Dividend Increases: April 8-19, 2019

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Includes: ATR, AWK, CE, EPD, GS, HEP, HPT, ISCA, LKFN, OKE, PBCT, PG, PSXP, SO, SON, TRV, WHR
by: FerdiS
Summary

With earnings season picking up, several companies declared dividend increases in the past two weeks.

I like to monitor dividend increases for stocks on my watch list because it helps me identify candidates for further analysis.

Two of my DivGro holdings announced dividend increases.

One way to identify dividend growth stocks for further analysis is to monitor dividend increases. Companies can only raise their dividends regularly and sustainably if they grow earnings sufficiently.

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

In the past few weeks, 17 companies that announced dividend increases passed these screens, including two of the stocks I own.

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 8-19, 2019

Previous Post: Dividend Increases: April 1-5, 2019

Lakeland Financial (LKFN)

LKFN is a bank holding company for its subsidiary, Lake City Bank, which provides a variety of financial services in Indiana. The company offers commercial and consumer banking services, as well as trust and wealth management, brokerage, investment, and treasury management commercial services. LKFN was founded in 1872 and is headquartered in Warsaw, Indiana.

On Tuesday, April 9, the company increased its quarterly dividend by 15.38% to 30¢ per share. The dividend is payable on May 6 to shareholders of record on April 25.

Celanese (CE)

Founded in 1918 and headquartered in Irving, Texas, CE is a technology and specialty materials company. The company manufactures and sells value-added chemicals, thermoplastic polymers, and other chemical-based products in North America, Europe, and Asia. CE’s segments include Advanced Engineered Materials, Consumer Specialties, Industrial Specialties, and Acetyl Intermediates.

Recently, CE increased its quarterly dividend by 14.81% to 62¢ per share. The dividend is payable on May 9 to shareholders of record on April 29.

American Water Works (AWK)

AWK is the largest publicly-traded water and wastewater utility company in the United States. Through its subsidiaries, the company provides water and wastewater services in 45 states and in Ontario, Canada. AWK is headquartered in Voorhees, New Jersey, and was founded in 1886 as the American Water Works & Guarantee Company.

Recently, AWK increased its quarterly dividend from 45.50¢ per share to 50¢ per share, an increase of 9.89%. The quarterly dividend will be paid on June 4 to shareholders of record on May 13. The ex-dividend date is May 10.

Travelers (TRV)

TRV provides commercial and personal property and casualty insurance products and services to individuals, associations, businesses, and government entities primarily in the United States. The company’s segments include Business and International Insurance; Bond & Specialty Insurance, and Personal Insurance. TRV was founded in 1853 and based in New York, New York.

On April 19, the board of directors approved an increase to the regular quarterly dividend from 77¢ per share to 82¢ per share, an increase of 6.49%. The dividend is payable on June 28 to shareholders of record on June 10. TRV will trade ex-dividend on June 7.

Goldman Sachs (GS)

GS operates as an investment banking, securities, and investment management company worldwide. It operates in four segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The company serves corporations, financial institutions, governments, and individuals. GS was founded in 1869 and is headquartered in New York, New York.

On Monday, April 15, the company increased its quarterly dividend by 6.25% to 85¢ per share. All shareholders of record on May 30 can expect the dividend to be paid on June 27.

AptarGroup (ATR)

Founded in 1992, ATR develops, manufactures, and sells consumer product dispensing systems worldwide. The company serves the beauty, personal care, home care, prescription drug, consumer health care, injectables, food, and beverage markets. Based in Crystal Lake, Illinois, ATR sells its products through its own sales force, as well as through independent representatives and distributors.

The board of directors of ATR has declared a quarterly dividend of 36¢ per share. The new dividend is 5.88% above the prior dividend of 34¢ per share. The dividend is payable on May 22 to shareholders of record on May 1.

Sonoco Products (SON)

SON manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia. The company sells its products in various markets, including paper, textile, film, food, chemical, packaging, construction, and wire and cable. SON was founded in 1899 and is headquartered in Hartsville, South Carolina.

The company declared a quarterly dividend of 43¢ per share, an increase of 4.88% over the prior quarterly dividend. The new dividend is payable on June 10 to shareholders of record on May 10, with an ex-dividend date of May 9.

