Dividend Increases: February 25-March 1, 2019 (Part 2: Remaining Sectors)

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Includes: ALB, BBY, HD, HOG, LAMR, LIN, RHP, SLGN, SWX
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.

Part 1 of this article covered dividend increases announced for stocks in the Industrials and Financials Sectors.

This is Part 2, which covers the remaining sectors.

I like monitoring dividend increases for stocks on my watch list of dividend growth stocks because I consider such stocks to be candidates for further analysis. Companies that regularly raise dividends show confidence in the potential growth of future earnings.

I use the CCC List as a starting point and apply 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, 18 companies that decided to increase their dividends passed these screens, including 2 of the stocks I own.

The following table provides a summary of increases announced for stocks in all sectors except the Industrials and Financials sectors. Please see Part 1 for coverage of those 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 25-March 1, 2019

Previous Post: Dividend Increases: February 18-22, 2019

The highlighted stock is one I own in my portfolio.

Home Depot (HD)

Founded in 1978 and based in Atlanta, Georgia, HD is a home improvement retailer that sells an assortment of building materials, home improvement products, and lawn and garden products. HD provides installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me, and professional customers.

The company increased its quarterly dividend by 32.04%, from 103¢ per share to $1.36 per share. The quarterly dividend will be paid on March 28 to shareholders of record on March 14. The ex-dividend date is March 13.

Best Buy (BBY)

BBY is a retailer of technology products, services, and solutions in North America. The company offers service to the consumers, small business owners, and educators, who visit its stores, engage with Geek Squad agents or use its Websites or mobile applications. BBY was founded in 1966 and is headquartered in Richfield, Minnesota.

The company announced a quarterly DIV increase of 11.11% to 50¢ per share. All shareholders of record on March 20 can expect the dividend to be paid on April 10.

Silgan (SLGN)

SLGN manufactures and sells rigid packaging for shelf-stable food and other consumer goods products. The company's products include steel and aluminum containers, metal, composite and plastic closures, and custom designed plastic containers and closures. SLGN was founded in 1987 and is headquartered in Stamford, Connecticut.

On February 27, the board of directors declared a quarterly dividend of 11¢ per share. The new dividend represents an increase of 10.00%. The dividend is payable on March 29 to shareholders of record at the close of business on March 18.

Albemarle (ALB)

ALB is a major producer of specialty chemicals targeting customer needs across various end markets, including petroleum refinement, consumer electronics, plastics and packaging, construction, automotive, lubricants, pharmaceuticals, crop protection, food-safety, and custom chemistry services. ALB was founded in 1993 and is headquartered in Baton Rouge, Louisiana.

Recently, ALB increased its quarterly dividend by 9.70% to 36.75¢ per share. The stock will trade ex-dividend on March 14, and shareholders can expect to receive the new dividend on April 1.

Linde (LIN)

Founded in 1907 and based in Guildford, the United Kingdom, LIN operates as an industrial gas and engineering company. The company offers a variety of gases, including rare gases, electronic gases, specialty gases, shielding gases, and noble gases. LIN also develops and distributes procedures and systems for gas applications.

On February 26, the board of directors approved an increase to the regular quarterly dividend from 82.50¢ per share to 87.5¢ per share, an increase of 6.06%. All shareholders of record on March 8 can expect the dividend to be paid on March 22.

Ryman Hospitality Properties (RHP)

RHP is a real estate investment trust specialising in group-oriented and destination hotel assets in urban and resort markets. The company’s assets include a network of four upscale, meetings-focused resorts managed by Marriott International under the Gaylord Hotels brand. RHP also owns and operates media and entertainment assets, including the Grand Ole Opry.

On Tuesday, February 26, the company increased its quarterly dividend by 5.88% to 90¢ per share. The dividend is payable April 15, with an ex-dividend date of March 28.

Southwest Gas (SWX)

Founded in 1931, SWX is an energy holding company based in Las Vegas, Nevada. The company provides natural gas service to residential, commercial, and industrial natural gas customers in Arizona, Nevada, and California. A wholly-owned subsidiary of SWX provides utility companies with trenching and installation, replacement, and maintenance services for energy distribution systems.

Recently, SWX increased its quarterly dividend to 54.5¢ per share, an increase of 4.81% over the prior dividend of 52¢ per share. The new dividend is payable on June 3 to shareholders of record on May 15, with an ex-dividend date of May 14.

Lamar Advertising (LAMR)

Founded in 1902, LAMR is one of the largest outdoor advertising companies in North America, with about 350,000 displays across the United States and Canada. The company offers advertisers a variety of billboard, interstate logo, transit, and airport advertising formats, helping both local businesses and national brands reach broad audiences every day.

