Seeking Alpha

Dividend Increases: April 1-5, 2019

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Includes: FUL, OZK, TJX
by: FerdiS
Summary

Companies that regularly raise their dividend payments show confidence in future earnings growth potential.

One way to identify dividend growth stocks for further analysis is to monitor dividend increases.

Last week's increases include one from a stock I own.

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 can only raise their dividends regularly and sustainably if they grow earnings 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

This past week, 3 companies that announced dividend increases passed these screens, including one of my DivGro holdings.

The following table presents a summary.

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: April 1-5, 2019

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

TJX (TJX)

Founded in 1956 and based in Framingham, Massachusetts, TJX operates as an off-price apparel and home fashions retailer in the United States and internationally. The company sells family apparel, home fashions, seasonal items, jewelry, and other merchandise. TJX operates stores under various names, including T.J. Maxx, Marshalls, and Sierra Trading.

Recently, the board of directors of TJX declared a quarterly dividend of 23¢ per share. The new dividend represents an increase of 17.95%. The quarterly dividend will be paid on June 6 to shareholders of record on May 15. The ex-dividend date is May 15.

Bank OZK (OZK)

Founded in 1981 and headquartered in Little Rock, Arkansas, OZK provides deposit services, loan products, mortgage lending, treasury management services, and trust and wealth management services. OZK serves businesses, individuals, and non-profit and governmental entities in Arkansas, Georgia, North and South Carolina, Texas, Florida, Alabama, New York, and California.

The board of directors of OZK has declared a quarterly dividend of 23¢ per share. The new dividend is 4.55% above the prior dividend of 22¢ per share. The quarterly dividend will be paid on April 22 to shareholders of record on April 15. The ex-dividend date is April 12.

HP Fuller (FUL)

Founded in 1887 and headquartered in Saint Paul, Minnesota, FUL is a worldwide manufacturer and marketer of adhesives, sealants, and other specialty chemical products. FUL sells products to customers in packaging, hygiene, general assembly, electronic materials and assembly, paper converting, woodworking, construction, automotive and consumer businesses.

The company increased its quarterly dividend by 3.23%, from 15.5¢ per share to 16¢ per share. The dividend is payable on May 2 to shareholders of record on April 18.

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, TJX, OZK, and FUL.

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).

TJX'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 TJX in February 2009 would have returned 27.7% on an annualized basis (with dividends included).

OZK'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 OZK in January 2009 would have returned 16.3% on an annualized basis (with dividends included).

FUL's price line is above the primary valuation line but at the stock's normal P/E ratio. The stock is trading at about fair value. An investment in FUL in December 2009 would have returned 11.6% 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 Next Div links to the latest dividend declaration announcement.