Whirlpool (WHR)

Founded in 1898 and headquartered in Benton Harbor, Michigan, WHR manufactures and markets home appliances. The company's principal products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other small domestic appliances. WHR markets and distributes its products under various brands, including Whirlpool, Maytag, KitchenAid, Jenn-Air, and Hotpoint.

The company declared a quarterly dividend of $1.20 per share, an increase of 4.35% over the prior quarterly dividend. The stock will trade ex-dividend on May 16, and shareholders can expect to receive the new dividend on June 15.

International Speedway (ISCA)

ISCA owns and/or operates 13 motorsports entertainment facilitates and promotes more than 100 motorsports racing events in the United States. The company’s motorsports themed events consist primarily of racing events at facilities such as Daytona International Speedway, Talladega Superspeedway, and Michigan International Speedway. ISCA was founded in 1953 and is headquartered in Daytona Beach, Florida.

The company increased its annual dividend by 4.26%, from 47¢ per share to 49¢ per share. The dividend is payable on June 28 to shareholders of record on May 31.

Procter & Gamble (PG)

Founded by William Procter and James Gamble, PG is focused on providing branded consumer packaged goods in more than 180 countries. PG has five reportable segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby and Family Care. The company was incorporated in Ohio in 1905 and is headquartered in Cincinnati, Ohio.

On Tuesday, April 9, the company increased its quarterly dividend by 4.00% to 74.59¢ per share. The ex-dividend date is April 17 and the dividend will be paid on May 15 to shareholders of record on April 19.

Southern (SO)

SO, along with its subsidiaries, operates as a public electric utility company. The company constructs, acquires, owns, and manages generation assets, including renewable energy projects, and sells electricity at market-based rates in the wholesale market. SO was founded in 1945 and is headquartered in Atlanta, Georgia.

The company increased its quarterly dividend by 3.33%, from 60¢ per share to 62¢ per share. The new dividend is payable on June 6 to shareholders of record on May 20. The ex-dividend date will be May 17.

Hospitality Properties Trust (HPT)

Hospitality Properties Trust is a publicly owned real estate investment trust. The company invests in real estate markets in the United States, Canada, and Puerto Rico, primarily in hotel and travel centers. The company was formed in 1995 and is based in New York, New York.

The company increased its quarterly dividend by 1.89%, from 53¢ per share to 54¢ per share. The first payment will be on May 16 to shareholders of record on April 29. The ex-dividend date is April 26.

People's United Financial (PBCT)

PBCT is a savings and loan holding company founded in 1842 and headquartered in Bridgeport, Connecticut. The company provides commercial banking, retail banking, and wealth management services to individual, corporate, and municipal customers in Connecticut, southeastern New York, Massachusetts, Vermont, New Hampshire, and Maine. PBCT also offers online banking, investment trading, and telephone banking services.

On April 18, the company declared a dividend of 17.75¢ per share. The new dividend represents a 1.43% increase. The ex-dividend date is April 30 and the dividend will be paid on May 15 to shareholders of record on May 1.

Phillips 66 Partners (PSXP)

Founded in 2013 and headquartered in Houston, Texas, PSXP acquires and distributes crude oil and refined petroleum products in the United States. The company owns and operates natural gas liquids pipelines and terminals, as well as other transportation and midstream assets. Phillips 66 Partners GP LLC operates as the general partner of PSXP.

On April 17, the company declared a dividend of 84.5¢ per share. The new dividend represents a 1.20% increase. The dividend is payable on May 14 to shareholders of record on April 30. The stock will trade ex-dividend on April 29.

ONEOK (OKE)

OKE is an energy midstream service provider in the United States. The company purchases, gathers, compresses, transports, stores, and distributes natural gas. It also leases pipeline capacity to others. OKE drills for and produces oil and gas, extracts and sells natural gas liquids, and is engaged in the gas marketing business.

The company's board of directors approved an increase in the quarterly dividend of 0.58% to 86.5¢ per share. The first payment will be on May 15 to shareholders of record on April 29. The ex-dividend date is April 26.