The company announced a quarterly DIV increase of 4.35% to 96¢ per share. The dividend is payable on March 29 to shareholders of record on March 15.

Harley-Davidson (HOG)

HOG manufactures cruiser and touring motorcycles and conducts its business around the world. The company designs, manufactures, and sells street-legal Harley-Davidson motorcycles, as well as a line of motorcycle parts, accessories, general merchandise, and related services. HOG was founded in 1903 and is headquartered in Milwaukee, Wisconsin.

Recently, HOG increased its quarterly dividend from 37¢ per share to 37.5¢ per share, an increase of 1.35%. The quarterly dividend will be paid on March 29 to shareholders of record on March 14. The ex-dividend date is March 13.

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, HD, SLGN, and SWX.

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 timeframe in question. (The Adjusted Earnings Growth Rate represents the slope of the orange line in the chart).

HD'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 about fair value. An investment in HD in January 2010 would have returned 23.7% on an annualized basis (with dividends included).

SLGN'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 SLGN in January 2010 would have returned 8.7% on an annualized basis (with dividends included).

SWX'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 SWX in January 2010 would have returned 14.2% 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 lists ex-dividend dates of stocks in all sectors except the Industrials and Financials sectors, which were covered in Part 1 of this article.

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

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Pay- able

Date

American Assets Trust

AAT

2.56%

$43.82

8

5.10%

$1.12

03/13

03/28

Automatic Data Processing

ADP

2.05%

$153.90

44

11.70%

$3.16

03/07

04/01

Ameren

AEE

2.68%

$70.93

5

2.90%

$1.90

03/12

03/29

Albemarle

ALB

1.62%

$90.79

24

6.70%

$1.47

03/14

04/01

Anthem

ANTM

1.04%

$307.68

9

14.90%

$3.20

03/15

03/29

Avnet

AVT

1.82%

$43.92

6

21.10%

$0.80

03/11

03/26

Avery Dennison

AVY

1.90%

$109.71

8

12.00%

$2.08

03/05

03/20

Becton, Dickinson

BDX

1.21%

$254.37

47

8.30%

$3.08

03/07

03/29

Broadridge Financial Solutions

BR

1.91%

$101.49

12

16.10%

$1.94

03/14

04/03

Crown Castle International

CCI

3.77%

$119.23

5

N/A

$4.50

03/14

03/29

Cogent Communications

CCOI

4.71%

$49.26

8

22.80%

$2.32

03/07

03/29

Core-Mark

CORE

1.22%

$35.92

8

15.70%

$0.44

03/11

03/22

Chesapeake Utilities

CPK

1.63%

$90.82

15

6.50%

$1.48

03/14

04/05

CSG Systems International

CSGS

2.13%

$41.82

7

13.30%

$0.89

03/13

03/29

Dunkin' Brands

DNKN

2.06%

$72.86

8

12.80%

$1.50

03/08

03/20

DTE Energy

DTE

3.08%

$122.90

10

6.70%

$3.78

03/15

04/15

Brinker International

EAT

3.34%

$45.47

13

11.60%

$1.52

03/07

03/28

Ecolab

ECL

1.08%

$170.16

27

12.30%

$1.84

03/18

04/15

El Paso Electric

EE

2.52%

$57.09

8

6.20%

$1.44

03/14

03/29

Eastman Chemical

EMN

2.98%

$83.21

9

13.30%

$2.48

03/14

04/05

Expedia

EXPE

1.02%

$125.27

7

17.20%

$1.28

03/06

03/27

Extra Space Storage

EXR

3.60%

$95.58

9

18.30%

$3.44

03/14

03/29

Franco-Nevada

FNV

1.29%

$74.45

11

5.70%

$0.96

03/13

03/28

Federal Realty Investment Trust

FRT

3.08%

$132.46

51

6.20%

$4.08

03/13

04/15

Gildan Activewear

GIL

1.49%

$35.95

