included).

AJG's price line is above the primary valuation line and above the stock's normal P/E ratio. The stock is trading at a premium to fair value. An investment in AJG in January 2010 would have returned 16.4% 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 only. See Part 2 of this article for ex-dividend dates of stocks in the remaining sectors.

Summary of Upcoming Ex-Dividend Dates: Dividend Increases: February 5-18, 2019

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Pay- able

Date

Applied Industrial Technologies

AIT

2.14%

$57.89

10

5.50%

$1.24

02/14

02/28

Alaska Air

ALK

2.18%

$64.36

7

45.00%

$1.40

02/15

03/07

Ameriprise Financial

AMP

2.84%

$126.89

14

11.90%

$3.60

02/14

02/28

Boeing

BA

2.12%

$387.43

8

28.70%

$8.22

02/07

03/01

BB&T

BBT

3.31%

$48.87

8

10.50%

$1.62

02/12

03/01

BOK Financial

BOKF

2.41%

$83.15

14

4.30%

$2.00

02/08

02/25

Brown & Brown

BRO

1.15%

$27.87

25

10.50%

$0.32

02/05

02/20

Columbia Banking System

COLB

3.02%

$37.09

9

19.50%

$1.12

02/05

02/20

Donaldson

DCI

1.61%

$47.31

32

8.40%

$0.76

02/08

02/28

First Interstate BancSystem

FIBK

3.15%

$39.31

9

15.70%

$1.24

02/08

02/21

WW Grainger

GWW

1.86%

$292.48

47

8.30%

$5.44

02/08

03/01

Heritage Financial

HFWA

2.30%

$31.36

9

17.60%

$0.72

02/06

02/21

Home BancShares

HOMB

2.60%

$18.46

8

26.00%

$0.48

02/12

03/06

Independent Bank Group

IBTX

1.86%

$53.80

5

35.10%

$1.00

02/08

02/21

Investors Bancorp

ISBC

3.45%

$12.74

7

37.10%

$0.44

02/08

02/25

Invesco

IVZ

6.54%

$18.36

9

7.00%

$1.20

02/13

03/01

J.B. Hunt Transport Services

JBHT

0.96%

$107.83

16

9.90%

$1.04

02/07

02/22

Matson

MATX

2.50%

$33.63

7

5.80%

$0.84

02/06

03/07

MSA Safety

MSA

1.53%

$99.48

47

4.80%

$1.52

02/15

03/10

Oshkosh

OSK

1.44%

$74.81

6

45.90%

$1.08

02/14

03/01

Paccar

PCAR

1.97%

$64.96

9

6.40%

$1.28

02/11

03/05

Provident Financial Services

PFS

3.50%

$26.30

8

7.90%

$0.92

02/14

02/28

Parker-Hannifin

PH

1.85%

$164.39

62

10.60%

$3.04

02/07

03/01

Ritchie Bros Auctioneers

RBA

1.99%

$36.14

18

6.70%

$0.72

02/14

03/08

Reinsurance Group of America

RGA

1.66%

$144.63

10

15.30%

$2.40

02/06

02/28

Rollins

ROL

1.12%

$37.42

17

18.50%

$0.42

02/08

03/11

Sandy Spring Bancorp

SASR

3.44%

$32.59

8

11.40%

$1.12

02/12

02/20

South State

SSB

2.27%

$66.82

8

13.30%

$1.52

02/14

02/22

S&T Bancorp

STBA

2.82%

$38.32

6

10.20%

$1.08

02/13

02/28

Union Bankshares Corp

UBSH

2.80%

$32.81

8

10.30%

$0.92

02/07

02/22

Washington Federal

WAFD

2.73%

$29.29

9

14.20%

$0.80

02/07

02/22

Webster Financial

WBS

2.41%

$54.80

8

17.80%

$1.32

02/11

02/26

WSFS Financial

WSFS

1.03%

$42.64

5

21.30%

$0.44

02/07

02/22

Wintrust Financial

WTFC

1.40%

$71.34

6

33.40%

$1.00

02/06

02/21

Xylem

XYL

1.37%

$70.15

9

12.60%

$0.96

02/13

03/14

Zions Bancorporation

ZION

2.48%

$48.29

6

51.60%

$1.20

02/13

02/21

Thanks for reading!

Disclosure: I am/we are long AFL. 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.