Summary of Upcoming Ex-Dividend Dates: April 9-22, 2019

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Payable

Date

AbbVie

ABBV

5.13%

$83.45

7

17.50%

$4.28

04/12

05/15

Abbott Laboratories

ABT

1.62%

$79.00

6

14.90%

$1.28

04/12

05/15

Accenture

ACN

1.64%

$178.15

14

9.90%

$2.92

04/10

05/15

American Financial

AFG

1.66%

$96.61

13

12.50%

$1.60

04/12

04/25

American Tower

AMT

1.84%

$195.76

9

22.30%

$3.60

04/10

04/26

Saul Centers

BFS

3.92%

$54.04

6

7.60%

$2.12

04/15

04/30

Cracker Barrel Old Country Store

CBRL

3.19%

$156.69

16

14.40%

$5.00

04/17

05/06

Colgate-Palmolive

CL

2.53%

$67.92

56

4.50%

$1.72

04/17

05/15

Foot Locker

FL

2.39%

$63.70

9

11.50%

$1.52

04/17

05/03

HP Fuller

FUL

1.26%

$50.80

49

9.80%

$0.64

04/17

05/02

General Dynamics

GD

2.38%

$171.12

28

10.60%

$4.08

04/11

05/10

GEO

GEO

9.56%

$20.08

8

6.60%

$1.92

04/12

04/22

Graco

GGG

1.23%

$51.83

22

9.60%

$0.64

04/12

05/01

General Mills

GIS

3.85%

$50.88

15

6.70%

$1.96

04/09

05/01

Gentex

GNTX

2.17%

$21.20

9

9.40%

$0.46

04/09

04/24

Hormel Foods

HRL

2.00%

$41.93

53

17.10%

$0.84

04/12

05/15

InterDigital

IDCC

2.02%

$69.19

6

36.10%

$1.40

04/09

04/24

Lincoln National

LNC

2.33%

$63.40

9

22.40%

$1.48

04/09

05/01

Life Storage

LSI

4.11%

$97.25

6

14.60%

$4.00

04/15

04/26

Mid-America Apartment Communities

MAA

3.50%

$109.86

9

5.80%

$3.84

04/12

04/30

Main Street Capital

MAIN

6.33%

$37.91

9

4.30%

$2.40

04/17

05/15

Masco

MAS

1.18%

$40.75

5

7.70%

$0.48

04/11

05/13

McGrath RentCorp

MGRC

2.59%

$58.00

27

6.00%

$1.50

04/12

04/30

Marsh & McLennan

MMC

1.77%

$94.01

9

10.50%

$1.66

04/09

05/15

OGE Energy

OGE

3.39%

$43.07

12

10.30%

$1.46

04/09

04/30

Oracle

ORCL

1.78%

$53.93

11

12.60%

$0.96

04/10

04/25

Oxford Industries

OXM

1.88%

$78.93

8

13.30%

$1.48

04/17

05/03

Bank OZK

OZK

2.23%

$41.24

23

17.20%

$0.92

04/12

04/22

Patterson

PDCO

4.63%

$22.46

9

10.90%

$1.04

04/11

04/26

Children's Place

PLCE

2.25%

$99.72

6

N/A

$2.24

04/12

04/26

PNC Financial Services

PNC

2.97%

$127.91

8

14.60%

$3.80

04/15

05/05

Pentair

PNR

1.59%

$45.21

43

1.80%

$0.72

04/17

05/03

RPM International

RPM

2.33%

$60.03

45

7.40%

$1.40

04/15

04/30

Raytheon

RTN

2.10%

$179.63

15

9.60%

$3.77

04/09

05/09

Synnex

SNX

1.45%

$103.70

6

N/A

$1.50

04/11

04/26

AT&T

T

6.31%

$32.35

35

2.10%

$2.04

04/09

05/01

Trinity Industries

TRN

2.95%

$23.02

9

15.80%

$0.68

04/12

04/30

Verizon Communications

VZ

4.08%

$59.09

14

2.70%

$2.41

04/09

05/01

WD-40

WDFC

1.45%

$168.79

10

11.70%

$2.44

04/17

04/30

Watsco

WSO

4.26%

$150.11

6

37.20%

$6.40

04/12

04/30

Simpson Manufacturing

SSD

1.44%

$61.25

5

11.50%

$0.88

04/03

04/25

Sysco

SYY

2.32%

$67.14

49

5.20%

$1.56

04/04

04/26

AT&T

T

6.31%

$32.35

35

2.10%

$2.04

04/09

05/01

Thor Industries

THO

2.43%

$64.15

9

14.30%

$1.56

04/03

04/18

Trinity Industries

TRN

2.95%

$23.02

9

15.80%

$0.68

04/12

04/30

UDR

UDR

3.00%

$45.62

8

6.70%

$1.37

04/08

04/30

Universal

UVV

5.20%

$57.68

47

5.40%

$3.00

04/05

05/06

Verizon Communications

VZ

4.08%

$59.09

14

2.70%

$2.41

04/09

05/01

Watsco

WSO

4.26%

$150.11

6

37.20%

$6.40

04/12

04/30

Thanks for reading and happy investing!

Disclosure: I am/we are long TJX. 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.