Dividend Increases: February 11-15, 2019 (Part 2: Remaining Sectors)

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Includes: IPG, LLL, NEE, NUS, NWE, OMC, PPL, RHI, UPS, WEN
by: FerdiS
Summary

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

This past week, 25 companies announced dividend increases, including 5 of the stocks I own.

Part 1 covered the Information Technology, Real Estate, and Financials Sectors. This is Part 2, which covers the remaining sectors.

Monitoring dividend increases for stocks on my watch is one way to identify candidates for further analysis. Companies can only increase their dividends regularly and sustainably if earnings grow sufficiently.

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

In the last week, 25 companies that announced dividend increases passed these screens, including 5 of my DivGro holdings.

Part 1 covered dividend increases of stocks in the Information Technology, Real Estate, and Financials Sectors. The following table presents a summary of dividend increases announced for 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 11-15, 2019

Previous Post: Dividend Increases: February 4-8, 2019

Wendy's (WEN)

Founded in 1969 and headquartered in Dublin, Ohio, WEN is the world's third largest quick-service hamburger company. The company operates, develops and franchises quick-service restaurants in the United States and internationally. WEN’s restaurant system included franchise and company-operated restaurants in the United States and about 30 countries and U.S. territories.

The company's board of directors approved an increase in the quarterly dividend of 17.65% to 10¢ per share. All shareholders of record on March 1 will receive the new dividend on March 15.

NextEra Energy (NEE)

NEE, formerly known as FPL Group, is an electric power company with approximately 42,500 MW of generating capacity in 26 states in the United States and 4 provinces in Canada. The company generates electricity from gas, oil, coal, petroleum coke nuclear, solar and wind. NEE was founded in 1984 and is based in Juno Beach, Florida.

Recently, NEE increased its quarterly dividend to $1.25 per share, an increase of 12.61% over the prior dividend of 111¢ per share. The quarterly dividend will be paid on March 15 to shareholders of record on February 28. The ex-dividend date is February 27.

Interpublic (IPG)

IPG is a global advertising and marketing services company. The company specializes in consumer advertising, digital marketing, communications planning, and media buying, public relations, and specialized communications disciplines. It operates in two segments: Integrated Agency Networks and Constituency Management Group. IPG was founded in 1902 and is headquartered in New York, New York.

The company increased its quarterly dividend by 11.90%, from 21¢ per share to 23.5¢ per share. The stock will trade ex-dividend on February 28, and shareholders can expect to receive the new dividend on March 15.

Robert Half International (RHI)

Founded in 1948 and headquartered in Menlo Park, California, RHI provides staffing and risk consulting services to customers in about 400 locations worldwide. The company operates through three segments: Temporary and Consultant Staffing, Permanent Placement Staffing, and Risk Consulting and Internal Audit Services. RHI markets its staffing services to clients as well as to employment candidates.

Recently, RHI increased its quarterly dividend by 10.71% to 31¢ per share. The first payment will be on March 15 to shareholders of record on February 25. The ex-dividend date is February 22.

Omnicom (OMC)

OMC is a holding company that provides advertising, marketing, and corporate communications services worldwide. The company’s branded networks and specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications. OMC was founded in 1944 and is based in New York, New York.

The company announced an increase of its quarterly dividend of 8.33% to 65¢ per share. OMC will trade ex-dividend on March 8. The dividend is payable on April 9, to shareholders of record on March 11.

L3 Technologies (LLL)

Founded in 1997 and based in New York, LLL provides aerospace systems as well as communication, electronic, and sensor systems used on military, homeland security, and commercial platforms in the United States and internationally. LLL also provides multi-domain intelligence, surveillance, and reconnaissance mission solutions in various business areas.

Recently, LLL increased its quarterly dividend from 80¢ per share to 85¢ per share, an increase of 6.25%. The dividend is payable on March 15 to shareholders of record on March 1.

United Parcel Service (UPS)

UPS is a global leader in logistics, offering a broad range of solutions including the transportation of packages and freight; the facilitation of international trade, and the deployment of advanced technology to more efficiently manage the world of business. Headquartered in Atlanta, UPS serves more than 220 countries and territories worldwide.

The company declared a quarterly dividend of 96¢ per share, an increase of 5.49% over the prior quarterly dividend. UPS will trade ex-dividend on February 25. The dividend is payable on March 12, to shareholders of record on February 26.

NorthWestern (NWE)

NWE provides electricity and natural gas to residential, commercial, and industrial customers in Montana, Nebraska, and South Dakota. The company generates, transmits, and distributes electricity. It also produces, stores, transmits, and distributes natural gas. NWE was founded in 1923 and is based in Sioux Falls, South Dakota.

