Dividend Increases: February 4-8, 2019 (Part 3: Remaining Sectors)

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Includes: ADM, CHD, CSGS, DNKN, DOX, GLW, HAS, LEA, MCHP, MDP, SMP
by: FerdiS
Summary

Last week, 34 companies on my watch list announced dividend increases.

Part 1 covered stocks in the Materials, Real Estate, and Utilities sectors, and Part 2 covered the Financials and Industrials sectors.

This is Part 3, which covers dividend announcements from stocks in the remaining sectors.

I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis. Companies that regularly increase their dividends show confidence in future earnings growth potential.

The CCC List provides a good starting point, but I limit the number of stocks to monitor by applying the following screens:

  • Dividend Yield ≥ 1.0%
  • Market cap ≥ $1 billion
  • No stocks that are being acquired
  • No Over-The-Counter or Pink Sheet stocks

Last week, 34 companies that announced dividend increases passed these screens.

Part 1 covered dividend announcements of stocks in the Materials, Real Estate, and Utilities sectors, while Part 2 covered the Financials and Industrials sectors. The following table presents a summary dividend increases of stocks in 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: February 4-8, 2019

Previous Post: Dividend Increases: January 28-February 1, 2019

Amdocs (DOX)

Founded in 1988 and headquartered in Chesterfield, Missouri, DOX provides software and services to communications, pay TV, entertainment, and media industry service providers. The company also provides advisory services, mobile financial services, and advertising and media services. The company declared a quarterly dividend of 28.50¢ per share, an increase of 14.00% over the prior quarterly dividend. The ex-dividend date is March 28, and the dividend will be paid on April 19 to shareholders of record on March 29.

Corning (GLW)

GLW manufactures and sells specialty glass and ceramics worldwide. The company creates and makes keystone components that enable systems for consumer electronics, mobile emissions control, optical communications and life sciences. The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989. GLW was founded in 1851 and is based in Corning, New York. Recently, GLW increased its quarterly dividend by 11.11% to 20¢ per share. GLW will trade ex-dividend on February 27. The dividend is payable on March 29 to shareholders of record on February 28.

Standard Motor Products (SMP)

SMP manufactures and distributes replacement parts for motor vehicles in the automotive aftermarket industry. The company focuses on heavy duty, industrial equipment and original equipment service markets. It sells its products to warehouse distributors, retail chains, original equipment manufacturers, and original equipment service part operations. SMP was founded in 1919 and is headquartered in Long Island City, New York. On Monday, February 4, SMP increased its quarterly dividend to 23¢ per share, an increase of 9.52%. The dividend is payable on March 1 to shareholders of record on February 15. The ex-dividend date is February 14.

Hasbro (HAS)

HAS is a worldwide leader in children's and family leisure time and entertainment products and services. The range of offerings includes toys and games, television programming, motion pictures, digital gaming and a comprehensive licensing program. The company was founded in 1923 and is headquartered in Pawtucket, Rhode Island. On February 8, the board of directors declared a quarterly dividend of 68¢ per share. The new dividend represents an increase of 7.94%. The dividend is payable on May 15 to shareholders of record on May 1.

Dunkin' Brands (DNKN)

DNKN develops, franchises, and licenses quick service restaurants under the Dunkin' Donuts and Baskin-Robbins brands worldwide. These restaurants serve coffee, baked goods and ice cream. The company has more than 18,000 points of distribution in approximately 60 countries. DNKN is headquartered in Canton, Massachusetts. On Thursday, February 7, DNKN increased its quarterly dividend to 37.50¢ per share, an increase of 7.91%. The first payment will be on March 20 to shareholders of record on March 11. The ex-dividend date is March 8.

Lear (LEA)

LEA designs, develops, engineers, manufactures, assembles, and supplies automotive seating and electrical distribution systems to automotive OEMs worldwide. The company's Seating includes seat systems and related components. Its E-Systems segment offers electrical distribution systems that route electrical signals and manage electrical power. LEA was founded in 1917 and is headquartered in Southfield, Michigan. Recently, the board of directors of LEA declared a quarterly dividend of 75¢ per share. The new dividend represents an increase of 7.14%. All shareholders of record on March 1 can expect the dividend to be paid on March 20.

CSG Systems International (CSGS)

CSGS provides business support solutions primarily to the communications industry. The company's primary product solutions include Revenue Management & Customer Experience Solutions; Customer Interaction Management; Managed Services; Mediation and Data Management; and Wholesale Settlement and Routing. CSGS was founded in 1994 and is headquartered in Englewood, Colorado. On February 6, the company declared a dividend of 22.25¢ per share. The new dividend represents a 5.95% increase. The dividend is payable on March 29 to shareholders of record on March 14. The ex-dividend date is March 13.

Meredith (MDP)

Headquartered in Des Moines, Iowa, MDP is the leading media and marketing company serving American women. The company's publishing segment includes magazine and book publishing, integrated marketing, interactive media, brand licensing, and other related operations. Its broadcasting segment includes the operations of network-affiliated television stations and syndicated television marketing and development. MDP was founded in 1902.On Monday, February 4, MDP increased its quarterly dividend to 57.50¢ per share, an increase of 5.50%. All shareholders of record on February 28 can expect the dividend to be paid on March 15.

Church & Dwight (CHD)

CHD develops, manufactures and markets a range of household, personal care and specialty products. The company sells its consumer products under a range of brands through a distribution platform that includes supermarkets, mass merchandisers, wholesale clubs, drugstores, convenience stores, specialty stores, and websites. CHD was founded in 1846 and is headquartered in Ewing, New Jersey. Recently, CHD increased its quarterly dividend by 4.60% to 22.75¢ per share. The new dividend is payable on March 1 to shareholders of record on February 15, with an ex-dividend date of February 14.