Enterprise Products Partners (EPD)

Founded in 1968 and based in Houston, Texas, EPD provides midstream energy services to producers and consumers of natural gas, natural gas liquids, crude oil, petrochemicals, and refined products. EPD operates through four segments: NGL Pipelines & Services; Crude Oil Pipelines & Services; Natural Gas Pipelines & Services; and Petrochemical & Refined Products Services.

On Monday, April 8, the company increased its quarterly dividend by 0.57% to 43.75¢ per share. The dividend is payable on May 13 to shareholders of record at the close of business on April 30.

Holly Energy Partners (HEP)

HEP provides petroleum product and crude oil services to the petroleum industry. The company owns and operates petroleum product and crude pipelines, storage tanks, distribution terminals, and loading rack facilities in Texas, New Mexico, Arizona, Washington, Idaho, Oklahoma, Utah, Nevada, Wyoming, and Kansas. HEP was founded in 2004 and is based in Dallas, Texas.

On Thursday, April 18, HEP increased its quarterly dividend to 67¢ per share, an increase of 0.37%. HEP will trade ex-dividend on April 26. The dividend is payable on May 14, to shareholders of record on April 29.

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, CE, ATR, and SON.

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).

CE'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 CE in January 2009 would have returned 24% on an annualized basis (with dividends included).

ATR'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 ATR in January 2009 would have returned 12.5% on an annualized basis (with dividends included).

SON'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 SON in January 2009 would have returned 11.9% 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.

Summary of Upcoming Ex-Dividend Dates: April 16-29, 2019

Company

Ticker

Yield

RecentPrice

Yrs

5-YrDGR

NextDiv.

Ex-DivDate

PayableDate

Bank of New York Mellon

BK

2.31%

$48.41

8

12.40%

$1.12

04/26

05/10

Bemis

BMS

2.31%

$55.40

36

3.60%

$1.28

04/26

05/06

First Busey

BUSE

3.33%

$25.25

6

10.80%

$0.84

04/17

04/26

Caterpillar

CAT

2.40%

$143.36

25

7.00%

$3.44

04/18

05/20

Cracker Barrel Old Country Store

CBRL

3.22%

$155.14

16

14.40%

$5.00

04/17

05/06

Celanese

CE

2.36%

$105.19

9

31.70%

$2.48

04/26

05/09

Colgate-Palmolive

CL

2.48%

$69.35

56

4.50%

$1.72

04/17

05/15

Clorox

CLX

2.50%

$153.48

41

6.60%

$3.84

04/23

05/10

Fastenal

FAST

2.42%

$71.08

20

14.00%

$1.72

04/23

05/22

Foot Locker

FL

2.46%

$61.82

9

11.50%

$1.52

04/17

05/03

H.B. Fuller

FUL

1.26%

$50.75

49

9.80%

$0.64

04/17

05/02

Greenbrier

GBX

2.85%

$35.04

5

N/A

$1.00

04/23

05/15

Hope Bancorp

HOPE

4.13%

$13.56

7

16.70%

$0.56

04/25

05/10

Hospitality Properties Trust

HPT

8.20%

$26.35

7

2.20%

$2.16

04/26

05/16

Lakeland Financial

LKFN

2.54%

$47.16

7

15.20%

$1.20

04/24

05/06

Lowe's

LOW

1.69%

$113.74

56

21.20%

$1.92

04/23

05/08

Main Street Capital

MAIN

6.28%

$38.24

9

4.30%

$2.40

04/17

05/15

Oxford Industries

OXM

1.83%

$81.07

8

13.30%

$1.48

04/17

05/03

Procter & Gamble

PG

2.81%

$106.05

62

3.70%

$2.98

04/17

05/15

Pentair

PNR

1.88%

$38.22

43

1.80%

$0.72

04/17

05/03

Unum

UNM

2.84%

$36.58

10

12.20%

$1.04

04/26

05/17

WD-40

WDFC

1.48%

$165.01

10

11.70%

$2.44

04/17

04/30

Williams-Sonoma

WSM

3.35%

$57.31

14

7.90%

$1.92

04/25

05/31

Thanks for reading and happy investing!

Disclosure: I am/we are long PG, TRV. 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.