The company's board of directors approved an increase in the quarterly dividend of 4.55% to 57.5¢ per share. The dividend is payable on March 29 to shareholders of record on March 15.

Nu Skin Enterprises (NUS)

Founded in 1984, NUS is a global direct selling company with operations in more than 50 markets worldwide. The company develops and distributes innovative, premium-quality anti-aging personal care products and nutritional supplements under its Nu Skin and Pharmanex brands, respectively. NUS is headquartered in Provo, Utah.

The company increased its quarterly dividend by 1.37%, from 36.50¢ per share to 37¢ per share. The dividend is payable March 13, with an ex-dividend date of February 22.

PPL (PPL)

Founded in 1920 and headquartered in Allentown, Pennsylvania, PPL is an energy and utility holding company. Through its subsidiaries, PPL delivers electricity and natural gas to customers in the United States and the United Kingdom. The company controls more than 12,000 megawatts of generating capacity in the United States.

Recently, PPL increased its quarterly dividend by 0.61% to 41.25¢ per share. The dividend is payable on April 1 to shareholders of record on March 8.

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, NEE, IPG, and RHI.

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).

NEE'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 NEE in January 2010 would have returned 16.4% on an annualized basis (with dividends included).

IPG'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 IPG in January 2010 would have returned 15.3% on an annualized basis (with dividends included).

RHI'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 RHI in January 2010 would have returned 11.8% 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 contains ex-dividend dates of stocks in all sectors except the Information Technology, Real Estate, and Financials Sectors. See Part 1 on this article for those ex-dividend dates.

Summary of Upcoming Ex-Dividend Dates: Dividend Increases: February 19-March 4, 2019