Archer Daniels Midland (ADM)

Founded in 1898 and headquartered in Chicago, Illinois, ADM is engaged in the processing of oilseeds, corn, wheat, cocoa, and other agricultural commodities. The company manufactures protein meal, vegetable oil, corn sweeteners, flour, and other value-added food and feed ingredients, as well as biodiesel and ethanol. The company increased its quarterly dividend by 4.48%, from 33.50¢ per share to 35¢ per share. The dividend is payable March 12, with an ex-dividend date of February 15.

Microchip Technology (MCHP)

MCHP develops, manufactures and sells specialized semiconductor products for a wide range of embedded control applications. The company sells its products through a network of direct sales personnel and distributors in the Americas, Europe, and Asia. MCHP was founded in 1989 and is headquartered in Chandler, Arizona. The company's board of directors approved an increase in the quarterly dividend of 0.14% to 36.50¢ per share. The dividend is payable on March 7 to shareholders of record on February 21. The ex-dividend date is February 20.

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, DOX, HAS, and CHD.

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).

DOX's price line (black) is below the primary valuation line (orange) and below the stock's normal P/E ratio (blue). The stock is trading at a discount to fair value. An investment in DOX in January 2010 would have returned 8.6% on an annualized basis (with dividends included).

HAS's price line is above the stock's normal P/E ratio and above the primary valuation line. The stock is trading at a premium to fair value. An investment in HAS in January 2010 would have returned 14.% on an annualized basis (with dividends included).

CHD'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 CHD in January 2010 would have returned 18.3% 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 includes ex-dividend dates of stocks in sectors other than those covered in Part 1 (Materials, Real Estate, and Utilities sectors) and Part 2 (Financials and Industrials sectors).

Summary of Upcoming Ex-Dividend Dates: Dividend Increases: February 12-25, 2019

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Pay- able

Date

AmerisourceBergen

ABC

1.85%

$86.41

14

12.20%

$1.60

02/15

03/04

Archer Daniels Midland

ADM

3.30%

$42.40

43

12.00%

$1.40

02/15

03/12

Autoliv

ALV

3.25%

$76.38

9

4.20%

$2.48

02/21

03/07

Amgen

AMGN

3.07%

$188.98

9

22.90%

$5.80

02/14

03/08

Aramark

ARMK

1.41%

$31.25

5

N/A

$0.44

02/13

02/28

AVX

AVX

2.52%

$18.24

9

5.60%

$0.46

02/21

03/04

Booz Allen Hamilton

BAH

1.72%

$53.46

7

14.30%

$0.92

02/13

02/28

Bunge

BG

3.76%

$53.17

18

11.00%

$2.00

02/15

03/04

CDW

CDW

1.27%

$92.71

6

85.20%

$1.18

02/22

03/12

Church & Dwight

CHD

1.40%

$64.82

22

9.30%

$0.91

02/14

03/01

Chevron

CVX

3.98%

$119.57

32

2.80%

$4.76

02/14

03/11

Enbridge

ENB

8.22%

$35.91

23

10.90%

$2.95

02/14

03/01

FLIR Systems

FLIR

1.32%

$51.68

8

12.20%

$0.68

02/21

03/08

Hershey

HSY

2.65%

$109.14

9

8.80%

$2.89

02/21

03/15

j2 Global

JCOM

2.17%

$81.88

8

11.50%

$1.78

02/22

03/12

Johnson & Johnson

JNJ

2.68%

$134.45

56

6.40%

$3.60

02/25

03/12

KLA-Tencor

KLAC

2.78%

$107.88

9

10.80%

$3.00

02/14

03/01

Kroger

KR

1.93%

$28.96

13

11.50%

$0.56

02/14

03/01

Microchip Technology

MCHP

1.60%

$91.19

17

0.60%

$1.46

02/20

03/07

Marathon Petroleum

MPC

3.33%

$63.65

9

19.00%

$2.12

02/19

03/11

Microsoft

MSFT

1.72%

$106.81

17

12.10%

$1.84

02/20

03/14

Nu Skin Enterprises

NUS

2.13%

$69.50

18

4.00%

$1.48

02/22

03/13

Phillips 66

PSX

3.33%

$96.12

7

18.50%

$3.20

02/15

03/01

Six Flags Entertainment

SIX

5.14%

$63.87

9

11.70%

$3.28

02/14

03/04

JM Smucker

SJM

3.28%

$103.73

21

8.20%

$3.40

02/14

03/01

Standard Motor Products

SMP

1.78%

$51.58

9

13.80%

$0.92

02/14

03/01

Skyworks Solutions

SWKS

1.83%

$82.98

5

N/A

$1.52

02/25

03/19

TE Connectivity

TEL

2.17%

$81.26

6

12.40%

$1.76

02/21

03/08

Target

TGT

3.53%

$72.57

51

9.80%

$2.56

02/19

03/10

TJX

TJX

1.56%

$49.89

22

21.90%

$0.78

02/13

03/07

Tractor Supply

TSCO

1.29%

$95.83

9

19.60%

$1.24

02/22

03/12

Valero Energy

VLO

4.31%

$83.46

9

30.90%

$3.60

02/12

03/05

Walgreens Boots Alliance

WBA

2.43%

$72.43

43

7.30%

$1.76

02/14

03/12

Thanks for reading!

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.