9

20.00%

$0.54

03/06

04/01

Gaming and Leisure Properties

GLPI

7.46%

$36.46

5

N/A

$2.72

03/07

03/22

Genuine Parts

GPC

2.79%

$109.15

63

5.70%

$3.05

03/07

04/01

Home Depot

HD

2.94%

$185.17

10

21.40%

$5.44

03/13

03/28

Harley-Davidson

HOG

3.96%

$37.88

8

12.00%

$1.50

03/13

03/29

HP

HPQ

3.27%

$19.60

9

16.30%

$0.64

03/12

04/03

Iron Mountain

IRM

6.83%

$35.78

9

16.80%

$2.44

03/14

04/02

J & J Snack Foods

JJSF

1.29%

$155.64

15

23.00%

$2.00

03/13

04/04

Kimberly-Clark

KMB

3.56%

$115.68

47

5.50%

$4.12

03/07

04/02

Lithia Motors

LAD

1.30%

$89.57

9

18.40%

$1.16

03/07

03/22

Lamar Advertising

LAMR

4.87%

$78.80

5

N/A

$3.84

03/14

03/29

Lancaster Colony

LANC

1.66%

$156.95

56

8.60%

$2.60

03/07

03/29

Leggett & Platt

LEG

3.31%

$45.98

47

4.80%

$1.52

03/14

04/15

Linde

LIN

2.08%

$168.38

26

6.60%

$3.50

03/07

03/22

La-Z-Boy

LZB

1.50%

$34.59

7

22.20%

$0.52

03/08

03/20

MDU Resources

MDU

3.05%

$26.60

28

2.70%

$0.81

03/13

04/01

Methanex

MEOH

2.29%

$57.69

8

11.00%

$1.32

03/14

03/31

Magna International

MGA

2.78%

$52.59

9

15.60%

$1.46

03/07

03/22

Monro

MNRO

1.04%

$77.24

14

12.60%

$0.80

03/14

03/25

Medical Properties Trust

MPW

5.53%

$18.08

5

4.40%

$1.00

03/13

04/11

Merck

MRK

2.69%

$81.65

8

2.20%

$2.20

03/14

04/05

Motorola Solutions

MSI

1.59%

$143.61

9

13.80%

$2.28

03/14

04/15

NewMarket

NEU

1.58%

$443.06

13

15.20%

$7.00

03/14

04/01

New Jersey Resources

NJR

2.39%

$48.86

23

6.50%

$1.17

03/14

04/01

NorthWestern

NWE

3.33%

$69.05

15

7.70%

$2.30

03/14

03/29

Omnicom

OMC

3.39%

$76.72

10

9.90%

$2.60

03/08

04/09

Occidental Petroleum

OXY

4.62%

$67.55

15

5.40%

$3.12

03/08

04/15

Public Service Enterprise

PEG

3.17%

$59.25

8

4.60%

$1.88

03/07

03/29

Packaging Corp Of America

PKG

3.29%

$96.18

8

15.80%

$3.16

03/14

04/15

Prologis

PLD

3.03%

$69.88

6

11.40%

$2.12

03/14

03/29

PolyOne

POL

2.35%

$33.26

9

24.90%

$0.78

03/14

04/05

Pool

POOL

1.13%

$159.22

8

18.70%

$1.80

03/13

03/28

PPL

PPL

5.11%

$32.26

18

3.50%

$1.65

03/07

04/01

PS Business Parks

PSB

2.83%

$148.42

5

16.60%

$4.20

03/12

03/28

Qualcomm

QCOM

4.58%

$54.20

16

13.30%

$2.48

03/06

03/28

Royal Caribbean Cruises

RCL

2.35%

$119.03

8

32.60%

$2.80

03/06

04/05

Retail Opportunity Investments

ROIC

4.68%

$16.84

10

5.40%

$0.79

03/13

03/28

Reliance Steel & Aluminum

RS

2.46%

$89.26

9

9.70%

$2.20

03/14

03/29

Sinclair Broadcast

SBGI

2.18%

$36.73

8

4.30%

$0.80

03/08

03/25

South Jersey Industries

SJI

3.89%

$29.58

20

4.60%

$1.15

03/15

04/02

Silgan

SLGN

1.54%

$28.54

15

7.40%

$0.44

03/15

03/29

Spire

SR

2.99%

$79.28

16

5.80%

$2.37

03/08

04/02

Texas Roadhouse

TXRH

1.90%

$63.08

9

15.80%

$1.20

03/12

03/29

UGI

UGI

1.91%

$54.50

31

6.70%

$1.04

03/14

04/01

UnitedHealth

UNH

1.46%

$246.15

9

26.80%

$3.60

03/08

03/19

VF

VFC

2.34%

$87.28

46

15.60%

$2.04

03/07

03/18

Walmart

WMT

2.16%

$97.93

46

2.70%

$2.12

03/14

04/01

Worthington Industries

WOR

2.35%

$39.21

8

9.50%

$0.92

03/14

03/29

Weingarten Realty Investors

WRI

5.59%

$28.29

8

5.30%

$1.58

03/07

03/15

Xcel Energy

XEL

2.95%

$54.92

16

6.40%

$1.62

03/14

04/20

Thanks for reading and take care, everybody!

Disclosure: I am/we are long HD. 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.