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Pay- able

Date

Bemis

BMS

2.42%

$52.94

35

3.60%

$1.28

02/19

03/01

Carlisle

CSL

1.32%

$121.42

42

12.90%

$1.60

02/19

03/01

Marathon Petroleum

MPC

3.25%

$65.15

9

19.00%

$2.12

02/19

03/11

Target

TGT

3.51%

$72.84

51

9.80%

$2.56

02/19

03/10

Timken

TKR

2.58%

$43.39

5

3.80%

$1.12

02/19

03/04

CenterPoint Energy

CNP

3.72%

$30.89

14

6.00%

$1.15

02/20

03/14

International Paper

IP

4.24%

$47.15

9

9.30%

$2.00

02/20

03/15

Autoliv

ALV

3.17%

$78.23

9

4.20%

$2.48

02/21

03/07

Avista

AVA

3.76%

$41.23

16

4.10%

$1.55

02/21

03/15

Cabot

CBT

2.84%

$46.52

7

10.30%

$1.32

02/21

03/08

Cummins

CMI

2.93%

$155.47

13

14.60%

$4.56

02/21

03/07

Fortune Brands Home & Security

FBHS

1.86%

$47.40

7

21.70%

$0.88

02/21

03/13

Huntington Ingalls Industries

HII

1.57%

$219.70

7

43.30%

$3.44

02/21

03/08

Honeywell International

HON

2.14%

$153.32

8

12.70%

$3.28

02/21

03/08

Hershey

HSY

2.64%

$109.35

9

8.80%

$2.89

02/21

03/15

ONE Gas

OGS

2.38%

$83.94

6

N/A

$2.00

02/21

03/08

PPG Industries

PPG

1.76%

$109.11

47

9.00%

$1.92

02/21

03/12

Scotts Miracle-Gro

SMG

2.79%

$78.87

9

7.20%

$2.20

02/21

03/08

Vulcan Materials

VMC

1.10%

$113.14

5

94.70%

$1.24

02/21

03/08

Atmos Energy

ATO

2.16%

$97.05

35

6.90%

$2.10

02/22

03/11

Barnes

B

1.05%

$60.82

8

6.60%

$0.64

02/22

03/08

HNI

HNI

2.88%

$40.95

8

4.00%

$1.18

02/22

03/04

Northrop Grumman

NOC

1.67%

$286.98

15

14.60%

$4.80

02/22

03/13

Nu Skin Enterprises

NUS

2.35%

$63.09

18

4.00%

$1.48

02/22

03/13

Robert Half International

RHI

1.85%

$66.98

15

11.80%

$1.24

02/22

03/15

Sherwin-Williams

SHW

1.03%

$439.18

40

11.50%

$4.52

02/22

03/08

Snap-on

SNA

2.41%

$157.78

9

16.60%

$3.80

02/22

03/11

Tractor Supply

TSCO

1.27%

$97.58

9

19.60%

$1.24

02/22

03/12

Brunswick

BC

1.63%

$51.43

6

50.80%

$0.84

02/25

03/15

Johnson & Johnson

JNJ

2.64%

$136.38

56

6.40%

$3.60

02/25

03/12

Nordson

NDSN

1.00%

$139.67

55

14.70%

$1.40

02/25

03/12

United Parcel Service

UPS

3.46%

$110.87

9

8.00%

$3.84

02/25

03/12

Mobile Mini

MINI

3.05%

$36.07

5

N/A

$1.10

02/26

03/13

Sonoco Products

SON

2.78%

$58.91

36

5.70%

$1.64

02/26

03/08

Steris

STE

1.11%

$122.28

14

10.20%

$1.36

02/26

03/21

Westlake Chemical

WLK

1.24%

$80.88

15

17.40%

$1.00

02/26

03/13

Aircastle

AYR

5.90%

$20.34

8

10.40%

$1.20

02/27

03/15

CSX

CSX

1.32%

$72.54

14

8.30%

$0.96

02/27

03/15

Dover

DOV

2.11%

$91.20

63

9.40%

$1.92

02/27

03/15

Estee Lauder

EL

1.11%

$155.01

9

16.20%

$1.72

02/27

03/15

Hubbell

HUBB

2.83%

$118.61

11

11.20%

$3.36

02/27

03/15

Meredith

MDP

4.14%

$55.53

25

6.00%

$2.30

02/27

03/15

NextEra Energy

NEE

2.72%

$184.04

24

11.00%

$5.00

02/27

03/15

Tennant

TNC

1.40%

$62.68

47

3.40%

$0.88

02/27

03/15

Union Pacific

UNP

2.07%

$170.24

12

15.60%

$3.52

02/27

03/29

Marriott Vacations Worldwide

VAC

1.90%

$94.58

6

N/A

$1.80

02/27

03/14

Ashland Inc.

ASH

1.27%

$78.66

9

9.90%

$1.00

02/28

03/15

BorgWarner

BWA

1.62%

$41.92

6

22.20%

$0.68

02/28

03/15

C.H. Robinson Worldwide

CHRW

2.19%

$91.45

21

6.10%

$2.00

02/28

03/29

Clearway Energy

CWEN

5.51%

$14.51

6

61.40%

$0.80

02/28

03/15

Dominion Energy

D

5.01%

$73.26

16

8.20%

$3.67

02/28

03/20

Delta Air Lines

DAL

2.74%

$51.08

6

61.30%

$1.40

02/28

03/22

Flowers Foods

FLO

3.47%

$20.73

17

9.80%

$0.72

02/28

03/15

Group 1 Automotive

GPI

1.68%

$61.77

9

9.90%

$1.04

02/28

03/15

Interpublic

IPG

4.02%

$23.38

6

22.90%

$0.94

02/28

03/15

Lear

LEA

1.91%

$156.99

8

32.70%

$3.00

02/28

03/20

L3 Technologies

LLL

1.60%

$212.24

15

7.80%

$3.40

02/28

03/15

Lockheed Martin

LMT

2.86%

$307.23

16

11.40%

$8.80

02/28

03/29

Marriott International

MAR

1.35%

$121.05

9

19.50%

$1.64

02/28

03/29

McDonald's

MCD

2.58%

$179.97

43

6.10%

$4.64

02/28

03/15

McKesson

MCK

1.15%

$135.56

11

9.90%

$1.56

02/28

04/01

MGE Energy

MGEE

2.09%

$64.49

43

4.30%

$1.35

02/28

03/15

Herman Miller

MLHR

2.14%

$36.89

7

9.20%

$0.79

02/28

04/15

PepsiCo

PEP

3.20%

$115.91

46

9.10%

$3.71

02/28

03/29

Polaris Industries

PII

2.81%

$86.78

23

7.40%

$2.44

02/28

03/15

Perrigo

PRGO

1.55%

$48.95

16

16.10%

$0.76

02/28

03/19

Tyson Foods

TSN

2.40%

$62.61

7

41.50%

$1.50

02/28

03/15

Wendy's

WEN

2.22%

$18.00

9

13.60%

$0.40

02/28

03/15

Advanced Drainage Systems

WMS

1.24%

$25.91

5

N/A

$0.32

02/28

03/15

Watts Water Technologies

WTS

1.04%

$80.77

6

10.40%

$0.84

02/28

03/15

GATX

GATX

2.37%

$77.67

9

7.30%

$1.84

03/01

03/31

Nike

NKE

1.03%

$85.38

17

13.80%

$0.88

03/01

04/01

Thanks for reading!

Disclosure: I am/we are long NEE, UPS. 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.