12 Upcoming Dividend Increases

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Includes: AMT, BANR, GD, GNTX, KAI, MGRC, ORCL, OZK, PLCE, REIT, RTN, TRN, UDR
by: Dividend Derek
Summary

All stocks have at least five years of dividend growth history.

12 increases for next week (up from 12 last week).

An average increase of 11.0% with four having at least a 10% increase.

I'm a huge fan of dividend growth stocks and hope you are too. If you do, you are in the right place! I've compiled a list of stocks that are increasing their dividends 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 always 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

Fun Facts

Category Count
King 0
Champion 2
Contender 3
Challenger 7

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
UDR, Inc. (UDR) 8 3 8-Apr-19 6.52% Challenger
Kadant Inc (KAI) 7 1.04 8-Apr-19 4.55% Challenger
Banner Corporation (BANR) 7 2.96 8-Apr-19 7.89% Challenger
Raytheon Company (RTN) 15 2.03 9-Apr-19 8.53% Contender
Gentex Corporation (GNTX) 9 2.21 9-Apr-19 4.55% Challenger
Oracle Corporation (ORCL) 11 1.77 10-Apr-19 26.32% Contender
American Tower Corporation (REIT) (AMT) 9 1.85 10-Apr-19 7.14% Challenger
General Dynamics Corporation (GD) 28 2.4 11-Apr-19 9.68% Champion
McGrath RentCorp (MGRC) 27 2.62 12-Apr-19 10.29% Champion
Bank OZK (OZK) 23 3.08 12-Apr-19 4.55% Contender
Trinity Industries, Inc. (TRN) 9 3.05 12-Apr-19 30.77% Challenger
Children's Place, Inc. (PLCE) 6 2.32 12-Apr-19 12.00% Challenger

Field Definitions

Streak: This is years of dividend growth history sourced from the U.S. Dividend Champions spreadsheet.

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
UDR 0.3225 0.343 6.52%
KAI 0.22 0.23 4.55%
BANR 0.38 0.41 7.89%
RTN 0.8675 0.942 8.53%
GNTX 0.11 0.115 4.55%
ORCL 0.19 0.24 26.32%
AMT 0.84 0.9 7.14%
GD 0.93 1.02 9.68%
MGRC 0.34 0.375 10.29%
OZK 0.21 0.23 4.55%
TRN 0.13 0.17 30.77%
PLCE 0.5 0.56 12.00%

Additional Metrics

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
UDR 45.77 34.48 45.84 95.85 33% Off Low 0% Off High
KAI 88.82 76.44 111.85 16.77 16% Off Low 21% Off High
BANR 54.92 48.5 67.11 13.23 13% Off Low 18% Off High
RTN 177.37 144.27 229.75 17.49 23% Off Low 23% Off High
GNTX 21.01 17.8 25.41 12.96 18% Off Low 17% Off High
ORCL 54.06 42.4 54.65 19.58 27% Off Low 1% Off High
AMT 194.29 133.53 198.19 70.14 46% Off Low 2% Off High
GD 167.75 143.87 229.74 14.99 17% Off Low 27% Off High
MGRC 57.25 45.85 68.79 17.72 25% Off Low 17% Off High
OZK 30.28 21.02 50.39 9.34 44% Off Low 40% Off High
TRN 22.43 18.99 39.35 20.91 18% Off Low 21% Off High
PLCE 95.01 82.05 160.23 15.85 16% Off Low 41% 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. I swapped back in the old rates from the CCC list as I work out some kinks with my own calculated rates.

Ticker Yield 1 Yr DG 3 Yr DG 5 Yr DG 10 Yr DG Chowder Rule
OZK 3.08 12 13.1 17.2 20.3 20.2
TRN 3.05 8.3 7.4 15.8 13.2 18.8
UDR 3 4.3 5.4 6.7 -0.3 9.7
BANR 2.96 35.7 22.7 27.2 7.4 30.2
MGRC 2.62 23.7 8.8 6 5.1 8.6
GD 2.4 10.7 10.5 10.6 10.5 13
PLCE 2.32 42.9 50.9 171.54 173.86
GNTX 2.21 13.2 9.2 9.4 7.3 11.6
RTN 2.03 8.8 9.1 9.6 12 11.7
AMT 1.85 14 18.5 22.3 24.2
ORCL 1.77 5.6 10.1 12.6 14.4
KAI 1.04 6.1 9.6 28.3 29.3

Bonus Charts

For the bonus this week I want to take a quick look at Bank OZK which was formerly known as the Bank of the Ozarks. To start, it's seen some wild price swings over the past year with the stock sitting closer to its 52-week low than high.

There are a few facts that are interesting here:

  • A 3+% forward yield
  • An extremely conservative payout ratio around 26%
  • A 23+ year history of raising dividends every year
  • Low multiple could lead to outsized gains

From SimplySafeDividends, the company sports a reasonably safe score of 65 with a rapid growth score of 84 with a middle of the pack yield.

(Source)

Running a stock return calculation against the S&P (SPY) since April of 2010, OZK beat the market by about 4% per year. The blue trendline, representing OZK, rapidly jumped out to an enormous lead over the market. On top of that, the stock has visited some wild places during that time. If one was more willing to cut bait when the stock was around a P/E of 20, results would have been greatly amplified.

(Courtesy: Stock Return Calculator)

Conclusion

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. Happy investing!

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.